Abstract
Specialty stores typically sell only one or a few closely related product lines but offer a wide choice within that line. This article establishes specialty store expertise as an important factor influencing customer satisfaction and examines the role of various factors in determining the share of wallet obtained by the store. A mail survey with 210 participants finds that customer perceptions of store expertise increase satisfaction and share of wallet, while distance to the store has a non-linear relationship with share of wallet. Managerial implications include the need for specialty store owners to develop expertise by careful hiring, training and retaining of employees. In addition, they are encouraged to promote store expertise to potential customers thus positioning themselves on this attribute and helping avoid price competition with mass market retailers.
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