Store equity and behavioral intentions: the moderating role of the retailer’s technology

Abstract

Purpose In the current competitive environment in which retailers operate, store equity is seen as a key differentiating factor. In view of the scarce research on the dimensionality and correlates of brand equity related to the retailer, this paper aims to analyze the relationship between store equity and behavioral intentions and the influence of information and communication technology on this relation. Design/methodology/approach From a sample of 820 customers of store chains, a multigroup structural equation model is estimated considering the level of technological development of the retailer as a moderating variable. Findings The authors find evidence in favor of the positive influence of store equity on consumer behavioral intentions toward the retailer and the role of technology as a moderator in this relationship. Research limitations/implications This paper provides evidence about the multidimensionality of store equity and its positive influence on behavioral intentions towards the retailer. Furthermore, the authors find support for the notion that information and communication technology (ICT) solutions implemented by the retailer contributes to reinforce the positive impact of store equity on behavioral intentions. Practical implications Technology may be used to differentiate the retail chain from competitors. The retailer should concentrate its investments in ICT solutions that contribute to enhance the customer experience in the store. Originality/value Research on the brand equity concept in the context of retailing is still scarce. The results of this research provide support to the role of loyalty, service quality, product quality and perceived value as the dimensions of store equity. In addition to this, to the best of authors’ knowledge, this is the first paper that addresses the role of technology in the relationship between store equity and behavioral intentions.