Technological Diversification in Retail Agglomerations: Case Studies Alongside the Digital Marketing Mix

The degree to which technologies are spread across retailing, the so-called technological diversification, is mainly considered at the firm- or store level in the retailing and marketing literature. However, also physical clusters of business and service providers composed as retail agglomerations are increasingly capitalising on the advantages of digital services. In this chapter, we present and discuss selected examples of innovative digital technologies applied within retail agglomerations in order to illustrate how traditional retailing is evolving in the digital age. The case studies presented aim at providing students, academics as well as agglomeration managers and policy-makers with an overview of the current status quo of digital service innovations and their use in retail agglomerations. Learning Outcomes Retail agglomerations are predestined to capitalise on the combination of the strengths of traditional retailing and digital service innovations. Digital touchpoints can enhance the visitor experience throughout the whole customer journey, that is not only on-site but also before reaching as well as after having left the agglomeration. Digital service innovations can provide additional value to visitors of a retail agglomeration through four elements of the digital marketing mix: Information, orientation, communication and atmosphere. Technologies like augmented reality (AR) or virtual reality (VR) can create unique and memorable customer experiences, ensuring that retailers and service providers as well as the retail agglomeration as a whole continue to thrive. Key success factors for the implementation of digital services in the context of retail agglomerations include participative innovation processes, cooperation and the communication of clear benefits to stakeholders.