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.     

服务性企业社会责任与顾客忠诚影响机制研究

在社会认同理论的基础上,通过建立服务业企业社会责任与顾客忠诚的关系模型,研究发现企业社会责任对服务评价、消费者认同感有正面效应,服务评价、消费者认同感对顾客忠诚有正面效应,企业社会责任对顾客忠诚没有直接的作用,但通过服务评价、消费者认同感对顾客忠诚产生间接影响。     

A temporal analysis of behavioural brand loyalty among urban Chinese consumers

Abstract

Chinese marketing is evolving, and this is having a dramatic influence on the incomes and spending patterns of consumers. Set against these longer-run trends, the contribution of this paper is to examine the year-on-year persistence of brand purchasing and behavioural brand loyalty in packaged goods markets in China. Revealed preference data for two product categories (toothpaste and soy sauce) in two contrasting cities (Shanghai and Xi'an) are analysed, with particular attention being paid to whether brand purchasing and behavioural brand loyalty are invariant over a five-year period. Conceptually, the NBD-Dirichlet model of brand choice and purchase incidence is employed. Analysis shows that patterns found in the Chinese data are quite similar to those reported previously for Western markets, with invariant results over time – notwithstanding supply-side and demand-side changes over the study period. In particular, the double jeopardy effect and multi-brand loyalty are consistently observed in the toothpaste and soy-sauce markets in both cities over the full five-year period. Results distinct to the Chinese market are also identified: exclusive brand loyalty appears to be declining in favour of multi-brand loyalty, and there are between-city differences in the magnitude of this decline.     

客户忠诚理论的价值分析和驱动模式研究

在客户关系管理(CRM)中,客户忠诚是其基本目标。客户忠诚是一种导致消费者与品牌发生联系的态度,进而表示出来的一种由个人特征、环境和购买情景共同作用的购买行为模式。在分析客户忠诚对客户关系管理的价值,客户忠诚的度量指标和维度分类的基础上,提出了客户忠诚的满意驱动、价值驱动、双因素驱动和多因素驱动四种驱动模式以及各因素对客户忠诚的驱动机理,揭示了客户忠诚的本质,为企业客户关系管理中达到客户忠诚提供理论支持和实践方法。     

Share of wallet in retailing: the effects of customer satisfaction, loyalty cards and shopper characteristics

In retailing, consumers typically patronize multiple outlets. Thus, an important issue is why consumers vary in how they divide their purchases across outlets and how outlets can get a greater share of consumer expenditures. Two potential avenues for increasing customer share are to raise customer satisfaction, and increase repeat purchase through loyalty cards. This study examines the effects of customer satisfaction and loyalty cards as well as consumer characteristics on customer share spent on the primary grocery store. The findings suggest that customer satisfaction has a positive, albeit modest, effect on share while consumer economic shopping orientation has a negative direct effect on share. The economic orientation of shoppers, their felt importance of a personal relationship with store personnel, and the level of their aggregate purchase volume moderate the effect of satisfaction on customer share. Finally, the results provide mixed support for the impact of loyalty cards on customer behavior.     

基于客户信任的忠诚形成机制研究

客户忠诚可以划分成客户对公司的忠诚和客户对员工的忠诚,这两种忠诚的形成机制是怎样的？哪些因素决定客户对谁忠诚？这两个问题是理论界和实务界普遍面临难题。文章从信任的角度考察了两种忠诚的形成机制,并基于我国销售企业和服务性企业进行了实证分析。研究结果表明：客户对公司的信任可以导致客户对公司的忠诚;客户对员工的信任可以直接导致客户对员工的忠诚,并通过客户对员工的忠诚的中介作用,间接影响客户对公司的忠诚;企业可以通过信任来影响客户对谁忠诚。     

Does online relationship marketing enhance customer retention and cross-buying?

One characteristic of online consumer behavior is the low cost of searching for alternatives. Therefore, customer loyalty is more difficult to achieve in the online context than in the offline one. Although studies have discussed the effectiveness of relationship marketing, nearly all studies examining such constructs have been in the context of ‘offline’ consumer behavior. With regard to the ‘online’ context, the integration of Internet technology with the customer loyalty concept is rarely discussed in the relationship marketing literature. Furthermore, empirical research that integrates the actual purchase behavior of customer retention and cross-buying is relatively sparse. In response to this, the current study develops and empirically tests a model that examines the relations among relationship-bonding tactics, perceived relationship investment, perceived relationship quality, customer loyalty, customer retention, and cross-buying. Using survey data from 766 online customers of a securities corporation, the results demonstrate the effectiveness of relationship marketing as it positively influences online customers' perception, then their loyalty, and ultimately, their actual purchase behavior.     

Brand inequalities in the loyalty-effects of purchases

Choice models in marketing have generally included the effects of loyalty on individual choice behavior.Loyalty has been typically measured as proportion of purchases or as an exponentially smoothed index of past purchases. An underlying assumption of both measures is that all brands gain the same increase in loyalty with a purchase. However, such an assumption may not hold when the competing brands are not comparable. We propose a new exponential smoothing measure which incorporates brand-specific parameters for the loyalty effects of purchases. A choice model, calibrated on individual level data for the detergent category, is used to compare the proposed measure with its traditional version. This comparison reveals that the new approach improves both the fit and predictive performance of the choice model. The results also suggest that the loyalty effects of purchases are likely to be lower for brands which are purchased on price promotions and higher for expensive brands.     

The covariates of regularity in purchase timing

An examination of the timing of consumers' purchases for coffee reveals that consumers vary a great deal in terms of the regularity of their purchasing behavior. Some consumers make purchases at seemingly random time intervals, while others purchase at highly regular intervals. The measurement of regularity in purchase timing, as well as the identification of its covariates, is important in many contexts such as modeling purchase incidence and sales forecasting. We measure the degree of regularity among a sample of coffee purchasers and identify several consumer characteristics that vary with the degree of regularity in purchase timing. Results show that regularity in purchase timing is related to brand loyalty, store loyalty and deal proneness, as well as to certain pattern of routinization by the households, and that regularity may be used, along with other aspects of purchase behavior, to provide a basis for market segmentation.The authors wish to acknowledge the support of Information Resources Inc. for providing the data, and are grateful to Professor Jane T. Landwehr, University of Delaware, for her help.     

服务行业顾客重购意向的影响因素及其相互关系研究

本文探讨了转换壁垒、顾客感知价值、顾客满意对顾客重购意向的影响作用及其相互关系。以理发行业为研究对象,通过发放问卷收集数据,并运用结构方程分析软件进行了实证性检验,结果发现:顾客满意和顾客感知价值都对顾客重购意向具有直接显著影响;转换壁垒的不同维度对顾客重购意向的影响不同,社会利益对顾客重购意向产生积极的影响作用,转换成本不能增加顾客价值和顾客满意,但会对顾客产生锁定作用。对企业来说,管理者可以增加顾客满意和顾客感知价值来增加顾客重购意向,也可以通过提高顾客对转换壁垒的感知,从而对顾客起到锁定作用。     

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.     

What Drives Consumer Participation to Loyalty Programs?

Abstract

Little is known about the way in which different loyalty program attributes underlie consumers' intentions to participate in such a program. Based upon equity theory, the current study distinguished between consumer inputs (personal data release, participation cost, purchase frequency, participation exclusivity, and participation efforts) and outputs (program benefits, number of program providers, and program duration) as underlying attributes potentially affecting participation in a loyalty program. Using conjoint analysis, we explored how different levels within each of these eight attributes affect consumers' intentions to participate. The study holds major implications for the design of successful customer loyalty programs.     

Determinants of store patronage: The roles of political ideology,consumer and market characteristics

In this study, we investigate the roles of political ideology, demographic characteristics and market environment in determining households' store patronage behavior. We measure two key dimensions of store patronage—store format preference and store loyalty trait—of 23,092 U.S. households using purchase data from Nielsen Homescan panel. We use county-level vote share of the Republican and Democratic parties across three U.S. Presidential elections to measure political ideology. We obtain measures of demographic characteristics and market environment from the Nielsen panel and the U.S. Census Bureau. Using fixed-effect regression models, we find systematic association between political ideology and households’ store patronage. Our findings contribute to the growing literature in marketing on the effects of political ideology on consumer behavior and have important implications for store loyalty programs, cross-selling strategies and store location decisions.     

An Examination of the Relationship Between a Firm's Offerings and Different Customer Loyalty Segments

Purpose: Loyalty reflects the highest state in the buyer–seller relationship and occurs when repeat patronage and commitment are both high. One generally accepted model of segmenting the customers by degree of loyalty includes 4 categories of loyalty: no loyalty, latent loyalty, spurious loyalty, and loyalty. This study examines the relationship between these 4 customer segments and their evaluation of the firm's offerings.

Methodology/approach: This study uses self-reported purchase behaviors and attitude toward the seller for segmentation. Buyers report the importance of and satisfaction with 15 different offerings or processes. The mean scores for the 4 different groups are compared and tested for statistical significance.

Findings: The loyalty segments differed in the importance placed on customized products. The loyalty and spurious loyalty groups placed a higher importance on receiving customized products from the seller. The loyalty segments also differed in their levels of satisfaction, but these differences did not fully explain repeat patronage behavior. The latent loyalty group, despite their higher levels of satisfaction with standardized offerings, purchased less than the spurious loyalty group.

Originality/value/contribution: The implication for managers is that, if properly identified and managed, understanding these differences could lead to a sustainable competitive advantage. Managers can build loyalty by applying specific tactics tailored to the customer segment.     

客户对雇员的个人忠诚与企业绩效关系研究——基于中国“关系”情境下的多重案例研究

客户忠诚可以划分为客户对公司的忠诚和客户对雇员的忠诚,在转中国"关系"文化情境下,许多企业存在更多的是客户对雇员的个人忠诚.但这种个人忠诚是否有利于提高企业的绩效?是我国许多企业面临的十分严峻的现实问题.本文在相关理论研究回顾的基础上,针对这个问题进行了多重案例研究.研究发现在企业发展的不同阶段,客户对雇员的个人忠诚对企业绩效有不同的影响;管理者应根据企业发展的不同阶段,对客户-雇员忠诚进行有效的管理,充分发挥其对企业绩效的积极作用.     

Price transparency reflects assurance and reliability

This paper aims to examine the effect of price transparency on assurance, reliability and customer loyalty in the case of Wal-Mart Best Price Store. A total of 402 usable responses were gathered from customers of Wal-Mart store in Bhopal (MP), India. The study scales were refined and validated by exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The AMOS 22.0 and SmartPLS 3.0 statistical programmes were used for measurement validation and to test the structural model. The results indicated that the price transparency has a significant effect on assurance and reliability to ensure customer loyalty. Also, the study did not find a direct effect of price transparency on customer loyalty. The identified dimensions of price transparency are expected to bring clarity to the issue of customer assurance, reliability and loyalty. This would help the management of the retailing sector. The study seems to offer opportunities to understand that only price transparency is not responsible for improving customer loyalty. It influences assurance and reliability which further increase customer loyalty.     

Is your brand''s loyalty too much, too little, or just right?: Explaining deviations in loyalty from the Dirichlet norm

This paper formally investigates the factors that relate to the deviations of brand's actual loyalty levels from theoretical norms in packaged goods markets. An aggregate measure of brand loyalty, share of category requirements, commonly tracked by marketing managers is used for this analysis. The comparison is conducted against the estimated share of requirements provided by the well established Dirichlet model of purchasing behavior. We posit that a brand's positioning strategy and marketing mix can influence the magnitude and the direction of the deviation from the norm. We use a two step modeling procedure where we first compute the deviation from the norm for each brand and subsequently conduct a regression analysis of this brand-level data to test the proposed hypotheses. We find that on average, brands that cater to some market niche, are bought in higher quantities, have lower prices, promote to a lesser extent, and have shallower price-cuts and enjoy higher than expected loyalty levels. We discuss possible implications of these results and offer guidelines that managers can use to better assess both the actual and the theoretical loyalty levels of their brands.     

Customer happiness as a function of perceived loyalty program benefits - A quantile regression approach

Customers consider pursuit of happiness to be fundamental to their purchase experiences; thus, companies are increasingly looking for opportunities to bring happiness to customers especially in their consumption activity. The current study undertakes analysis of effect of perceived benefits of loyalty programs and customer satisfaction on customer happiness/purchase enjoyment if he/she has loyalty program membership. Empirical study with 407 participants found that Discovery and Entertainment Benefit (DEB) and Satisfaction Derived (SD) have an effect on customer happiness/purchase enjoyment while being a loyalty program member. Quantile regression analysis was used to analyze if independent variables have a differential effect on different levels of the dependent variable i.e. customer happiness/purchase enjoyment from use of loyalty programs. Since DEB and SD were found to be positively significant in influencing customer happiness/purchase enjoyment, companies should focus on balancing these aspects of customers’ consumption experience.