Shopping value and patronage: when satisfaction and crowding count

Abstract

Purpose The purpose of this paper is to compare two competing models denoting two dimensions (hedonic and utilitarian) and three dimensions (hedonic, utilitarian and social) of the construct “value” and investigates their relative influence on satisfaction, future patronage intention (FPI) and word-of-mouth (WoM) in a hypermarket context. Additionally, the study examines if these relationships are contingent upon gender and shoppers’ perception of retail crowding. Design/methodology/approach The proposed models and the hypotheses were tested using structural equation modelling, across two cross-sectional studies (n1=268, n2=259). The multi-group analysis was used to test moderated relationships. Findings The study demonstrates that satisfaction mediates the impact of shopping value on FPI and WoM. The model that includes utilitarian, hedonic and social value explains higher variance in satisfaction and WoM than that is evidenced in the alternate model comprising utilitarian and hedonic values. Shoppers’ gender and perceived retail crowding moderate the influence of shopping value on satisfaction. Practical implications Retail managers should understand that enjoyable and social shopping experience of the consumers lead to satisfaction, which in turn plays a pivotal role in the formation of FPI and WoM. Managers discern that a moderate level of crowding is better than the extremely low or high level of density. Originality/value Amidst a lack of unanimity on the dimensionality of shopping value, this is one of the first studies to evaluate the two theoretical models of shopping value having two dimensions and three dimensions, respectively. An understanding of gender and retail crowding perceptions is crucial in shopping value judgments.