Enriching the ECSI model using brand strength in the retail setting

• Main Author: Paraskevi Sarantidou
• Format: Article
• Language: English
• Published: Emerald Publishing 2017-10-01
• Series: European Journal of Management and Business Economics
• Subjects: Loyalty; Brand strength; Retail branding; Grocery stores; European Customer Satisfaction Index
• Online Access: https://www.emeraldinsight.com/doi/pdfplus/10.1108/EJMBE-10-2017-017

Purpose - The purpose of this paper is to investigate the role of the retailer’s brand strength as a potential predictor of loyalty. It also examines the role of customer satisfaction (CS) to the retailer’s loyalty as well as its impact on the retailer’s brand strength. Design/methodology/approach - The study was conducted in the grocery context and in a market under recession using the European Customer Satisfaction Index (ECSI) model. Data were collected through a telephone survey from 2,000 participants responsible for the household grocery shopping with a quota of 250 respondents from each of the leading grocery retailers in Greece. A formative measurement model was developed and the collected data were analyzed using partial least square path modeling. Findings - The findings revealed that the strength of the retailer’s brand and CS influence retail loyalty and that brand strength mediate the strength of CS to loyalty. Results also suggested that the expectations and the perceptions toward the retailer’s product offering are the most important drivers of CS and loyalty. Thus, the study has proved the importance of the functional store attributes to CS and loyalty in the grocery store setting. Originality/value - Research examining the suitability of the ECSI model in the grocery setting and in a market under economic crisis is scarce. This paper addresses these shortcomings by examining a customer loyalty model which incorporates the brand strength construct and investigates the role of brand strength as a potential predictor of loyalty as well as the role of CS in the brand strength and loyalty.