How does perceived retail service innovativeness affect retail patronage intentions?

Abstract

This study aims to conceptualize the effects of perceived retailer service innovativeness (PRSI), perceived service advantage, customer emotional satisfaction, and attitudes to retail patronage intentions. The proposed model is examined by structural equation modelling (SEM) using 1,386 samples from three retail formats in Taiwan. Results suggest that PRSI can be used as a strategic tool to create competitive advantage and customer satisfaction. PRSI is a critical antecedent factor that affects store patronage intentions through material‐based and experience‐based routes. This study affirms that a retailer's ability to offer service innovations, especially free in‐store services, may not immediately increase the financial performance of firms; however, it can change a consumer's attitude towards the store by becoming a critical determinant of success of the retailing system. The research model can be utilized by other retail studies, especially in this era of increased competition when innovation has become a critical strategic tool for differentiation.