Store Equity Research Articles

Sustainability-oriented commerce innovation: How does it influence consumer satisfaction?

PurposeInnovation and sustainability are two key factors for retailers seeking a competitive advantage. However, the way in which the joint effect of both of these variables impacts consumer satisfaction is still unknown. To address this gap, based on the concept of sustainability-oriented service innovation (SOSI), the authors introduce a new construct named sustainability-oriented commerce innovation (SOCI) in the context of the retail sector.Design/methodology/approachThe relationships between the variables defined in this research were examined using a structural equations model for 510 customers of grocery retail establishments.FindingsThe authors find support for a direct positive impact of SOCI on customer satisfaction and an indirect impact through store equity. These chained effects are modified according to the client participation in the development of sustainable and innovative initiatives.Originality/valueThis research analyses the joint effect of innovation and sustainability in the retail context by introducing a new concept – SOCI – and a scale for its measurement whose psychometric properties are validated.

Relationship sustainability-store equity across segments of retail customers

PurposeThe study of sustainability in retail has experienced an exponential interest in recent years as a result of greater awareness on the part of consumers of the negative effects of the current way of producing and consuming on society and the environment. This work examines the heterogeneous evaluation based on behavioural variables in retail trade and how consumer perceptions towards sustainable practices implemented in stores can influence the overall store equity.Design/methodology/approachThe authors propose a theoretical model based on the literature, tested through a mixed regression model in a sample of 510 customers of food retail establishments.FindingsThe dimensions of sustainability are postulated as driving forces of brand equity towards the retail establishment. Specifically, social sustainability shows a greater impact on consumer perception, being the main factor in the development of the store's brand equity. Furthermore, the analysis of unobserved heterogeneity identifies three latent classes in which the effects of perceptions on sustainable retail activities vary across consumer segments.Originality/valueThe study analyses in a single model the effect of sustainability dimensions on store equity from the consumer's perspective, analysing the differences between these relationships as a consequence of the unobserved heterogeneity of consumers.

Customer-based pop-up store equity and consumer shopping behavior

ABSTRACT This study explores how a company's offline and online service quality affects customer-based pop-up store equity, which in turn influences consumers’ willingness to pay a price premium and consumers’ purchase intention when shopping at a pop-up retail store. This study utilized Aaker's ([1991]. Managing brand equity: Capitalizing on the value of a brand name. New York: FreePress) brand equity model as the conceptual framework of the study. From the exploratory factor analysis, three dimensions emerged: awareness/association, perceived quality, and loyalty. The result of this research showed that offline service quality was a significant determinant that influences pop-up store equity. Among the three constructs identified as pop-up store equity in this study, awareness/association and loyalty were the significant determining factors for the customers’ willingness to pay the price premium. Also, awareness/association and perceived quality of pop-up stores were the significant factors that influence purchase intention.

Does sustainability drive to create store equity? A proposal through image, quality and loyalty

PurposeThe present research aims to analyse the retailer's commitment to sustainable development (RCSD) perceived by the consumers and how it contributes to store equity creation through image, perceived quality and loyalty.Design/methodology/approachA primary research was conducted through a structured questionnaire to analyse the relationships between the variables included in the proposed model. The fieldwork was conducted in 2019, obtaining responses from 617 retail consumers from four cities in Ecuador – Quito, Guayaquil, Cuenca and Machala – obtained. A structural equation model is estimated with the partial least squares technique.FindingsThere is evidence in favour of the contribution of sustainability to store equity. The positive influence of RCSD on perceived quality and the impact of the latter, together with store image, contribute to loyalty, which emerges as a critical construct in building store equity.Research limitations/implicationsSome limitations of the present study – geographic scope limited to Ecuador, analyses restricted to food retailers and pre-COVID-19 data collection – may open new research opportunities replicating the study in other regions for other retail activities and in the post pandemic context.Practical implicationsThe retailer's actions demonstrate a commitment to economic, social and environmental sustainability. As a result of this, the establishment's perceived quality improves, which is of interest to academics and retail management professionals.Originality/valueThe present research provides evidence on the chain of effects that explains the positive contribution of RCSD to store equity creation in grocery retailing.

Building Store Equity: Role of Store Image, Consumer Satisfaction, and Store Loyalty in the Indian Retail Market

The Indian retail sector is poised for tremendous growth and thus provides ample opportunities for local and global retailers. Building store equity will not only be a challenge but also be a prerequisite for surviving in the highly competitive market. The objective of the current study is to understand the role of store image, consumer satisfaction, and store loyalty in building retail store equity in the Indian retail market. The study employed exploratory factor analysis for reducing the number of items and linear regression for hypothesis testing. A total of 210 actual patrons evaluated different retail stores. The empirical findings suggest that store image, consumer satisfaction, and store loyalty play a direct, positive, and significant role in building retail store equity in the Indian retail market. Store image was found to have the strongest impact on store loyalty, followed by customer satisfaction on store loyalty, customer satisfaction on store equity, and store loyalty on store equity. This study will add value to literature on store image, consumer satisfaction, store loyalty, and store equity. The study concludes with strategic implications, limitations, and directions for future research.

Sustainability, Store Equity, and Satisfaction: The Moderating Effect of Gender in Retailing

Currently, sustainability emerges as a key element on which the development of competitive advantages for businesses is based. In the dynamic and turbulent environment in which retail companies operate, sustainable practices are posited as an opportunity for their progress and survival. Through this article, it is intended to advance the nature and dimensions of this construct and examine its influence on store equity and consumer satisfaction. Furthermore, this work analyses the moderating effect of gender on these variables and the mediating nature of brand equity in the development of consumer satisfaction. All this is developed through a quantitative study carried out on a sample of 510 consumers of different food retail commercial formats (hypermarkets, supermarkets, and discount stores) in Spain. The technique used for data analysis is partial least squares (PLS) regression. The results show the importance of sustainability and brand equity in the development of consumer satisfaction in the retail sector, with the intensity of its effects being a gender issue. On the other hand, brand equity is positioned as a key element thanks to its mediating effect between sustainability and satisfaction. All of this points to the need to move towards more sustainable business models.

Exploring the relationship of marketing & technological innovation on store equity, word of mouth and satisfaction

While innovation affects company efficiency, research into service innovation is scarce and lacks consensus. In retailing, in latest years, innovation has aroused significant interest in corporate ...

Ethically Minded Consumer Behavior, Retailers’ Commitment to Sustainable Development, and Store Equity in Hypermarkets

The present paper analyzed the influence of ethically minded consumer behavior on retailer’s commitment to sustainable development as perceived by the consumer, and their contribution to the chain of relationships “store equity–loyalty–word of mouth communication”, in the context of retailing. Responses from 317 hypermarket customers in Ecuador were analyzed. The model was estimated using the partial least squares technique. The results show the sustainable development actions implemented by retailers, together with perceived value, contribute significantly to store equity creation, which explains customer loyalty and, ultimately, positive word-of-mouth communication. However, the most concerned consumers of ethical aspects value the retailer’s efforts towards sustainability to a lesser extent. The findings of this research allow developing a series of implications for the managers of these establishments.

Segmentação de mercado e dimensões do store equity: um estudo no varejo da construção civil

This study has its bases on the concept of store equity developed by Hartman and Spiro (2005) and in the empirical model of Teixeira, Oliveira and Pires (2006), which identifies four dimensions: loyalty, memory, quality and image. The objective was to apply and test the dimensions of the model in four distinct retail brands of the building and construction segment of São Paulo, compare their store equity and segment the consumers. In each store (160 total), forty interviews were conducted. By exploratory factor analysis, it was possible to observe five dimensions related to the store equity construct: loyalty, store image, customer satisfaction, and customer care and service conformity. Through cluster analysis, respondents were classified into three different groups of consumers according to the five dimensions identified and received the categories of Unprepared, Demanding and Accustomed. Theoretical and managerial implications reinforce the possibility of applying the store equity as a customer segmentation variable in the construction retail segment.

How do innovation and sustainability contribute to generate retail equity? Evidence from Spanish retailing

Purpose In the current dynamic and competitive environment in which retail companies operate, store equity is a differentiating factor. In view of the scarce research found regarding the links between the variables traditionally related to brand equity (store awareness, store image, store perceived quality and store loyalty) and innovation, sustainability and the global retail equity, this study aims to examine these links in depth. Design/methodology/approach For a sample of 510 customers of grocery retail establishments and with the help of a structured questionnaire, the relationships between the variables defined in this research were examined using a structural equations model. Findings The authors find evidence in favor of the positive influence of innovation and sustainability on the variables related to brand equity. Likewise, store loyalty to the establishment, influenced by store image and perceived quality, emerges as a key variable in the construction of global brand equity. Research limitations/implications This study shows that innovation and sustainability have a significant impact on the variables traditionally linked with brand equity. Practical implications This research shows that new business models should be created through more innovative and sustainable businesses. In this sense, the managers of retail stores should direct their efforts toward actions aimed at implementing innovation, as well as provide evidence of the sustainability of the store’s activities, with the purpose of improving the perception that consumers have of the store. Originality/value The results of this research support the role of store loyalty as key element of brand equity. Also, to the best of authors’ knowledge, this is the first study that addresses the relationship that innovation and sustainability have with the variables linked to store equity.

Store equity: reformulation of store equity dimensions

ABSTRACTWith the growing importance of retailers and the realization that brands are among retailers’ most valuable assets, store equity has become a management priority. Store equity has been recognized as a key element that helps retailers build a sustainable competitive advantage. In this context, this study presents a conceptual model of store equity and identifies key dimensions that contribute to its formation. A comprehensive review of studies within the area of store equity was conducted to compare and analyze the dimensions of store equity as discussed in the existing literature. The findings show that store equity consists of two main dimensions: store awareness and store image, which comprises merchandise, atmosphere, and convenience. In addition, important areas for future research on store equity and related topics are highlighted.

The influence of sustainable development goals (SDGs) on customer-based store equity (CBSE)

The influence of sustainable development goals (SDGs) on customer-based store equity (CBSE)

Applying a Scale for Measuring Store Equity in the Kingdom of Saudi Arabia

Store equity is an important source of sustainable competitive advantages for retailers in today’s competitive environment. Therefore, retailers should work hard to develop and improve their store equity. Measuring it should constitute the first stage of the development process. The present research provided a scale for measuring store equity in KSA market. It first discusses the store equity construct and then describes procedures for developing and refining a multiple-item measurement scale for the construct. Scale reliability, factor analysis, and validity are then discussed based on an analysis of the data gathered from the Saudi market. The study concludes with a discussion of some potential applications of the scale.

Role of marketing and technological innovation on store equity, satisfaction and word-of-mouth in retailing

PurposeDespite 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 aims to analyse innovation in retail experiences from two aspects – marketing innovation and technological innovation – to understand the role it exercises in satisfaction and subsequent recommendation.Design/methodology/approachThe authors’ objective is to investigate the direct and indirect influence of marketing and technological innovation on satisfaction and word-of-mouth (WOM) through three core constructs: store image, consumer value and store brand equity. SEM methodology is applied on a sample of 820 retail customers of grocery, clothing, furniture an electronics store.FindingsThe 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 WOM behaviour. Practical implications for retail managers and further research are presented.Originality/valueThe main value of this work has been to go deeper into the study of retail innovation, both in marketing and technologies, and its direct and indirect effects on satisfaction and subsequent recommendation through store image, consumer value and store brand equity. It is a new line of study, which is still fragmented and with little empirical evidence.

Customer segmentation based on store equity: What explains customer store preference?

Extant literature on brand equity in the context of the retail store is limited. This paper responds to calls for more research in this area by examining, though a quantitative design, shoppers’ perceptions of store equity, loyalty and satisfaction. Responses from 300 Spanish shoppers, in three retail contexts, were captured. Findings of CHAID analysis identify three distinct segments of shoppers. This research contributes to identifying perceived value and store image as the most relevant factors for differentiating retail customers in terms of their store equity perceptions. For theorists, this study presents a better explanation of store choice by segmenting shoppers based on perceived store equity. Management implications include the need to develop economic, functional, emotional and symbolic value propositions in view of the influence of perceived value and image on store equity creation and, ultimately, satisfaction and loyalty.

The causal relationship between store equity and loyalty: Testing two alternative models in retailing

Although the concept of brand equity has received a great interest in the marketing literature, little is known about its role in retailing. Additionally, there is no consensus on the causal relationship between store equity and customer loyalty. This work is intended to contribute to research about store equity by exploring the content of this construct and its relationship with customer loyalty toward establishment. Two alternative causal models are examined: one that considers loyalty as a dimension of store equity and another that contemplates loyalty as its consequence. The empirical research was carried out among 820 consumers in four retail categories. Two key dimensions of store equity emerge from the results, i.e., image and service quality. Although the validity of both models is corroborated, the results show that the model that considers loyalty as a dimension of store equity performs better.

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

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.

The Relative Contribution of Loyalty Programs and Store Attributes to Store Engagement and Equity

Within an intense competition in the retail sector, achieving a high store equity may have been be a means to gain competitive advantage for retailers. However, their sole reliance on store attributes may not be sufficient to build a relationship with customers, as prior studies have demonstrated the high likelihood of customers opting to shop at stores with loyalty programs. Accordingly, the current study aims at examining the contribution of loyalty program attributes and store attributes to store engagement and store equity in the context of department stores in Malaysia. Survey responses from 484 department store cardholders are gathered, while Partial Least Square (PLS) – Structural Equation Modeling (SEM) are taken to test the hypotheses. The results show that all hypotheses are supported, while the relative contribution of both attributes towards store engagement and store equity provides insightful implications. From a theoretical perspective, integrating social exchange theory and service-dominant (S-D) logic may offer a significant finding in understanding the effect of loyalty program attributes and store attributes on the relationship between a store and cardholders. From a practical perspective, retailers may need to pay more attention in putting more value in their offerings by incorporating experiential and interactive marketingapproaches to stimulate customer relationships to further enhance store equity.

Reciprocal Effects of the Corporate Reputation and Store Equity of Retailers

Retailers aim to strengthen their ability to influence consumer behavior by building corporate reputation and store equity: for instance, by making promotional investments. However, little is known about the directionality of consumers’ corporate and store associations, that is, how reciprocal relationships between consumers’ perceptions of corporate reputation and store equity affect store loyalty. To illuminate this issue, we draw upon a study with a cross-sectional design and two studies with longitudinal designs. We find that retail store equity interacts with corporate reputation and is a more important driver of increased loyalty than corporate reputation. We conclude that retailers should pay attention to reciprocal effects, especially in determining the relative allocation of investments across corporate and store levels.

El valor del establecimiento y su relación con la imagen de marca privada: efecto moderador del conocimiento de la marca privada como oferta propia del establecimiento

The present study analyzes the influence of private brand image on the formation of store equity. Special attention is made to the possible influence of the knowledge of the private brand as an offer of the establishment itself. From an empirical perspective, Decathlon establishments are analyzed, using the opinions of 300 consumers. The results obtained in the investigation showed the importance of strengthening a private, positive and favourable brand image, as a means for building a solid image of the store that, in turn, will also influence the creation of the store equity, a key point for the commercial success. Contrary to expected, the knowledge versus non knowledge of the private brand as an offer of the distributor does not have an influence on the proposed relationships.