The impact of hard discounter presence on store satisfaction and store loyalty

Auke Hunneman*, Peter C. Verhoef, Laurens M. Sloot

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

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Abstract

Hard discounters, such as Aldi and Lidl, have become more important in the last decade. Recent research suggests that the presence of a hard discounter (HD) decreases customers' share of wallet. In this study, we aim to understand why this occurs, by considering how HD presence affects store attributes and store satisfaction. In particular, we investigate whether HD presence affects store satisfaction formation as well as the effect of store satisfaction on share of wallet. We analyze Dutch data on store attribute evaluations, store satisfaction and share of wallet. Our results show that HD presence decreases convenience evaluations of a store, satisfaction and share of wallet. Moreover, we show that the relationship between convenience and store satisfaction becomes more important when a HD is present, while we then also find a stronger positive relationship between satisfaction and share of wallet. Simulations based on our model estimations show that especially price-oriented retailers should fear decreases in share of wallet when a HD is present.

Original languageEnglish
Article number102405
Number of pages13
JournalJournal of Retailing and Consumer Services
Volume59
Early online date10-Dec-2020
DOIs
Publication statusPublished - Mar-2021

Keywords

  • Store satisfaction
  • Store loyalty
  • Store attributes
  • Retailing
  • Hard discounter
  • ATTRIBUTE-LEVEL PERFORMANCE
  • CUSTOMER SATISFACTION
  • WAL-MART
  • EMPIRICAL-ANALYSIS
  • BEHAVIOR
  • DELIGHT
  • SHARE
  • MODEL
  • ENTRY

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