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Review of Managerial Science
Published in:

03-07-2022 | Original Paper

Convenient = competitive? How Brick-And-Mortar Retailers can cope with Online Competition

Authors: Sandipan S. Sen, Aliosha Alexandrov, Subhash Jha, William C. McDowell, Emin Babakus

Published in: Review of Managerial Science | Issue 5/2023

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Abstract

Due to the rise of online retailing, traditional brick-and-mortar retailers need to understand what customers find convenient when shopping at physical locations and focus their efforts on those convenience dimensions to remain competitive. We test a service convenience model in the auto-parts retailing industry and examine how various dimensions of service convenience affect customers’ perceptions of the retailer (i.e., service quality, product quality, and perceived value), and subsequently their behavior (i.e., customer loyalty and share of wallet). The results suggest that in traditional retailing, the most important convenience dimensions are decision convenience and benefit convenience. We find that service convenience exerts its effect on customer loyalty and share of wallet through perceived service quality and perceived value, and product quality has an indirect effect through perceived value. Service convenience is an important driver of customer loyalty and share of wallet, and this study demonstrates the mechanism through which it happens.
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Footnotes
1
To test the sensitivity of the error variance assigned to the single-item measures, we also tested a measurement model with twice the values recommended by Anderson and Gerbing (1998), i.e., .20s2. The model fit statistics did not change, and the only difference was marginally higher correlation of the single-item measures with the remaining constructs. The discriminant validity was preserved. The results suggested that even if single-item measure had twice the measurement error compared to the values recommended by Anderson and Gerbing (1988), the final results would not have changed, and if they did, that would have resulted in slightly inflated relationships.
 
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Metadata
Title
Convenient = competitive? How Brick-And-Mortar Retailers can cope with Online Competition
Authors
Sandipan S. Sen
Aliosha Alexandrov
Subhash Jha
William C. McDowell
Emin Babakus
Publication date
03-07-2022
Publisher
Springer Berlin Heidelberg
Published in
Review of Managerial Science / Issue 5/2023
Print ISSN: 1863-6683
Electronic ISSN: 1863-6691
DOI
https://doi.org/10.1007/s11846-022-00566-0

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