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The moderating roles of shopper experience and store type on the relationship between perceived merchandise value and willingness to pay a higher price

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  • Ligas, Mark
  • Chaudhuri, Arjun

Abstract

In the retail domain, we consider the moderating influence of shopper experience (high versus low experience) and store type (high- versus low-priced stores) on a model that identifies three distinct routes (economic, affective and informational) from perceived merchandise value to willingness to pay a higher price. Each route accounts for a different outcome arising from merchandise value and leading to willingness to pay a higher price. Analyses of data obtained from a sample of 600 shoppers at four grocery stores provide results for specific hypotheses related to each moderator and each distinct route. The results of multiple sample analyses show that the economic route is stronger for high experience shoppers as well as for high-priced stores. Findings pertaining to hypotheses for moderation of both the affective and informational routes are mixed. We discuss the importance of these findings for retail managers as well as for future research.

Suggested Citation

  • Ligas, Mark & Chaudhuri, Arjun, 2012. "The moderating roles of shopper experience and store type on the relationship between perceived merchandise value and willingness to pay a higher price," Journal of Retailing and Consumer Services, Elsevier, vol. 19(2), pages 249-258.
    • Handle: RePEc:eee:joreco:v:19:y:2012:i:2:p:249-258
    DOI: 10.1016/j.jretconser.2012.01.006
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