Abstract

The present paper analyzed the influence of ethically minded consumer behavior on retailer’s commitment to sustainable development as perceived by the consumer, and their contribution to the chain of relationships “store equity–loyalty–word of mouth communication”, in the context of retailing. Responses from 317 hypermarket customers in Ecuador were analyzed. The model was estimated using the partial least squares technique. The results show the sustainable development actions implemented by retailers, together with perceived value, contribute significantly to store equity creation, which explains customer loyalty and, ultimately, positive word-of-mouth communication. However, the most concerned consumers of ethical aspects value the retailer’s efforts towards sustainability to a lesser extent. The findings of this research allow developing a series of implications for the managers of these establishments.

Highlights

  • In the last decade, public concern for the environment has emerged as a problem of global importance [1,2]

  • Various hypermarket chains have been carrying out actions to contribute to social and environmental sustainability through their activities [7], creating spaces for the development of sustainable management by retailers and ethical consumption

  • In the research applied to the hypermarket format, it was concluded that perceived value is an important factor to differentiate the consumer in regard to the perception that the latter has about the retailer’s brand equity [64]

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Summary

Introduction

Public concern for the environment has emerged as a problem of global importance [1,2]. EMCB implies the consideration of environmental principles and social causes in the purchase decision, beyond the mere satisfaction of needs [11], tangible proof of the social, environmental, and economic commitment of retailers is expected [12] In this sense, it is important to analyze the scope of the retailers’ commitment to sustainable development as perceived by consumers (hereinafter, RCSD), following the call for future research by Lavorata [12], regarding its impact on consumer behavior in terms of loyalty and word-of-mouth communication. In Ecuador, innovations in retail business formats began in the 1950s, with the creation of commercial retail establishments, such as supermarkets and hypermarkets [17] Their development has been continuous throughout recent decades, making gains in terms of meters of surface area, coverage, and market share compared to the more traditional formats such as markets and small local shops. The results obtained offer relevant implications for managers of retail establishments when it comes to focusing their efforts on those aspects that help them achieve competitive advantages and maintain lasting connections with customers that generate long-term successful relationships

Ethically Minded Consumer Behaviour
Retailers’ Commitment to Sustainable Development as Perceived by Consumers
Store Equity and Its Antecedents
Loyalty
Methodology
Analysis of Results
Perceived value
WOM W1 W2 W3
Findings
Full Text
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