Analyzing heterogeneity on the value, satisfaction, word-of-mouth relationship in retailing

Abstract

Purpose The literature recognizes the need to study differences in consumer behavior in highly competitive and dynamic markets. In this paper, the authors look at how the heterogeneous evaluation of retailing influences customer satisfaction and loyalty. The purpose of this paper is to analyze unobserved heterogeneity on customer value dimensions perceptions in retail establishments, and their potential effects on positive forms of behavioral outcomes considering customer satisfaction as a mediating variable. Design/methodology/approach On a sample of 820 retail customers, the authors apply a finite mixture structural equation modeling that analyzes unobserved heterogeneity simultaneously. In this model, the authors study the influence of heterogeneous perceptions of excellence, efficiency, entertainment and aesthetics on customer satisfaction and of satisfaction on word-of-mouth (WOM) referral and WOM activity. Findings The results show two latent segments where the intensity of causal relations varies, which means that the effect of value dimensions and satisfaction are over or underestimated when heterogeneity is ignored. Originality/value The main value of the paper has been to analyze the potential heterogeneity of value dimensions (intravariable approach), and their links with satisfaction and some dimensions of loyalty (intervariable approach). Customer heterogeneity must be studied to understand the satisfaction process and WOM responses in order to design more efficient and effective relationship marketing strategies.

Customer Value Types Predicting Consumer Behavior at Dutch Grocery Retailers

“…Repurchase intention is defined as the willingness of the shopper to use and purchase in the supermarket again [ 7 ]. Loyalty behavior of consumers is also presented by repurchase intention according to Fuentes-Blasco et al [ 36 ]. A definition of Word-of-Mouth according to Westbrook [ 37 ] (p. 261) is the following: “all informal communications directed at other consumers about the ownership, usage, or characteristics of particular goods and services or their seller”.…”

“…In the literature, several influences of Play on consumer behavior are reported. Play lowers customers’ satisfaction, but positively impacts Word-of-Mouth and Repurchase intention [ 36 ]. The negative effect of Play on Satisfaction is in contrast with previous studies [ 38 , 39 , 40 ] indicating a positive, significant relationship between perceived hedonism and customer satisfaction.…”

“…The negative effect of Play on Satisfaction is in contrast with previous studies [ 38 , 39 , 40 ] indicating a positive, significant relationship between perceived hedonism and customer satisfaction. Conversely, the positive effect of Play on Repurchase intention and Word-of-Mouth implies that shoppers do appreciate a recreational aspect when choosing a particular store in the future, and when talking to other people [ 36 ]. Store-based attributes in the food retail industry have a different influence on customer satisfaction and loyalty depending on the quality perception of products, with a moderating role of products’ perceived quality [ 41 ].…”

Thinking about service encounters boosts talking about them

“…The concern here is with the intensity of the customer's thinking and talking and the link between these two activities. The same intensity-based word-of-mouth variable appears, for example, in Fuentes-Blasco et al (2017). In any event, the following is hypothesized:…”

“…,Eisingerich et al (2014),Fuentes-Blasco et al (2017),Han et al, (2016), andYu et al (2017). In the marketing literature, however, word-of-mouth intentions, particularly intentions related to recommendations, represent another talk indicator.Word-of-mouth operationalizations with a focus on intentions rather than behavior have been used by, for example,Balaji et al (2017),Kim et al (2015), andSirakaya-Turk et al (2015).…”