Polygamous Store Loyalties: An Empirical Investigation |
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| Institution: | 1. School of Business, Pacific Lutheran University, United States;2. Indian School of Business, Hyderabad, India;3. Olin Business School, Washington University in St. Louis, United States;1. Graduate School of Business, Nazarbayev University, Astana 010000, Kazakhstan;2. Olin Business School, Washington University in St. Louis, St. Louis, MO 63130, USA;1. Insper Education and Research Institute, R. Quatá, 300, São Paulo, Brazil;2. Jones Graduate School of Business — Rice University, 6100 Main Street (MS 531), Houston, TX 77005, United States;1. Frankfurt School of Finance and Management, Sonnemann Strasse 9-11, 60314 Frankfurt am Main, Germany;2. Concordia University, 1455 De Maisonneuve Blv. W., Montreal, QC H3G 1M8, Canada;3. BVA Group, 52 rue Marcel Dassault, 92100 Boulogne-Billancourt, France;1. Culverhouse College of Business, University of Alabama, Alston Hall, Tuscaloosa, AL 35487, United States;2. Department of Marketing, Norwegian Business School (BI), Nydalsveien 37, 0484 Oslo, Norway;3. Wisconsin School of Business, University of Wisconsin-Madison, 5194 Grainger Hall, Madison, WI 53706, United States;1. School of Business, Eastern Illinois University, Charleston, IL 61920, USA;2. College of Business, City University of Hong Kong, Kowloon, Hong Kong |
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| Abstract: | Grocery store loyalty has been traditionally viewed as a trait of consumers toward a particular store for their overall shopping needs. In this study, we argue that store loyalty shall be regarded as category specific trait, that is, a consumer could be loyal to store A in category one while at the same time be loyal to store B in category two. We name this consumer behavior polygamous store loyalties.We use an in-home scanning panel dataset that tracks purchases of 1,321 households in 284 grocery categories across fourteen retail chains over a 53-week period in a large US market. First, we provide model free evidence of polygamous store loyalties in the data, even though the overall store loyalty based on the traditional view is low. Next, we propose a model to separate category specific effects from overall store level effects. Finally, we discuss how retailers can use the results to gain a new perspective on store attractiveness to improve overall store patronage. |
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| Keywords: | Store loyalty Polygamous store loyalties Store attractiveness Store-category attractiveness Multi-category analysis |
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