The Korean Journal of Franchise Management (한국프랜차이즈경영연구)

Korea Society of Franchise Management (한국프랜차이즈경영학회)
권호 표지
DOI QR코드

DOI QR Code

Impacts of Perceived Innovativeness of Convenience Store on Consumer Brand Engagement and Store Loyalty

편의점의 혁신성이 인지적 인게지먼트와 정서적 인게이지먼트, 그리고 점포충성도에 미치는 영향

  • Received : 2022.03.02
  • Accepted : 2022.03.10
  • Published : 2022.03.10
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose: With the rapid changes in the technical development and the trend of consumption trend, the convenience store industry is facing an unprecedented competitive situation in the consumption environment where the boundary between online and offline is broken due to the stagnation of offline distribution channels and the spread of online shopping. The biggest innovation strategy of the major convenience store brands in recent years are introducing the O2O (Online to Offline) platform and presenting new products and services beyond the boundaries of online and offline to transform themselves into Omni Channel stores. The study is designed to analyze the effect of innovativeness of convenience store as a stimulus in O2O platform which customers perceive on store loyalty, the final response to external stimuli, through customer engagement with convenience store brands. Specifically, the innovativeness of convenience stores was divided into types of core activities in corporate marketing and focused on innovations in services, products(proposals), promotions and experiences. Research design, data, and methodology: Various hypotheses have been developed to achieve this research purpose. The data were collected from 1,128 questionnaires the age between 15 and 60 who had experience using retail store apps and delivery apps and were analyzed using SPSS 22.0 and SmartPLS 3.3.7 program. Measurement model analysis was carried out to assess convergent and discriminant validity. Also, common method bias was tested using the values of VIF (variance inflation factor). The hypotheses were tested using structural equation modeling with SmartPLS 3.3.7 program. Results: First, service innovation has a positive effect on cognitive engagement. Second, product, promotion and experience innovation have a positive effect on cognitive and affective engagement. Third, cognitive influences affective engagement. Finally, both cognitive and affective engagement affect store loyalty, but affective engagement has a stronger effect on store loyalty than cognitive engagement. Conclusions: All four types of innovation and cognitive engagement have a positive effect on emotional engagement, which has a stronger effect on store loyalty than cognitive engagement. Thus, while innovation can build loyalty through emotional engagement, innovation strategies must be designed and pursued with caution in terms of impact through cognitive engagement may not achieve the planned goals.

Keywords

References

  1. Abril, C., & Martos-Partal, M. (2013). Is product innovation as effective for private labels as it is for national brands? Innovation, 15(3), 337-349. https://doi.org/10.5172/impp.2013.15.3.337
  2. Back, K.-J. (2005). The effects of image congruence on customers' brand loyalty in the upper middle-class hotel industry. Journal of Hospitality & Tourism Research, 29(4), 448-467. https://doi.org/10.1177/1096348005276497
  3. Berlyne, D. E. (1960). Conflict, arousal, and curiosity. New York: MacGraw-Hill.
  4. Brodie, R. J., Hollebeek, L. D., Juric, B., & Ilic, A. (2011). Customer engagement: Conceptual domain, fundamental propositions, and implications for research. Journal of Service Research, 14(3), 252-271. https://doi.org/10.1177/1094670511411703
  5. Brodie, R. J., Ilic, A., Juric, B., & Hollebeek, L. (2013). Consumer engagement in a virtual brand community: An exploratory analysis. Journal of Business Research, 66(1), 105-114. https://doi.org/10.1016/j.jbusres.2011.07.029
  6. Chen, C.-F., & Chen, F.-S. (2010). Experience quality, perceived value, satisfaction and behavioral intentions for heritage tourists. Tourism Management, 31(1), 29-35. https://doi.org/10.1016/j.tourman.2009.02.008
  7. Chin, W. W. (1998). The partial least squares approach to structural equation modeling. Modern methods for business research, 295(2), 295-336.
  8. Cossio-Silva, F.-J., Revilla-Camacho, M.-A ., Vega-Vazquez, M., & Palacios-Florencio, B. (2016). Value co-creation and customer loyalty. Journal of Business Research, 69(5), 1621-1625. https://doi.org/10.1016/j.jbusres.2015.10.028
  9. Deloitte (2020). The Evolution of Convenience Stores as a "New Life Platform", 76. Retrieved from https://www2.deloitte.com/kr/en/pages/consumer/articles/TheEvolution-of-Convenience-Stores.html
  10. Dwivedi, A. (2015). A higher-order model of consumer brand engagement and its impact on loyalty intentions. Journal of Retailing and Consumer Services, 24, 100-109. https://doi.org/10.1016/j.jretconser.2015.02.007
  11. Evanschitzky, H., & Wunderlich, M. (2006). An examination of moderator effects in the four-stage loyalty model. Journal of Service Research, 8(4), 330-345. https://doi.org/10.1177/1094670506286325
  12. Falk, R. F., & Miller, N. B. (1992). A primer for soft modeling: University of Akron Press.
  13. Grabowski, M., Martin, G., Ng, M., Rogers, T., Pao, K., Vandervynckt, C., & Breslav, J. (2020).
  14. Grewal, D., Ailawadi, K. L., Gauri, D., Hall, K., Kopalle, P., & Robertson, J. R. (2011). Innovations in retail pricing and promotions. Journal of Retailing, 87, S43-S52.
  15. Grewal, D., Levy, M., & Lehmann, D. R. (2004). Retail branding and customer loyalty: an overview. Journal of Retailing, 4(80), ix-xii.
  16. Gronroos, C. (1997). Value-driven relational marketing: From products to resources and competencies. Journal of Marketing Management, 13(5), 407-419. https://doi.org/10.1080/0267257X.1997.9964482
  17. Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLSSEM): Sage publications.
  18. Harrigan, P., Evers, U., Miles, M. P., & Daly, T. (2018). Customer engagement and the relationship between involvement, engagement, self-brand connection and brand usage intent. Journal of Business Research, 88, 388-396. https://doi.org/10.1016/j.jbusres.2017.11.046
  19. Hepola, J., Karjaluoto, H., & Hintikka, A. (2017). The effect of sensory brand experience and involvement on brand equity directly and indirectly through consumer brand engagement. Journal of Product & Brand Management, 26(3), 282-293. doi:10.1108/jpbm10-2016-1348
  20. Hollebeek, L. (2011a). Exploring customer brand engagement: Definition and themes. Journal of Strategic Marketing, 19(7), 555-573. https://doi.org/10.1080/0965254X.2011.599493
  21. Hollebeek, L. D. (2011b). Demystifying customer brand engagement: Exploring the loyalty nexus. Journal of Marketing Management, 27(7-8), 785-807. https://doi.org/10.1080/0267257x.2010.500132
  22. Hollebeek, L. D., Glynn, M. S., & Brodie, R. J. (2014). Consumer brand engagement in social media: Conceptualization, scale development and validation. Journal of Interactive Marketing, 28(2), 149-165. doi:10.1016/j.intmar.2013.12.002
  23. Hollebeek, L. D., & Macky, K. (2019). Digital content marketing's role in fostering consumer engagement, trust, and value: framework, fundamental propositions, and implications. Journal of Interactive Marketing, 45, 27-41. doi:10.1016/j.intmar.2018.07.003
  24. Hurley, R. F., & Hult, G. T. M. (1998). Innovation, market orientation, and organizational learning: An integration and empirical examination. Journal of Marketing, 62(3), 42-54. https://doi.org/10.2307/1251742
  25. Hwang, Ji-young (2019). The future of retail business. Seoul: Influential.
  26. Im, S., & Workman Jr, J. P. (2004). Market orientation, creativity, and new product performance in high-technology firms. Journal of Marketing, 68(2), 114-132. https://doi.org/10.1509/jmkg.68.2.114.27788
  27. Jaakkola, E., & Alexander, M. (2014). The role of customer engagement behavior in value co-creation. Journal of Service Research, 17(3), 247-261. https://doi.org/10.1177/1094670514529187
  28. Kang, S.-C., Han, K.-S., & Jeon, W.-J. (2018). An analysis on effect of use intention of mean automated store customer - Focused on franchisee. Journal of Digital Contents Society, 19(7), 1313-1322. https://doi.org/10.9728/dcs.2018.19.7.1313
  29. Khalifa, A. S. (2004). Customer value: A review of recent literature and an integrative configuration. Management Decision, 42(5), 645-666. https://doi.org/10.1108/00251740410538497
  30. Kim, E.-J. (2021). The effect of brand evidence on positive emotion, negative emotion, and attitude in restaurant industry. Korean Journal of Franchise Management, 12(1), 45-55. https://doi.org/10.21871/KJFM.2021.3.12.1.45
  31. Kim, E.-J., Kim, S.-H., & Lee, Y.-K. (2019). The effects of brand hearsay on brand trust and brand attitudes. Journal of Hospitality Marketing & Management, 28(7), 765-784. https://doi.org/10.1080/19368623.2019.1567431
  32. Kim, N-D., Jun, M-Y., Choi, J-H., Lee, H-E., Lee, J-Y, (2019). Trend Korea 2020. Seoul: Miraebook.
  33. Kim, Y.-K., Lee, M.-Y., & Park, S.-H. (2014). Shopping value orientation: Conceptualization and measurement. Journal of Business Research, 67(1), 2884-2890. https://doi.org/10.1016/j.jbusres.2012.06.006
  34. Koetzier, W., & Alon, A. (2013). Why "low risk" innovation is costly. Accenture, May, 12.
  35. Kunz, W., Schmitt, B., & Meyer, A. (2011). How does perceived firm innovativeness affect the consumer? Journal of Business Research, 64(8), 816-822. https://doi.org/10.1016/j.jbusres.2010.10.005
  36. Leckie, C., Nyadzayo, M. W., & Johnson, L. W. (2016). Antecedents of consumer brand engagement and brand loyalty. Journal of Marketing Management, 32(5-6), 558-578. https://doi.org/10.1080/0267257X.2015.1131735
  37. Leckie, C., Nyadzayo, M. W., & Johnson, L. W. (2018). Promoting brand engagement behaviors and loyalty through perceived service value and innovativeness. Journal of Services Marketing, 32(1), 70-82. https://doi.org/10.1108/JSM-01-2017-0035
  38. Lee, J.-U., Lee, Y.-K., & Ahn, S.-M. (2017). Effecfs of experiential value and emotional responses on brand satisfaction and brand loyalty in the family restaurant context. FoodService Industry Journal, 13(1), 123-140. https://doi.org/10.22509/kfsa.2017.13.1.010
  39. Leventhal, R. C., Hollebeek, L. D., & Chen, T. (2014). Exploring positively-versus negatively-valenced brand engagement: A conceptual model. Journal of Product & Brand Management, 23(1), 62-74. https://doi.org/10.1108/JPBM-06-2013-0332
  40. Lin, C.-Y. (2016). Perceived convenience retailer innovativeness: How does it affect consumers? Management Decision, 54(4), 946-964. https://doi.org/10.1108/MD-08-2015-0363
  41. Lin, C.-Y., Marshall, D., & Dawson, J. (2013). How does perceived convenience retailer innovativeness create value for the customer? International Journal of Business & Economics, 12(2), 171-179.
  42. Meng, F., Park, K. S., & Oh, S. W. (2017). The moderating effects of technology readiness, user traits and situational factors on usage attitude and intention to technology-based self-service. Journal of Korea Service Management Society, 8(3), 69-104.
  43. Oliver, R. (1997). Satisfaction: A behavioral perspective on the customer. New York: Irwin McGraw Hill.
  44. Omar, N. A., Kassim, A. S., Shah Alam, S., & Zainol, Z. (2018). Perceived retailer innovativeness and brand equity: Mediation of consumer engagement. The Service Industries Journal, 41(5-6), 355-381.
  45. Ottenbacher, M. C., & Harrington, R. J. (2009). The product innovation process of quick-service restaurant chains. International Journal of Contemporary Hospitality Management, 21(5), 523-541. https://doi.org/10.1108/09596110910967782
  46. Park, J. & Kim, S. I. (2020). Analysis of consumer purchase factors through online marketing of convenience store PB products. Journal of Digital Convergence, 18(5) ,399-404. https://doi.org/10.14400/JDC.2020.18.5.399
  47. Prahalad, C. K., & Ramaswamy, V. (2003). The new frontier of experience innovation. MIT Sloan Management Review, 44(4), 12-18.
  48. Rittichainuwat, B., & Mair, J. (2012). Visitor attendance motivations at consumer travel exhibitions. Tourism Management, 33(5), 1236-1244. https://doi.org/10.1016/j.tourman.2011.11.002
  49. Rogers, E. M. (2010). Diffusion of innovations: UK: Simon and Schuster.
  50. Shams, R., Alpert, F., & Brown, M. (2015). Consumer perceived brand innovativeness. European Journal of Marketing, 49, 1589-1615. https://doi.org/10.1108/EJM-05-2013-0240
  51. So, K. K. F., King, C., Sparks, B. A., & Wang, Y. (2016). Enhancing customer relationships with retail service brands: The role of customer engagement. Journal of Service Management, 27(2), 170-193. https://doi.org/10.1108/JOSM-05-2015-0176
  52. Srinivasan, S. S., Anderson, R., & Ponnavolu, K. (2002). Customer loyalty in e-commerce: An exploration of its antecedents and consequences. Journal of Retailing, 78(1), 41-50. https://doi.org/10.1016/S0022-4359(01)00065-3
  53. Suh, M. & Hur, S.-R. (2019). A study on the influence of customer experience on the intention to stay in store -The moderating role of self-construal levels-. Management & Information Systems Review, 38(3), 211-225. https://doi.org/10.29214/damis.2019.38.3.013
  54. Sundstrom, M., & Reynolds, J. (2014). Final report from the expert group on retail sector innovation. Luxembourg: European Commission.
  55. Tenenhaus, M., Vinzi, V. E., Chatelin, Y.-M., & Lauro, C. (2005). PLS path modeling. Computational Statistics & Data Analysis, 48(1), 159-205. https://doi.org/10.1016/j.csda.2004.03.005
  56. Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: continuing the evolution. Journal of the Academy of Marketing Science, 36(1), 1-10. https://doi.org/10.1007/s11747-007-0069-6
  57. Venkatesh, V., & Morris, M. G. (2000). Why don't men ever stop to ask for directions? Gender, social influence, and their role in technology acceptance and usage behavior. MIS Quarterly, 24(1), 115-139. https://doi.org/10.2307/3250981
  58. Victorino, L., Verma, R., Plaschka, G., & Dev, C. (2005). Service innovation and customer choices in the hospitality industry. Managing Service Quality: An International Journal, 15(6), 555-576. https://doi.org/10.1108/09604520510634023
  59. Wu, S.-H., Huang, S. C.-T., Tsai, C.-Y. D., & Chen, Y.-C. (2009). Service innovation in franchising convenience store: An exploratory study. International Journal of Electronic Business Management, 7(2), 137-148.