일시 : 2023년 3월 24일 (금), 10:30 - 11:30
장소 : 공학 4동 302호
강의명 : Hate Pollution but Love to Shop?
On the Effects of Air Pollution and Promotions on Online and Offline Retail Sales
연사 : 정재훈 부장 (CJ 미래경영연구원)
Abstract
When the air quality is expected to be bad, it is common for people to wear antiair pollution masks to protect themselves or systematically restrict their outdoor activities. While this avoidance behavior is beneficial for the customers, it is unclear how deteriorating air quality may affect their other economic activities. In this paper, we focus on the retail sector that is prone to such disruptions. We study how diminished air quality affects the substitutive relationship between offline and online sales associated with a cosmetics retailer located in South Korea.
We specifically test how air pollution may affect the actual demand that manifests during these promotion days across the offline and online channels. Interestingly, polluted air boosts online sales and online promotion effectiveness. Unexpectedly, air pollution is unlikely to hurt the offline sales, and even increase offline sales and offline promotion effectiveness. We also find a notion of the inverted-U shaped reaction to the seriousness of polluted air consistently in offline sales. These show the combined effect of channel substitution and recreational shopping.