<p>Offline retailers urgently need new ways to stimulate in-store consumption in response to growing challenges from online competitors. We introduce a mood-dual-pathway framework, proposing that air pollution impairs consumer mood, which in turn shapes behavior via two distinct routes: altering store-visit decisions (affecting traffic) and changing in-store cognitive processing (moderating promotion responsiveness). Using two years of daily sales, traffic, and promotion data from a Shanghai department store paired with air quality records, we find that (1) poor air quality weakens the sales impact of price promotions, (2) this negative moderating effect occurs only on workdays and varies by product category, and (3) on workdays, store traffic fully mediates a positive link between poor air quality and sales. The results offer actionable insights for optimizing promotion and traffic management by incorporating air quality information into retailers’ operational decisions.</p>

错误:搜索内容不能为空,请输入英文关键词
错误:关键词超出字数限制,请精简
高级检索

How air quality shapes offline consumption: evidence from price promotion and store traffic

  • Li Wang,
  • Min Jiang

摘要

Offline retailers urgently need new ways to stimulate in-store consumption in response to growing challenges from online competitors. We introduce a mood-dual-pathway framework, proposing that air pollution impairs consumer mood, which in turn shapes behavior via two distinct routes: altering store-visit decisions (affecting traffic) and changing in-store cognitive processing (moderating promotion responsiveness). Using two years of daily sales, traffic, and promotion data from a Shanghai department store paired with air quality records, we find that (1) poor air quality weakens the sales impact of price promotions, (2) this negative moderating effect occurs only on workdays and varies by product category, and (3) on workdays, store traffic fully mediates a positive link between poor air quality and sales. The results offer actionable insights for optimizing promotion and traffic management by incorporating air quality information into retailers’ operational decisions.