Repurchase Intention Conditioned to Economic Confidence in Main Street Retail Districts

Eliane Deliberali,Marcelo Brandão,Flávio Bizarrias

doi:10.15728/bbr.2019.16.6.4

Eliane Deliberali, Marcelo Brandão + Show 1 more

Open Access

https://doi.org/10.15728/bbr.2019.16.6.4

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Abstract

The crisis of confidence in Brazil creates a scenario that can influence relations between the attributes of the retailer and consumers. Consumer assessments can be adjusted to economic confidence, leading to more utilitarian values or decreasing the hedonic value of buying experiences. Thus, it is necessary to understand the intervention of economic confidence in the responses of consumers to the attractiveness factors of a retail cluster. We conducted an analysis on the extent to which attribute assessments and crowding perception, hedonic and utility value, and satisfaction, interact with economic confidence, and satisfaction to influence performance and repurchase intention. A survey was carried out in the purchase environment with 300 consumers (region of Rua 25 de Marco, Sao Paulo). Hypotheses were tested by PLS and Process. The mediating role of the economic trust between hedonic value and satisfaction was evidenced, proving adjustment of the hedonic value with the decrease of confidence. Theoretical and practical contributions are discussed in the conclusions.

Highlights

The current economic situation in Brazil, along with the political crisis, coupled with the increase in competitiveness experienced within the retail sector in recent years, have caused much of the expansion of businesses oriented toward the middle class to suffer a major downturn
We verified the analysis of the Average Extracted Variance (AVE), composite reliability (CC) and the Cronbach’s alpha (AC)
The results suggest that the relationship between price and hedonic value is due to prices raising perceived quality and a possibility of symbolic purchase as discussed by Allen (2006), or it refers to a certain relativization of the perceptions of hedonic and utilitarian values evidenced by Griffin et al (2000)

Summary

Introduction

The current economic situation in Brazil, along with the political crisis, coupled with the increase in competitiveness experienced within the retail sector in recent years, have caused much of the expansion of businesses oriented toward the middle class to suffer a major downturn. This issue highlights the importance of knowing how much consumers adjust their buying behavior given the perception of the economic situation, or consumer confidence. What happens to the perception of the attractiveness factors of the retailer in crisis contexts? This construct considers consumer’s subjective assessments of household finances and their expectations about the economic climate Exploring the relationships between the effects of economic reliance on store satisfaction and repurchase intent has warranted greater attention for its added value to strategic retail marketing management in this new competitive context. The effect of retail consumer confidence has not been researched, perhaps because, in times of low confidence, consumers reduce overall ratings, including consumer and purchasing environments (Hunneman et al, 2015)

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