Modeling customer value perceptions in cross-cultural business markets

Even as customer value research in business-to-business markets burgeons, scholars still circumscribe its progress to studies performed in domestic, Western markets and call attention to the ongoing lack of consensus for how to model customer value. To advance the validity and usefulness of this emerging core construct in marketing, this study investigates the measurement equivalence and modeling of customer value perceptions with business managers across five culturally-diverse countries. Analyses draw clarity to the divergent modeling of customer value in the literature by exploring alternative measures and model specifications within structural equations modeling (SEM) and partial least squares (PLS). Comparisons of eight models reveal several valid and invalid conceptualizations reported previously in the literature and generate guidance for managers and scholars modeling customer value in various research contexts.     

Service quality dimensions and superior customer perceived value in retail banks: An empirical study on Mexican consumers

This study concerns the service quality topic in the retail bank sector. A sample of 209 retail bank clients was taken, measuring the performance of service quality attributes of their principle retail bank. Behavioral performance variables such as satisfaction, loyalty and customer perceived value were also measured. In a factor analyses the attributes were separated into three factors. These three independent factors explain a considerable amount of variability of a satisfaction–loyalty factor. On the other hand, they could not explain the superior perceived value; and no differences between the service quality performances of the bank brands were found. In conclusion, regardless of the degree of satisfaction and loyalty, the customer is not willing to pay more for banking services at his regular bank than he would at other brands. This implies that superior perceived value is not being achieved via service quality, which suggests a lack of differentiation between brands in this sector.     

From customer experience to human experience: Uses of systematized and non-systematized knowledge

The conceptual framework proposed herein reveals how firms might establish a human experience focus, using both systematized and non-systematized knowledge to identify points of pain and gain. Such efforts align with the critical need for firms to develop their approaches to the customer experience, by moving beyond addressing how customers respond to their offerings and toward thinking about the human experience of how firms respond to customers’ ambitions, beliefs, values, and feelings to interact in the manner customers prefer. To create a human experience, firms must manage it in relation to touchpoints, personalization, operations, and company culture, using systematized knowledge to monitor the experience, identify problems, and make improvements, together with non-systematized knowledge to innovate in relation to the experience.     

Sustainable growth for the self-employed in the retail industry based on customer equity,customer satisfaction,and loyalty

In Korea, traditional retail districts face a serious situation whereby businesses in downtown areas face collapsing as local population declines: resulting in a decrease in self-employed sales and a declining local economy. Traditional retailers use ambiguous accounting and are reluctant to use credit cards, and thus, the overall reliability of their customer data is low. This paper solves this problem by applying the concept of customer equity (CE). We conducted an empirical analysis through questionnaires to identify differences in CE between traditional and new retail formats. The questionnaire consisted of questions related to CE (value equity, brand equity, relation equity), satisfaction, loyalty, and demographic characteristics. CE and satisfaction were measured on a 5-point Likert scale. A total of 400 surveys were completed, resulting in 391 usable returns for analysis in this study. In the regression analysis between CE and customer satisfaction, both old and new retail firms showed statistically significant effects. In the traditional retail industry, value equity and brand equity were statistically significant, while relation equity were not.     

Understanding the usability of retail fashion brand chatbots: Evidence from customer expectations and experiences

The existing literature suggests that chatbots tend to provide automated and generic responses that may not fully address complex customer inquiries, particularly when additional guidance is required. To improve the usability of retail fashion brands, this study examines how socially constructed experiences and expectations influence customer interactions. Data was collected from various sources, including online reviews, semi-structured interviews, and focus group discussions, to enhance the credibility of the results. The research reveals that individuals in the retail industry demand a broader variety of fashion products and more sophisticated capabilities to bolster the reminiscence of their shopping experiences. Retail fashion chatbots hold potential in recommending items that align with customers' preferences and goals, yet it is crucial for developers and brand managers to address numerous usability challenges and provide multilingual assistance to boost user engagement. Moreover, optimizing fashion retail chatbots is vital to reduce battery consumption, curtail instances of conversation window freezing, and hasten response times. This study provides a novel research framework that offers valuable insights on how to enhance the retail customer experience by improving interactivity, compatibility, credibility, and other factors that promote the use and adoption of retail fashion chatbots.     

Moving from customer lifetime value to customer equity

We study the consequence of moving from Customer Lifetime Value maximization to Customer Equity maximization. Customer equity has traditionally been seen as the discounted sum of the lifetime earnings from all current and future customers and thus it has been largely assumed that maximizing customer lifetime value would lead to maximum customer equity. We show that the transition from CLV to CE is not that straightforward. Although the CLV model is appropriate for managing a single non-replaceable customer, the application of a CLV model to the acquisition and valuation of customers as an ongoing concern for the firm leads to sub-optimal customer relationship management and acquisition strategies. This leads the firm following a CLV maximization approach to have a smaller and less profitable customer base than one that follows a CE maximization strategy.

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Making customer relationship decisions: Analytics v rules of thumb

This article explores how customer management decisions are made in the leading Nordic retail banks and whether these decisions are driven by mainstream analytical approaches to customer lifetime value available through the banks' CRM systems, or by rule of thumb heuristics. The results indicate that the use of managerial heuristics is surprisingly widespread and, counter-intuitively, that rule of thumb heuristic-based decision making frequently outweighs measures such as customer lifetime value with regard to customer management decisions. The implications are considerable because if successful banks are making widespread use of heuristics, managers and academics would benefit from understanding the conditions under which heuristic decision making can be more successful than an analytic approach. This understanding, in turn, may highlight a limitation of CRM systems and point to a more flexible approach to customer management decisions in which experience-based managerial heuristics modify data from formal CRM systems.     

Photo-elicitation: Using photographs to read retail interiors through consumers' eyes

Researchers studying experiences in retail environments have typically focused their attention towards positivistically examining the influence of individual atmospheric variables upon customer behavior. In this respect photographs are common environmental simulation techniques. This approach concerns not only researchers active in consumer culture, but also interior architects and retail designers, working in a disciplinary tradition that maintains that interiors function as “Gestalt” environments, interacting with their users. In this paper, the authors aim to develop understanding of retail environments as sites of complex sensory experiences and the application of photo-elicitation as an interpretive research methodology concerning experiences in retail environments. The paper discusses the results of two exploratory studies within selected retail environments, and demonstrates the value of photo-elicitation in gaining insight into experiences in retail interiors. Photo-elicitation thus contributes new knowledge of the retail environment, and adds value to positivistic research approaches that have predominated in this field.     

Price fairness perceptions and customer loyalty in a retail context

Loyalty and fairness are major research topics in the marketing literature. However, research examining how customer loyalty and fairness perceptions affect each other is lacking. This study examines these two topics in the context of a retailer increasing its prices, develops hypotheses, and tests these hypotheses using an experimental design approach. Results indicate that loyalty has a positive effect on fairness perceptions when price increases are low, though no such effect is found when price increases are high. Also, justifiable reasons for price increases lead to increased fairness perceptions when price increases are low, but any reason offered when price increases are high increases fairness perceptions. Whether distributive or procedural fairness influences post customer loyalty in the presence of price increases is dependent on both the level of the price increase and the reason offered for the price increase. This research provides implications for retailers and directions for future research.     

The customer retail app experience: Implications for customer loyalty

Retailer mobile applications are one of the principal retail purchase and information search channels. Customer experience is key to retail app success. However, its dimensions and impact on retailer performance have been the subject of only a limited number of studies. This research builds on existing customer retail app experience literature by considering four dimensions as precursors of satisfaction with the retailers’ app and customer loyalty (cognitive, affective, relational and sensorial). Data were collected from a sample of 545 retailer app users and analysed using PLS-SEM. The results demonstrate that the affective dimension has the most influence and they highlight the importance of the sensory experience, which even surpasses the cognitive experience. The effect of the relational dimension on customer satisfaction, meanwhile, could not be positively confirmed. Analysis of the moderating effect of gender, age and device type used identifies effects that have not, until now, been demonstrated in current literature.     

The influence of customer loyalty program design on the relationship between customer motives and value perception

Despite the strong use in marketing practice, the effectiveness of loyalty programs is still heavily questioned among researchers. In our study we present an empirically tested framework that views customer loyalty programs (CLPs) with their differing designs as a moderating tool in a means-end relationship between customer motives and value. By disentangling customer value perceptions of loyalty programs we contribute to the remaining question of the efficacy of CLPs and set the road for further research. Our results support the argument that CLPs can be an effective tool and are not only something that adds to the value of a product or service, but rather creates value by itself. However, this is only the case for programs that target prevailing customer motives and hence provide a higher level of perceived value.     

Personalization and hedonic motivation in creating customer experiences and loyalty in omnichannel retail

This study examines the effects of personalization and hedonic motivation on customer experience and its loyalty outcomes in omnichannel retail context. The study develops eight hypotheses which are tested using two survey samples (Finland (n = 2084) and Sweden (n = 2334). In addition, empirical analysis includes 20 semi-structured interviews. The findings support all the hypotheses confirming the positive relationships personalization and hedonic motivation have on cognitive and emotional customer experience components. Further, the positive effects of customer experience on loyalty are confirmed. The results provide both theoretical and managerial insights for improved CX and customer loyalty.     

Strategies for creating value through individual and collective customer experiences

Despite tremendous interest in how online communities create value, existing research tends to focus on limited means through which such value is generated. In this article, we develop a conceptual model of customer value formation. This model rests on two dimensions, namely whether value is formed in the customer or provider domain and whether the value is individual or collective in nature. This enables value formation to be characterized in four ways and enables a more nuanced view of value formation to emerge. Firms are encouraged to reflect on their efforts to support each of the four value formation types. In particular, our conceptualization challenges companies to consider customer contexts outside of customer-firm interaction as important sources of value creation for customers. Such reflection enables practitioners to develop strategies for supporting individual and collective value creation across both the customer and provider domains.     

Consumers' value perceptions across retail outlets: shopping at mass merchandisers and department stores

Today value is considered a key hallmark of US shoppers. Although research has examined consumer perceived value (CPV) in the context of shopping in general, this study provides specifics about CPV in the context of consumers’ shopping experiences in two dominant retail outlets – mass merchandisers and department stores – where value provision and value seeking may be shifting. Using Dewey's (1939 Dewey, J. 1939. Theory of valuation. InInternational encyclopedia of Unified Science, Edited by: Neurath, O., Carnap, and, R. and Morris, C. Vol. 2: Chicago: The University of Chicago Press.  [Google Scholar]. Theory of valuation. In International encyclopedia of Unified Science, ed.O. Neurath, R. Carnap, and C. Morris, Vol. 2, 1–67. Chicago: The University of Chicago Press.) value theory as a framework and conducting both qualitative and quantitative analyses, the research identified, validated, and tested nine value dimensions sought by consumers when shopping in mass merchandisers and department stores: acquisition, transaction, efficiency, choice, exploration, esthetic, self-gratification, social interaction, and social status value. The study findings suggested that mass merchandisers may want to be careful in moving too far from their historic value proposition of low price and convenient shopping, while department stores may want to improve their provision of the exchange values currently so important to consumers, while finding new, creative ways to provide their historic value offerings of service and entertainment.     

Investigating the service brand: A customer value perspective

Despite considerable interest in the nature and role of marketing using a service perspective [Vargo S., Lusch R. Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1-17] there is limited research about branding. Research to date tends to be qualitative [e.g., Berry L. Cultivating service brand equity. J Acad Mark Sci 2000; 28: 128-137; de Chernatony L., Segal-Horn S. The criteria for successful services brands. Eur J Mark 2003; 37 (7/8): 1095-1118] rather than quantitative. This research closes this gap by developing and testing a theory of the influence of the service brand on the customer value-loyalty process. The model includes the traditional influence of brand image plus three additional influences that more fully reflect the broader service perspective (company image, employee trust, and company trust). Using survey data of a sample of 552 airline customers, the analysis shows there is a direct influence of all the aspects of the brand on customers' perceptions of value. In addition brand image, company image and employee trust have a mediated influence on customer value through customers' perceptions of service quality. Finally the analysis shows that a service brand does not have a direct influence on customer loyalty but rather its influence is mediated through customer value. This paper concludes with a discussion of the managerial and research implications.     

Measuring customer aggression: Scale development and validation

Despite increasing levels of customer aggression being identified within the retail and services sector, no comprehensive tool has been developed to measure such behaviour, thus limiting empirical examinations of this phenomenon. Five studies were undertaken, comprising a student survey, a Delphi-style expert panel review and three retail worker surveys. The results identify a four-factor, 19-item Customer Aggression scale. The nomological validity of the scale was established by demonstrating the impact of customer aggression on employee emotional exhaustion, job stress, organisational deviance and intention to leave. This research contributes a parsimonious, reliable and valid scale to measure such behaviours, facilitating further scientific inquiry.     

Investigating customer value in global business markets: Commentary essay

This commentary reflects on Blocker's cross-cultural investigation of relationship value in business markets, published in this issue, and identifies several research avenues. From a theoretical point of view, researchers should develop and test hypotheses grounded in both conceptual frameworks and extant literature to expand knowledge of how national cultures-as well as other country-specific variables-affect customer value perceptions in business markets. From a methodological point of view, ongoing research should establish cross-cultural measurement equivalence on the basis of procedures specifically designed to support formative customer value models. Finally, this commentary highlights several key insights related to models of customer value in international business markets.     

Qualitative analysis of customer behavior in the retail industry during the COVID-19 pandemic: A word-cloud and sentiment analysis approach

The COVID-19 pandemic caused a paradigm shift in customer behavior within the retail industry. Pandemic-induced restrictions and fear of product scarcity led to a change in purchasing frequency, with customers stockpiling non-perishable products such as basic foods and hygiene items. Media and social networks also played a significant role in fueling panic-buying behavior. Although sales decreased, consumption in all food categories increased due to the closure of restaurants and the need to prepare meals at home. The pandemic had a significant impact on both customers and retailers, resulting in staff reductions and a change in business strategies.To explore how Romanian food retailers’ representatives responded to the COVID-19 pandemic and adjusted to changing consumer behavior, the authors employed a qualitative research approach based on an interview guide. The data collected were analyzed using the statistical software R. In data analysis with R, the choice of functions used depends on various factors, such as the type of data, research questions, and analysis methods. Generally, commonly used functions in R for data analysis include data cleaning and manipulation functions such as subset, merge, and transform, data visualization functions such as ggplot2, and statistical modeling functions such as lm and glm, resulting in world clouds and a sentiment analysis.The results show that to develop effective business strategies, qualitative analysis helps identify the root causes of these changes. Sentiment analysis can reveal how retail chains representatives perceived the safety measures implemented in stores, such as social distancing and mask-wearing mandates, and how these measures affected customers’ shopping behavior. It also sheds light on how customers shopped and whether they planned to continue using these methods post-pandemic. Understanding these insights is crucial for retail companies to adapt their operations and better serve their customers in the post-pandemic world.     

Drivers of customer satisfaction in the grocery retail industry: A longitudinal analysis across store formats

The design of satisfactory shopping experiences remains one of the main challenges for building long-term profitability in modern retailing. Therefore, companies are interested in identifying the key drivers of the service execution that shape customer shopping satisfaction. In this study, we developed a standardized questionnaire for evaluating the shopping experience, and conducted a large study in several grocery stores across different formats during a time span of five years. The resulting rich dataset enabled us to uncover interesting patterns using both individual and store-level analyses. Our results indicate that larger store formats are associated with greater satisfaction levels. When looking at the marginal effects of the various elements of customer service, we found that some specific elements of service execution present significant differences across store formats. In addition, we identified loss aversion on shopping experience, since poor performance impacts more on customer satisfaction than superior performance. Finally, our store-level analysis sheds light on how changes in the service performance determine changes in the shopping experience in the same store. These implied results may guide store and chain managers to evaluate the role of the store execution elements better, and to design the customer shopping experience successfully.     

Virtual reality through the customer journey: Framework and propositions

While virtual reality's importance is increasingly recognized in marketing, its role in the customer journey remains nebulous. We define virtual reality through the customer journey (VRCJ) as firms' use of computer-mediated interactive environments capable of offering sensory feedback to engage consumers, strengthen consumer/brand relationships, and drive desired consumer behaviors at any stage of their journey. To better understand VRCJ, we classify VR archetypes, formats, and content features, followed by the development of a conceptual framework and an associated set of propositions of VRCJ. We conclude by discussing important theoretical and practical implications that arise from our analyses.