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The importance of retail brand equity and store accessibility for store loyalty in local competition

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  • Swoboda, Bernhard
  • Berg, Bettina
  • Schramm-Klein, Hanna
  • Foscht, Thomas

Abstract

Previous research shows that the success of a retailer depends on strong retail brands and attractive, easily accessible store locations. However, little is known about the relative importance of retail brand equity and store accessibility for store loyalty in different local competitive contexts. To provide insight into this issue, we conduct on a cross-sectional study of 4151 interviews and objective data on 30 stores of a focal retailer and its local competitors. We find that store loyalty benefits more from a strong brand than from a conveniently accessible location and that location can benefit from a strong brand. We also find that competitor’s brand equity has an especially negative influence on store loyalty towards a focal retailer and that the strength of the effects of brand equity and location accessibility on store loyalty depends on the local competitive context.

Suggested Citation

  • Swoboda, Bernhard & Berg, Bettina & Schramm-Klein, Hanna & Foscht, Thomas, 2013. "The importance of retail brand equity and store accessibility for store loyalty in local competition," Journal of Retailing and Consumer Services, Elsevier, vol. 20(3), pages 251-262.
    • Handle: RePEc:eee:joreco:v:20:y:2013:i:3:p:251-262
    DOI: 10.1016/j.jretconser.2013.01.011
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    20. Hiroaki Sandoh & Risa Suzuki, 2015. "Large-Scaled Chain Stores versus Small-Scaled Local Stores of the Local Production for Local Consumption," Discussion Papers in Economics and Business 15-16-Rev.3, Osaka University, Graduate School of Economics, revised Sep 2015.
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