IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v44y2018icp45-53.html
   My bibliography  Save this article

Understanding moderating effects in increasing share-of-wallet and word-of-mouth: A case study of Lidl grocery retailer

Author

Listed:
  • Shaikh, Aijaz A.
  • Karjaluoto, Heikki
  • Häkkinen, Juho

Abstract

This study examines how five moderating variables (the length of the customer relationship, following a company in print media and on social media, remembering online advertisements, and the customer's age) affect the relationships between perceived value and loyalty and satisfaction and loyalty in the grocery retailing sector. A series of hypotheses were developed and tested with a sample of 2072 discount retailer customers in Finland. The results support all the direct effects hypotheses and show that perceived value and satisfaction both have a positive effect on loyalty, measured as a share of wallet and word of mouth and that the effect of perceived value tends to be stronger in the study context. Also, the five moderating variables have a positive moderating effect on the linkages between perceived value and eWOM and between satisfaction and eWOM. Theoretical and managerial implications, limitations, and future research directions are presented.

Suggested Citation

  • Shaikh, Aijaz A. & Karjaluoto, Heikki & Häkkinen, Juho, 2018. "Understanding moderating effects in increasing share-of-wallet and word-of-mouth: A case study of Lidl grocery retailer," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 45-53.
    • Handle: RePEc:eee:joreco:v:44:y:2018:i:c:p:45-53
    DOI: 10.1016/j.jretconser.2018.05.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698918300894
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2018.05.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shuba Srinivasan & Oliver J. Rutz & Koen Pauwels, 2016. "Paths to and off purchase: quantifying the impact of traditional marketing and online consumer activity," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 440-453, July.
    2. Oliver, Richard L & Swan, John E, 1989. "Equity and Disconfirmation Perceptions as Influences on Merchant and Product Satisfaction," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(3), pages 372-383, December.
    3. Kumar, V. & Pozza, Ilaria Dalla & Ganesh, Jaishankar, 2013. "Revisiting the Satisfaction–Loyalty Relationship: Empirical Generalizations and Directions for Future Research," Journal of Retailing, Elsevier, vol. 89(3), pages 246-262.
    4. Rémi Mencarelli & Cindy Lombart, 2017. "Influences of the perceived value on actual repurchasing behavior: Empirical exploration in a retailing context," Post-Print hal-01519777, HAL.
    5. Kim, Hye-Young & Lee, Min-Young, 2010. "Emotional loyalty and share of wallet: A contingency approach," Journal of Retailing and Consumer Services, Elsevier, vol. 17(5), pages 333-339.
    6. Söderlund, Magnus & Mattsson, Jan, 2015. "Merely asking the customer to recommend has an impact on word-of-mouth activity," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 80-89.
    7. Hunneman, Auke & Verhoef, Peter C. & Sloot, Laurens M., 2015. "The Impact of Consumer Confidence on Store Satisfaction and Share of Wallet Formation," Journal of Retailing, Elsevier, vol. 91(3), pages 516-532.
    8. Hartline, Michael D. & Jones, Keith C., 1996. "Employee performance cues in a hotel service environment: Influence on perceived service quality, value, and word-of-mouth intentions," Journal of Business Research, Elsevier, vol. 35(3), pages 207-215, March.
    9. Monica Grosso & Sandro Castaldo & Anjana Grewal, 2018. "How Store Attributes Impact Shoppers’ Loyalty in Emerging Countries : an Investigation in the Indian Retail Sector," Post-Print hal-02312067, HAL.
    10. García-Fernández, Jerónimo & Gálvez-Ruíz, Pablo & Fernández-Gavira, Jesús & Vélez-Colón, Luisa & Pitts, Brenda & Bernal-García, Ainara, 2018. "The effects of service convenience and perceived quality on perceived value, satisfaction and loyalty in low-cost fitness centers," Sport Management Review, Elsevier, vol. 21(3), pages 250-262.
    11. El-Adly, Mohammed Ismail & Eid, Riyad, 2016. "An empirical study of the relationship between shopping environment, customer perceived value, satisfaction, and loyalty in the UAE malls context," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 217-227.
    12. Bolton, Ruth N & Drew, James H, 1991. "A Multistage Model of Customers' Assessments of Service Quality and Value," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(4), pages 375-384, March.
    13. Ruth N. Bolton, 1998. "A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction," Marketing Science, INFORMS, vol. 17(1), pages 45-65.
    14. Pantano, Eleonora & Priporas, Constantinos-Vasilios & Sorace, Stefano & Iazzolino, Gianpaolo, 2017. "Does innovation-orientation lead to retail industry growth? Empirical evidence from patent analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 88-94.
    15. Wolfgang Ulaga & A. Eggert, 2010. "Managing customer share in key supplier relationships," Post-Print hal-00610118, HAL.
    16. Nisar, Tahir M. & Prabhakar, Guru, 2017. "What factors determine e-satisfaction and consumer spending in e-commerce retailing?," Journal of Retailing and Consumer Services, Elsevier, vol. 39(C), pages 135-144.
    17. Gruen, Thomas W. & Osmonbekov, Talai & Czaplewski, Andrew J., 2006. "eWOM: The impact of customer-to-customer online know-how exchange on customer value and loyalty," Journal of Business Research, Elsevier, vol. 59(4), pages 449-456, April.
    18. Douglas Bowman & John U Farleyn & David C Schmittlein, 2000. "Cross-National Empirical Generalization in Business Services Buying Behavior," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(4), pages 667-685, December.
    19. Mencarelli, Rémi & Lombart, Cindy, 2017. "Influences of the perceived value on actual repurchasing behavior: Empirical exploration in a retailing context," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 12-21.
    20. Vesel, Patrick & Zabkar, Vesna, 2009. "Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program," Journal of Retailing and Consumer Services, Elsevier, vol. 16(5), pages 396-406.
    21. Carpenter, Jason M., 2008. "Consumer shopping value, satisfaction and loyalty in discount retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 15(5), pages 358-363.
    22. Naik, Prasad A. & Peters, Kay, 2009. "A Hierarchical Marketing Communications Model of Online and Offline Media Synergies," Journal of Interactive Marketing, Elsevier, vol. 23(4), pages 288-299.
    23. Sweeney, Jill & Swait, Joffre, 2008. "The effects of brand credibility on customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 179-193.
    24. Karjaluoto, Heikki & Jayawardhena, Chanaka & Leppäniemi, Matti & Pihlström, Minna, 2012. "How value and trust influence loyalty in wireless telecommunications industry," Telecommunications Policy, Elsevier, vol. 36(8), pages 636-649.
    25. Jerónimo García-Fernández & Pablo Gálvez-Ruíz & Jesús Fernández-Gavira & Luisa Vélez-Colón & Brenda Pitts & Ainara Bernal-García, 2018. "The effects of service convenience and perceived quality on perceived value, satisfaction and loyalty in low-cost fitness centers," Sport Management Review, Taylor & Francis Journals, vol. 21(3), pages 250-262, July.
    26. Bradley, Gregory T. & LaFleur, Elizabeth K., 2016. "Toward the development of hedonic-utilitarian measures of retail service," Journal of Retailing and Consumer Services, Elsevier, vol. 32(C), pages 60-66.
    27. Corbet, Shaen & McMullan, Caroline, 2018. "Stock market reaction to irregular supermarket chain behaviour: An investigation in the retail sectors of Ireland and the United Kingdom," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 20-29.
    28. Fazal-e-Hasan, Syed Muhammad & Ahmadi, Hormoz & Mortimer, Gary & Grimmer, Martin & Kelly, Louise, 2018. "Examining the role of consumer hope in explaining the impact of perceived brand value on customer–brand relationship outcomes in an online retailing environment," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 101-111.
    29. Grosso, Monica & Castaldo, Sandro & Grewal, Anjana, 2018. "How store attributes impact shoppers’ loyalty in emerging countries: An investigation in the Indian retail sector," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 117-124.
    30. Barbara Carroll & Aaron Ahuvia, 2006. "Some antecedents and outcomes of brand love," Marketing Letters, Springer, vol. 17(2), pages 79-89, April.
    31. Rémi Mencarelli & Carole Lombart, 2017. "Influences of the perceived value on actual repurchasing behavior: Empirical exploration in a retailing context," Post-Print hal-01592035, HAL.
    32. Pham, Thi Song Hanh & Ahammad, Mohammad Faisal, 2017. "Antecedents and consequences of online customer satisfaction: A holistic process perspective," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 332-342.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nketiah, Emmanuel & Song, Huaming & Cai, Xiang & Adjei, Mavis & Adu-Gyamfi, Gibbson & Obuobi, Bright, 2022. "Citizens’ intention to invest in municipal solid waste to energy projects in Ghana: The impact of direct and indirect effects," Energy, Elsevier, vol. 254(PC).
    2. Timmy H. Tseng & Shao-Hsun Chang & Yu-Min Wang & Yi-Shun Wang & Shin-jeng Lin, 2020. "An Empirical Investigation of the Longitudinal Effect of Online Consumer Reviews on Hotel Accommodation Performance," Sustainability, MDPI, vol. 13(1), pages 1-16, December.
    3. Hsin‐Hui Lin & Ching‐Feng Chen & Chih‐Lun Wu, 2023. "The effects of news authenticity and social media tie strength on consumer dissemination behavior," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2292-2313, June.
    4. Jaeger, Lena-Christin & Höhler, Julia, 2021. "Using word of mouth data from social media to identify asymmetric competition in food retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    5. San-Martín, Sonia & Jiménez, Nadia & Liébana-Cabanillas, Francisco, 2020. "Tourism value VS barriers to booking trips online," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    6. Elmashhara, Maher Georges & Soares, Ana Maria, 2022. "Linking atmospherics to shopping outcomes: The role of the desire to stay," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    7. Nesset, Erik & Bergem, Ola & Nervik, Bjørn & Schiøll Sørlie, Even & Helgesen, Øyvind, 2021. "Building chain loyalty in grocery retailing by means of loyalty programs – A study of ‘the Norwegian case’," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    8. Molinillo, Sebastian & Aguilar-Illescas, Rocío & Anaya-Sánchez, Rafael & Liébana-Cabanillas, Francisco, 2021. "Social commerce website design, perceived value and loyalty behavior intentions: The moderating roles of gender, age and frequency of use," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    9. Ismagilova, Elvira & Slade, Emma & Rana, Nripendra P. & Dwivedi, Yogesh K., 2020. "The effect of characteristics of source credibility on consumer behaviour: A meta-analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rodriguez, Virginie & Sangle-Ferriere, Marion, 2023. "Do supermarkets’ emails have any value for their customers? The effect of emails’ content and interestingness on customers’ attitude and engagement," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    2. Park, Joonyong & Kim, Renee B., 2022. "Importance of offline service quality in building loyalty of OC service brand," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    3. Garrouch, Karim & Ghali, Zohra, 2023. "On linking the perceived values of mobile shopping apps, customer well-being, and customer citizenship behavior: Moderating role of customer intimacy," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    4. Nyadzayo, Munyaradzi W. & Khajehzadeh, Saman, 2016. "The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 262-270.
    5. Chuah, Stephanie Hui-Wen & Marimuthu, Malliga & Kandampully, Jay & Bilgihan, Anil, 2017. "What drives Gen Y loyalty? Understanding the mediated moderating roles of switching costs and alternative attractiveness in the value-satisfaction-loyalty chain," Journal of Retailing and Consumer Services, Elsevier, vol. 36(C), pages 124-136.
    6. Zhang, Bin & Du, Zhanjie & Wang, Bo & Wang, Zhaohua, 2019. "Motivation and challenges for e-commerce in e-waste recycling under “Big data” context: A perspective from household willingness in China," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 436-444.
    7. Hunneman, Auke & Verhoef, Peter C. & Sloot, Laurens M., 2021. "The impact of hard discounter presence on store satisfaction and store loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    8. Ersin Eskiler & Remzi Altunışık, 2021. "The Moderating Effect of Involvement in the Relationship Between Customer Behavioral Intentions and Its Antecedents," SAGE Open, , vol. 11(2), pages 21582440211, May.
    9. Radka Bauerova, 2019. "Online Grocery Shopping Acceptance: The Impact on the Perception of New Technologies and Loyalty in Retailing," Central European Business Review, Prague University of Economics and Business, vol. 2019(3), pages 18-34.
    10. Mencarelli, Rémi & Lombart, Cindy, 2017. "Influences of the perceived value on actual repurchasing behavior: Empirical exploration in a retailing context," Journal of Retailing and Consumer Services, Elsevier, vol. 38(C), pages 12-21.
    11. J. Andrew Petersen & V. Kumar & Yolanda Polo & F. Javier Sese, 2018. "Unlocking the power of marketing: understanding the links between customer mindset metrics, behavior, and profitability," Journal of the Academy of Marketing Science, Springer, vol. 46(5), pages 813-836, September.
    12. Wu, ChienHsing & Kao, Shu-Chen & Chiu, Hsin-Yi, 2019. "Determinants of discontinuous intention of attention to mobile instant message services," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 219-230.
    13. Bahri-Ammari, Nedra & Bilgihan, Anil, 2017. "The effects of distributive, procedural, and interactional justice on customer retention: An empirical investigation in the mobile telecom industry in Tunisia," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 89-100.
    14. Wikström, Solveig & L'Espoir Decosta, Patrick, 2018. "How is value created? – Extending the value concept in the Swedish context," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 249-260.
    15. Cristobal Rodolfo Guerra-Tamez & María-Laura Franco-García, 2022. "Influence of Flow Experience, Perceived Value and CSR in Craft Beer Consumer Loyalty: A Comparison between Mexico and The Netherlands," Sustainability, MDPI, vol. 14(13), pages 1-22, July.
    16. Utkarsh, & Gupta, Roopak Kumar, 2022. "Effects of confidence and social benefits on consumers’ extra-role and in-role behaviors: A social identity and social exchange perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    17. Rémi Mencarelli & Carole Lombart, 2017. "Influences of the perceived value on actual repurchasing behavior: Empirical exploration in a retailing context," Post-Print hal-01592035, HAL.
    18. Josep Crespo Hervás & Vicente Prado-Gascó & María Huertas González-Serrano, 2020. "Perceived Value in Sporting Events (PVSP): A Further Step for the Strategic Management," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    19. Ahrholdt, Dennis C. & Gudergan, Siegfried P. & Ringle, Christian M., 2019. "Enhancing loyalty: When improving consumer satisfaction and delight matters," Journal of Business Research, Elsevier, vol. 94(C), pages 18-27.
    20. Russo, Ivan & Confente, Ilenia & Gligor, David M. & Autry, Chad W., 2016. "To be or not to be (loyal): Is there a recipe for customer loyalty in the B2B context?," Journal of Business Research, Elsevier, vol. 69(2), pages 888-896.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:44:y:2018:i:c:p:45-53. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.