How Store Attributes Impact Shoppers’ Loyalty: Do Different National Cultures Follow The Same...
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Transcript of How Store Attributes Impact Shoppers’ Loyalty: Do Different National Cultures Follow The Same...
HOW STORE ATTRIBUTES IMPACT SHOPPERS’ LOYALTY:
DO DIFFERENT NATIONAL CULTURES FOLLOW THE SAME LOYALTY BUILDING PROCESS?
Monica Grosso Sandro CastaldoEMLYON Business School SDA Bocconi School of Management
EMLYON Business School
EVIDENCES
Relevance of store loyalty is rooted in the marketing literature on loyalty
Loyal customers are (Reichheld and Sasser 1990):
less price sensitive more likely to purchase at a higher frequency rate more willing to try the company’s other product offerings & to bring new customers to the firm
Many examples of loyalty-based relationships with customers that have positive effects on firms’ performance can be found also in the
retail context.
EMLYON Business School
STUDIES ON STORE LOYALTYStudies on Store Loyalty investigated many issues, such as:
the loyal shopper’s profile and the shopping style (e.g. Reynolds, Darden and Martin 1974-75; Goldman 1977-78)
the segmentation of customers based on their store loyalty (e.g. Enis and Gordon 1970; Samli 1975; Miller and Granzin 1979; Steenkamp, and Wedel 1991)
the main drivers of store loyalty, with a specific focus on the role of the store personality and image
(e.g. Martineau 1958; Berry 1969; Lindquist 1974-75; Hirschman, Greenberg, and Robertson 1978; Pessemier 1980; Mazursky and Jacoby 1986; Zimmer, and Golden 1988; Grewal et al. 1998).
EMLYON Business School
There are fundamental gaps in the retail literature on store loyalty:
1. Research has only considered a narrow set of tools that retail managers can leverage in order to foster customer relationships.
2. Prior study’s results are sometimes contradictory Inconsistencies between the results are probably due to the studies focusing on different countries/cultures.
It therefore seems possible that building store loyalty depends on the specific cultural context.
GAPS IN THE LITERATURE
EMLYON Business School
The goal of the study is to test a store loyalty model in multiple contexts
The model is developed and analysed in two main steps:• Model 1 is focused on the key dimensions of loyalty (intentions
and behaviour) and their two main antecedents reported in the literature (satisfaction value for money).
• Model 2 enlarges the perspective presented in the literature and simultaneously takes different store-level levers into account to gain further theoretical and managerial insights.
Test of the moderating effect of culture using the individualism/collectivism dimension of Hosftede
THE HP MODELS
EMLYON Business School
THE HP MODELS
SATISFACTION
VALUE FOR MONEY
LOYALTY INTENTIONS
SOW
PL SOW
H5
H 6
H8
H 2
H1
COMPETENCE
ENVIRONMENT
ASSORTMENT
PROMOTION
H 20H 19
H17
H21
Model 2: extended
Model 1: core
TRUSTWORTHINESSH18
SALESPEOPLE
H3
H4
H 7H 22
STORELOYALTY
NATIONAL CULTURE (individualist vs collectivist)
H9-H16
EMLYON Business School
members of individualist cultures tend to hold an independent view of the self that emphasizes separateness, internal attributes, and the uniqueness of individuals
members of collectivist cultures tend to hold an interdependent view of the self that emphasizes connectedness, social context, and relationships
THE MODERATING ROLE OF CULTURE
EMLYON Business School
DATA COLLECTION Web survey in 7 languages
Data collection in 12
countries selected to have variance in Hosftede cultural dimensions
2 macro product categories• FMCG• Non-food
Collettivist Individualist
United States
UK
France Italy
Australia
Brasil
Colombia
Mexico
China
Chile
Canada
Japan
EMLYON Business School
1 data collector, MarketTool, collecting at the same time in all countries to assure data collection equivalence.
The store was the unit of analysis.
The participants’ familiarity with each of the product categories was assessed at the beginning of the questionnaire. The respondents were then randomly assigned to one of the categories they ranked higher in familiarity.
The respondents were asked to focus their attention on a store where they had bought the products in the assigned category.
DATA COLLECTION
EMLYON Business School
SAMPLE
Demografics in line with single countries’ population
13,808 valid cases
46.5%
54.5%
Average age 39.9
Age range from 13 to 91
EMLYON Business School
The questionnaire was designed on the basis of a comprehensive literature review.
An expert panel of professors and top retail managers (with different cross-cultural backgrounds) refined it to maximize the constructs measurement equivalence across the countries (Hult et al. 2008).
Subsequent to this evaluation, all the scales were slightly adapted from existing scales with the exception of the one used to measure customers satisfaction and promotion.
MEASURES
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The store behavioural intention was measured using two direct questions on the store’s share of wallet in the product category (SOW – De Wulf and Odekerken-Scroeder 2003) and the share of private label sales (PL SOW).
Professional translators translated the questionnaire into six languages, using the translation-independent back translation procedure (Brislin 1970) in order to successfully run the survey in the 15 selected countries (Chinese, English, French, Italian, Japanese, Portuguese and Spanish).
MEASURES
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For both models:
EFA to check the latent constructs Multiple EFA to check language invariance CFA to assess the psychometric measurement
properties of our scales Multigroup CFA to check subsamples invariance:
individualistic vs collectivistic countries
MEASURES – SCALES CHECK
EMLYON Business School
OVERALL RESULTS
SATISFACTION
VALUE FOR MONEY
LOYALTY INTENTIONS
SOW
PL SOW
ns
.140
.071
.151
.063
SALESPEOPLE
ENVIRONMENT
ASSORTMENT
PROMOTION
.065
.117
.354
.643
.133
.680
.196
STORELOYALTY
.078
.378
.124
New path
COMPETENCE
TRUSTWORTHINESS
Model 2: extended
Model 1: core
EMLYON Business School
MODEL 1: COUNTRY COMPARISON
SATISFACTION
VALUE FOR MONEY
LOYALTY INTENTIONS
SOW
PL SOW
.219
.107
.718
STORELOYALTY
.786
.118
> In INDIVIDUALISM > In COLLECTIVISM
ns
.193
EMLYON Business School
MODEL 2: COUNTRY COMPARISON
SATISFACTION
VALUE FOR MONEY
LOYALTY INTENTIONS
SOW
PL SOW
ENVIRONMENT
ASSORTMENT
PROMOTION
.442
STORELOYALTY
.286
.253.4
79
.94
ns
SALESPEOPLE
COMPETENCE
TRUSTWORTHINESS
Model 2: extended
Model 1: core
> In INDIVIDUALISM > In COLLECTIVISM
EMLYON Business School
FUTURE ANALYSIS Further analysis on the dataset for our model :
• refining the countries groupingo Other cultural dimensions of Hofstede: eg.
uncertainty avoidance o Retail sector development
• Differences in the generations of shoppers?• Differences in the product categories? • Differences withing retail formats?
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LIMITATIONS The analysis was conducted on the preferred stores selected by
the respondents.
Even the model included several retail levers, it is not exhaustive. There could be some levers that are country specific (developing countries).
Absence of behavioural data from retailers. The model relied on self-declared behaviour Future research should merge the survey data with real behavioural data (i.e. sales data, better if from loyalty cards records) from retailers (considering a smaller set of countries).