Retail store loyalty: a comparison of two customer segments

Abstract

Purpose – The purpose of this paper is to determine if various measures of loyalty (satisfaction, continued patronage and share of wallet) converge or diverge. A related objective of the study is to examine the relative efficacies of merchandise quality, interaction quality, price and store environment in inducing store loyalty for two customer segments of a national automotive parts and accessories retailer in the USA. The two segments are the doityourself customers and the professional customers. Design/methodology/approach – Data for the study are collected via mail questionnaires. Usable responses are obtained from 17,034 customers. In operationalizing store loyalty, affective, conative and actionrelated measures are used. Findings – The results altogether suggest that merchandise quality is an effective predictor of loyalty but perhaps not as critical or dominant as interaction quality. Results also show that similar factors consistently exert like influence in generating loyalty for the two customer segments. Research limitations/implications – The efficacies of other antecedent variables (e.g. perceived value/value for money) as drivers of store loyalty should be examined. Also, it would be worthwhile to investigate the possible moderating role of demographic characteristics (e.g. gender) and situational characteristics (e.g. critical incident recovery) in attenuating the relationships between the antecedent variables and store loyalty. Practical implications – To reinforce loyalty among its both doityourself and professional customers, the focal retailer should continue to enhance the interaction skills of current and prospective employees via careful selection, training and motivation. Originality/value – The paper shows that the three measures of loyalty (satisfaction, continued patronage and share of wallet) converge. The strongest correlations are between affective and conative loyalty.