Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

An examination of relative satisfaction and share of wallet

An examination of relative satisfaction and share of wallet Purpose– Absolute satisfaction ratings are widely used, but demonstrate a poor link to share of wallet (SOW), in part because this relationship is mediated and/or moderated by customer characteristics (including total spend in the category) and heterogeneity of scale usage. Relative satisfaction metrics, such as the Wallet Allocation Rule, have been shown to produce a much stronger link to SOW than absolute monadic ratings. The purpose of this paper is to compare absolute and relative satisfaction models after controlling for these mediating and moderating factors and re-examine the impact of these factors when using relative, rather than absolute metrics. Design/methodology/approach– In total, 3,793 satisfaction ratings by 1,172 unique grocery customers across five countries (USA, Brazil, Chile, France and Germany) are used to evaluate the mediating and moderating impacts of scale usage and customer characteristics on the relationship between satisfaction and SOW. Findings– Relative metrics continue to significantly outperform absolute metrics after controlling for these factors. With the exception of the moderating influence of income, effects of customer characteristics and country differences are insignificant when linking relative satisfaction to SOW. Practical implications– Managers need to re-evaluate their satisfaction measurement strategy in order to establish a strong link to actual behavior. While calculating relative satisfaction requires managers to collect data on competitors as well as the focal brand, this need for additional information is mitigated by a trade-off in terms of mediating and moderating information that is essential to properly model absolute metrics, but is not needed when using relative measures. Originality/value– Provides a significant contribution to both retail literature and scientific literature in general by examining the robustness of a relative metrics approach within the grocery retail sector across a disparate collection of countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Service Theory and Practice Emerald Publishing

An examination of relative satisfaction and share of wallet

Journal of Service Theory and Practice , Volume 26 (3): 18 – May 9, 2016

Loading next page...
 
/lp/emerald-publishing/an-examination-of-relative-satisfaction-and-share-of-wallet-4na7bDnwbh
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2055-6225
DOI
10.1108/JSTP-08-2014-0182
Publisher site
See Article on Publisher Site

Abstract

Purpose– Absolute satisfaction ratings are widely used, but demonstrate a poor link to share of wallet (SOW), in part because this relationship is mediated and/or moderated by customer characteristics (including total spend in the category) and heterogeneity of scale usage. Relative satisfaction metrics, such as the Wallet Allocation Rule, have been shown to produce a much stronger link to SOW than absolute monadic ratings. The purpose of this paper is to compare absolute and relative satisfaction models after controlling for these mediating and moderating factors and re-examine the impact of these factors when using relative, rather than absolute metrics. Design/methodology/approach– In total, 3,793 satisfaction ratings by 1,172 unique grocery customers across five countries (USA, Brazil, Chile, France and Germany) are used to evaluate the mediating and moderating impacts of scale usage and customer characteristics on the relationship between satisfaction and SOW. Findings– Relative metrics continue to significantly outperform absolute metrics after controlling for these factors. With the exception of the moderating influence of income, effects of customer characteristics and country differences are insignificant when linking relative satisfaction to SOW. Practical implications– Managers need to re-evaluate their satisfaction measurement strategy in order to establish a strong link to actual behavior. While calculating relative satisfaction requires managers to collect data on competitors as well as the focal brand, this need for additional information is mitigated by a trade-off in terms of mediating and moderating information that is essential to properly model absolute metrics, but is not needed when using relative measures. Originality/value– Provides a significant contribution to both retail literature and scientific literature in general by examining the robustness of a relative metrics approach within the grocery retail sector across a disparate collection of countries.

Journal

Journal of Service Theory and PracticeEmerald Publishing

Published: May 9, 2016

There are no references for this article.