Analyzing heterogeneity on the value, satisfaction, word-of-mouth relationship in retailing. Issue 7 (21st August 2017)

• Record Type: Journal Article
• Authors: Fuentes-Blasco, María; Moliner-Velázquez, Beatriz; Gil-Saura, Irene
• Is Part Of: Management decision. Volume 55:Issue 7(2017)
• Page Start: 1558
• Page End: 1577
• Publication Date: 2017-08-21
• Subjects: Value -- Retailing -- Customer satisfaction -- Finite mixture SEM -- Word-of-mouth (WOM); Management -- Periodicals; 658.403
• DOI: 10.1108/MD-03-2016-0138
• Languages: English
• ISSNs: 0025-1747

Abstract

Abstract : Purpose: The literature recognizes the need to study differences in consumer behavior in highly competitive and dynamic markets. In this paper, the authors look at how the heterogeneous evaluation of retailing influences customer satisfaction and loyalty. The purpose of this paper is to analyze unobserved heterogeneity on customer value dimensions perceptions in retail establishments, and their potential effects on positive forms of behavioral outcomes considering customer satisfaction as a mediating variable. Design/methodology/approach: On a sample of 820 retail customers, the authors apply a finite mixture structural equation modeling that analyzes unobserved heterogeneity simultaneously. In this model, the authors study the influence of heterogeneous perceptions of excellence, efficiency, entertainment and aesthetics on customer satisfaction and of satisfaction on word-of-mouth (WOM) referral and WOM activity. Findings: The results show two latent segments where the intensity of causal relations varies, which means that the effect of value dimensions and satisfaction are over or underestimated when heterogeneity is ignored. Originality/value: The main value of the paper has been to analyze the potential heterogeneity of value dimensions (intravariable approach), and their links with satisfaction and some dimensions of loyalty (intervariable approach). Customer heterogeneity must be studied to understand the satisfaction process and WOM responses in order to design more efficient and effective relationship marketing strategies.