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Price transparency reflects assurance and reliability

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  • Mittal, Divya
  • Agrawal, Shiv Ratan

Abstract

This paper aims to examine the effect of price transparency on assurance, reliability and customer loyalty in the case of Wal-Mart Best Price Store. A total of 402 usable responses were gathered from customers of Wal-Mart store in Bhopal (MP), India. The study scales were refined and validated by exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). The AMOS 22.0 and SmartPLS 3.0 statistical programmes were used for measurement validation and to test the structural model. The results indicated that the price transparency has a significant effect on assurance and reliability to ensure customer loyalty. Also, the study did not find a direct effect of price transparency on customer loyalty. The identified dimensions of price transparency are expected to bring clarity to the issue of customer assurance, reliability and loyalty. This would help the management of the retailing sector. The study seems to offer opportunities to understand that only price transparency is not responsible for improving customer loyalty. It influences assurance and reliability which further increase customer loyalty.

Suggested Citation

  • Mittal, Divya & Agrawal, Shiv Ratan, 2016. "Price transparency reflects assurance and reliability," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 43-51.
    • Handle: RePEc:eee:joreco:v:31:y:2016:i:c:p:43-51
    DOI: 10.1016/j.jretconser.2016.03.004
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    References listed on IDEAS

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    3. Naeun L. Kim & Gwia Kim & Lori Rothenberg, 2020. "Is Honesty the Best Policy? Examining the Role of Price and Production Transparency in Fashion Marketing," Sustainability, MDPI, vol. 12(17), pages 1-18, August.
    4. Zrelli, Imen & Demnati, Haykel & Ben Yedder, Moez, 2019. "The effect of the interaction between tariff modulation and transparency on the customer's dissatisfaction: The case of Tunisia," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 1-10.
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    7. Godbersen, Hendrik & Wenzel, Daniel, 2022. "Optimising commercial cleaning services based on customer expectations and their fulfilment: An empirical analysis with the means-end theory of complex cognitive structures," KCMS Schriftenreihe, FOM Hochschule für Oekonomie & Management, KCMS KompetenzCentrum für Marketing & Sales Management, volume 8, number 8 edited by FOM Hochschule für Oekonomie & Management, KCMS KompetenzCentrum für Marketing & Sales Management.

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