The Influence of Assortment Satisfaction on Customer Loyalty: An Empirical Survey of Students

The Influence of Assortment Satisfaction on Customer Loyalty: An Empirical Survey of Students

Pranay Verma, Anil Kumar Sharma
Copyright: © 2017 |Pages: 13
DOI: 10.4018/IJOM.2017100103
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Abstract

This study investigates how assortment satisfaction is predicted for purchase of online footwear and its consequences. This research is interplay of product display, customer loyalty, perceived risk and price comparison to ascertain their relationships. It examines the association between intrinsic cues and assortment satisfaction. This article also probes the well-established relationship between satisfaction and loyalty by way of assortment satisfaction and customer loyalty. The impact of product display, customer loyalty and price comparison on assortment satisfaction has been empirically verified by exploratory factor analysis and tested by structural equation modeling. The findings prove that price comparison is the most important factor influencing assortment satisfaction. Assortment satisfaction leads to customer loyalty. The authors develop a model that jointly optimizes assortment satisfaction for product display and price comparison and builds customer loyalty.
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Literature Review

Product Display

Product is core to retailing (Krasonikolakis et al., 2011) and its visual appeal affects the senses of the customer. There is bound to be a mismatch between customer’s belief and actual product display (Valenzuela, et al., 2013) and the online retailer should compensate the customer (Ranganathan, 2012) for this. Therefore, the role of product display in online retailing is important. Product display is associated with shelf space location, orientation and facing area (Murray et al., 2010), can be an effective promotional tool (Jih, 2007) and is a part of store atmospherics (Krasonikolakis et al., 2011) in online format. Product display can either be 2D or 3D (Cheng, et al., 2014). The amount of space allocated to a product for display determines the demand for a product (Murray, et al., 2010). Hence more the product display, higher the sales. Product display can be classified into comprehensive and category killer. Comprehensive is a full view of footwear while category killer is a detailed view of the footwear. We therefore hypothesize that

  • H1: Category killer product display positively (CKPD) influences comprehensive product display (CPD)

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