- Apply for Authority
- P-ISSN1738-3110
- E-ISSN2093-7717
- SCOPUS
ISSN : 1738-3110
Effects of Product Value of Outlet Stores on Customer Satisfaction and Loyalty
Jung, Yeon-Sung
Kim, Moon-Seop
- Downloaded
- Viewed
Abstract
Purpose - As more consumers pursue high quality products at reasonable prices, Korean retail companies are increasing investment in expanding their outlet stores. Despite the growing importance of the outlet business, there has been very little empirical research on consumers' outlet shopping behaviors. This study aimed to investigate the relationships between consumers' perceived product value (performance quality, value for money, and social value) of outlet stores and overall shopping satisfaction and the effect of shopping satisfaction on outlet store loyalty. Research design, data and methodology - The authors developed a structural model in which performance quality, value for money, and social value of products are proposed to affect overall outlet shopping satisfaction, thus increasing customer loyalty. To analyze the research model, data were collected from 88 shoppers at suburban outlets. SPSS 21.0 and AMOS 21.0 were utilized to test the hypotheses. The unidimensionality of each construct was supported from the results of the reliability test with Cronbach's α and confirmatory factor analyses. Correlation analysis was performed and the results warranted the nomological validity of the measures. The fit statistics of the overall model analysis demonstrated an acceptable fit(X<sup>2</sup>(<sub>161</sub>)=171.651, p=.000; X<sup>2</sup>/df=1.546; GFI=.821, NFI=.879, TLI=.942, CFI=.953, RMR=.035, RMSEA=.079). Results - The findings are as follows. First, consumers' perceived value of product performance quality had a significant positive effect on overall outlet shopping satisfaction. Consumers, who evaluate performance quality of the product more positively, tend to express stronger satisfaction and happiness about outlet shopping experience. Second, consumers' perceived social value of outlet products influenced their overall satisfaction significantly. Consumers who believe that products of outlet stores enhance self-concepts are more likely to satisfy with outlet shopping experience. However, consumers' perception of outlet products on value for money was not found to significantly influence overall shopping satisfaction. Finally, overall shopping satisfaction had a significant and positive influence on loyalty. Conclusions - While outlet retailers have traditionally focused on promoting competitively priced merchandise, the results of this study suggest that customers' overall satisfaction with outlet shopping is influenced more by the non-price-related product values. In the context of an outlet shopping environment, performance quality and social value of the products were found to be more critical predictors of customer overall satisfaction. Therefore, it would not be efficient for outlet retailers to highlight economic value of their merchandise. Instead, they need to investigate the performance quality of the products regularly and try to deliver quality guaranteed goods to enhance customer satisfaction. Also, outlet retailers should differentiate their businesses by carrying more unique and prestigious brands and emphasize higher social value and symbolic meanings of their products. As competition among outlet retailers are getting fierce, retail companies need to focus on strengthening customer loyalty with a long-term perspective. With a deeper understanding of the relationship between consumers' perceived product values and shopping satisfaction, outlet retailers will be able to develop customer loyalty strategies effectively and to achieve competitive advantage.
- keywords
- Outlet Stores, Pro duct Value, Shopping Satisfaction, Loyalty
Reference
Agarwal, Manoj K., & Rao, Vithala R. (1996). An empirical comparison of consumer-based measures of brand equity. Marketing letters, 7(3), 237-247.
Ahn, Kwang-Ho, Lim, Byung-Hoon, & Jung, Sun-Tae (2008). The study of the effect of shopping value on customer satisfaction, and actual purchase behavior. Asia Marketing Journal, 10(2), 99-123.
Anderson, James C., & Gerbing, David W. (1988). Structural equation modeling in practices: A review and recommended two step approach. Psychological Bulletin, 103(3), 411-423.
Apparel News (2016). 2016 Retail store trends. Apparel News, 5January, Seoul, Korea.
Babin, Barry J., Darden, William R., & Griffin, Mitch (1994). Work and/or fun: measuring hedonic and utilitarian shopping value. Journal of Consumer Research, 20(4), 644-656.
Bagozzi, Richard P., & Yi, Youjae (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74-94.
Batra, Rajeev, & Ahtola, Olli T. (1991). Measuring the hedonic and utilitarian sources of consumer attitudes. Marketing Letters, 2(2), 159-170.
Bearden, William O., & Etzel, Michael J. (1982). Reference group influence on product and brand purchase decisions. Journal of Consumer Research, 9(2), 183-194.
Bloch, Peter H., & Richins, Marsha L. (1983). A theoretical model for the study of product importance perceptions. Journal of Marketing, 47(3), 69-81.
Bollen, Kenneth A., (1989). Structural equations with latent variables, New York: Wiley.
Bolton, Ruth N., & Drew, James H. (1991). A multistage model of customers' assessments of service quality and value. Journal of Consumer Research, 17(4), 375-384.
Chaudhuri, Arjun, & Holbrook, Morris B. (2001). The chain of effects from brand trust and brand affect to brand performance:the role of brand loyalty. Journal of Marketing, 65(2), 81-93.
Cronin, J. Joseph, Brady, Michael K., & Hult, G. Tomas M. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of Retailing, 76(2), 193-218.
Dhar, Ravi, & Wertenbroch, Klaus (2000). Consumer choice between hedonic and utilitarian goods. Journal of Marketing Research, 37(1), 60-71.
Dick, Alan S., & Basu, Kunal (1994). Customer loyalty: toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99-113.
Diep, Vien Chau Stephanie, & Sweeney, Jillian C. (2008). Shopping trip value: do stores and products matter? Journal of Retailing and Consumer Services, 15(5), 399-409.
Han, Sang-Ho, Kim, Jong-Lak, & Yang, Heo-Chang (2015). The Impact of Service Quality on Service Satisfaction and Store Loyalty: Service Value as a Moderator. Journal of Distribution Science, 13(10), 101-108.
Hirschman, Elizabeth C., & Holbrook, Morris B. (1982). Hedonic consumption: emerging concepts, methods and propositions. Journal of Marketing, 46(3), 92-101.
Holbrook, Morris B. (1999). Introduction to consumer value. Consumer value: A framework for analysis and research. New York: Routledge.
Holbrook, Morris B., & Batra, Rajeev (1987). Assessing the role of emotions as mediators of consumer responses to advertising. Journal of Consumer Research, 14(3), 404-420.
Holbrook, Morris B., & Hirschman, Elizabeth C. (1982). The experiential aspects of consumption: Consumer fantasies, feelings, and fun. Journal of Consumer Research, 9(2), 132-140.
Holt, Douglas B. (1995). How consumers consume: A typology of consumption practices. Journal of Consumer Research, 22(1), 1-16.
Homer, Pamela M., & Kahle, Lynn R. (1988). A structural equation test of the value-attitude-behavior hierarchy. Journal of Personality and social Psychology, 54(4), 638.
Jacoby, Jacob (1971). Brand loyalty: A conceptual definition. Proceedings of the Annual Convention of the American Psychological Association, 6(S), 655-656.
Keller, Kevin Lane (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22.
Keller, Kevin Lane (2002). Handbook of marketing. Thousand Oaks, CA: Sage Publications.
Kim, Jae-Il, Kwon, Young-Seo, & Seo, Joon-Yong (2004). Exploring brand loyalty through the analysis of consumer-brand relationship. Asia Marketing Journal, 6(3), 27-57.
Kim, Jin-Young, & Hwang, Choon-Sup (2006). Lifestyle and clothing purchasing behavior of outlet stpre consumers by their age. Journal of Korean Traditional Costume, 9(3), 95-110.
Kim, Mo-Ran, & Ahn, Kwang-Ho (2012). The effect of service failure on the desire for betrayal and retaliatory behavior:Based on the moderating role of the customer-service firm relationship quality. Asia Marketing Journal, 14(1), 99-114.
Korea Chamber of Commerce and Industry. (2015). Monthly Retail Industry Trends. September 2015. Retrieved November 15, 2015, from http://english. korcham.net/n ChamEng/Service/News/appl/IntBizDetail.asp?nKey=402&S EARCHFIELD=TITLE&SEARCHWORD=
Lee, Moon-Kyu, & Ulgado, Francis M. (1997). Consumer evaluations of fast-food services: a cross-national comparison. Journal of Services Marketing, 11(1), 39-52.
Macintosh, Gerrard, & Lockshin, Lawrence S. (1997). Retail relationships and store loyalty: a multi-level perspective. International Journal of Research in Marketing, 14(5), 487-497.
Mathwick, Charla, Malhotra, Naresh, & Rigdon, Edward (2001). Experiential value: conceptualization, measurement and application in the catalog and Internet shopping environment. Journal of Retailing, 77(1), 39-56.
Maute, Manfred F., & Forrester, William R. (1993). The structure and determinants of consumer complaint intentions and behavior. Journal of Economic Psychology, 14(2), 219-247.
Na, In-Kyung (2013). Prospects for the fashion retailing in terms of the growth of premium outlet. Fashion Information and Technology, 10, 2-9.
Netemeyer, Richard G., Krishnan, Balaji K., Pullig, Chris, Wang, Guangping, Yagci, Mehmet, Dean, Dwane, & Wirth, Ferdinand (2004). Developing and validating measures of facets of customer-based brand equity. Journal of Business Research, 57(2), 209-224.
Oliver, Richard L. (1993). Cognitive, affective, and attribute bases of the satisfaction response. Journal of Consumer Research, 20(3), 418-430.
Oliver, Richard L., Rust, Roland T., & Varki, Sajeev (1997). Customer delight: foundations, findings, and managerial insight. Journal of Retailing, 73(3), 311-336.
Parasuraman, Ananthanarayanan (1997). Reflections on gaining competitive advantage through customer value. Journal of the Academy of marketing Science, 25(2), 154-161.
Park, Hye-Won, Park, Ju-Hyung, & Lim, Sook-Ja (2004). Transactions: A study on pursuing benefits and satisfaction at fashion outlet store. Journal of the Korean Society of Clothing and Textiles, 28(7), 950-961.
Park, I. S., & Park, S. K. (2006). A Study on Effect of Perceived Quality and Customer Value to Customer Satisfaction. Journal of Distribution Science, 4(2), 65-8.
Park, Yoon-Ji, & Kim, Kee-Ok (2012). Consumer values derived from products by consumers: Difference among the four types of products classified with product attributes and visibility. Journal of the Korean Home Economics Association, 50(7), 81-96.
Patterson, Paul G., & Spreng, Richard A. (1997). Modelling the relationship between perceived value, satisfaction and repurchase intentions in a business-to-business, services context: an empirical examination. International Journal of Service Industry Management, 8(5), 414-434.
Pitts, Robert E., & Woodside, Arch G. (1983). Personal value influences on consumer product class and brand preferences. Journal of Social Psychology, 119(1), 37-53.
Richins, Marsha L. (1983). Negative word-of-mouth by dissatisfied consumers: A pilot study. Journal of Marketing, 47(1), 68-78.
Sheth, Jagdish N., Newman, Bruce I., & Gross, Barbara L. (1991). Why we buy what we buy: a theory of consumption values. Journal of Business Research, 22(March), 159–170.
Shin, Jong-Chil, Jung, Jin-Hee, & Baik, Min-Seok (2011). Research on the consumption behavior of premium outlet users. Journal of Korea Contents Association, 11(11), 401-412.
Singh, Jagdip, & Howell, Roy D. (1985). Consumer complaining behavior: a review and prospectus. Consumer Satisfaction, Dissatisfaction and Complaining behavior, 1, 41-49.
Sirakaya-Turk, Ercan, Ekinci, Yuksel, & Martin, Drew (2015). The efficacy of shopping value in predicting destination loyalty. Journal of Business Research, 68(9), 1878-1885.
Steenkamp, Jan-Benedict E., & Geyskens, Inge (2006). How country characteristics affect the perceived value of web sites. Journal of Marketing, 70(3), 136-150.
Story, John, & Hess, Jeff (2006). Segmenting customer-brand relations: beyond the personal relationship metaphor. Journal of Consumer Marketing, 23(7), 406-413.
Suh, G. H., Youn, K. H., Yang, Y. J., & Seo, M. O. (2004). A Study of influencing sequential relationship on the loyalty. Journal of Global Academy of Marketing Science, 14(1), 101-124.
Sweeney, Julian C., Soutar, Geoffrey N., & Johnson, Lester W. (1999). The role of perceived risk in the quality-value relationship:a study in a retail environment. Journal of Retailing, 75(1), 77-105.
Sweeney, Jillian C., & Soutar, Geoffrey N. (2001). Consumer perceived value: The development of a multiple item scale. Journal of Retailing, 77(2), 203-220.
The Korea Economic Daily (2016). Big 3 retailers expanding investments in outlet stores. The Korea Economic Daily, 5January, Seoul, Korea.
The Korea Economic Daily (2016). 8 Million consumers visited Yeojoo outlet last year. The Korea Economic Daily, 25February, Seoul, Korea.
Vigneron, Franck, & Johnson, Lester W. (2004). Measuring perceptions of brand luxury. Journal of Brand Management, 11(6), 484-506.
Westbrook, Robert A., & Black, William C. (1985). A motivation-based shopper typology. Journal of Retailing, 16(1), 78-103.
Wiedmann, Klaus-Peter., Hennigs, Nadine, & Siebels, Astrid (2007). Measuring consumers’ luxury value perception: a cross-cultural framework. Academy of Marketing Science Review, 7(7), 333-361.
Woodside, Arch G., Frey, Lisa L., & Daly, Robert T. (1989). Linking service quality, customer satisfaction, and behavioral intention. Journal of Health Care Marketing, 9(4), 5-17.
Yi, You-Jae, & Ahn, Jeong-Ji (2001). Effects of service loyalty and pseudo loyalty on repurchase intentions. Journal of Consumer Studies, 12(1), 53-74.
Zeithaml, Valarie A. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2-22.
Zeithaml, Valarie A., Berry, Leonard L., & Parasuraman, Ananthanarayanan (1996). The behavioral consequences of service quality. Journal of Marketing, 60(2), 31-46.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations