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Sustainable growth for the self-employed in the retail industry based on customer equity, customer satisfaction, and loyalty

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  • Kim, Woohyoung
  • Kim, Hyun
  • Hwang, Jinsoo

Abstract

In Korea, traditional retail districts face a serious situation whereby businesses in downtown areas face collapsing as local population declines: resulting in a decrease in self-employed sales and a declining local economy. Traditional retailers use ambiguous accounting and are reluctant to use credit cards, and thus, the overall reliability of their customer data is low. This paper solves this problem by applying the concept of customer equity (CE). We conducted an empirical analysis through questionnaires to identify differences in CE between traditional and new retail formats. The questionnaire consisted of questions related to CE (value equity, brand equity, relation equity), satisfaction, loyalty, and demographic characteristics. CE and satisfaction were measured on a 5-point Likert scale. A total of 400 surveys were completed, resulting in 391 usable returns for analysis in this study. In the regression analysis between CE and customer satisfaction, both old and new retail firms showed statistically significant effects. In the traditional retail industry, value equity and brand equity were statistically significant, while relation equity were not.

Suggested Citation

  • Kim, Woohyoung & Kim, Hyun & Hwang, Jinsoo, 2020. "Sustainable growth for the self-employed in the retail industry based on customer equity, customer satisfaction, and loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:joreco:v:53:y:2020:i:c:s0969698919302334
    DOI: 10.1016/j.jretconser.2019.101963
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    References listed on IDEAS

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    Cited by:

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    9. Chunlin Yuan & Shuman Wang & Yue Liu, 2023. "AI service impacts on brand image and customer equity: empirical evidence from China," Journal of Brand Management, Palgrave Macmillan, vol. 30(1), pages 61-76, January.
    10. Agag, Gomaa & Durrani, Baseer Ali & Shehawy, Yasser Moustafa & Alharthi, Majed & Alamoudi, Hawazen & El-Halaby, Sherif & Hassanein, Ahmed & Abdelmoety, Ziad H., 2023. "Understanding the link between customer feedback metrics and firm performance," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    11. Niros, Meletios & Giannakis, Damian & Niros, Angelica, 2022. "Digital marketing effects on customer repurchase intentions following the pandemic. A strategic marketing analysis of customer equity dimensions," MPRA Paper 114331, University Library of Munich, Germany.
    12. Shahriar Akter & Saida Sultana & Marcello Mariani & Samuel Fosso Wamba & Konstantina Spanaki & Yogesh Dwivedi, 2023. "Advancing algorithmic bias management capabilities in AI-driven marketing analytics research," Post-Print hal-04194438, HAL.
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    14. Ho, Mia Hsiao-Wen & Chung, Henry F.L., 2020. "Customer engagement, customer equity and repurchase intention in mobile apps," Journal of Business Research, Elsevier, vol. 121(C), pages 13-21.

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