Exploring customers’ store loyalty using the means-end chain approach

The study is aimed at revealing the relationships in terms of customer store loyalty by using means-end chains (MEC) analysis, in order to examine the linkages between department stores’ service attributes, involvement, satisfaction and loyalty each of which the customer regards as important. In the study, customer involvement, satisfaction and service quality are connotations that are strongly linked with the customer store loyalty, with service quality being the element to which the platinum tier customers attach the most importance. Data are gathered for a MEC analysis by interviewing 34 platinum tier customers of department stores individually. The results reveal that platinum tier customers are department store customers with a relatively high degree of involvement which is likely to have a positive impact on both core and peripheral service quality, satisfaction toward store loyalty. Although there are numerous studies in the literature that use the means-end chain model to examine customer value within the realm of consumer behavior, few studies discuss platinum tier customers’ store loyalty which is a phenomenon currently receiving a great deal of interest. In contrast to prior research, three connotations are integrated in the study to represent the content and structure of stores’ loyalty attributes for MEC analysis which can offer a different perspective and better understanding for developing highly targeted marketing strategies.     

Supermarket self-checkout service quality,customer satisfaction,and loyalty: Empirical evidence from an emerging market

Supermarket shoppers around the world are increasingly encountering and using self-service technologies (SSTs) during their shopping process. The SSTs are mainly offered to reduce retailer costs and enhance customer's experience. Among the many different SSTs available, self-checkout systems (SCS) have become an extremely popular choice of supermarkets around the world. Although some of the main motivations of the supermarkets for offering SCSs are cost cutting, speed, and convenience, supermarkets are also assuming that these services would enhance customer experience, satisfaction, and ultimately loyalty. However, empirical evidence is needed to better understand customer expectations of SCS service quality and how technology based service quality impacts retail patronage. Therefore, the purpose of this research is to examine the service quality of supermarket/grocery store SCSs and its impact on customer satisfaction and loyalty in an emerging market, namely Turkey. Using the SSTQUAL scale (Lin and Hsieh, 2011), data (n=275) for the study is collected from shoppers who had just completed going through the self-checkout counter in a large supermarket chain. The results of this study show that SCS service quality positively influences loyalty through the customer satisfaction path. Managerial and research implications of the findings are discussed.     

Cross-selling across stores or within a store? Impacts of cross-buying behavior in online shopping malls

Abstract

This study investigates the impacts of cross-buying behavior in an online shopping mall where customers can purchase from additional product categories from various independent stores. We focus on the extent to which store loyalty and relationship duration moderate the cross-buying effects on three behavioral traits: customers’ purchase rate, lifetime duration, and spending. The results reveal that customers who engage in cross-buying more intensely purchase more frequently, have longer expected lifetime duration, and spend higher amounts in each transaction. The impacts on purchase frequency and customer retention are even greater for customers who exhibit higher behavioral loyalty toward some stores. However, store loyalty is found to weaken the association between cross-buying and average spending. Further, relationship duration appears to weaken the effects of cross-buying on purchase rate and spending. These results provide new insights into the impacts of cross-buying on customer value as well as managerial implications for shopping mall owners.     

When nature calls: The role of customer toilets in retail stores

The scarce previous literature indicates that the customer toilet facilities influence shopping value and should be a concern for retailers. However, customer toilets are often inadequately capitalised in retail stores. This study aims to provide a scientifically robust argument about the critical role of customer toilets in retail stores. The explanatory survey data (n=655) from a Finnish out-of-town department store is examined to explore (1) the importance that consumers place on the customer toilets and (2) the effect of toilet usage on actual shopping behaviour. The results support the assumptions of previous literature by suggesting that customer toilets are considered as an important store attribute and, more importantly, the use of toilets is associated with prolonged in-store time which, in turn, increases spending. The findings offer both academic and managerial contribution and encourage academics and practitioners to regard customer toilets as more than mere an unwanted property expense and discover their full marketing potential.     

Store and store format loyalty measures based on budget allocation

In highly competitive environments, such as retail markets, characterized by a growing heterogeneity of demand and the proliferation of new retail formats, cross-shopping behavior between stores and formats is becoming increasingly common. This process makes customer loyalty a key strategic challenge for retailers that want to consolidate their position within the market. To contribute to the analysis and comprehension of this reality, the authors propose and assess different objective indicators of store loyalty, store format loyalty, and intra-format store loyalty based on budget allocation. Specifically, they analyze the role of retail format in observable loyalty patterns in a market. Through an empirical analysis of grocery purchase patterns of a sample of 580 Spanish households, the authors find that diverse objective loyalty indicators based on budget allocations provide very similar information from a practical point of view. They also find that consumers' regular use of various formats (specifically, supermarkets, hypermarkets, and discount stores) for their purchases explain observed disloyalty better than does purchasing in several stores within these formats. The observed patterns reveal that retail formats define differentiated store profiles that relate to the benefits sought in different purchase situations.     

The effects of loyalty programs on customer lifetime duration and share of wallet

In the retailing sector, consumers typically patronize multiple outlets, which confronts these outlets with an important issue: determining how to gain a greater part of consumer expenditures. One potential avenue is to increase consumer lifetime duration and repeat purchases through loyalty cards. This research, using BehaviorScan single-source panel data, examines the impact of loyalty programs on customer lifetime duration in grocery stores. The findings suggest that loyalty schemes have positive effects on customer lifetimes and share of consumer expenditures. However, multiple loyalty card memberships of geographically close retailers reduce lifetime duration. Furthermore, the higher the share of consumer expenditures in a store, the longer the lifetime duration will be.     

Store loyalty: its impact on retail revenue. An empirical study of purchasing behaviour in the UK

In this paper, we present some significant empirical findings about store loyalty and consumer spending in the United Kingdom across five retail sectors. Our findings are presented at two levels: Firstly, we compared loyalty levels across retail sectors in the UK and identified that home improvement stores generate the lowest levels of consumer loyalty. Secondly, by disaggregating the data by loyalty types, we found that, while loyal shoppers tend to have smaller monthly budgets than switchers, they spend double the amount in their “first choice” store. All our results highlight the importance of developing a corporate approach to managing customer loyalty in retailing.     

Building customer trust and loyalty: an empirical study in a retailing context

This paper integrates the seller's characteristics and the consumer's individual characteristics in testing the person-to-person and person-to-firm effects of trust on loyalty in the department store. A multidimensional model of the behavioural components of trustworthiness is used to examine their differential effects on consumer trust. The results reveal that the effects of behavioural components of trustworthiness on trust in salespersons and trust in department stores are different. Trust in salespersons contributes to the trust in the department stores they work for. In addition, although both trust in department stores and trust in salespersons are expected to enhance customer loyalty, person-to-person trust has stronger influence on loyalty than does person-to-firm trust. The findings also suggest that customers' individual characteristics should be considered in assessing the role of trust in business relationships other than sellers' characteristics.     

The impact of retail store format on the satisfaction-loyalty link: An empirical investigation

Maintaining and improving customer loyalty is an important strategic goal for businesses as competition has intensified in almost all sectors of the economy. Retailers, in particular, feel the need to invest in customer loyalty more than ever before as channels and store format alternatives available for consumers to shop at have proliferated. However, current research in marketing provides little guidance to retail managers about developing and sustaining shopper loyalty across different store formats. Toward filling this gap, the present research examines the shopper satisfaction-loyalty link in two different store formats (supermarkets and hypermarkets). Using data from surveys of 505 Spanish shoppers at both types of retail formats, we examined how shoppers' attitudinal and behavioral loyalty develop differently. Our results reveal important differences and offer directions for the pursuit of different strategies by supermarkets and hypermarkets. The specific strategies, and the implications of this research for theory and practice are discussed.     

Impacts of retail brand personality and self-congruity on store loyalty: The moderating role of gender

The present study was an effort to investigate the impacts of both retail brand personality and self-congruity, using them together in the same study, on store loyalty. Subsequently, this study explored the moderating role of gender in these relationships of retail brand personality and self-congruity with store loyalty. Questionnaire was used to collect data (n=355) using systematic sampling from department store shoppers of age 18 years and above in Kolkata, a metropolitan city of India. Multivariate data analysis techniques like exploratory factor analysis, structural equation modeling were used to analyse the data. Results revealed that both retail brand personality and self-congruity constructs have positive impacts on store loyalty and gender significantly moderates these impacts. Arguably, this paper is the first to examine the three constructs namely, retail brand personality, self-congruity and store loyalty using them together in the same model. Academic and managerial implications are further discussed.     

Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective

Although franchisee performance is likely to be influenced by franchisors’ management strategies, little is known about whether and how franchisors’ strategies affect franchisee employees’ performance. This study examines the combined effects of three franchisor management strategies, namely innovative culture, support services and autonomy on service performance of the franchisee store employees and the loyalty of their customers. Data were collected from a total of 38 employees and 679 customers of 25 franchisee stores. The study employs multilevel analysis on a nested data-set created by matching customer data with employee data for each store. The results reveal that customer loyalty of a franchisee store is positively influenced by the service performance of its employees and the support services received by the employees of the store from its franchisor. On the other hand, it has been found that franchisor management strategy such as innovative culture and autonomy negatively influence customer loyalty of the franchisee store. The paper discusses relevant theoretical and managerial implications of the findings.     

Emotional loyalty and share of wallet: A contingency approach

The purpose of this study is to investigate whether three demographic (age, income, and education) and two situational (relationship duration and product type) customer characteristics moderate the relationship between emotional loyalty and share of wallet. In so doing, this study explicitly examines the extent to which results diverge when using share of wallet versus conative loyalty (i.e., behavioral intentions) as the dependent measure. Data from a sample of US store shoppers (n=604) indicate that education, relationship duration, and product type moderate the effect of emotional loyalty on share of wallet but not on conative loyalty. Implications for retailers are discussed with suggestions for future research.     

The Influence of Store Image on Store Loyalty in Hong Kong's Quick Service Restaurant Industry

ABSTRACT

Studies considering links between store image and store loyalty, especially in an Asian context, are sparse. This article explores the relationship between store image and store loyalty in the Hong Kong fast-food industry. A survey of 200 users of fast-food restaurants revealed that functional attributes of store image are more accurate than psychological attributes when predicting the degree of store loyalty. Functional attributes of particular importance are waiting time for a seat, store environment and store location. However, some psychological attributes have an influence on store loyalty. Furthermore, the findings show that the more favorable the store image, the more likely consumers are to consume in a particular restaurant.     

How store attributes impact shoppers’ loyalty: do different national cultures follow the same loyalty building process?

This paper takes a first step toward verifying the robustness of a comprehensive loyalty building model across different national cultures, according to Hofstede’s distinction between individualist and collectivist countries. To this end, we test a two-stage model. After collecting data from 12 countries with different cultural traits, we test the two models in two macro groups: individualist and collectivist countries. The study’s results show that the intensity of some core loyalty model paths – particularly the relationships between store loyalty and its main drivers (perceived value and customer satisfaction) – are contingent on the country’s culture. In particular, the impact of customer satisfaction on store loyalty intention is greater in collectivist countries than in individualist countries. By contrast, the impact of perceived value on store loyalty is greater in individualist than in collectivist countries. Moreover, the cultural dimension moderates the impact of the stores’ environment and promotions on satisfaction. By contrast, some other paths show robustness to national culture.     

What are the Building Blocks of Customer Brand Loyalty in Department Stores? A Multi-Level Mediation Analysis

Building customer brand loyalty through branding strategies to sustain competitiveness in the retail industry has gathered momentum among researchers. The purpose of this study is to examine the role of brand personality and consumer brand identification on customer brand loyalty via the mediating variables of perceived service quality, perceived value, brand trust, brand commitment, and word-of-mouth communication among Malaysian department stores' customers. Using a self-structured questionnaire, 381 usable responses are considered for data analysis by applying a covariance-based structural equation modeling approach. The results of exploratory factor analysis show that sincerity, followed by sophistication and competence, are the most significant dimensions used to predict brand personality in department stores. The outcomes also reveal that brand personality indirectly influences customer brand loyalty via consumer brand identification. Furthermore, perceived service quality, perceived value, brand trust, word-of-mouth communication, and brand commitment mediate the effects of consumer brand identification on brand loyalty. Finally, the proposed competing model implies that the indirect impact of brand personality and consumer brand identification is inevitable in building department stores' brand loyalty.     

The Garden of the Self-Service Store

Abstract

As a result of the increased competition between self-service chains, retail managers to an increasing degree try to strengthen store identity and customer loyalty. Based on a broad range of consumer choice and environmental psychology theories, this article discusses a number of reasons why the fruit and vegetable department can be one of the keys to differentiating retail chains and creating positive store image. The article describes the results of two empirical studies (a focus group and a survey) which explore customer-perceived quality dimensions of the fruit and vegetable department and the extent to which these dimensions influence customer attitudes towards the fruit and vegetable department and store image in general.     

Influence of retail store environmental cues on consumer patronage behavior across different retail store formats: An empirical analysis of US Hispanic consumers

This study examined the influence of Hispanic consumers’ perceived importance of apparel retail store environmental cues and demographic characteristics (i.e., age and the number of years lived in the US) on their apparel store patronage behavior across various retail store formats. Three apparel retail store environmental cue dimensions were identified. Of the three dimensions, Customer Service appeared as a significant determinant in Hispanic consumers’ decision to shop at department stores, specialty stores, and mass merchant stores. Convenience was significantly, but negatively, related to the use of specialty stores. Physical Atmosphere appeared as significant determinants of Hispanic consumers’ use of Internet websites. The respondents’ shopping frequency at department stores, Internet websites, and catalogues was significantly different based on the respondents’ age and number of years lived in the US This study offers insights for apparel retailers in building effective retail store environments to attract Hispanic consumers.     

Retail service quality as a key activator of grocery store loyalty

This paper demonstrates the crucial role of retail service quality as a key activator in the formation of customer loyalty to the store; the latter is understood in a conative and action sense. Applying a modified version of the RSQS scale, a model is tested by administering a questionnaire to 450 customers in an under-investigated retail setting, i.e. supermarkets, within the Italian context. Structural equation modelling was employed. The results prove that customers consider retail service quality as a second-order dimension and recognize the main contribution of physical aspects and reliability first-order dimensions. Findings corroborate the crucial role played by perceived service quality and the mediating role of customer satisfaction and conative loyalty within the relationship between service quality and action loyalty.     

The Impact of a New Retail Brand In-Store Boutique and its Perceived Fit with the Parent Retail Brand on Store Performance and Customer Spending

With data from a specialty apparel retailer, we present two studies that investigate the impact of an in-store boutique displaying merchandise of a new retail brand on overall performance of the parent stores in which the boutiques are placed, and on customer spending on merchandise offered by each of the two brands. Findings from the two studies generally support that the in-store boutique enhances three key store-level metrics: average customer transaction value per store visit; comparable sales growth from one year to the next; and customer conversion ratio. At the customer-level both studies show that average customer transaction value on merchandise offered by the new brand is negatively related to average customer transaction value on the parent brand, and vice versa. Furthermore, both studies reveal that the relationship between the perceived fit between the two brands and average customer transaction value on the parent brand increases at an increasing rate (positive main and quadratic effects of perceived fit), but that the impact of perceived fit on average customer transaction value on the in-store boutique brand increases at a deceasing rate (positive main effect, but a negative quadratic effect of perceived fit). Implications for retail practice and theory are offered.     

Social interaction,convenience and customer satisfaction: The mediating effect of customer experience

The present study is an effort to investigate the impact of both convenience and social interaction on customer satisfaction and the mediating role of customer experience. A structured questionnaire was used to collect data (n=840) using systematic sampling from department store shoppers of age 18 years and above in India. Multivariate data analysis techniques like Exploratory Factor Analysis and Structural Equation Modeling were used to analyze the data. Results revealed that convenience and social interaction affect both customer experience and customer satisfaction. Arguably, this paper is the first to examine the four constructs namely, social interaction, convenience, customer satisfaction and customer experience using them together in the same model. Academic and managerial implications are further discussed.