Title: Technology and Consumers’ Experiences in Fashion Physical Stores: The Case of Sweden Level: Master Thesis in Business Administration Author: Meron Kebede Abebaw; Willard Kingstone Matukuta Supervisor: Agneta Sundström, PhD Examiner: Maria Fregidou-Malama, PhD Date: May, 2018  Aim: The aim of this study is to analyze whether in-store digital technology in fashion retailers are used to change the customers’ shopping experience and behavior. Method: This study chooses qualitative research and used both primary and secondary data collection as method. Results and conclusions: This study have reached to conclude that: with the current advances in technology, physical stores can use in-store technology to give customers a new experience; physical stores perceive that using in-store digital technology will change customers shopping experience. Also, marketing mix inputs and technology affect customers’ behavior. Suggestions for future research: For future research, how smart fitting rooms may influence the customer experience in the physical store will be important to study. Researchers can also consider understanding customer responses to in-store technology. Finally, a customer’s perspective to both suggestions should improve the knowledge on whether digital solutions are preferred in in-store shopping or not. Contributions of the thesis: This thesis contributes to the current state of theories on in-store technology by showing atmosphere has effect on customers’ experiences and behavior in addition to the marketing mix. On the managerial perspective, analyzing the installation of this technology will enable to identify its effect on customers’ experiences and behavior. In addition, on the societal perspective, the behavior of customers will help in motivating younger generation to utilize this in-store technology.

With an ongoing development in technology, retailers faces new challenges in terms of higher customer expectations. To meet these expectations, retail companies can use in-store technology to enhance the shopping experience and to create more value. This study aims to provide an understanding of in-store technology and how retailers can work with these tools in order to create customer value and improve the customer experience. The purpose of this study will be to investigate the Swedish market and see how Swedish retail companies work with in-store technology.   In this context, the following research questions were formed: (1) How do retail managers use in-store technology to create value for the customers? and (2) How do in-store technology affect frontline employees within retail? In order to answer these questions, a qualitative method was used, where five different retail companies were interviewed, which all have implemented in-store technology. Before the empirical gathering, we chose to keep the companies and the respondents anonymous in order for us to reduce the risk for complications later on in the thesis. This study aims to provide theory and to get an understanding of in-store technology and how companies can use it to develop their business. A conceptual framework was made to clarify which concepts that was used in order to answer these questions. These concepts were in-store technology, customer value creation, convenience, frontline employees, customer engagement and improved customer experience.   The empirical findings generated theory in which the authors developed two models: (1) The value dynamics, which describe how in-store technology and the interplay between managers, frontline employees, and customers generate value to each other. (2) A three step model where the authors have several suggestions of what retail companies should think of when they implement new technology.  The results of this study conclude how retail companies can use in-store technology in order to create customer value to improve the customer experience. In-store technology has created more value for the customer in terms of a more convenient shopping experience, and in-store technology provides the customer with more information which makes the shopping experience more independent as well. In-store technology has also contributed, in some extent, to a better working environment for frontline employees.