The Effect of Social Interaction on Economic Transactions: Evidence from Changes in Two Retail Formats
Avi Goldfarb, Ryan C. McDevitt, Sampsa Samila, Brian S. Silverman
Management Science · 2015 · Volume 61 · Issue 12
Abstract
Examining changes in two different retail formats, we show that consumers alter their purchases depending on the retail environment. In both settings, the change in behavior coincides with a reduction in the interpersonal interaction required to complete a transaction. As such, we contend that the format changes reduced a “social friction” that would otherwise inhibit consumers due to an implicit cost associated with ordering certain items in social settings. This paper was accepted by Pradeep Chintagunta, marketing .
Keywords
social cues, consumer choice, retail, social frictions
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