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Consequences of Value in Retail Markets

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  • Chaudhuri, Arjun
  • Ligas, Mark

Abstract

We suggest that merchandise value, affect and two types of loyalty are related in the retail domain. Based on ideas from cognitive psychology on the structure of value we suggest that merchandise value is directly related to repurchase loyalty but indirectly related to attitudinal loyalty via the construct of store affect. Additionally, our model proposes that attitudinal loyalty is related to willingness to pay a price premium while repurchase loyalty is not. We also control for the effects of store familiarity and convenience. We test our hypotheses in three studies and find that, in general, our model is well supported at the level of both individual consumers and stores. Additionally, we find that perceived retailer differentiation moderates the effect of merchandise value on store affect.

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  • Chaudhuri, Arjun & Ligas, Mark, 2009. "Consequences of Value in Retail Markets," Journal of Retailing, Elsevier, vol. 85(3), pages 406-419.
    • Handle: RePEc:eee:jouret:v:85:y:2009:i:3:p:406-419
    DOI: 10.1016/j.jretai.2009.05.006
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    2. Suwelack, Thomas & Hogreve, Jens & Hoyer, Wayne D., 2011. "Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes," Journal of Retailing, Elsevier, vol. 87(4), pages 462-478.
    3. Coelho, Filipe & Aniceto, Inês & Bairrada, Cristela Maia & Silva, Pedro, 2023. "Personal values and impulse buying: The mediating role of hedonic shopping motivations," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
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    7. Stephan Zielke & Deonir Toni & José Afonso Mazzon, 2023. "Cognitive, emotional and inferential paths from price perception to buying intention in an integrated brand price image model," SN Business & Economics, Springer, vol. 3(1), pages 1-25, January.
    8. Hsiu-Hui Chang & Wenchang Fang, 2011. "The effects of shopping value on retail outcomes: a comparison between department stores and hypermarkets," The Service Industries Journal, Taylor & Francis Journals, vol. 32(14), pages 2249-2263, April.
    9. Tracie (Tsun-Yin) Tung & Harold F. Koenig & Hsiou-Lien Chen, 2017. "Effects of Green Self-Identity and Cognitive and Affective Involvement on Patronage Intention in Eco-Friendly Apparel Consumption: A Gender Comparison," Sustainability, MDPI, vol. 9(11), pages 1-17, October.
    10. Terblanche, Nic S., 2018. "Revisiting the supermarket in-store customer shopping experience," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 48-59.
    11. Swoboda, Bernhard & Berg, Bettina & Schramm-Klein, Hanna & Foscht, Thomas, 2013. "The importance of retail brand equity and store accessibility for store loyalty in local competition," Journal of Retailing and Consumer Services, Elsevier, vol. 20(3), pages 251-262.
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    13. Filipe Coelho & Carlos Sousa, 2011. "From Goal Orientations to Employee Creativity and Performance: Evidence from Frontline Service Employees," GEMF Working Papers 2011-08, GEMF, Faculty of Economics, University of Coimbra.
    14. Irene Sánchez-González & Irene Gil-Saura & María Eugenia Ruiz-Molina, 2020. "Ethically Minded Consumer Behavior, Retailers’ Commitment to Sustainable Development, and Store Equity in Hypermarkets," Sustainability, MDPI, vol. 12(19), pages 1-17, September.
    15. Willems, Kim & Smolders, Annelien & Brengman, Malaika & Luyten, Kris & Schöning, Johannes, 2017. "The path-to-purchase is paved with digital opportunities: An inventory of shopper-oriented retail technologies," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 228-242.
    16. Maria C. Pereira & Filipe Coelho, 2020. "Regulatory Focus, Money Attitudes and Financial Literacy: Evidence from Portuguese Young Adults," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 615-625, December.
    17. Doucé, Lieve & Willems, Kim & Chaudhuri, Arjun, 2022. "Bargain effectiveness in differentiated store environments: The role of store affect, processing fluency, and store familiarity," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    18. Andrea Moretta Tartaglione & Ylenia Cavacece & Giuseppe Russo & Giuseppe Granata, 2019. "A Systematic Mapping Study on Customer Loyalty and Brand Management," Administrative Sciences, MDPI, vol. 9(1), pages 1-21, January.
    19. Park, Hyejune & Kim, Youn-Kyung, 2014. "The role of social network websites in the consumer–brand relationship," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 460-467.
    20. Zielke, Stephan, 2014. "Shopping in discount stores: The role of price-related attributions, emotions and value perception," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 327-338.
    21. Martos-Partal, Mercedes & González-Benito, Óscar, 2013. "Studying motivations of store-loyal buyers across alternative measures of behavioural loyalty," European Management Journal, Elsevier, vol. 31(4), pages 348-358.
    22. González-Benito, Óscar & Martos-Partal, Mercedes, 2012. "Role of Retailer Positioning and Product Category on the Relationship Between Store Brand Consumption and Store Loyalty," Journal of Retailing, Elsevier, vol. 88(2), pages 236-249.
    23. Ligas, Mark & Chaudhuri, Arjun, 2012. "The moderating roles of shopper experience and store type on the relationship between perceived merchandise value and willingness to pay a higher price," Journal of Retailing and Consumer Services, Elsevier, vol. 19(2), pages 249-258.
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    25. Frank, Darius-Aurel & Otterbring, Tobias, 2023. "Being seen… by human or machine? Acknowledgment effects on customer responses differ between human and robotic service workers," Technological Forecasting and Social Change, Elsevier, vol. 189(C).

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    Keywords

    Value; Affect; Loyalty; Price premium;
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