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1 – 10 of 44The purpose of this paper is to increase the understanding of customer share of wallet (SoW) based on research in customer characteristics and the retail service quality model…
Abstract
Purpose
The purpose of this paper is to increase the understanding of customer share of wallet (SoW) based on research in customer characteristics and the retail service quality model. Specifically, this study adopts an asymmetrical modelling approach to provide insights into the necessary and sufficient conditions leading to increased customer SoW in the context of neighbourhood shops in Southern Africa.
Design/methodology/approach
This study uses fuzzy-set qualitative comparative analysis to analyse survey data collected from 523 current customers of the shops.
Findings
This study reveals that large household size and low income are necessary conditions for increased SoW. It also reveals five unique customer profiles, or casual recipes, associated with increased customer SoW. More generally, this study demonstrates that service quality constituents (personal interaction, reliability, policy and physical aspects of the shop) and customer characteristics, namely, relationship duration, household size, gender and income-level act in combination to lead to customer SoW.
Originality/value
This study illustrates how service quality constituents and customer characteristics compete and/or complement each other in relation to increased customer SoW. To the best of the author’s knowledge, this is the first study to provide evidence on the necessary conditions for increased SoW, especially in the neighbourhood shop context of a developing economy. Value-wise, this paper provides a more nuanced perspective to understanding how unique customer profiles are associated with increased SoW.
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Bodo Steiner and Moritz Brandhoff
This paper aims to explore the role of configurations of relationship quality dimensions for explaining sources of behavioral outcomes in the globalized manufacturing industry.
Abstract
Purpose
This paper aims to explore the role of configurations of relationship quality dimensions for explaining sources of behavioral outcomes in the globalized manufacturing industry.
Design/methodology/approach
A joint analysis of behavioral and objective performance data from globalized manufacturing links perceptual customer metrics that relate to dimensions of relationship quality (i.e. attitudinal loyalty, perceived customer orientation, customers’ perceived innovativeness of the supplier and perceived customer influence on supplier innovation) with behavioral outcomes (i.e. share of wallet (SOW) and customer account profitability). Using data from a global business-to-business (B2B) customer survey together with archival performance data from a multinational mechanical engineering firm, a fuzzy set qualitative comparative analysis (fsQCA) is performed.
Findings
The fsQCA results suggest that perceptual customer metrics related to innovation can be relevant aspects of relationship quality, in line with Anderson and Mittal’s (2000) satisfaction-repurchase-profitability chain framework and its adaptation to SOW. However, the underlying complexities in the different combinations of attributes in the recipe are such that they are not equifinal in leading to higher SOW or higher profitability. This paper finds indications for non-linearities between perceptual measures investigated and profitability of customer accounts, with particular relevance for the role of perceived customer orientation, perceived product innovativeness of the supplier and attitudinal loyalty.
Research limitations/implications
The analysis faces a number of limitations, starting with its reliance on cross-sectional survey data, which does not enable us to account for feedback mechanisms, for example, arising from customer perceptions regarding innovation aspects. The lack of a multidimensional conceptionalization of the perceptual customer constructs may have limited the analysis, considering also recent evidence from retail companies in the furniture sector in Spain, suggesting that the multidimensional conceptualization of relationship value explained satisfaction and loyalty levels to a greater extent than the one-dimensional conceptualization (Ruiz-Martínez et al., 2019).
Practical implications
In terms of managerial implication, the results suggest that customers perceive limited value in participating in the focal firm’s innovation value chain funnel, hence customer loyalty cannot be bought using simple incentive strategies. The results with regard to customer account profitability suggest that B2B customers investigated here may distinguish when interacting with their globalized supplier in the innovation funnel: they may see a positive customer value when the innovation is a product, and thus, relation-specific, whereas they may see limited customer value when innovation is considered in more generic terms (customers’ perceived influence on supplier innovation in general).
Originality/value
This paper starts from the premise that perceptual customer metrics can matter for supplier performance, as the customer relationship and customer value management research has shown. However, there is limited empirical evidence from globalized manufacturing sectors incorporating perceptual constructs in behavioral outcomes, and limited evidence assessing customer-perceived value in such sectors through alternate approaches to main-effects focused analyzes. We employ qualitative comparative analysis using fuzzy sets (Russo et al., 2019) to address these gaps, focusing on two key behavioral outcomes, namely, customer account profitability and SOW.
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Narimasa Yokoyama, Nobukazu Azuma and Woonho Kim
Despite retail digitisation and research efforts focussed on online and omnichannel shopping, there is insufficient knowledge regarding retail patronage formation in the grocery…
Abstract
Purpose
Despite retail digitisation and research efforts focussed on online and omnichannel shopping, there is insufficient knowledge regarding retail patronage formation in the grocery category, where in-store sales dominate. This study analyses the retail patronage formation in grocery in-store fill-in shopping.
Design/methodology/approach
The authors designed a questionnaire to measure retail patronage behaviour, consumer satisfaction (CS), store attributes evaluation and e-retail usage. Then, the authors analysed the path structure for retail patronage behaviour formation using structural equation modelling. Additionally, they performed a mediation analysis using the bootstrap method and a moderation analysis based on a chi-square difference test.
Findings
This study provides three main findings. First, the authors' model has two ways to increase Share-of-Wallet (SOW). One is to increase Share-of-Visits (SOV) and another is to increase CS amongst non-users of e-retailing. Second, the results of the moderation analysis suggest the influence of customers' use or non-use of e-retailing on SOW formation. Third, service evaluation plays an interesting role in the overall model: the lower the assessment of service, the higher the SOV; the higher the evaluation of service, the greater the CS; the greater the CS, the higher the SOV.
Originality/value
The authors proposed the framework for the relative retail patronage formation in grocery fill-in shopping to examine the relationship between two relative patronage indicators (SOW and SOV) in the path structure and the mediating effect of CS and the moderating effect of e-retailing usage on retail patronage formation.
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Beatrice Luceri, Fabrizio Laurini and Sabrina Latusi
The study develops a decision support system for the spatial distribution of store flyers, identifying a number of factors related to the demand and the competition influencing…
Abstract
Purpose
The study develops a decision support system for the spatial distribution of store flyers, identifying a number of factors related to the demand and the competition influencing the complexities of their allocation to the target population.
Design/methodology/approach
The model was developed incorporating the insights found in existing marketing literature and bypassing the limitations of the managerial practices. To this end, an in-depth discussion with a panel of retailers was held. The model was tested in collaboration with a retail chain.
Findings
The proposed system is flexible and provides an almost endless array of solutions in accordance with the retailer's strategic approach to the market. It captures the key trade-offs that need to be made during the decision-making process of a retailer with limited marketing resources.
Practical implications
The traditional managerial approach, based on a set of operational steps, is overtaken by a model that systematically considers the interrelationships between the decision-making factors involved.
Originality/value
This is the first attempt to analyse spatial distribution of store flyers, a topic that has yet to be explored in retail marketing research. The paper conceptualises the key variables which affect the optimisation problem and reviews the different streams of extant research to obtain the appropriate insights.
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The purpose of this paper is to plot out pathways for organizations to implement a customer focus. These pathways are outlined with the help of illustrative examples. A…
Abstract
Purpose
The purpose of this paper is to plot out pathways for organizations to implement a customer focus. These pathways are outlined with the help of illustrative examples. A well-defined customer focus is vital for organizations to ensure that they are positioned to be in line with the customers’ actual needs.
Design/methodology/approach
This is a conceptual paper where the argumentation is built on previous research findings, the authors’ reflections and the use of illustrative case examples of companies managing to instill a customer focus.
Findings
This paper builds a framework of potential pathways toward a customer focus by considering four strategic questions related to competition, products, insights and metrics.
Practical implications
This paper encourages managers to move beyond labeling themselves as customer-oriented and to actually implement a customer focus. This study puts forth a framework with strategic questions and principles designed to help with these endeavors.
Originality/value
Many companies pay lip service to customer focus, and it is often merely part of the corporate jargon without any real connection to strategy, the business model or everyday practices. This paper addresses the issue further by highlighting the potential pathways through which an organization can achieve a customer focus.
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