Personality-Relatedness and Reciprocity framework for analyzing retailer–consumer interactions

The article introduces four relational models from the social sciences that are relevant for classifying retailer–consumer interactions. Similarities between the relational models are identified and two continuous relational dimensions–personality-relatedness and reciprocity–are derived. The personality-relatedness dimension defines the degree to which consumers place importance on the retailer’s personality (values and culture); reciprocity describes the degree to which consumers place importance on comparative outcomes (the difference between the consumer’s and the retailer’s outcomes). The two relational dimensions establish the Personality-Relatedness and Reciprocity (PRR) framework—a relational framework suitable for analyzing a wide variety of retailer–consumer interactions. The framework informs propositions for future research. The article discusses theoretical contributions and managerially relevant implications of the PRR framework

Personality-Relatedness and Reciprocity framework for analyzing retailer-consumer interactions

The article introduces four relational models from the social sciences that are relevant for classifying retailer-consumer interactions. Similarities between the relational models are identified and two continuous relational dimensions-personality-relatedness and reciprocity-are derived. The personality-relatedness dimension defines the degree to which consumers place importance on the retailer's personality (values and culture); reciprocity describes the degree to which consumers place importance on comparative outcomes (the difference between the consumer's and the retailer's outcomes). The two relational dimensions establish the Personality-Relatedness and Reciprocity (PRR) framework--a relational framework suitable for analyzing a wide variety of retailer-consumer interactions. The framework informs propositions for future research. The article discusses theoretical contributions and managerially relevant implications of the PRR framework.Retailer-consumer interactions Personality-relatedness Reciprocity Positioning strategies

The Effect of Market and Merchant Comparisons on Customer Satisfaction: The Moderating Role of Information Uncertainty and Price Negotiation

We examine whether consumers are influenced by comparisons to other consumers and to the merchant. Past studies have estimated the impact that each type of comparison has on customer satisfaction separately, but have not examined the relative impact of each comparison simultaneously. We also examine the moderating effects of information uncertainty and price negotiation on the relationship between comparison information and customer satisfaction. Results show that unfavorable market comparisons impact customer satisfaction significantly more strongly than unfavorable merchant comparisons. However, no such difference is found for favorable comparisons. Information uncertainty and price negotiation decrease the impact of unfavorable market and merchant comparison. [PUBLICATION ABSTRACT

The Effect of Market and Merchant Comparisons on Customer Satisfaction: The Moderating Role of Information Uncertainty and Price Negotiation

We examine whether consumers are influenced by comparisons to other consumers and to the merchant. Past studies have estimated the impact that each type of comparison has on customer satisfaction separately, but have not examined the relative impact of each comparison simultaneously. We also examine the moderating effects of information uncertainty and price negotiation on the relationship between comparison information and customer satisfaction. Results show that unfavorable market comparisons impact customer satisfaction significantly more strongly than unfavorable merchant comparisons. However, no such difference is found for favorable comparisons. Information uncertainty and price negotiation decrease the impact of unfavorable market and merchant comparisons

Do customer relationships mitigate or amplify failure responses?

Service failures can have a damaging impact on company profitability. Prior research demonstrates that robust relationships with customers may mitigate the negative impact of a service failure on behavioral outcome variables, such as repatronage intentions and word-of-mouth. Yet other research finds that customer relationships may actually intensify this negative impact on word-of-mouth and complaining. In earlier research, customers' relationships with service marketers are conceptualized as a uni-dimensional construct ranging from a low level of intensity to high intensity. This research demonstrates that a two-dimensional conceptualization of customers' relationships with service marketers—the Personality-Relatedness and Reciprocity (PRR) framework (Kaltcheva and Parasuraman, 2009)—can account for the seemingly discrepant results in the literature. This article leads to the formulation of a framework—the PRR-Failure Control framework—that links customer relationship strategies to failure control solutions

The Impact of Customers' Relational Models on Price-Based Defection

Retailers that cannot or do not wish to compete on price face the formidable task of trying to retain customers while charging higher prices for equivalent merchandise. Prior research demonstrates that in the face of competitive price threats, developing relationships with customers may be effective in discouraging customer defection. Yet the cultivation of customer relationships may require a considerable resource commitment or run the risk of infringing upon customers' relationship preferences. Results from a study we conducted demonstrate that the appropriateness of different relationship strategies as a deterrent of customer defection is contingent upon the intensity of the threat from price competition. More resource-intensive relational strategies may be needed to ensure customer retention in the face of severe price competition, whereas a lower level of resource commitment may be sufficient to successfully contest more moderate price threats

Impact of retail environment extraordinariness on customer self-concept

This research examines the effect of extraordinary retail environments on consumer self-concept. Two between-subjects experiments manipulate the extraordinariness of the retail environment and evaluate participants' self-concept in the environment. In both experiments, high-extraordinariness retail environments elicit a more atypical working self-concept than low-extraordinariness environments. Content analysis of participants' working self-concept in the two environments offers insight into the cognitive processes underlying the effect. The article discusses managerial and theoretical implications of the research.Retail environment Self-concept Accessibility