Impact of movie-watching on cross-selling revenue in shopping malls: Implications for post-pandemic recovery

Abstract

The COVID-19 pandemic has prompted consumers to postpone in-store purchases and shift to online shopping, decreasing overall retail spending. As the global lockdown eases and shoppers return to offline stores and malls, shopping malls seek to facilitate in-store consumer experiences at entertainment facilities. Given the importance of entertainment facilities to the cross-selling revenue of shopping malls, we investigate the relationship between consumers' movie-watching and subsequent (hedonistic) grocery purchases. Our analysis of a panel database that includes transaction details at the consumer level shows that movie-watching is negatively correlated with consumer spending. Furthermore, consumers' psychological states induced by content and contextual factors moderate the negative effect of movie-watching; after watching a fantasy (as compared to thriller) genre or watching a movie in a less crowded theater, consumers are more likely to make hedonic purchases at the su-permarket. These findings provide theoretical and managerial implications for retail operators exploring cross -selling opportunities post-pandemic.