Satisfaction and image as mediators of store loyalty drivers in grocery retailing

The purpose of this article is to analyze the role of satisfaction and image as mediators of four store loyalty drivers (store location, service quality, assortment, and price) within a comprehensive cause–effect model. The analysis employs a more holistic view of the store loyalty model than is common in a retailing context. It is based on the consistent macro-oriented National Customer Satisfaction Index (NCSI) approach. This makes it an important cross-over study, both enabling a comparison of results across industries and providing a more solid base for model validation. The data source is a survey among customers of a chain-based Norwegian grocery store which is analyzed by partial least square (PLS) and covariance-based structural equation (LISREL) estimation. A change in customer's perception of store image, where image is measured as a reflective ‘overall’ latent variable, has the expected direct significant effect on loyalty. But in addition, image will also serve as an important mediator between satisfaction and loyalty, and this is a rather uncommon result in a retailing context. Another significant finding is that a customer's perception of store assortment only influences perception of image and ultimately loyalty indirectly via satisfaction, whereas price evaluation and service quality works directly both through image building and satisfaction creation. Satisfaction creation seems to be more important for store loyalty than image building.     

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.     

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 effects of store brand loyalty on store loyalty: evidence from the Spanish market

This article studies the impact of retailers' store brands on store performance. Specifically, we analyze the extent to which store brands contribute to store loyalty. On the one hand, a positive relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer should result from the potential of the store brand to differentiate the retailer. On the other hand, an negative relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer may result from store brands' association with more price-sensitive customers, who have a higher propensity to buy at different stores that offer the best bargain. The empirical analysis, conducted with a sample of customers of leading retailers in the Spanish detergent market, shows no relationship between store brand loyalty and loyalty to the retailer. Although the purchase of store brands relates positively to higher loyalty to the retailer, this relationship deteriorates with the degree of exclusivity of store brands within the customer's shopping basket.     

Consumer values,the theory of planned behaviour and online grocery shopping

Taking a hierarchical value‐attitude‐behaviour approach, this study empirically tests relations of consumer personal values, attitude, social norm, perceived behavioural control (PBC) and willingness to buy groceries online. The study distinguishes three groups of consumers: consumers who have not yet bought anything on the Internet; consumers who have bought something on the Internet – but not groceries; and consumers who have bought something on the Internet – including groceries. Data were collected from an online survey of Swedish consumers (n = 1058) using self‐administered questionnaires. The findings suggest that consumers may link personal values to attitude towards online grocery buying – but also that this relation may be moderated by whether the consumer previously has carried out an online purchase or an online grocery purchase.     

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.     

Operations in banking: the service quality and effects on satisfaction and loyalty

This paper studies the service quality provided by the banks. The objectives are (i) to identify which aspects of the transactions carried out by the banks are important for the service quality perceived by the customers, taking into account some aspects that are sometimes ignored (online channels) and (ii) to observe how service quality influences customer satisfaction and how customer satisfaction affects the loyalty towards the bank. Using a factor analysis, the research identifies the operative, physical, new technologies and human factors. Next, using structural equations models with AMOS, the results show an influence of the operative aspects and the new technologies on service quality, as well as the confirmation of quality as a precedent to customer satisfaction, and how such satisfaction influences on customer's loyalty towards the bank.     

Integrative effects of firms' price and endorsement strategies on consumers' loyalty intention

This research examines the effects of price and brand endorsement that are adopted by firms from a consumer-based viewpoint, and provides practical brand management discussions as a reference for both manufacturer brands and retail store brands. According to the findings, manufacturer brands support high prices and boost those vivid impressions which are helpful in engendering consumer loyalty intention. Without a careful evaluation process, a brand-endorsing strategy may prove detrimental to the manufacturer. Retail store brands follow distinct pricing policies and carry out brand-endorsed strategies. Price/endorsement stimuli influence consumer brand loyalty through the partial mediating effect of brand impression. Manufacturers and retailers could define appropriate price premiums on products with a potential for a manufacturer–retailer brand co-branding as identified by market research, thus increasing the sales of both.     

Importance of offline service quality in building loyalty of OC service brand

Customer management becomes increasingly important as consumers have more flexible shopping process and options and competition become intensified in omni-channel (OC) retail environment. OC retailer can facilitate customer communication of OC service with OC service brand. This study evaluates an OC service brand (i.e. SSG OC service brand) to explore the effectiveness of integrated OC service platform which has a standing brand identity, and to determine the importance of selected offline characteristics of OC service on loyalty of OC service brand. Survey of 127 respondents was collected to test Partial Least Squares-Structural Equation Modeling (PLS-SEM). Findings show that tangibility and empathy of offline OC service directly affect customer satisfaction and attitude toward overall OC service brand, confirming the importance of offline service quality of OC in the OC service brand management.     

Retail relationships and store loyalty: A multi-level perspective

An important factor in retail store loyalty is interpersonal relationships between retail salespeople and customers. However, relationships can also exist at the person-to-store level. This paper examines the linkages between trust in a salesperson, trust in the store, and repeat purchase intention. A model of store loyalty which includes relationships at both the person-to-store as well as person-to-person level is tested. The findings reveal that for those with an interpersonal relationship, trust and commitment to the salesperson are directly linked with purchase intention as well as indirectly through store attitude. For customers without a salesperson relationship, trust in the store leads to loyalty indirectly through store attitude, but does not have a direct impact on purchase intention. The results illustrate the existence of multi-level relationships between customers and stores and how those relationships link to store loyalty. The research adds to our understanding of the complexity of relationship retailing, while providing further evidence of the value of generating and maintaining interpersonal relationships as a retail strategy.     

Gains and losses of exclusivity in grocery retailing

Conventional wisdom dictates that convenience goods should be distributed as intensively as possible. Still, exclusivity arrangements are rapidly gaining way in grocery retailing. We discuss the possible performance outcomes of exclusivity deals, and propose a unified framework (i) to quantify the gains and losses of such arrangements in consumer-packaged-goods markets, and (ii) to decompose the total monetary gains and losses into a variety of sources. Our framework considers both the manufacturer and the retailer granted the exclusivity right, and accounts for the fact that both dyad parties may be active in multiple, inter-related, categories.     

An empirical study of the impact of consumer perceived risk on purchase likelihood: a modelling approach

Drawing on an extensive literature review, a conceptual model incorporating marketing and psychometric paradigms for assessing consumer purchase behaviour is developed in the context of a hazardous and harmful risk associated with potentially contaminated food. An empirical study of 200 respondents was carried out to test this conceptual model. Structural equation modelling using LISREL 8.30 confirmed the link between perceived risk characteristics and risk perception, and that the latter appears to influence purchase behaviour. Concern about potential consequences, long‐term adverse impacts and the involuntariness of exposure were key shapers of risk perception, and risk perception itself was measured by health, money, time, lifestyle and taste losses in this study. These findings can help both the food industry and its regulators as they seek to formulate effective risk management and communication strategies. The model developed in this exploratory study can be extended to all commodities, as well as all services industry.     

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.     

Re-thinking the relationship between store brand attitude and store brand loyalty: a simultaneous approach

Academic attention to the relationship between store brand attitude and store brand loyalty is insufficient. Our paper fills this research gap by proposing and testing a theoretical model that demonstrates a reciprocal and mutually-reinforcing relationship between store brand attitude and store brand loyalty. The literature review identifies independent variables as potential predictors of both characteristics. We apply a two stages least squares model to data that come from a survey of Spanish households. The findings corroborate some of the propositions of the conceptual model: the reciprocal relationship between the two dependent variables; the influence of risk, deal proneness, price and value consciousness and extrinsic and intrinsic cues on store brand attitude; and the influence of exploration, deal proneness, store loyalty, store brand trust and store brand affective commitment on store brand loyalty.     

Forging relationships to coproduce: A Consumer Commitment Model in an extended service encounter

Consumer commitment is essential to ensure the service success in extended and complex services, wherein the service drop-out rates are often appalling. To build a more robust consumer commitment theory and provide solutions for the critical issue of high service drop-out rates in complex and extended services, this study develops a model of consumer commitment and tests it using survey data from consumer clients in a national debt management program in the U.S. The results reveal that calculative commitment only leads to consumers’ intention to remain, whereas affective commitment leads to a broader range of coproduction behaviors (i.e., individual initiative and civic virtue). Moreover, besides consumers’ relationship investment, perceived organizational support enhances both types of consumer commitment. It also increases consumer compliance. This study contributes to the consumer commitment theory by examining additional drivers and behavioral outcomes of commitment and by revealing the differential effects of different types of commitment on behavioral outcomes.     

The effect of multi-channel service quality on mobile customer loyalty in an online-and-mobile retail context

The main purpose of this study is to explore the effects of multi-channel service quality on mobile customer loyalty in the context of online-and-mobile retailing. A research model is proposed based on previous service quality literature. Data collected from 102 respondents in Taiwan are tested against the research model using the partial least squares (PLS) approach. The results indicate that tangibility, responsiveness, and empathy in electronic service (e-service) affect mobile service (m-service) customer loyalty both directly and indirectly through their m-service counterparts. The findings of this study provide several important theoretical and practical implications for multi-channel retailing management.     

A study on factors affecting service quality and loyalty intention in mobile banking

Mobile banking (MB) is one of the most recent innovations for financial sectors which could have practical value to both users and banks. This study aims to explore the dimensions affecting mobile banking loyalty intention and examine their interrelationships and effects on service quality and loyalty. By referring to service quality model, customised factors affecting mobile banking service quality and loyalty intention were proposed. Survey data were collected from 224 mobile banking users and were analysed based on structural equation modelling (SEM). The results of SEM analysis directly or indirectly highlight the importance of the interface design, system quality, security assurance and service quality in mobile banking loyalty intention. Meanwhile, the implications of the findings on both theoretical and managerial are discussed, as well as the limitation of this study.     

Airline customer satisfaction and loyalty: impact of in-flight service quality

The purpose of this study was to investigate the impact of the in-flight service quality on airline customer satisfaction and loyalty. This study analyzed the data from passengers of two classes: prestige (business) and economy. The results suggest that there are different factors of in-flight service quality that are important according to the customer seat class. In the case of the prestige class, there were six service quality factors of importance: alcoholic and non-alcoholic beverage, responsiveness and empathy, reliability, assurance, presentation style of food, and food quality; while the economy class showed five important service quality factors: responsiveness and empathy, food quality, alcoholic beverage, non-alcoholic beverage, and reliability. These findings imply that airline companies’ in-flight service should have different delivery strategies based on the customer seat class.     

Consumer shopping value, satisfaction and loyalty in discount retailing

To date, few researchers have conducted comprehensive examinations of the relationships between consumer shopping value, satisfaction and loyalty in retailing. Further, the majority of extant research has been limited to upscale retail sectors where the role of the salesperson is crucial and long-term relationships are common. In order to extend the findings of previous research to additional retail sectors, the current study investigates the complex interrelationships between utilitarian and hedonic shopping value and important retail outcomes for discount retailers. Utilitarian and hedonic shopping value are found to influence key outcome variables including satisfaction, loyalty, word of mouth communication and share of purchases in the highly competitive discount retail sector.     

Building customer loyalty in retailing: not all levers are created equal

This research examines the determinants in building and maintaining customer loyalty in grocery retailing. The first part introduces a distinction between traditional, ‘mass’ levers such as range and price, and relational, ‘targeted’ levers based on individual customer information. The second part focuses on the role ofthese two sets of levers for differentiation, that is, to what extent they are perceived by customers as distinctive to a retailer. For the first time, parallel analysis of retailers and consumers is used to obtain a dual perspective on loyalty drivers. Most supermarket chains in Italy today are found to invest marketing resources in the ‘mass’ levers of range and price. They are also starting to use other levers for differentiation, although effectiveness of their attempts varies a great deal and the perception of diversity by customers varies a lot from one banner to another. We also find that relational levers cannot be separated from traditional levers to sustain loyalty, but they clearly play a secondary role. Investment in targeted marketing is no substitute for that in traditional mass loyalty tools such as range and price.