Millennials and repurchasing behaviour: a collectivist emerging market

Abstract

PurposeThis study explains how retailers can use the knowledge function of attitudinal theories to understand how millennials in a collectivist emerging market, trade-off between a satisfactory customer service experience versus price when repurchasing a smartphone.Design/methodology/approach356 usable questionnaires (86% response rate) were collected and analysed using structural equation modelling (SEM), AMOS.FindingsMillennials in Vietnam tend to adopt an individualistic approach when repurchasing a smartphone and utilise their knowledge of the product. However, they value personalised customer service that is specific to their needs, especially interactions with sales staff that raises their confidence and self-esteem. The unique interaction allows authorised retailers to distinguish themselves from unauthorised retailers. Repurchase behaviour is encouraged by low uncertainty avoidance in conjunction with price sensitivity; and the desire to be seen as achieving a high social status.Research limitations/implicationsThe data for the study was collected in Hanoi, the main city of Vietnam and is representative only of urban-based millennials.Practical implicationsRetailers considering entering an collectivist emerging market need to understand that millennials are price sensitive and may repurchase from unauthorised retailers. Accurate information and sales promotions can be used to stimulate demand for a high involvement product.Originality/valueFunctional theories of attitudes is used to link the concept of customer service with knowledge function utilisation in order to establish how customers in a collectivist emerging market process information and share knowledge through socialisation.