Price And Quality Value Influences On Retail Customer Satisfaction And Loyalty

  • Thomas L. Powers University of Alabama at Birmingham
  • Eric P. Jack University of Alabama at Birmingham
  • Seongwon Choi University of Alabama at Birmingham

Abstract

This paper examines how price and quality value obtained in a shopping experience influence store and service satisfaction and subsequent customer loyalty in a discount retail setting.  The multiple dimensions of value and satisfaction and their influence on loyalty is examined based on a sample of Wal-Mart and Target customers.  The results indicate that quality value is related to store and service satisfaction.  Price value was not related to store or service satisfaction.  Store satisfaction was found to be related to customer loyalty, although service satisfaction was not related.  The research provides managers with evidence on the specific dimensions of value and satisfaction that influence customer loyalty in a discount retail setting.  Price value was not found to be related to store or service satisfaction suggesting that customers of discount retailers expect lower prices and therefore do not consider them as a driver of satisfaction.  A similar logic may hold true for the relationship between service satisfaction and loyalty as a high level of service may not be considered as a requirement for discount retail shoppers.  

Author Biographies

Thomas L. Powers, University of Alabama at Birmingham

Professor

Department of Marketing, Industrial Distribution and Economics

Eric P. Jack, University of Alabama at Birmingham

Professor and Dean

Collat School of Business

Seongwon Choi, University of Alabama at Birmingham

Graduate Assistant

Department of Marketing, Industrial Distribution and Economics

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Published
2019-02-15