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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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    References listed on IDEAS

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    Cited by:

    1. Richard Chinomona, 2015. "The influence of Perceived Hypermarket Size on Perceived Hypermarket Reputation, Trust and Customer Willingness to Purchase in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 7(4), pages 60-70.
    2. Lichters, Marcel & Wackershauser, Verena & Han, Shixing & Vogt, Bodo, 2019. "On the applicability of the BDM mechanism in product evaluation," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 1-7.
    3. Casidy, Riza & Wymer, Walter, 2016. "A risk worth taking: Perceived risk as moderator of satisfaction, loyalty, and willingness-to-pay premium price," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 189-197.
    4. Willems, Kim & Smolders, Annelien & Brengman, Malaika & Luyten, Kris & Schöning, Johannes, 2017. "The path-to-purchase is paved with digital opportunities: An inventory of shopper-oriented retail technologies," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 228-242.
    5. Herbjørn Nysveen & Per Egil Pedersen, 2016. "Consumer adoption of RFID-enabled services. Applying an extended UTAUT model," Information Systems Frontiers, Springer, vol. 18(2), pages 293-314, April.
    6. Banu Külter Demirgüneþ, 2015. "Relative Importance of Perceived Value, Satisfaction and Perceived Risk on Willingness to Pay More," International Review of Management and Marketing, Econjournals, vol. 5(4), pages 211-220.
    7. Zielke, Stephan, 2014. "Shopping in discount stores: The role of price-related attributions, emotions and value perception," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 327-338.

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