The phygital transformation: a systematic review and a research agenda

Abstract

The label “phygital” (physical plus digital) has been proposed to describe how companies try to engage customers due to the exploitation of smart technologies. Although used mainly by practitioners, research into phygital’s theoretical development is lacking. We conduct a systematic literature review to obtain an overall vision of the phenomenon and to understand how the scientific debate uses the term. The in-depth analysis allows for the identification of four main aspects: (1) objects and applications, (2) context (space/place), (3) customer journey, and (4) shopping (retail) experience. Using the antecedents, decisions, and outcomes model, we offer an interpretation of the phenomenon in a more comprehensive framework. The development and use of physical and digital objects and applications (i.e., phygital resources) in a phygital context (i.e., spaces and places) affect the customer journey in a phygital manner to enable the development of new forms of phygital experience. We suggest specific research avenues to develop the phygital construct.

The impact of AI-powered technologies on aesthetic, cognitive and affective experience dimensions: a connected store experiment

“…There is a lack of research on smart in-store technologies in connected stores, despite their significant impact on the ‘phygital customer journey' (Batat, 2022). It is crucial for researchers and retailers to develop a comprehensive understanding of consumer attitudes towards the specific applications of smart in-store technologies, particularly AI-based technologies, within the retail sector (Mele et al ., 2023). Given the opportunities offered by the integration of this new technology in physical stores and relying on the fact that “retailing has always taken advantage of technology” (Hopping, 2000, p. 63), retailers are increasingly equipping and positioning themselves with digitalized technologies to enrich the shopping experience (Bèzes, 2019).…”

Phygital luxury experiences. A correspondence analysis on retail technologies

“…A new set of hybrid consumption experiences is flourishing, which is neither purely physical nor purely digital, but a convergence of characteristics into a phygital holistic ecosystem (Batat, 2019;Castelli, 2016). The concept of phygital has been proposed to depict the 'symbiosis of physical space and virtual space' (Ballina et al, 2019, p. 658) at the same point of sale (Belghiti et al, 2018), thus the phygital customer journey is characterized by processes by which technological advances dissolve the distinction between reality and virtuality (Mele et al, 2023).…”

“…Although the phygital experiential setting is argued to be a major challenge for luxury companies in the years ahead (Batat, 2019), only a few studies have empirically addressed the effectiveness of technological applications in luxury retail store environments (Lawry, 2021(Lawry, , 2023Pantano et al, 2018) and investigated shoppers' attitudes towards a phygital shopping experience (Mele et al, 2023). Luxury brands still need to understand what brings value to consumers, to create continuous, coherent and satisfying phygital luxury experiences (Lawry, 2023).…”

Phygital approach to value co-creation in international museums

“…The concept of phygitality has also been proposed as a new form of hybrid consumer experience (Klaus, 2021) and the immersive technologies and technological solutions already mentioned are just some of the digital applications that enable this transformation (Mele et al, 2023). However, the term phygital itself offers various interpretations and this diversity highlights the many opportunities it can offer for organizations that choose to apply it.…”