The small, inventory free retail format: The impact on consumer-based brand equity and purchase behavior

Abstract

The purpose of this study was to examine the role of brand experience, as conceptualized by Brakus, Schmidt, and Zarantonello’s (2009), in fostering Consumer Based Brand Equity (CBBE) elements associated with the new store format and their impact on consequent purchase intention through multiple retail channels. A survey sent to a national sample of female consumers regarding Nordstrom Local, a small, inventory-free retail store in the U.S., resulted in 406 usable responses. Structural equation modeling was used to test the hypothesized relationships among variables where nine of the ten proposed hypotheses were supported. The findings of this study support that the brand experience of a small, inventory-free retail format can be effective in fostering CBBE, which has a positive impact on purchase intention. Furthermore, patronizing a small, inventory-free retail format appears to influence purchase intention consummated through the retailer’s other channels. This appears to be the first empirical study to explore the impact of the small, inventory-free retail format on consumer responses. The findings may aid industry professionals in identifying successful strategies that appeal to changing preferences of today’s consumer.