Customer’s loyalty and trial intentions within the retailer: the moderating role of variety-seeking tendency

Abstract

PurposeThe purpose of this paper is to introduce the concept of customer’s value to the retailer (CVR) from a marketing perspective. CVR is a broad concept that has two components: loyalty intentions to the retailer and intentions to try new products or brands that the retailer offers. This study proposes a theoretical model and considers the effect of three sources of CVR in consumer goods retailing: customer’s perceived functional service value, customer’s perceived private label brand (PLB) equity and customer’s perceived relationship value. The effects of the proposed antecedents are applied to two groups of customers: variety-seeking and non-variety-seeking consumers.Design/methodology/approachThe questionnaire surveys were administered to customers of five retail firms with a nationwide presence in Spain (Carrefour, Auchan, Eroski, Mercadona, and El Corte Inglés). A total of 742 valid questionnaires was obtained.FindingsThe results show that the key differences between variety seekers (VS) and non-variety seekers (NVS) are imposed by PLB equity, which has a stronger relationship to both components of CVR for VS than for NVS. Relationship value has a stronger relationship to intention to try new products or brands for NVS than for VS. Finally, functional service value has a stronger relationship to intention to try new products or brands for VS than for NVS.Practical implicationsThe results obtained for both groups have significant implications for segmentation and management of differentiated marketing strategies based on consumers’ characteristics (variety-seeking tendency).Originality/valueThis study establishes a new concept and measurement of CVR as determined by the customer him/herself. The paper provides a comprehensive analysis of how the relative importance of service, PLBs and relationships affect CVR. Finally, despite the fact that contemporary consumers tend to seek variety, the variety-seeking profile has not been used to date as a moderating variable in studies of CVR.