Role of Marketing and Technological Innovation on Satisfaction and Word of Mouth in Retailing

Abstract

Despite the importance of innovation in business performance, investigation into innovation in services is scanty and lacking consensus. In retailing, it is a topic that has been awakening considerable academic and business interest in recent years. In this study context, this work analyses innovation in retail experiences from two aspects—marketing innovation and technological innovation—to understand the role it exercises in satisfaction and subsequent recommendation. For that purpose, our objective is to investigate the direct and indirect influence of marketing and technological innovation on satisfaction and word of mouth through three core constructs: store image, consumer value, and store brand equity. On a sample of 820 retail customers of grocery, clothing, furniture, an electronics store and using SEM methodology, the results show that technological innovation is more important than marketing innovation in shaping image, value, and satisfaction. At the same time, store image is the variable that most influences customer satisfaction and that satisfaction is a very significant antecedent of word-of-mouth behaviour. Practical implications for retail managers and further research are presented.