IDEAS home Printed from https://ideas.repec.org/a/eee/jouret/v85y2009i3p406-419.html
   My bibliography  Save this article

Consequences of Value in Retail Markets

Author

Listed:
  • Chaudhuri, Arjun
  • Ligas, Mark

Abstract

We suggest that merchandise value, affect and two types of loyalty are related in the retail domain. Based on ideas from cognitive psychology on the structure of value we suggest that merchandise value is directly related to repurchase loyalty but indirectly related to attitudinal loyalty via the construct of store affect. Additionally, our model proposes that attitudinal loyalty is related to willingness to pay a price premium while repurchase loyalty is not. We also control for the effects of store familiarity and convenience. We test our hypotheses in three studies and find that, in general, our model is well supported at the level of both individual consumers and stores. Additionally, we find that perceived retailer differentiation moderates the effect of merchandise value on store affect.

Suggested Citation

  • Chaudhuri, Arjun & Ligas, Mark, 2009. "Consequences of Value in Retail Markets," Journal of Retailing, Elsevier, vol. 85(3), pages 406-419.
    • Handle: RePEc:eee:jouret:v:85:y:2009:i:3:p:406-419
    DOI: 10.1016/j.jretai.2009.05.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022435909000396
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretai.2009.05.006?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. Axel Stock & Subramanian Balachander, 2005. "The Making of a "Hot Product": A Signaling Explanation of Marketers' Scarcity Strategy," Management Science, INFORMS, vol. 51(8), pages 1181-1192, August.
    2. Richard H. Thaler, 2008. "Mental Accounting and Consumer Choice," Marketing Science, INFORMS, vol. 27(1), pages 15-25, 01-02.
    3. Gordon R. Foxall, 1999. "The substitutability of brands," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(5), pages 241-257.
    4. Meyers-Levy, Joan & Tybout, Alice M, 1989. "Schema Congruity as a Basis for Product Evaluation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(1), pages 39-54, June.
    5. Netemeyer, Richard G. & Krishnan, Balaji & Pullig, Chris & Wang, Guangping & Yagci, Mehmet & Dean, Dwane & Ricks, Joe & Wirth, Ferdinand, 2004. "Developing and validating measures of facets of customer-based brand equity," Journal of Business Research, Elsevier, vol. 57(2), pages 209-224, February.
    6. Richins, Marsha L, 1997. "Measuring Emotions in the Consumption Experience," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(2), pages 127-146, September.
    7. Holbrook, Morris B & Batra, Rajeev, 1987. "Assessing the Role of Emotions as Mediators of Consumer Responses to Advertising," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(3), pages 404-420, December.
    8. Hui, Michael K & Bateson, John E G, 1991. "Perceived Control and the Effects of Crowding and Consumer Choice on the Service Experience," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 18(2), pages 174-184, September.
    9. Ofir, Chezy & Raghubir, Priya & Brosh, Gili & Monroe, Kent B. & Heiman, Amir, 2008. "Memory-Based Store Price Judgments: The Role of Knowledge and Shopping Experience," Journal of Retailing, Elsevier, vol. 84(4), pages 414-423.
    10. Olney, Thomas J & Holbrook, Morris B & Batra, Rajeev, 1991. "Consumer Responses to Advertising: The Effects of Ad Content, Emotions, and Attitude toward the Ad on Viewing Time," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(4), pages 440-453, March.
    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. RAMLUGUN Vidisha Gunesh & RABOUTE Wendy Geraldine, 2015. "Do Csr Practices Of Banks In Mauritius Lead To Satisfaction And Loyalty?," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 10(2), pages 128-144, August.
    2. Suwelack, Thomas & Hogreve, Jens & Hoyer, Wayne D., 2011. "Understanding Money-Back Guarantees: Cognitive, Affective, and Behavioral Outcomes," Journal of Retailing, Elsevier, vol. 87(4), pages 462-478.
    3. Coelho, Filipe & Aniceto, Inês & Bairrada, Cristela Maia & Silva, Pedro, 2023. "Personal values and impulse buying: The mediating role of hedonic shopping motivations," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    4. Amanda VanInwegen & H Robert Tuten, 2018. "The Incidence and Determinants of Waterproof Casting in Pediatric Patients," Biomedical Journal of Scientific & Technical Research, Biomedical Research Network+, LLC, vol. 2(4), pages 2753-2755, February.
    5. Wallace, Elaine & Torres, Pedro & Augusto, Mário & Stefuryn, Maryana, 2021. "Outcomes for self-expressive brands followed on social media: Identifying different paths for inner self-expressive and social self-expressive brands," Journal of Business Research, Elsevier, vol. 135(C), pages 519-531.
    6. Hsiu-Hui Chang & Wenchang Fang, 2011. "The effects of shopping value on retail outcomes: a comparison between department stores and hypermarkets," The Service Industries Journal, Taylor & Francis Journals, vol. 32(14), pages 2249-2263, April.
    7. Inès, Gicquel & Herbert, Castéran, 2016. "Linking usage and shopping: How value experiences can distinguish consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 30(C), pages 165-174.
    8. Irene Sánchez-González & Irene Gil-Saura & María Eugenia Ruiz-Molina, 2020. "Ethically Minded Consumer Behavior, Retailers’ Commitment to Sustainable Development, and Store Equity in Hypermarkets," Sustainability, MDPI, vol. 12(19), pages 1-17, September.
    9. 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.
    10. Maria C. Pereira & Filipe Coelho, 2020. "Regulatory Focus, Money Attitudes and Financial Literacy: Evidence from Portuguese Young Adults," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 615-625, December.
    11. Andrea Moretta Tartaglione & Ylenia Cavacece & Giuseppe Russo & Giuseppe Granata, 2019. "A Systematic Mapping Study on Customer Loyalty and Brand Management," Administrative Sciences, MDPI, vol. 9(1), pages 1-21, January.
    12. Park, Hyejune & Kim, Youn-Kyung, 2014. "The role of social network websites in the consumer–brand relationship," Journal of Retailing and Consumer Services, Elsevier, vol. 21(4), pages 460-467.
    13. Martos-Partal, Mercedes & González-Benito, Óscar, 2013. "Studying motivations of store-loyal buyers across alternative measures of behavioural loyalty," European Management Journal, Elsevier, vol. 31(4), pages 348-358.
    14. 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.
    15. Tseng, Shu-Mei, 2012. "Correlations between external knowledge and the knowledge chain as impacting service quality," Journal of Retailing and Consumer Services, Elsevier, vol. 19(4), pages 429-437.
    16. Stephan Zielke & Deonir Toni & José Afonso Mazzon, 2023. "Cognitive, emotional and inferential paths from price perception to buying intention in an integrated brand price image model," SN Business & Economics, Springer, vol. 3(1), pages 1-25, January.
    17. Tracie (Tsun-Yin) Tung & Harold F. Koenig & Hsiou-Lien Chen, 2017. "Effects of Green Self-Identity and Cognitive and Affective Involvement on Patronage Intention in Eco-Friendly Apparel Consumption: A Gender Comparison," Sustainability, MDPI, vol. 9(11), pages 1-17, October.
    18. Terblanche, Nic S., 2018. "Revisiting the supermarket in-store customer shopping experience," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 48-59.
    19. 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.
    20. Filipe Coelho & Carlos Sousa, 2011. "From Goal Orientations to Employee Creativity and Performance: Evidence from Frontline Service Employees," GEMF Working Papers 2011-08, GEMF, Faculty of Economics, University of Coimbra.
    21. Doucé, Lieve & Willems, Kim & Chaudhuri, Arjun, 2022. "Bargain effectiveness in differentiated store environments: The role of store affect, processing fluency, and store familiarity," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    22. 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.
    23. González-Benito, Óscar & Martos-Partal, Mercedes, 2012. "Role of Retailer Positioning and Product Category on the Relationship Between Store Brand Consumption and Store Loyalty," Journal of Retailing, Elsevier, vol. 88(2), pages 236-249.
    24. Frank, Darius-Aurel & Otterbring, Tobias, 2023. "Being seen… by human or machine? Acknowledgment effects on customer responses differ between human and robotic service workers," Technological Forecasting and Social Change, Elsevier, vol. 189(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. 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.
    2. Ursavas, Baris & Hesapci-Sanaktekin, Ozlem, 2013. "What happens when you're lost between happiness and sadness?," Journal of Business Research, Elsevier, vol. 66(7), pages 933-940.
    3. Laros, Fleur J.M. & Steenkamp, Jan-Benedict E.M., 2005. "Emotions in consumer behavior: a hierarchical approach," Journal of Business Research, Elsevier, vol. 58(10), pages 1437-1445, October.
    4. Desai, Kalpesh Kaushik & Mahajan, Vijay, 1998. "Strategic Role of Affect-Based Attitudes in the Acquisition, Development, and Retention of Customers," Journal of Business Research, Elsevier, vol. 42(3), pages 309-324, July.
    5. Shirai, Miyuri, 2009. "Investigation of emotional responses to an unexpected price," Australasian marketing journal, Elsevier, vol. 17(1), pages 2-8.
    6. Zha, Dongmei & Marvi, Reza & Foroudi, Pantea, 2023. "Synthesizing the customer experience concept: A multimodularity approach," Journal of Business Research, Elsevier, vol. 167(C).
    7. Kim, Jungkeun, 2019. "The impact of different price promotions on customer retention," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 95-102.
    8. Garaus, Marion & Wagner, Udo & Manzinger, Sandra, 2017. "Happy grocery shopper: The creation of positive emotions through affective digital signage content," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 295-305.
    9. Wang, Jessie J. & Lalwani, Ashok K. & DelVecchio, Devon, 2022. "The Impact of Power Distance Belief on Consumers' Brand Preferences," International Journal of Research in Marketing, Elsevier, vol. 39(3), pages 804-823.
    10. Lee, Seunghwan & Kim, Yukyoum & Heere, Bob, 2018. "Sport team emotion: Conceptualization, scale development and validation," Sport Management Review, Elsevier, vol. 21(4), pages 363-376.
    11. Poushneh, Atieh, 2021. "Impact of auditory sense on trust and brand affect through auditory social interaction and control," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    12. Kapoor, Ankur & Sahay, Arvind & Singh, Nandini C. & Chandrasekhar Pammi, V.S. & Banerjee, Prantosh, 2023. "The neural correlates and the underlying processes of weak brand choices," Journal of Business Research, Elsevier, vol. 154(C).
    13. Bahoussa Abdelaziz & Imane Sbai, 2020. "Emotion in consumer psychology : Foundations and practices [L'émotion en psychologie du consommateur : Fondements et pratiques]," Post-Print hal-04454015, HAL.
    14. Eroglu, Sevgin A. & Machleit, Karen A. & Davis, Lenita M., 2001. "Atmospheric qualities of online retailing: A conceptual model and implications," Journal of Business Research, Elsevier, vol. 54(2), pages 177-184, November.
    15. M. Mercanti-Guerin, 2008. "Perception d'une annonce créative par le consommateur: construction d'une échelle de mesure et impact sur le processus de persuasion publicitaire," Post-Print hal-02054971, HAL.
    16. Tan, Huimin & Lv, Xingyang & Liu, Xiaoyan & Gursoy, Dogan, 2018. "Evaluation nudge: Effect of evaluation mode of online customer reviews on consumers’ preferences," Tourism Management, Elsevier, vol. 65(C), pages 29-40.
    17. Massara, Francesco & Liu, Sandra S. & Melara, Robert D., 2010. "Adapting to a retail environment: Modeling consumer-environment interactions," Journal of Business Research, Elsevier, vol. 63(7), pages 673-681, July.
    18. M. Brengman & M. Geuens, 2003. "The Four Dimensional Impact Of Color On Shoppers’ Emotions," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/204, Ghent University, Faculty of Economics and Business Administration.
    19. Falk, Tomas & Kunz, Werner H. & Schepers, Jeroen J.L. & Mrozek, Alexander J., 2016. "How mobile payment influences the overall store price image," Journal of Business Research, Elsevier, vol. 69(7), pages 2417-2423.
    20. Naveed Mushtaq & Muhammad Asim & Mohsin Raza Khan & Tanveer Illahi & Abdul Qayyum, 2021. "Impact Of Employee Displayed Emotion On Perceived Waiting Time Of Clients Among Islamic Banks Of Paksitan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(1), pages 99-113, March.

    More about this item

    Keywords

    Value; Affect; Loyalty; Price premium;
    All these keywords.

    Statistics

    Access and download statistics

    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:jouret:v:85:y:2009:i:3:p:406-419. 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 .

    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.