Digital signage for promoting price discounts: First insights into customer spending on distant and nearby discounted products

Abstract

Retailers are increasingly using digital signage to promote price discounts. Our research explores a crucial question: Does displaying price discounts on digital screens, in addition to traditional displays, influence customer spending on discounted products? Through two field experiments in grocery stores involving 7,009 customers, we found that promoting price discounts on digital screens has a significant impact on the sales of discounted products located farther from digital screens (i.e., products outside the department in which the screens are located). However, promoting discounted products near screens (i.e., products in the department) do not have a significant effect on sales. Retailers should consider promoting discounted products on digital screens while considering the product's distance from the screen. For products near screens, traditional printed displays might be sufficient to drive sales. This unique insight can guide retailers and brand manufacturers in optimizing their in-store marketing strategies. Our study offers a valuable starting point for future research on the effects of digital signage on retail sales.