Food shoppers’ share of wallet: A small city case in a changing competitive environment

Effects of customer characteristics and service quality on share of wallet in neighbourhood shops based on an asymmetric approach

“…This research has identified five distinct causal combinations of the antecedent factors of customer characteristics and service quality constituents that are related to increased SoW in neighbourhood shops. Previous research has presented evidence (but sometimes mixed) on the independent and/or moderating effects of customer characteristics including income, gender, household size and relationship duration on customer SoW (Azeem et al, 2018;Babakus and Yavas, 2008;Buoye, 2016;Magi, 2003). The present study, especially based on the first solution (i.e.…”

“…Several scholars -including Azeem et al (2018), Buoye et al (2016) and Keiningham et al (2007Keiningham et al ( , 2011 believe that growing customer share of wallet (SoW) is a central priority for firms nowadays and especially for retailers. It is also believed that marketing effort spent in growing existing customers' SoW is more effective, in addition to being less costly, than investments in new customer acquisition (Azeem et al, 2018).…”

“…Several scholars -including Azeem et al (2018), Buoye et al (2016) and Keiningham et al (2007Keiningham et al ( , 2011 believe that growing customer share of wallet (SoW) is a central priority for firms nowadays and especially for retailers. It is also believed that marketing effort spent in growing existing customers' SoW is more effective, in addition to being less costly, than investments in new customer acquisition (Azeem et al, 2018). Accordingly, the understanding of customer SoW, particularly pertaining to its sets of antecedent factors, is a key concern for businesses including micro-retailers who typically are the most dominant in emerging and developing economies.…”

“…Importantly, given that the retail service quality model (RSQM) is a well-established metric for gauging customers' service quality perceptions of the retail store (Dabholkar et al, 1996(Dabholkar et al, , 2000V azquez et al, 2001) as well as the neighbourhood shop in a developing economy (Osakwe, 2019) and in relation to desirable outcomes such as loyalty (Martinelli and Balboni, 2012), the present study seeks to first examine whether the underlying dimensions of RSQM, namely, reliability, physical aspects, personal interaction and policy of the shop are necessary conditions leading to the desirable outcome of increased customer SoW in the neighbourhood shop. Similarly, given that customer characteristics such as gender, relationship duration, income and household size have been previously proposed in the literature (Azeem et al, 2018;Buoye, 2016;Shaikh et al, 2018) to play an essential role in customer SoW, the study wanted to understand also if any of them may be a necessary condition for predicting the desirable outcome of increased customer SoW in the shop. Furthermore, a main priority of the current work is to also shed initial light on the sufficient conditions for increased SoW based on the identified service quality constituents and customer characteristics.…”

“…Because of the importance of this topic, it is not surprising that it continues to receive considerable attention in marketing and business research (Buoye, 2016; Harrison-Walker, 2019; Kim and Lee, 2010; Magi, 2003; Ramaseshan and Ouschan, 2017; Shaikh et al , 2018). In spite of the importance of the above studies, a common limitation of these studies is that none of them took account of the fact that distinct sets of antecedent conditions can concurrently lead to customer SoW, especially as they relied exclusively on symmetric methods like regression and structural equation modelling to provide evidence on net effects alone (see also Azeem et al , 2018; Babakus and Yavas, 2008; Kim and Lee, 2010; Kong and Maute, 2010). Accordingly, there is a research gap concerning how antecedent conditions potentially combine to form causal recipes in relation to increased customer SoW.…”