The impact of consumer local engagement on local store patronage and customer satisfaction

Abstract

This paper examines the drivers of local grocery retail patronage. Drawing on institutional and social network theory literature, we develop a framework to investigate how consumers’ personal values and engagement with local communities affect their satisfaction and local store patronage. We test our model with survey data on 1504 Finnish consumers. Our results show that the relationship between customer local engagement and local retail patronage is indirect rather than direct, and it is mediated by the vitality of local services, social interaction, and consumer satisfaction.     

Exploring the involvement-patronage link in the phygital retail experiences

Phygital retail experiences connect physical and digital worlds together to create unique experiences among customers. Despite the widespread uses and applications of phygital retailing, the involvement-patronage link remains unexplored. This paper thus aims to make up this gap by examining the effects of customer involvement on their patronage intentions in the phygital retail context. More specifically, building on the social exchange theory, this paper mainly addresses the effects of five dimensions of involvement on customer engagement; and the influence of customer engagement on their patronage intentions in the phygital retailing. The role of customer innovativeness as a boundary condition is also explored. Data were collected from 237 customers who experienced phygital retail stores and analyzed through structural equation modeling. The results show that five facets of involvement (i.e., risk importance, risk probability, sign, interest, and pleasure) affect customer engagement, which eventually affects customers’ patronage intentions of phygital products. This study further identifies that the effects of each dimension of involvement on customer engagement are higher (lower) among the customers with high (low) innovativeness. The findings of the study offer significant theoretical and managerial implications.     

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.     

Towards rebuilding the highstreet: Learning from customers’ town centre shopping journeys

Patronage in town centres has been fluctuating over the past few years, indicating that consumers are buying elsewhere in pursuit of better and more fulfilling shopping experiences. This is concerning as patronage is considered an indicator of high streets vitality and viability. To help understand the changing patterns of patronage, especially related to the growth in online retail spending, this study sheds light on key touchpoints that influence the town centre shopping experience. Using the customer journey framework and drawing insights from datasets of two central UK regions, we provide new contribution to town centre research by capturing significant and specific physical and digital touchpoints in the town centre shopping journey, thus developing our understanding of the determinants of the town centre shopping experience. Consequently, this work provides recommendations for town centre management to help improve town centre patronage by developing customers’ experience with shopping-specific touchpoints.     

Image and consumer attraction to intraurban retail areas: An environmental psychology approach

This study suggests that intraurban retail area patronage decisions are influenced by the image of the area. A model of environmental behaviour is derived from the extant literature and tested empirically. An approach to measuring consumer perceptions of retail area image is proposed. The research finds significant relationships between product and store range and quality, visual amenity, customer service and consumers’ willingness to patronise a retail area. Affect, or consumers’ liking of the area, mediates the impact of retail area image on consumer behaviour. The value of this approach is that retailers and regulatory bodies may be able to explain and predict the effects of changes to retail environments on consumer patronage decisions.     

The moderating role of demographic variables on customer expectations in airport retail patronage intentions of travellers

The international airport retail business is expanding annually, yet most research into traveller’s experience with the aviation industry have centred on aeronautical features. The study gathered information that would guide the understanding of airport customer retail expectations. Specifically, the study examines the effects of product-relevant factors, market-relevant factors, and perceived service quality on retail patronage intentions, taking into account the moderating role of demographic variables. The purposive sample of three hundred and thirty (330) travellers that were selected at the Kotoka International Airport Terminal 1 and 2 (KIA T1&2) in Accra, the capital of Ghana. The findings show that product-relevant factors, market-relevant factors and overall service quality significantly influence airport retail patronage intention. The effect demographic variables was noticeable among older and high-income consumers. Building on previous studies, we find that product-relevant factors, market-relevant factors, and perceived service quality function as viable signals that drives customer expectations.     

Retailing strategy for customer growth and new customer attraction

The image that current and potential customers have of a retail store affects the magnitude of patronage at that store. In attempting to increase store patronage, management of a retail store must look to people who already are customers, as well as to people who are not current customers. The appropriate strategy depends upon the dimensions used by people in their evaluation of the store. The hypothesis is tested that the strategy used for gaining increased patronage from customers may have to differ from that used to gain patronage from noncustomers.Field survey techniques were used to collect data from 225 adult females. Respondents evaluated three large retail department stores, which were believed to have distinct images in the minds of female shoppers, on the basis of a set of 12 semantic scales that represented various store attributes. Each respondent indicated frequency of shopping at each store. The data were analyzed by two different multiple discriminant analyses. For the customer growth strategy, the semantic scale measures were used to develop a discriminant model for each store to determine which attributes would be the best predictors of shopping frequency. The analysis relevant to the strategy of new customer attraction differed. First, shoppers were classified as loyal to one store on the basis of their rates of shopping at each store. Second, the 36 attribute measurements (12 scales for 3 stores) were factor analyzed, and three factors were extracted. Those attributes which loaded highest on each of the factors for each store were used as predictor variables in the discriminant analysis.The results of this study indicate that different marketing strategies may be required for increasing sales to existing customers and attracting new customers. In addition, consumers do not necessarily differentiate similar type retail stores on the same dimension.     

Understanding multi-channel consumer behavior: A comparison between segmentations of multi-channel purchases by product category and overall products

This study explores how customers utilize multiple channels in a recent retail environment. It provides a compatible framework for customer segmentation for overall products and major online-focused product categories, which reflect dynamic purchasing needs in multiple channels, using latent class cluster analysis and focusing on demographic characteristics. It extends prior studies’ frameworks by analyzing 15,938 Japanese single-source panelists’ data on low-involvement frequently purchased categories with customers’ demographics. The analyses revealed eight segments, including the specific properties of multi-channel enthusiasts. The findings imply that FMCG product classes and the corresponding consumer segments that are appropriate for cross-selling can be specified in our system, which incorporates possible future dynamic customer needs and can reduce the possibility of significant profit losses.     

Co-creating affective atmospheres in retail experience

Despite substantial research focusing on retail atmospheric elements and the creation of social atmospheres, a holistic theory of atmosphere addressing consumer heterogeneity remains elusive. This research examines how embodied interactions with retail socio-material elements and consumers’ expertise levels create affective atmospheres. Through a three-year-long ethnographic study of winery tours, we identify three core elements in the co-creation of affective atmospheres: material features, sensory modalities, and social interactions. We use text mining to build corresponding dictionaries and analyze customer review data from several retail sites, demonstrating the positive effect of retail atmospherics on customer sentiment. Focusing on consumer segmentation, we further show that different levels of consumer expertise (novices, enthusiasts, and experts) influence the subjective perception of atmospheric elements and the way staff members are expected to behave to jointly create affective atmospheres. Based on our multi-method findings, we offer theoretical and managerial implications that are generalizable to broader retailing contexts.     

The paradox of diminishing returns: Measurement and metrics for valuation of B2C sales professionals

Abstract

The realization of channel multiplicity is increasingly present in retail exchanges. Retailers understand that consumers may seek information in one channel and complete their purchases in another channel. Researchers have labeled this retailing concept as “showrooming.” Showrooming suggests that retail salespeople may provide information, services, and suggestions that generate retail sales revenues at another time in another place. While they likely mediate exchange value, retail salespersons’ contributions to building sales revenues and customer relationships may be difficult to measure. The degree of value engendered in the retail sales role set is associated with product and transaction complexity. As such, retail sales functions may range from highly transactional (i.e., facilitating a transaction) to highly relational (i.e., building retail patronage). This article proffers a taxonomy of retail salespeople based on sales role sets: Companions, Consultants, Clerks, and Closers. Managerial recommendations are provided for measuring retail salesperson performance in an omni-channel marketplace.     

Assessment of potential retail segmentation variables An approach based on a subjective MCI resource allocation model

The application of a multiplicative competitive interaction (MCI) resource allocation model to assess potential segmentation variables in terms of their capacity to homogenise consumers’ patronage preferences is proposed. The method consists of grouping the potential customers by the variable in question, determining the shopping profile of each resulting segment, and comparing the results to identify insightful relationships between the variable and the shoppers’ retail selection criteria. An empirical test of the procedure in the context of the grocery retail market is subsequently presented and confirms the importance of evaluating easy-measurable demographic and socioeconomic variables as orientative indicators of shopping behaviour.     

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.     

The effect of self-checkout quality on customer satisfaction and repatronage in a retail context

Self-service technologies (SSTs) are defined as technological interfaces that enable customers to produce a service without direct employee involvement. Among various SSTs, self-checkouts are being tested by grocery stores across the world. However, while most studies focus on SST adoption, there is limited research on its impact on service quality, customer satisfaction, and retention. Our study investigates consumers’ assessments of self-checkout in a retail outlet, and its influence on post-usage intentions. The study presents a causal model in order to determine (i) whether consumers evaluate service quality for self-checkout based on five different attributes: speed, ease-of-use, control, reliability, and enjoyment; (ii) whether the evaluation of service quality differs according to demographics and usage frequency; and finally (iii) if service quality delivered by self-checkout relates to overall customer satisfaction and retail patronage. We conclude that successful use of self-checkout may "tie" consumers to a provider, representing a feature that differentiates a retailer from competitors.     

Influences of retail brand trust,off‐line patronage,clothing involvement and website quality on online apparel shopping intention

This study examines the influence of retail brand trust, off‐line patronage, clothing involvement, and website quality on online apparel shopping intention for young female US consumers. Data for this study were collected from 200 young female consumers who completed an online survey. Participants were asked to select one of three pre‐determined apparel retail brands that they have either had experience with or were familiar with. Respondents were then asked to keep their selected retailer in mind when completing the questionnaire and were also asked to briefly visit the retailer's website shopping for a shirt or blouse. Factor, correlation and multiple regression analyses were conducted to test our hypotheses. Retail brand trust, off‐line patronage, clothing involvement and two factors of website quality (usability and information quality, visual appeal and image) were found to significantly influence online apparel shopping intention. Off‐line patronage was the strongest predictor of online shopping intention. Implications for multi‐channel apparel retailers were discussed based on these findings.     

Testing Retail Marketing-Mix Effects on Patronage: A Meta-Analysis

Retailers have always worked to establish close relationships with customers through the retail marketing mix. Thus, the literature has a long tradition of testing the effects of various instruments on retail patronage. This meta-study synthesizes prior research into one comprehensive framework. We use 14,895 effect sizes reported by more than 239,000 shoppers from 41 countries extracted from 350 independent samples, to test the impact of 24 marketing-mix instruments on retail patronage. Specifically, we investigate the direct and indirect effects of these instruments on store satisfaction, word of mouth, patronage intention, and behavior. Product and brand management related instruments display the strongest effects on most outcome variables, whereas price, communication, service and incentive management instruments affect only selected outcomes. Distribution management turns out to be of secondary importance. However, the effectiveness of these instruments depends on the specific shopping context (food/non-food, shopping frequency, single store/agglomeration, hedonic/utilitarian), the retail environment (gross domestic product, country innovativeness, retail sales share, retail employment, Internet era), and the employed method (participant type, study design, data source). Specifically, we reveal most differences for hedonic shopping environments and developed countries. Also, the store’s advertising and atmosphere have gained importance in the Internet era, while purchase incentives, in-store orientation, and store location have lost relevance. This study contributes to a synoptic understanding of the comparable effectiveness of retail marketing instruments on retail patronage. It offers insights into the effectiveness of marketing-mix instruments and provides guidance on whether and when to invest in them. It also presents an agenda for future research on marketing-mix instruments.     

Large format retailing in the US: a consumer experience perspective

Proponents of relationship marketing seek to develop and maintain long-term ties to their customers in the hope of having a loyal customer base. In this paper we examined large format retailing from the perspective of consumers’ experiences in these stores. Focus group interviews were conducted in two major US metropolitan areas and one medium size market. After analyzing the focus group content, several themes emerged related to patronage of large format retailers. These included the accuracy of prices when products were scanned and loyalty to store personnel based on familiarity. Large format supercenters were especially chided for their bigness and potential negative impact on smaller retailers. Attending to the details of the food retail business (accurate pricing, product availability, continuity of personnel) are ways in which consumers’ experiences in retail stores might be improved. Numerous choices and a diverse array of retail formats are available to consumers in the US market. Managerial implications are discussed in the light of a changing retail landscape.     

Segmentation based on customer profitability — retrospective analysis of retail bank customer bases

Segmentation continues to be an important marketing concept also in a relationship marketing context. Relationship marketing is, however, more interested in enhancing the existing customer relationships and this generates a need for a better understanding of the existing customer base. The paper argues that “retrospective” or historical analyses, that facilitate the calculation of customer relationship profitability, form an excellent starting point for segmentation of customer bases. Such segmentation is shown to be a strong analytical instrument as a basis for formulating marketing strategies. By using empirical data collected from two extensive case studies of retail banks in the Nordic countries the paper illustrates different ways of segmenting customer bases.     

A psychological examination of attachment insecurity,loneliness, and fear of missing out as drivers of retail patronage among emerging adults

Recent consumer literature has shown that attachment insecurity (i.e., anxious, avoidant) enhances individual's motivations for retail shopping. We extend that literature using attachment theory to explain how attachment insecurity, loneliness (i.e., social, emotional), and fear of missing out (FoMO) affect retail patronage. We posit that these three negatively valenced psychosocial conditions generally incline emerging adult consumers toward retail patronage to resolve their relational deficits. Based on results from partial least squares-structural equation modeling (n = 509), we find support for most of our hypotheses. The study presents previously unavailable knowledge about antecedents of FoMO and multiple negative psychosocial drivers of retail patronage. We provide a foundation for future scholarship to examine more broadly how attachment, loneliness, and FoMO impact consumer behavior. Managerial and theoretical implications are also provided.     

Exploring phygital omnichannel luxury retailing for immersive customer experience: The role of rapport and social engagement

Omnichannel retailing has revolutionized the way retailers create strategies for engaging customers in making purchase decisions. Phygital is a new-age transformative form of omnichannel retailing that emphasizes combining the physical and digital elements, with a particular focus on the human touch to satisfy social and symbolic consumer needs. Extant research has not fully addressed the role of phygital in luxury fashion retail. We explore the research question regarding how human interactions with experienced salespeople add value to the phygital experience. In doing so, we contribute to the luxury marketing literature by addressing the research gap by elucidating the role of phygital functionality in enhancing rapport building, social engagement, and developing trust and commitment, which results in a seamless customer experience, along with enhanced loyalty and patronage. Through 18 in-depth qualitative research interviews conducted with luxury retail managers and senior retail leaders, we provide guidelines to managers and practitioners at retail firms, to create actionable growth-oriented strategies focused on leveraging phygital capabilities.     

Receptivity to advertising messages and desired shopping values

Advertising designed around the ‘value’ notion represents a way to deal with widespread retail competition and knowledgeable, empowered consumers. This study empirically examines the influence of receptivity to advertising messages (RTAM) on desired shopping values and assesses whether this relationship is moderated by gender, age, and income. The structural model indicates that, compared to low‐RTAM shoppers, high‐RTAM shoppers tend to perceive each of the six value dimensions, (i.e. monetary cost saving, time cost saving, energy cost saving, post‐sale customer support, engaging store environment, and personal leisure experience) as more important in making a retail patronage decision. Further analysis shows that the links from RTAM to monetary cost saving and to post‐sale customer support are stronger for younger male shoppers. Another interesting finding is that the link from RTAM to monetary cost saving is stronger for high‐income shoppers whereas the link from RTAM to engaging store environment is stronger for low‐ and middle‐income shoppers. If retail advertisers are aware of the value dimensions that are crucial to the high‐RTAM segment within specific target markets, they could achieve advertising goals more effectively and efficiently through tailored advertising messages.