Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Exploring Customer-centric Marketing Capabilities, Trust, Satisfaction, and Retention in Retail Business


Affiliations
1 Assistant Professor, Department of Commerce, University of Jammu, J&K, India
2 Ph.D Research Scholar, Department of Commerce, University of Jammu, India
     

   Subscribe/Renew Journal


The Indian retail business has been facing escalating competition, speedy technology adoption, and diverse customer profiles. Effective new product development, pricing, channel management, and marketing communications make up the marketing mix activities that define strong specialised marketing capabilities. The right choice of marketing capabilities can help retailers satisfy, retain, and edify long-term relationships with unshaken trust among their customers. Retail firms can achieve its objectives of a long-term relationship with the customers by successful implementation of various marketing capabilities. So, this research study explores various marketing capabilities, customer satisfaction, trust, and retention in the retail sector. The study is based on the responses obtained from customers and the analysis is performed through EFA. The results indicate eight types of marketing capabilities in the retail business. Indeed, there is a moderate level of satisfaction, trust, and retention in the retail business. The study provides implications for researchers, policymakers, and retailers.

Keywords

Marketing Capabilities, Trust, Customer Satisfaction, Retention, Retail Business
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abbes, M., & Goudey, A. (2015). How salespersons induce trust between consumers and retailers: The case of French well-being stores. International Journal of Retail & Distribution Management, 43(12), 1104-1125.

  • Aldaihani, F. M. F., & Ali, N. A. B. (2018). The mediating role of customer empowerment in the effect of relationship marketing on customer retention: An empirical demonstration from Islamic banks in Kuwait. European Journal of Economics, Finance and Administrative Sciences, 99, 42-52.

  • Alshurideh, M. T. (2016). Is customer retention beneficial for customers: A conceptual background. Journal of Research in Marketing, 5(3), 382-389.

  • Anning-Dorson, T. (2017). Moderation-mediation effect of market demand and organization culture on innovation and performance relationship. Marketing Intelligence & Planning, 35(2), 222-242.

  • Ascarza, E., Neslin, S. A., Netzer, O., Anderson, Z., Fader, P. S., Gupta, S., & Provost, F. (2018). In pursuit of enhanced customer retention management: Review, key issues, and future directions. Customer Needs and Solutions, 5(1-2), 65-81.

  • Assimakopoulos, C., Papaioannou, E., Sarmaniotis, C., & Georgiadis, C. K. (2015). Online reviews as a feedback mechanism for hotel CRM systems. Anatolia, 26(1), 5-20.

  • Asubonteng, P., McCleary, K. J., & Swan, J. E. (1996). SERVQUAL revisited: A critical review of service quality. Journal of Services Marketing, 10(6), 62-81.

  • Asuquo, E. E., & Igbongidi, P. B. (2015). Retail store merchandise assortment and display and their influence on consumer impulse buying behaviour in north-west Nigeria. Global Journal of Management and Business Research, 15(6), 1-9.

  • Belas, J., & Gabcova, L. (2014). Reasons for satisfaction and dissatisfaction of bank customers: Study from Slovakia and the Czech Republic. International Journal of Enterpreneurial Knowledge, 2(1), 4-13.

  • Bellingkrodt, S., & Wallenburg, C. M. (2015). The role of customer relations for innovativeness and customer satisfaction. The International Journal of Logistics Management, 26(2), 254-274.

  • Belwal, R., & Belwal, S. (2017). Factors affecting store image and the choice of hypermarkets in Oman. International Journal of Retail & Distribution Management, 45(6), 587-607.

  • Berraies, S., & Hamouda, M. (2018). Customer empower-ment and firms’ performance. International Journal of Bank Marketing, 36(2), 336-356.

  • Bhat, S. A., & Darzi, M. A. (2016). Customer relationship management: An approach to competitive advantage in the banking sector by exploring the mediational role of loyalty. International Journal of Bank Marketing, 34(3), 388-410.

  • Bundy, J., Shropshire, C., & Buchholtz, A. K. (2013). Strategic cognition and issue salience: Toward an explanation of firm responsiveness to stakeholder concerns. Academy of Management Review, 38(3), 352-376.

  • Cho, Y. C., & Sagynov, E. (2015). Exploring factors that affect usefulness, ease of use, trust, and purchase intention in the online environment. International Journal of Management & Information Systems (IJMIS), 19(1), 21-36.

  • Diallo, M. F., & Cliquet, G. (2016). Store image perceptions and customer knowledge cues in emerging markets. International Journal of Retail & Distribution Management, 44(12), 1182-1205.

  • Eisingerich, A. B., Auh, S., & Merlo, O. (2014). Acta non verba? The role of customer participation and word of mouth in the relationship between service firms’ customer satisfaction and sales performance. Journal of Service Research, 17(1), 40-53.

  • Gauri, D. K., Trivedi, M., & Grewal, D. (2008). Understanding the determinants of retail strategy: An empirical analysis. Journal of Retailing, 84(3), 256-267.

  • Golgeci, I., & Gligor, D. M. (2017). The interplay between key marketing and supply chain management capabilities: The role of integrative mechanisms. Journal of Business & Industrial Marketing, 32(3), 472-483.

  • Gourville, J. T., & Moon, Y. (2004). Managing price expectations through product overlap. Journal of Retailing, 80(1), 23-35.

  • Grewal, D., Levy, M., Mehrotra, A., & Sharma, A. (2016). Planning merchandising decisions to account for regional and product assortment differences. Journal of Retailing, 75(3), 405-424.

  • Han, H., & Hyun, S. S. (2017). Impact of hotel-restaurant image and quality of physical-environment, service, and food on satisfaction and intention. International Journal of Hospitality Management, 63, 82-92.

  • Hanaysha, J. R. (2018). An examination of the factors affecting consumer’s purchase decision in the Malaysian retail market. PSU Research Review, 2(1), 7-23.

  • Hanaysha, J. R. (2018). Customer retention and the mediating role of perceived value in retail industry. World Journal of Entrepreneurship, Management and Sustainable Development, 14(1), 2-24.

  • Hristov, L., & Reynolds, J. (2015). Perceptions and practices of innovation in retailing: Challenges of definition and measurement. International Journal of Retail & Distribution Management, 43(2), 126-147.

  • Hui, E. C., & Zheng, X. (2010). Measuring customer satisfaction of FM service in housing sector: A structural equation model approach. Facilities, 28(5/6), 306-320.

  • Jan, M. T., & Abdullah, K. (2014). The impact of technology CSFs on customer satisfaction and the role of trust: An empirical study of the banks in Malaysia. The International Journal of Bank Marketing, 32(5), 429-447.

  • Jin, B., & Cho, H. J. (2018). Examining the role of international entrepreneurial orientation, domestic market competition, and technological and marketing capabilities on SME’s export performance. Journal of Business & Industrial Marketing, 33(5), 585-598.

  • Kadic-Maglajlic, S., Micevski, M., Arslanagic-Kalajdzic, M., & Lee, N. (2017). Customer and selling orientations of retail salespeople and the sales manager’s ability-to-perceive-emotions: A multi-level approach. Journal of Business Research, 80, 53-62.

  • Kamboj, S., & Rahman, Z. (2015). Marketing capabilities and firm performance: Literature review and future research agenda. International Journal of Productivity and Performance Management, 64(8), 1041-1067.

  • Keith, N. K., & Simmers, C. S. (2011). Measuring service quality perceptions of restaurant experiences: The disparity between comment cards and DINESERV. Journal of Foodservice Business Research, 14(1), 20-32.

  • Khare, A., Achtani, D., & Khattar, M. (2014). Influence of price perception and shopping motives on Indian consumers’ attitude towards retailer promotions in malls. Asia Pacific Journal of Marketing and Logistics, 26(2), 272-295.

  • Kuruvilla, S. J., Joshi, N., & Shah, N. (2009). Do men and women really shop differently? An exploration of gender differences in mall shopping in India. International Journal of Consumer Studies, 33(6), 715-723.

  • Liozu, S. M., & Hinterhuber, A. (2013). Pricing orientation, pricing capabilities, and firm performance. Management Decision, 51(3), 594-614.

  • Martin, S. L., & Javalgi, R. R. G. (2016). Entrepreneurial orientation, marketing capabilities and performance: The moderating role of competitive intensity on Latin American international new ventures. Journal of Business Research, 69(6), 2040-2051.

  • Moore, M., & Fairhurst, A. (2003). Marketing capabilities and firm performance in fashion retailing. Journal of Fashion Marketing and Management: An International Journal, 7(4), 386-397.

  • Nour, M. I., & Almahirah, M. S. (2014). The impact of promotional mix elements on consumers purchasing decisions. International Business and Management, 8(2), 143-151.

  • Oliveira, T., Alhinho, M., Rita, P., & Dhillon, G. (2017). Modelling and testing consumer trust dimensions in e-commerce. Computers in Human Behavior, 71, 153-164.

  • Paige, R. C., & Littrell, M. A. (2002). Craft retailers’ criteria for success and associated business strategies. Journal of Small Business Management, 40(4), 314-331.

  • Pantano, E. (2014). Innovation drivers in retail industry. International Journal of Information Management, 34(3), 344-350.

  • Paul, J., Mittal, A., & Srivastav, G. (2016). Impact of service quality on customer satisfaction in private and public sector banks. International Journal of Bank Marketing, 34(5), 606-622.

  • Peng, Y. S., & Lin, S. S. (2008). Local responsiveness pressure, subsidiary resources, green management adoption and subsidiary’s performance: Evidence from Taiwanese manufactures. Journal of Business Ethics, 79(1-2), 199-212.

  • Pratono, A. H. (2018). From social network to firm performance: The mediating effect of trust, selling capability and pricing capability. Management Research Review, 41(6), 680-700.

  • Pratono, A. H., & Mahmood, R. (2015). Mediating effect of marketing capability and reward philosophy in the relationship between entrepreneurial orientation and firm performance. Journal of Global Entrepreneurship Research, 5(1), 1-12.

  • Rondan-Cataluña, F. J., Escobar-Perez, B., & Moreno-Prada, M. A. (2019). Setting acceptable prices: A key for success in retailing. Spanish Journal of Marketing-ESIC, 23(1), 119-139.

  • Rudawska, E. D., & Bilinska-Reformat, K. (2018). The development of food retail formats - Evidence from Poland. British Food Journal, 120(2), 309-324.

  • Ruiz-Real, J. L., Gázquez-Abad, J. C., Esteban-Millat, I., & Martínez-López, F. J. (2018). Betting exclusively by private labels: Could it have negative consequences for retailers? Spanish Journal of Marketing-ESIC, 22(2), 183-202.

  • Shamout, M. D. (2016). The impact of promotional tools on consumer buying behavior in retail market. International Journal of Business and Social Science, 7(1), 75-85.

  • Sin, L. Y., Alan, C. B., & Yim, F. H. (2005). CRM: Conceptualization and scale development. European Journal of Marketing, 39(11/12), 1264-1290.

  • Singh, H. (2006). The importance of customer satisfaction in relation to customer loyalty and retention. Academy of Marketing Science, 60(193-225), 1-7.

  • Singh, R., & Khan, I. A. (2012). An approach to increase customer retention and loyalty in B2C world. International Journal of Scientific and Research Publications, 2(6), 1-5.

  • Singh, V., & Jain, A. (2015). Consumer trust in retail: Development of a multiple item scale. Journal of Economics, Business and Management, 3(10), 971-976.

  • Sivanesan, R., & Green, G. J. (2019). Impact of organized retail on unorganized retail sector. Asian Journal of Managerial Science, 8(1), 28-34.

  • Terpstra, M., & Verbeeten, F. H. (2014). Customer satisfaction: Cost driver or value driver? Empirical evidence from the financial services industry. European Management Journal, 32(3), 499-508.

  • Towers, N., & Burnes, B. (2008). A composite framework of supply chain management and enterprise planning for small and medium-sized manufacturing enterprises. Supply Chain Management: An International Journal, 13(5), 349-355.

  • Tseng, S. M. (2016). Knowledge management capability, customer relationship management, and service quality. Journal of Enterprise Information Management, 29(2), 202-221.

  • Vorhies, D. W., & Morgan, N. A. (2005). Benchmarking marketing capabilities for sustainable competitive advantage. Journal of Marketing, 69(1), 80-94.

  • Wang, Y., & Feng, H. (2012). Customer relationship management capabilities. Management Decision, 50(1), 115-129.

  • Williams, P., & Naumann, E. (2011). Customer satisfaction and business performance: A firm-level analysis. Journal of Services Marketing, 25(1), 20-32.

  • Wu, P. C., Yeh, G. Y. Y., & Hsiao, C. R. (2011). The effect of store image and service quality on brand image and purchase intention for private label brands. Australasian Marketing Journal (AMJ), 19(1), 30-39.

  • Xie, X., Jia, Y., Meng, X., & Li, C. (2017). Corporate social responsibility, customer satisfaction, and financial performance: The moderating effect of the institutional environment in two transition economies. Journal of Cleaner Production, 150, 26-39.

  • Yao, Q., Gong, S., & Wei, H. (2016). Marketing capabilities drive competitive advantages: Evidence from China’s agribusinesses. Agricultural Research, 5(3), 305-315.

  • Yu, W., Ramanathan, R., & Nath, P. (2014). The impacts of marketing and operations capabilities on financial performance in the UK retail sector: A resource-based perspective. Industrial Marketing Management, 43(1), 25-31.

  • Zulqarnain, H., Zafar, A. U., & Shahzad, M. (2015). Factors that affect the choice of consumers in selecting retail store, for grocery shopping. International Journal of Multidisciplinary and Current Research, 3(1), 1167-1172.


Abstract Views: 203

PDF Views: 0




  • Exploring Customer-centric Marketing Capabilities, Trust, Satisfaction, and Retention in Retail Business

Abstract Views: 203  |  PDF Views: 0

Authors

Bodh Raj Sharma
Assistant Professor, Department of Commerce, University of Jammu, J&K, India
Aditi Sharma
Ph.D Research Scholar, Department of Commerce, University of Jammu, India

Abstract


The Indian retail business has been facing escalating competition, speedy technology adoption, and diverse customer profiles. Effective new product development, pricing, channel management, and marketing communications make up the marketing mix activities that define strong specialised marketing capabilities. The right choice of marketing capabilities can help retailers satisfy, retain, and edify long-term relationships with unshaken trust among their customers. Retail firms can achieve its objectives of a long-term relationship with the customers by successful implementation of various marketing capabilities. So, this research study explores various marketing capabilities, customer satisfaction, trust, and retention in the retail sector. The study is based on the responses obtained from customers and the analysis is performed through EFA. The results indicate eight types of marketing capabilities in the retail business. Indeed, there is a moderate level of satisfaction, trust, and retention in the retail business. The study provides implications for researchers, policymakers, and retailers.

Keywords


Marketing Capabilities, Trust, Customer Satisfaction, Retention, Retail Business

References