Understanding loyalty in multichannel retailing: the role of brand trust and brand attachment

Purpose. The purpose of this paper it to understand loyalty in the multichannel retail context. The paper analyses the interplay between offline and online loyalty and the direct and indirect effects on loyalty of brand trust and brand attachment, in a cross-cultural study. Design/methodology/approach. Online survey answered by 761 multichannel apparel shoppers in two countries (UK and Spain). SEM multigroup analysis is performed to test the hypothesized relations and the role of culture as a moderating variable. Findings. Online loyalty is largely driven by offline loyalty, which is also positively affected by brand trust and brand attachment. These relationships hold across the two different cultures. Research limitations/implications. The findings confirm the validity of applying the theory of cognitive dissonance to explain multichannel shopping behaviours. We did not find culture affects the relationships in our model; however, the validity of these findings should be tested considering other cultural variables different from nationality. Practical implications. Multichannel retailers should focus on building trust and attachment towards the brand if they want to get online and offline loyalty. The efforts to build stronger bonds between the customer and the retail brand translate into higher loyalty, particularly towards the offline channels. Originality/value. This paper extends the literature on the interactions between online and offline behaviour by focusing on the power of the brand to build strong customer bonds. Our model considers the role of brand attachment together with brand trust in offline and online loyalty simultaneously

Tourists behavior during their trip: How they use and offer recommendations?

The rise of new technologies has changed the way tourists trust in eWOM to choose a restaurant. There is a growing use of opinion and price comparison websites, where opinions and ratings can be shared with other users. In addition, the spreading of false or paid comments has made this type of webs seek the generation and maintenance of trust. However, there are few studies that analyse how to generate trust in these webs and its effect in the intention of the consumer to participate in WOM behaviours, once the tourist is already in its tourist destination. Therefore, this research analyses the influence of recommendations on the generation of tourists’ trust in the review websites of restaurant industry while they are in the destination. A regression analysis of data from 439 tourists has revealed that the perceived credibility, the quality of the information and the quality of the web affect trust in review websites. This fact encourages the contracting of restaurant services and communication among consumers, both in a traditional way (WOM) and through the review websites (eWOM), while the tourist is in the tourism destination.Universidad de Málaga. Campus de Excelencia Internacional Andalucía Tech

The role of digital in the town centre experience

To date, omnichannel activity is studied between consumers and an individual retail brand or within a single retail setting, whereas consumer search activity and customer shopping journeys regularly involve multiple brands and multiple channels, both offline or online. This is particularly important for consumer choice consideration of a retail channel and shopping location. Town centres have been impacted visibly by the growth of online shopping resulting in reduced footfall and store vacancies. However, scope exists for an integrated digital high street to deliver an enhanced, seamless customer experience. While individual brands and major retail organizations are developing their digital capabilities, similar evidence is scarce for retail agglomerations and town centres. This paper seeks to explore the role of digital in the town centre customer experience. Specifically, the research examines consumers’ attitudes and behaviours regarding the use of digital in town centre journeys. To achieve this objective, a multi-method research approach involving focus groups, diaries and telephone interviews is developed to capture in-depth understanding of the factors that encourage or disrupt consumer town centre experiences. The research draws from a combined sample of 234 respondents. The empirical findings reveal respondents use digital channels for various purposes before, during and after their town centre visits. However, consumers’ restricted access to dynamic information limits the scope, enjoyment and quality of their town centre experience. The lack of free and consistent Wi-Fi in town centres is but one barrier to successful multichannel experiences, resulting in a fragmented physical and virtual customer experience

Exploring the significance of digital disruption on the Finnish grocery industry: A case study on the current attitudes of Finnish grocery suppliers, retailers and consumers towards online grocery retail.

Since its inception, digitalization has been disrupting numerous industries around the world. This also includes the grocery trade: Online channels have given consumers more flexibility in regard to how and when they purchase the products that fuel their every-day lives. This transformation has challenged grocery suppliers and retailers to adapt their internal tools and processes, while reevaluating their strategic interpretation of the future of their industry. Although online commerce is often referred to as the superior retail channel of today, the share of online grocery – also referred to as e-grocery – has grown relatively slowly in Finland. The reasons for this are still fairly unknown: some suggest it may be due to the local oligopolistic parties not wanting to deter consumer cashflow from their brick-and-mortars, while others believe it may be due to a wary approach from Finnish consumers. Nevertheless, in the recent years the growth rate of Finnish e-grocery has increased notably. This sparks an interesting question: Has the era of e-grocery shopping finally arrived? Through a qualitative intense single-case analysis, this study complements existing research by exploring the significance of digital disruption on the unique setting of Finnish grocery through 20 interviews with suppliers, retailers and consumers. The aim of this study is to explore the current e-grocery related attitudes of key players in the grocery supply chain to better understand the factors behind digital grocery’s slow progression, as well as how large a role online channels may have in Finland’s traditionally concentrated grocery market in the future. The study’s findings agree as well as add to existing research in regard to the plethora of digitalization related benefits and potential challenges felt by grocery suppliers, retailers and their consumers. The gathered insights suggest that the progress of Finnish e-grocery has been limited by both supply and demand related factors. However, through the offered practical implications centered around corporate agility, shopper data -led collaboration as well the improving of service design in digital channels, this study implies that Finnish suppliers and retailers have the opportunity to maximize the potential of their digital channels, thus being able to better serve the modern as well as impending demands of Finnish grocery shoppers

Orchestration of the Marketing Strategy under Competitive Dynamics

Constructing suitable marketing strategy and implementing it effectively is an art and science both like orchestration of a symphony. The discussion in this paper blends this analogy with the science of marketing demonstrating the levels of strategy development in a competitive marketplace. The paper presents the marketing-mix in contemporary context and argues that performance of a marketing firm can be maximized, when a firm develops a creative marketing strategy and achieves marketing strategy implementation effectiveness. The discussion in the paper reveals that marketing managers of different levels simultaneously operate within the firm and perceive the need for strategy development with varied preferences. A consequence of this is development of robust strategies and their effective implementation which, in turn, leads to increased market performance. Thus, it is important for researchers to investigate various strategy integration perspectives and this paper provides guidance by reviewing the existing literature.Marketing strategy, strategy integration, marketing-mix, customer value,strategy implementation, market competition, risk factors, brand building, customer centric strategy, routes to market

I've got a feeling: the effect of haptic information on the preferred location of purchase of guitars and stringed wooden instruments.

This thesis develops technology adoption and sensory information literatures through an evaluation of antecedents to consumers purchase location intention of Musical Instruments (MI). With the unique factor of instrument heterogeneity MI e-retail sales are information asymmetric propositions, where the consumer may make a sub-optimal purchase online having foregone the opportunity to experience the haptic information required to ascertain the instruments true quality. Despite a reticent adoption of MI e-retail from the traditional retail industry online MI sales are increasing, resulting in off-line marketplace contraction, thus investigation of consumers online MI purchase motivations is of value to the industry. The exploration of this topic uses a pragmatic, two-stage mixed-methods process incorporating inductive in-depth interviews with MI retail industry personnel, followed by deductive MI consumer based quantitative questionnaires.The reluctance to adopt e-retail is based on expertise-led aversion and expertise gap where key MI retail influencers attempt to enforce their own views on the correct way to purchase an instrument, rather than responding to consumer trends. This aversion was influenced by their own reliance on haptic information, coupled with knowledge of instrument heterogeneity and their level of musicianship. Consumer research conclusions identify that high haptic-need consumers, who tend to have greater ability and involvement, are more likely to purchase in-store whilst those with lower haptic needs are more willing to purchase MI online. Through the design and empirical testing of the Musical Instrument Need-for-Touch (MINFT) model numerous factors were identified as moderators to this basic supposition. The subsequent development of a MI consumer typology identified five distinct groups that respond to differing stimuli in relation to MI purchase location intention. These findings add to the academic discourse and enable MI retailers to enhance their offerings both in-store and online, leading to more effective targeting of their key customers

Do we bank on regulation or reputation? A meta-analysis and meta-regression of organizational trust in the financial services sector

Purpose: – Trust in financial institutions has been eroded through the collapse of mortgage-related securities, with confidence further denuded through well publicized cases of rogue traders and rate fixing cases, such as with the Lehman brothers, the Libor rate-fixing scandals, and the hypo real estate breakdown. In response to these events, governments have introduced a range of distinct policy initiatives designed to restore trust in this sector. Thus, the question arises: are these regulations and control mechanisms sufficient in isolation, or are there other elements that this sector needs to pay attention to in efforts to build and sustain customers’ trust? The paper aims to discuss these issues. Design/methodology/approach: – There is a compelling agenda for both financial organizations and academics to understand better organizational trust in this context especially the role and impact of regulatory mechanisms in its development and repair. The paper therefore examines the special facets of the financial services sector in comparison to other sectors, such as manufacturing, to consider whether trust is fundamentally different in this context than others, and thus address how far there are special challenges concerning trust and the banking industry. The paper analyses, by using a meta-analytical design, 93 studies (N=38,631), of which 20 empirically investigate organizational trust in the financial sector with a combined N of 11,224 respondents. Findings: – The paper shows that the banking sector is heavily affected by two distinct forces: first, customers’ perception of an organization's level of compliance and conformity with laws and regulations is a necessity for banks’ sociopolitical legitimization, and second it is also related to how non-compliance is dealt with. Importantly, this meta-analysis indicates that regulation is just one of a suite of devices that organizations need to deploy in their efforts to restore trust. The paper identified two further elements of significance: customers require direct evidence, derived either from their own or others’ satisfaction with the goods or services provided, and customers do take note of the external endorsement of the firm, especially in Asia, where customers place huge emphasis on the firm's reputation. Research limitations/implications: – First, meta-analysis is inherently reliant on the earlier studies and therefore retains their weaknesses. Some of the relationships included self-report variables collected at the same point in time and therefore may be inflated by common method bias. Second, due to the focus and because of the limited number of studies in this sector, and a paucity of attention on some key topics, such as perceptions of regulation, second-order sampling error may also be a limitation. Third, some relationships were not investigated frequently enough in studies to enable us to include them in the review, such as cooperation, opportunistic behaviour or quality. Finally, despite calls for trust scholars to include propensity to trust measures within their studies, many of these studies do not include this measure and therefore it is more difficult to identify and control individual difference factors. Practical implications: – The results show the merit of multi-strand trust development strategies. There is a striking paucity of financial institutions, which have examined how far their trust deficit may be related to their internal culture, and whether recent corporate corruption could be the product of bonuses and the internal short-term individualized reward systems. The analysis reveals that although external regulations and controls are an effective and powerful devise for organizational trust, over the last two periods of significant crisis, their impact appears to be warning; Yet reassuring customers of their expectations of the other party's future behaviour is central to trust. Alternative remedies need to be considered, such as the establishment of a more effective regulator, or board of governors who oversee and assure compliance. Monitoring and surveillance offer a further external means of reducing the possibility of future misbehaviours. However, as the analysis indicates, other strands are required to build trust, including greater attention by firms on customers’ direct experiences, which in turn would enhance the third part endorsement of their competence and goodwill intentions of organizations. Social implications: – Significantly, the results indicate the potentially partial erosion of credence factors, and thus confidence, in this sector over the last 20 years, during what has been a period of repeated exposure to trust breaches. The paper shows that single strand solutions, such as improvements to customer communication, are no longer sufficient, nor, more importantly, do they have the same impact. Instead, the paper shows the necessity to utilize more effectively and target attention towards three distinct antecedents: external regulations and their enforcement; third party and expert endorsements, and therefore external reputations; and customer satisfaction in terms of the effective delivery of customer expectations. Originality/value: – Organizational trust has been shown as critical in positively affecting and repairing broken relationships through uncertainty reduction and confidence enhancement. In the past, different meta-analyses of trust have been undertaken, but this, to the authors knowledge, is the first meta-analytic study measuring trust on an organizational level in the context of the financial services sector and its regulatory environment. This meta-analysis indicates that regulation is just one of a suite of devices that organizations need to deploy in their efforts to restore trust. The paper identified two further elements: customers require direct evidence, and do take note of the external endorsement of the firm

Online Consumer Trust: Trends in Research

This paper presents the literature review of studies published in 2004-2014 (Web 2.0 period) in the area of consumer online trust. Based on the content analysis of 138 papers, this study highlights three major research themes: (1) trust models, (2) technological, and (3) social factors impacting online trust. It also explores topics in each major theme found in direct studies of online consumer trust. Since this literature review uses the concept-centric approach, it points out not only the major trends in research but also three understudied areas: (1) green trust, (2) trust recovery, and (3) the role of ethics in developing online trust

The definition, creation, and evolution of buyer-seller relationships

The theoretical and practical importance of relational exchange is well known. However, customers are often annoyed at companies’ relationship building attempts. In addition, the literature has three core problems: (1) the relational concept is not well defined; (2) little research has accounted for relationship dynamics; and (3) relational constructs’ conceptualizations have become ambiguous. The purpose of this dissertation is to build an integrative and comparative framework that not only delineates relationship stages, but also identifies the unique roles of all relational forms (e.g., firm-firm). Specifically, three research questions are addressed: (1) How is a relationship defined? (2) How is a relationship created? and (3) How does a relationship evolve? These research questions are addressed in three essays. Essay 1 develops the relationship definition, creation, and evolution framework based on the field’s 50 most influential articles and validated by survey data from 34 authors. Scholars define a relationship as “at least one interaction with future interactions expected”. Information sharing and cooperation are necessary elements for relationship creation. Correspondence analysis (CA) was used to map 271 constructs to the evolutionary framework. Using data provided from structured interviews, Essay 2 considered one relational form (i.e., customer-retailer) and compared the perspectives of relational parties (i.e., manager, sales-associate, and customer) on the research questions. A relationship is defined as “at least one exchange between parties that share information”. Twenty-one elements are noted as required for relationship creation. Relational constructs were mapped to the evolutionary framework using CA. Essay 3 addressed the relationship evolution question by developing and testing a conceptual model of relational exchange using survey data from 1407 customers in the context of their relationships with a coffee house chain. Respondents were segmented based on their relationship stage, and multi-group moderation analysis was performed. Nine of 41 structural paths are invariant across relationship stages. The essays illustrate the difference in perspectives of academics, practitioners, and customers as it relates to the research questions. Information sharing is noted as a key element of relationships in all essays. Support is also gained for the necessary use of relationship stage as a moderator in relational exchange research