Innovation as a key to strengthen the effect of relationship benefits on loyalty in retailing

Abstract

PurposeThis work aims to attempt an in-depth study of the link between relationship benefits and store loyalty, examining the moderating role of the retailer’s degree of innovation in these relations.Design/methodology/approachAn equations model has been contrasted based on 820 valid individual structured questionnaires administered to consumers of 13 trade names in four retail distribution sectors (food, textile, electronics and household goods).FindingsThe results provide evidence of the positive influence of relationship benefits on store loyalty and in particular the benefits stemming from trust. The links between social and special treatment benefits in relation to loyalty are, however, significantly stronger in the less innovative establishments.Research limitations/implicationsThis paper provides evidence of the moderating role of innovation on the relationship between social benefits and special treatment benefits and loyalty.Practical implicationsTechnology may be used as a differentiation tool. The retailer should concentrate its investments on information and communications technology solutions that contribute to enhance the customer experience at the point of sale without neglecting the social dimension to increase the benefits of trust and ultimately, customer loyalty.Originality/valueThe paper provides an in-depth examination of the retail innovation variable which is scarcely analysed in the literature, offering support for the idea that innovation at the point of sale plays a moderating role in the links between relational benefits and customer loyalty.