Customers' relationship with their grocery store: Direct and moderating effects from store format and loyalty programs

This paper aims: (i) to characterize the priorities designed and implemented by grocery retailers concerning relationship marketing with customers; (ii) to analyse customers’ relationship with their grocery store and to evaluate store format and loyalty programs as key determinants of this relationship. Exploratory interviews were conducted with grocery store managers. Two independent samples of Portuguese customers answered a questionnaire and collected data were analysed using Structural Equation Modelling. Main results suggest that supermarkets lead to higher levels of customers’ trust (directly) and customers’ loyalty (indirectly). Furthermore, the positive effect of customers’ satisfaction on customers’ loyalty is higher for members of grocery store loyalty programs.     

Moderating effect of customer's retail format perception on customer satisfaction formation: An empirical study of mini-supermarkets in an urban retail market setting

Customer perceptions of retail formats have become ambiguous with new value-added features of traditional retail formats. Hence, this paper proposes a framework for explaining retail patronage formation under the condition that customers perceive the ambiguity of retail format boundaries. The moderating effect of customers' retail format perceptions on customer satisfaction is examined using data from Japanese mini-supermarket customers. Results indicate that customers' perceptions of retail formats partially influence customer satisfaction. Theoretically, this implies that considering retail format as a concept that customers construct a posteriori may be necessary and practically indicates that retail practitioners should manage customers’ retail format perception.     

Store format choice in an evolving market: role of affect,cognition and involvement

Store choice has been studied extensively in the literature, but store format choice has had limited research attention. The store format choice for bulk grocery purchase being a rational context is well conceptualized in the Theory of Planned Behavior (TPB) framework. Attitude behaviour linkages are well explored but there is rare consensus on the components of attitude, their interrelationship and resultant impact on conation. The Theory of Reasoned Action has evolved over time to incorporate perceived behavioral control and past behavior to improve its explanatory capability as TPB; however, it has maintained its unidimensionalist approach and has not tested affect and cognition independently for its impact on behavior. This paper explores a Converging framework of the Affect and Cognition components of attitude and tests their independent impact on store format choice behaviour. The results indicate that Affect operates independently and has stronger impact on format choice especially in more evolved and familiarized contexts whereas cognitive evaluation is strong in relatively newer formats. There seems to be an interplay between Cognition and Affect over time with cognition transitioning into affect as familiarity with choices increases.     

The Role of Customer Factors in Multiple Store Patronage: A Cost-Benefit Approach

This paper is concerned with the use of multiple stores by supermarket customers. It relates the number of stores patronized to a set of customer factors under a unifying theoretical framework emphasizing cost-benefit analysis. Respective hypotheses are tested in a large random sample. This study is a first attempt to empirically address the structure of multiple store patronage. It is demonstrated that multiple store patronage is affected by variables such as customer income, satisfaction, and expenditure that are suggestive of heterogeneous cost-benefit tradeoffs and opportunity costs of time. It is shown that customers are intrinsically different in the predisposition to being loyal. In this respect, store patronage is a continuum between single store loyalty and use of several different stores, on which customers vary depending on individual preferences. The empirical analysis also suggests that exclusive patronage of the favorite store arises from two observationally equivalent latent segments that differ in their inclination to remain loyal. The results yield valuable insights into the structure of store patronage and lead to important implications for retail managers. Several extensions are considered. A broad set of research questions surrounding store patronage can be considered from a cost-benefit viewpoint in the sense that consumer decisions in this area involve trading off economic resources against assortment, spatial and temporal benefits.     

Segmentation of Malaysian shoppers by store choice behaviour in their purchase of fresh meat and fresh produce

Differences in retail store choice behaviour are examined for the purchase of fresh meat and fresh fruit and vegetables in Malaysia. In purchasing fresh meat, cluster analysis identified two groups of respondents who purchased the majority of the fresh meat they consumed from either modern retail stores or the traditional market. However, with regard to the purchase of fresh fruit and vegetables, cluster analysis identified three groups of respondents (modern retail shoppers, transient shoppers and traditional market shoppers). Although the clusters were labelled using similar terms, several similarities and differences were identified in the respective clusters for each food item. The findings indicate that store choice preference was based on the food product that the consumer intended to purchase.     

The effects of acquisition and transaction shopping value perceptions on retail format usage intentions: an illustration from discount stores

Although it becomes increasingly important for food retailers to understand what motivates consumers to use one retail format rather than another, research on retail format choice is sparse compared to store choice. This study examines the extent to which perceived acquisition value of shopping at a retail format and perceived transaction value of shopping at one particular retail format outlet in a specific situation have an impact on retail format usage intentions. In addition, we study the influence of different situation-specific factors on perceived transaction value of shopping at one particular retail format outlet. Taking discount stores as an example, the developed conceptual model is empirically tested using a structural equation approach. The results show that perceived acquisition value of shopping at the retail format plays a dominant role in explaining retail format usage intentions, while perceived transaction value of shopping at one particular retail format outlet, which depends on certain situation-specific factors, is of lesser importance.     

The impact of reverse logistics process coordination on third party relationship quality: A moderated mediation model for multichannel retailers in the fashion industry

Multichannel retailing is a widely adopted strategy in the fashion industry. Companies in this industry find it a source of competitive advantage to invest in reverse logistics infrastructure. However, limited empirical studies investigate the enablers of the relationship quality between the retailers and their reverse logistics service providers. This study quantifies the impact of reverse logistics process coordination between retailers and logistics service providers on relationship quality. Moreover, it tests the mediating role of reverse logistics service quality and the moderating role of conflict frequency in this relationship. Data were collected through a survey using a purposive sample of 241 retail store managers from the fashion retail industry of Pakistan. For this purpose, a self-administered questionnaire was developed using a five-point Likert Scale to gauge the responses. Conditional process analysis was used to evaluate the moderated mediation model. The findings showed a significant positive impact of reverse logistics process coordination on the relationship quality with a logistics service provider, a significant positive mediation effect of reverse logistics service quality, and a significant moderation effect of conflict frequency on the indirect relationship. However, conflict frequency, contrary to the hypothesis in the study, strengthened the indirect relationship. Furthermore, the moderation effect of conflict frequency on the direct relationship was insignificant. This study will help managers better understand the best practices leading to effective management of reverse logistics processes, particularly product returns.     

Linkages of retailer personality,perceived quality and purchase intention with retailer loyalty: A study of Indian non-food retailing

The present study was an effort to explore the direct and indirect (through retailer perceived quality and purchase intention) impacts of retailer personality on store loyalty. Questionnaire was used to collect data using systematic sampling from non-food retail store shoppers of age 18 years and above in Kolkata, a metropolitan city of India. Multivariate data analysis techniques like structural equation modeling were used to analyze the data. Results supported both the direct and indirect impacts of retailer personality on retailer equity. Interestingly, the extent of indirect impact of retailer personality on retailer loyalty is greater than direct impact. Arguably, this paper is the first to explore the linkages among retailer personality, perceived quality, purchase intention and store loyalty. Academic and managerial implications are further discussed.     

Enhancing relationships in e-tail: Role of relationship quality and duration

This research deals with antecedents and outcomes of relationship quality in e-tail. SMART-PLS analysis of survey data from India (n = 644) showed that perceived value, e-service quality, interaction, discounts and transaction related factors were found to have a positive effect on relationship quality (RQ). RQ mediates the relationship between these antecedents and self-brand connect and loyalty. Support for serial mediation was found with RQ and self-brand connect preceding loyalty formation. Relationship duration positively moderated the effect of RQ on self-brand connect. RQ was conceptualized as a formative second order factor. E-tailers may invest in antecedents of RQ and they may devise strategies to increase the duration of relationships.     

Linkages of retailer awareness,retailer association,retailer perceived quality and retailer loyalty with purchase intention: A study of Indian food retail brands

The present study was an effort to explore the direct and indirect impacts (mediated through retailer loyalty) of retailer awareness, retailer association and retailer perceived quality on purchase intention. Seven hypotheses were developed with relevant literature support. The hypotheses were tested with primary data (n=355) collected through structured questionnaire using systematic sampling from food retail shoppers of age 18 years and above in Kolkata, a metropolitan city of India. Structural equation modeling statistical technique was used to test the hypotheses. Results revealed that retailer awareness, retailer association, retailer perceived quality and retailer loyalty have positive impacts on purchase intention. Results also found that the indirect impacts (mediated though retailer loyalty) of retailer awareness, retailer association and retailer perceived quality on purchase intention are stronger than the direct ones. Academic and managerial implications are further discussed.     

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.     

Cross-border acquisition in services: Comparing ownership choice of developed and emerging economy MNEs in India

Despite rapid increase in cross-border acquisitions (CBAs), prior research has not examined ownership choice of foreign MNEs investing in the services sector in emerging economies. Drawing on multiple strands of literature, we posit acquirer's ownership choice (partial versus full acquisition) to be influenced by type of service offering (soft versus hard), institutional distance between acquirer and target nation, and acquirer's country-of-origin (emerging versus developed economy). Empirical analysis of 385 CBAs undertaken in India over an 11-year period provides evidence that services, in particular soft services, and high institutional distance increases the likelihood of full acquisition by emerging economy acquirers. However, acquirers from developed economies show preference for partial acquisition under similar circumstances.     

The effects of app-related factors on app stickiness: The role of cognitive and emotional app relationship quality

Prior research tends to examine the effect of a narrow set of app-related factors on the construct of app relationship quality holistically. However, it is well-established that app relationship quality consists of cognitive and emotional aspects. To address these two issues, our study takes a more nuanced approach by examining a comprehensive set of app-related factors, including functional, offerings, experiential and relational factors, and their differential impacts on two distinct components of app relationship quality, namely cognitive app relationship quality (CARQ) and emotional app relationship quality (EARQ). It also examines the differential impact of CARQ and EARQ on app stickiness, which has long been considered as a managerial challenge. A ‘modular design approach’ was used to collect the data from an online UK consumer panel. 605 responses were analyzed using AMOS 24. The results indicated that functional and offering factors produced greater effects on CARQ than on EARQ. In contrast, experiential and relational factors were found to have stronger effects on EARQ than on CARQ. Further, CARQ was found to have a stronger effect on app stickiness compared to EARQ. The current study offers a detailed understanding of the factors that contribute to each component of app relationship quality and empirically demonstrates the differential effects of the cognitive and emotional aspects on app sickness. Such results are expected to help e-retailers to develop a strong digital presence, build future readiness for their brands, and design app-focused strategies using a consumer-centric approach.     

An integrative approach to relationship marketing,customer value,and customer outcomes in the retail banking industry: a customer-based perspective from Turkey

Given how important it is to provide superior value to customers and to maintain customer loyalty for a sustainable competitive advantage, the aim of this paper is to examine the relationships among relationship marketing components of – trust, competency, commitment, communication, and conflict handling, – relationship investment, relationship quality, perceived customer value, satisfaction and loyalty in an integrated framework in the Turkish retail banking industry. Unlike previous studies, this research extends the literature by analysing affective as well as cognitive dimensions in the same model with a holistic view by simultaneously examining the direct and indirect effects of the related concepts. The distinctive nature of this study is its evaluation of customer satisfaction and loyalty from the perspective of actual consumers. The research model was tested using data collected from 685 retail banking customers by applying structural equation modelling. The findings show that relationship marketing induces loyalty through relationship quality, customer value, and satisfaction, which are mainly provided by trust, communication, and relationship investment. Furthermore, relationship investment and relationship quality are the most important factors in the development of customer value, satisfaction, and loyalty. The emotional value dimension, which captures the affective aspects of perceived value, has the strongest effect on both satisfaction and loyalty.     

International retail format transfer: A comparison study of Australian and U.S. warehouse club members

Costco successfully transferred its Warehouse Membership Club (WMC) format to Australia. This research: 1) develops a conceptual framework to examine the role of consumer perception of format-specific core attributes in shaping the hedonic shopping experience and customer loyalty; and 2) compares Australian consumers' responses to the novel WMC format with U.S. consumers' responses to the familiar, mature format. We collected survey data from Australian and U.S. Costco members after Costco's entry into Australia's retail market and we tested the proposed model with a multiple-group structural equation modelling technique. Our findings suggest that value and hedonic shopping experience contribute to consumer loyalty in both countries. However, value is perceived as more important in shaping hedonic shopping experience, but less important in building loyalty in Australia than in U.S. When transferring a retail format that is novel to host country consumers, global retailers should factor in the novelty effect and emphasize the management of core format attributes that embrace the differences and carry particular importance in building customer loyalty.     

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.     

Employment,ownership, and Survival in microbusiness: A study of New retail and service establishments

This investigation provides new data and commentary on several neglected topics: employment contributions of microbusinesses, characteristics of the selfemployed, business survival rates, and psychological and social aspects of new business ownership. A survey and archival analysis of 413 retail and service establisments that began operation in 1985 is reported. The modal staff size of these establishments was three persons; 28% had no employees. Women, young people, and Latinos were among the larger groups of employees, although employment patterns varied according to size and type of business. The typical owner was male, white, in his 30s or 40s, and relatively inexperienced in business. Fifty-nine percent of the establishments survived two years; survival was associated with corporate ownership, with the owners' reliance on the business for a livelihood, and with their prior employment experience.     

The price-perceived quality relationship: A meta-analytic review and assessment of its determinants

The authors conducted a meta-analysis of study results on the price-perceived quality relationship published from 1989 to 2006. The findings show that the price effect on perceived quality has decreased. Furthermore, the price–quality relationship is stronger in studies that use a within-subjects design, investigate higher priced products, and use samples from European countries but weaker for services, durable goods, and respondents who are familiar with the product. A striking null result indicates that the number of cues does not affect the price-perceived quality relationship significantly.     

Quality of channel integration and customer loyalty in omnichannel retailing: The mediating role of customer engagement and relationship program receptiveness

The aim of this study was to understand how omnichannel integration quality affects customer loyalty through customer engagement and relationship program receptiveness and to verify the relationship between customer engagement and relationship program receptiveness in omnichannel retailing. Data was collected through a questionnaire with 378 available respondents. PLS-SEM was exerted to examine the model. The results disclosed the positive influence of omnichannel integration quality on customer engagement and relationship program receptiveness, which consequently impacted customer loyalty. Also, the positive influence of customer engagement on relationship program receptiveness was proved. Further, the role as mediators of customer engagement and relationship program receptiveness was explored. This study contributed to the omnichannel literature by confirming that psychological and behavioral customer engagement plays a vital role in omnichannel retailing. This study also helped omnichannel retailers understand that providing a seamless, consistent and reassuring environment can facilitate customer engagement and thereby gain customer loyalty.     

Cross-cultural study of channel relationship factors — Antecedents of satisfaction in a retail setting: A commentary essay

Channel relationships within and across diverse markets have been investigated for quite some time. Yet findings from these studies over the last forty years or so have been far from conclusive. Channel researchers Runyan, Sternquist, and Chung (forthcoming) investigate interrelationships between the behavioral constructs of role performance, dependence, conflict, satisfaction, and influence strategy in the U.S. and Japanese context. Reading this paper leads credence to the adage, “The more things change, the more they stay the same.” Indeed, a review of representative comparative channels research literature from the 1980s and post-2000 brings to surface striking similarities in terms of shaky conceptual frameworks, less than robust construct measures, and insufficient caveats in explaining and applying research findings. For channels research to gain relevance in today's globalized marketplace, greater sophistication is necessary in formulating and implementing comparative studies. An overarching framework is necessary to explain, if not incorporate, similarities and differences in channel interactions around the globe.