A 7PS MODEL OF RETAIL PATRONAGE: A META … 7ps... · pertaining to service quality in retail was...

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International Journal of Retail Management and Research (IJRMR) ISSN(P): 2277-4750; ISSN(E): 2319-4502 Vol. 4, Issue 1, Jun 2014, 1-22 © TJPRC Pvt. Ltd.

A 7PS MODEL OF RETAIL PATRONAGE: A META-SYNTHESIS O F CONTEMPORARY

RESEARCH

R. K. SRIVASTAVA 1 & ATUL NATU 2 1Professor and HOD, Government of Maharashtra's Sydenham Institute of Management Studies,

University of Mumbai, Mumbai, Maharashtra, India 2AGM, Godrej Retail, PhD Scholar, University of Mumbai, Mumbai, India

ABSTRACT

Purpose: This paper reviews recent retail patronage literature and integrates the findings from previous studies

into a comprehensive patronage model. As Indian retail modernizes, there is an emerging need to understand the consumer

patronage of retail stores. Research on Indian retail is limited because the retail sector is relatively new compared to the

highly evolved retail sectors of advanced countries that have been studied extensively. Building on insights from studies

across the world, this paper develops a theoretical framework for studying customer patronage behaviour to help Indian

retailers study consumer retail patronage and its antecedents.

Design/Methodology: Using ‘store patronage’ and ‘retail patronage’ as keywords, the authors searched retail and

marketing peer-reviewed journals published since 2000. This screening yielded a set of 63 papers for further study.

They were analysed on 4 main areas: how patronage was conceptualized, types of retail outlets studied, customer based

independent variables, and store based independent variables affecting patronage. The proposed comprehensive patronage

model is based upon this classification scheme,

Findings: Synthesizing the findings of these 53 papers, we propose a model comprised of four theoretical

constructs: the conceptual definition of retail patronage; customer characteristics affecting patronage; store factors

affecting retail patronage; and finally, the patronage model.

Research Limitations: The study has two main limitations. First, only retail patronage studies published in recent

years were included. Though there are a large number of studies prior to 2000, they were not considered because the goal

was to keep the study contemporary. Another limitation is that the paper does not apply quantitative techniques.

Originality/Value: In India, store patronage from the consumer perspective is an emerging area of research

interest. Studying patronage from the business point of view is also important. The facets of patronage outlined in this

paper highlight the stages through which customer engagement with retail outlets develops. In most retail situations, there

are multiple causes that influence customers’ overall impressions of retail stores. The proposed model is designed to help

managers understand the factors affecting customer perceptions of stores and help them trace the causes and effects of

various factors (as well as their interactions) as they affect store patronage.

Type of Paper: Secondary research

KEYWORDS : Retail Store, Patronage, Retail Choice, Consumer Behaviour

2 R. K. Srivastava & Atul Natu

Impact Factor (JCC): 1.6953 Index Copernicus Value (ICV): 3.0

INTRODUCTION

India is often called a nation of shopkeepers. India has the highest retail density in the world

(Srivastava, 2008). However, India’s retail sector lacks organisation. Most retail outlets are neighbourhood, family-owned

convenience stores. The organised retail industry began to develop in the last 6 – 8 years. Establishing organised retail in

India has met many roadblocks. These include limited availability, high cost of real estate, inadequate infrastructure, lack

of qualified workers, and lack of capital due to limitations on FDI. Overcoming these hurdles requires further study of

retail business practices, as well as a deeper understanding of consumer patronage behaviour.

Organised retail is an emerging sector in India for four reasons. Of the total retail market of approx

US$ 470 billion (Teknopak 2011), the organised sector represents approximately 6% or US$ 26 Billion and is expected to

grow at 26% CAGR. Second, the retail sector employs a large workforce. By 2020, organised retail is expected to generate

3 – 4 billion direct and 4 – 6 billion indirect jobs. Third, organised retail provides increased income opportunities for

producers and better shopping experiences for consumers by providing a larger variety of quality goods. Finally, organised

retail is more likely to be tax compliant than the informal retail sector, yielding higher tax revenue for the country.

NEED FOR THE STUDY

Success at the retail level affects the bottom line for retailers as well as producers whose goods and services they

sell. Beyond the issues finding affordable real estate and hiring qualified workers, retailers are challenged to understand the

changing needs of their customers.

Store patronage in developed countries has been researched for decades. Such research is new in India.

The objective of this study is to draw upon the wisdom of studies from the extant literature to develop a framework that

combines the important findings from them. Patronage studies conducted in developed countries assess questions

pertaining to what influences customers to patronize retail outlets and what motivates them to buy more from them. These

are precisely the types of questions Indian retailers need to address.

A synthesis of the findings of earlier research can provide a comprehensive understanding of the various

antecedents which affect consumer patronage. For example, Strike and Posner (1983) define synthesis as an activity in

which separate parts are brought together to form a 'whole'; this construction of the whole is essentially characterised by

some degree of innovation, so that the result is greater than the sum of its parts.

METHODOLOGY

Hundreds of customer patronage studies have been conducted in developed countries. The first task was to

identify criteria for selecting studies to include in the meta-synthesis. To keep the study contemporary, the first filter

selected papers published since 2000. The next filter identified key words for electronically searching the literature.

The two chosen were ‘Store patronage’, ‘Retail patronage’. Numerous papers were extracted based upon these filters.

These were screened for general content and context. Papers which did not have a clear set of dependent variable of

patronage and / or clear set of independent variables affecting patronage were dropped. For example a paper which was

pertaining to service quality in retail was dropped as it did not have patronage as a clear dependent variable. A final sample

of 53 papers, listed in the references, remained for detailed study.

A 7ps Model of Retail Patronage: A Meta-Synthesis of Contemporary Research 3


The next phase was the synthesis of the selected papers. The study proceeded along four dimensions.

These included the operational definition of patronage in each study, the retail situations and models studied, the

antecedents of patronage considered, and the findings.

This paper includes a synthesis of 53 recent consumer patronage studies in order to build a theoretical model.

Such a model depends upon a clear operational definition of consumer patronage and its drivers and antecedents.

The papers were studied on following three dimensions of patronage

• Operational definition of patronage – Each study defines patronage differently depending upon study objectives.

Some papers defined patronage in terms of store visits. Others defined patronage as repeat purchase

• Store based variables affecting retail patronage – Different studies considered a variety of store characteristics.

• Customer based variables affecting retail patronage – Different studies included different customer characteristics

The following study proceeds in four sections corresponding to the above-listed dimensions.

Operational Definitions of Patronage

The American Marketing Associations’ defines patronage motive as: “the motives that drive an individual toward

selection of a particular outlet, retailer, or supplier of services”. Even though it has been studied hundreds of times,

store patronage lacks a generally agreed-upon operational definition. Haynes et al. (1994) defined store patronage as the

consumer’s selection of a shopping outlet. Patronage is also defined as “all the possible inner features of dynamism around

the shopping behaviour phenomenon in terms of store choice” (Laaksonen, 1993).

Others define patronage in explanatory terms. Pan and Zinkhan (2006) consider retail patronage along two

dimensions: store choice and (2) frequency of visit. Spiggle and Sewall (1987) outlined three different levels of retail

selection behaviour: retail preference, retail choice and retail patronage. They define retail preference in terms of positive

statements customers make about stores and whether a customer purchase patterns are repeated over a series of purchase

events. According to the authors:

“Patronage refers to a consumer’s purchase pattern over a series of purchase tasks. Retail patronage patterns

may result from loyalty based on their commitment and strong preference or from low consumer involvement whereby

habit or variety seeking dictate patronage patterns. Retail patronage is not a binary outcome; a consumer may spend 75%

of expenditures at store X and the other 25% elsewhere.” Spiggle and Sewall (1987, p. 98):

Kaul’s (2006) study on customer patronage of Indian retailers takes a broader view of patronage. He defines and

measures store patronage along five non-mutually-exclusive behavioural dimensions. These dimensions consider whether a

consumer 1) shops exclusively at store X. 2) spends a larger percentage of total expenditures at store X 3) makes a larger

percentage of total shopping trips to store X than similar stores, 4) buys a larger quantity of items at store X, 5) makes

more consecutive trips to store X than competing stores.

Table 1 lists the various ways in which store patronage is identified in the 53 papers included in this

meta-synthesis.



Table 1

No Title/Author/Date Operational Def'n of

Patronage Customer

Characteristics Store Characteristics

1 Arslan, T. V., Sezer, F.

S. and Isigicok, E. (2010).

Attractiveness Age

Variety, Leisure activities, Security, Family permission, socialising, food

courts, accessibility, size, air quality,

interior environment, thermal comfort

2 Baker, J., Parasuraman,

A., Grewal, D., and Voss, G. B. (2002).

Willing to buy, willing to recommend, shopping likely

hood

Store perceptions

(price, quality, service, cost

Quality, value, employees dressing, friendliness, attitude,

colour scheme, attractiveness of

facilities, merchandise management, music, pleasantness, comfort

3 Baltas, P. C.,

Argouslidis, and Skarmeas, D. (2010).

Multiple store buying

Basic demographics,

satisfaction with main store

and private label

Patronage set size

4 Baltas, G., and

Papastathopoulou, P. (2003).

Store choice Basic

demographics

Brand, price, variety, quality, packaging,

origin, location, service

5 Becerra, E. P., and Dr. Korgaonkar, P. (2009).

Intention to purchase Online

Merchandising, warranty, assortment, brands, returns policy,

safety, privacy, checkout, ease of

shopping, cost, mode of payment, distance, image, assistance, fun place, comfort, ease of

navigation, social place

6

Bridgess, E. D., and Burgess, B. (2010).

“Personal preferences of tween shoppers”

Frequency of patronage

Fashion interest,

satisfaction with fit, reference groups

Apparel stores in different settings

7

Brooks, C.M., Kaufman, P. J., and Lichtenstein, D. R.

(2008).

Distance traveled Distance from

cluster

Distance from customers, distance from other stores

8 Cirman, A., and Pahor,

M. (2009). Frequency of visits

Shopping attitudes - love of shopping,

ethnocentrism

Variety, quality, entertainment, social

events, catering facilities, child

friendliness, upscale neighbourhood, parking, ease of

access, staff



friendliness, atmosphere

9 Clulow, V. and

Reimers, V. (2009). Shopping trip

Cost of convenience (3 dimensions of convenience),

Age, Education, Location, Preference

Services & facilities, parking, trading hours, retail concentration,

pedestrian areas, proximity, traffic

lanes, type of controls, transport, speed limits,

visibility, comparability, center

size

10 Darian, J. C., Tucci, L. A., and Wiman, A. R.

(2001) Shopping at the store Not specific

Respect, knowledge, responsiveness,

friendliness, availability

11 Ganesh, J., Reynolds, K. E., and Luckett, M.

G. (2007

Enjoyment, intention to revisit and WOM

Shopping motivations - 17 item shopping motivation list

20 item store attribute list

12 Gehrt, K., and Yan, R.-

N. (2004). Appropriateness for

purchase

Internet usage, Shopping situation

Transaction service, merchandise, price, retailer personality

13 Ghosh, P., Tripathi, V., & Kumar, A. (2010).

Visit, purchase, time spent, switching, no of items

purchased

Tier II and Tier III city

customers

Convenience and merchandise, Store

atmospherics, Services

14 Gothan, A. and

Erasmus, A. C. (2008). Satisfaction with customer

service Basic

demographics

Multi attributes on product, price,

physical environment, processes, personnel

15 Guenzi, M. D., and Castaldo, S. (2009).

Recommending the store to a friend, remaining loyal to the

store, spend more in the store

Trust

Competence, Product knowledge, Showing alternatives, Product

explanation, Integrity, Explanation of good /

bad, Honesty, Likeability,

Friendliness, Caring, Problem solving, Help

in choosing right products

16 Moore, M., and

Carpenter, J. (2006). Store choice, frequency of

patronage

Price, Sale, Prestige, Quality

consciousness

Formats - department store, off price, mass merchant, specialty store, upscale dept

store

17 Haiyan, M. (2011).

Shopping intentions, intended spending

behaviour, actual behaviour - time spent, unplanned

spending, Amount spent

Store image perceptions

Merchandise fashion ability, Assortment,

warranty, negotiation, labeling, price

comparability, leasing, promotion,

knowledge, courtesy, merchandise display,

atmosphere, size, window display, congestion, air

conditioning, ease of



navigation

18 Hansen, K., and Singh,

V. (2008).

Continued patronage of incumbent store after entry

of new store

Distance from store,

demographics Private label products

19

Hassan, Y., Muhammad, N. M. N.

and Bakar, H. A. (2010).

Patronage intention

Basic demographics,

lifestyle, shopping

orientation

Price, quality, atmosphere

20 Hirschman, E. and Krish, S. (1986).

retail store selection Random selection

Location, pricing, credit policy, quality,

variety, display, salesclerk service

21 Hundal, B. S. (2008). Choice of point of purchase Age,

occupation, education

Price, installment, prior relationship,

location, referral, after service, variety

22 Jason, S., Merrilees, B., and Dawn, B. (2003).

shopping center patronage

Gender, Age, Marital status occasion of shopping

Merchandise, accessibility, personal

service, amenities, atmospherics, security,

entertainment, food

23 Johnson, J., &

Raveendran, P. T. (2009).

Purchase

Anticipated utility, role enactment, negotiation,

choice optimisation, affiliation, power & authority,

stimulation

Mall store quality, merchandise quality,

convenience, enhancements, price

24 Johnstone, M. (2012). Repeat visit Female

customer

Social, temporal, physical, service

dimensions of retail space

25 Jones, C., & Soyoung,

K. (2010). Shopping intention

Female customers, clothing

involvement, trust in retail brand, offline

patronage

Clothing involvement, Usability and

information quality, visual appeal and

image, interactivity and innovativeness

26 Kuruvilla, S., &

Ranjan, K. K. (2008). Time spent, frequency of

visit, money spent Gender Malls

27 Kim, J. O. and

Byoungho, J. (2001). Willingness to revisit

Shopping motives, Customer values,

Shopping excitement, Shopping

satisfaction

Price variety, brands, timings, credit cards, parking, temperature, family friendliness,

congestion, cleanliness, spaciousness

28 Koo, D.-M., Kim, J.-J., and Lee, S.-H. (2008).

shopping motive Self

actualisation, social affiliation

Assortment, uniqueness, After service, delivery, returns, structured

display, convenience,



layout, visual design, information

29 Korgaonkar, P. and Karson, E. J. (2007).

Intention to purchase online

Gender, education, ethnicity, income,

Prestigious image / Value image

30 Lee, H.-J., Fairhurst, A.E. and Lee, M.Y.

(2009). Patronage intention

Online consumer panel

Self service kiosk, service quality,

employee knowledge, behaviour, availability,

attention, problem solving. Reliability, timeliness, error free

delivery

31 Liao, Y.-Y., Dr. Liaw

G.-F. and Jen, F. (2011).

Patronage intention

Buying emotion,

consumption behaviour, customer

satisfaction

Employee appearance, behaviour, number,

professionalism, colour, decoration, space arrangement,

product arrangement, music, noise

32 Liu, Y. (2007). Frequency, transaction size,

exclusive loyalty Initial usage

levels Loyalty programs

33 Majumdar, A. (2005).

Future likelihood to - continue shopping, purchasing in other

categories of merchandise, and

willingness to recommend the store.

Mall intercept

Mall - accessibility, ambience and

amenities. Store - amenities,

assortment, merchandise quality, personnel service,

supporting services, sales promotion.

34 Miranda, M. J., and Konya, L. (2009).

Randomly selected customers of select stores

Frequency and timing of

unscheduled visit

Store timings

35

Ming, J. C.-M., Blankson, C., Sutikno, B., and Wang, M. C.-H.

(2009).

Likelihood of dining

trial ability, observability and inversely

negatively related to

complexity

Hybrid store format

36 Narang, R. (2011). Store selection Psychographic

scale

Availability, brands, warranty, timings,

reliability, proximity, parking, promos,

helpfulness, competence, environment,

cleanliness, display, ease of navigation,

layout, comfort

37 Newman, A. J., and

Gordon, F. R. (2003). Instore attitude

Accomplishment, Hedonism,

Accumulation,

Store layout, product display

38 Dr. Ou, W. M. and Abrat, M. (2007).

Expenditure value, Time traveled, Frequency of visit

Age, gender, income,

education

Future vision, well managed, good company, trust,



admiration, respect, strong growth

prospects, outperforms its competitors

39 Pan, Y. and Zinkhan,

G.M. (2006). Meta analysis Meta analysis Meta analysis

40 Park, C.-H. and Kim,

Y.-G. (2003). Frequency of purchase

gender, age, time of internet

usage, occupation

Quality of Service information, user

interface & information. Security perception, awareness

41 Prasad, C. S., &

Aryasri, A. R. (2009). Willingness to buy, loyalty Random

Convenience, web store environment,

shopping enjoyment, customer service, trust

42 Rigopoulou, I. D.,

Tsiotsou, R. H., and Kehagias, J. D. (2008).

Satisfaction with customer service

Not specific

Product, price, source of information, servicescape,

personnel

43 Sinha, P. K., Banerjee, A. and Uniyal, D. P.

(2002). Purchase

Age, Gender, Distance

Convenience, merchandise, service,

ambience, referral, past history

44 Song, K. F. and Park, J.

P. (2006). Willingness to purchase

Female, university students

Sensory information, product experience / real store shopping

experience, Shopping enjoyment

45 Sudhir, K., and

Talukdar, D., (2004). Total revenue, profit from

HH, share of category spend

Income, HH Size, Shopping frequency, use

of coupons

Store brand

46 Telci, E. E., (2010). Channel choice

Level consciousness of hedonistic

shopping, VFM, novelty

fashion

Multiple channel

47 Teller, C., & Elms, J. R.

(2012).

Satisfaction, retention proneness, patronage

intention Intercept

Merchandise value, product range, sales

personnel, atmosphere, tenant mix, non retail tenant mix, parking,

accessibility, orientation,

infrastructure

48 Tripathi, S. (2009). re-patronage, positive word

of mouth, and recommendations

-

Proximity, range, working hours, waiting time,

relationship with owner/manager,

discounts, behavior of manager,

recommendation by doctors

49 Wang, E. (2009). Patronage intention Gender, age,

income, education

Positive emption displayed by service

personnel



50 White, A., Breazeale, M. and Collier, J. E.

(2012).

Intention to stay & future spending, Word of mouth

Fairness perception with respect to SST push policies

SST Push policies

51 Wong, A., and Sohal,

A. (2002). Relationship quality

Gender, Income, Age,

Loyalty membership

Store trust, Personnel trust Store

commitment, Salesperson commitment

52 Yavas, U. (2003). Preference to shop Not specific

24 attributes pertaining to

assortment, facilities, atmospherics,

convenience, security, safety

53 Yun, Z. S., and Good,

L. (2007).

Willingness to try, purchase, repurchase, purchase more,

recommend to others Students

Dependability, quality, value, customised service, ease of

contact, delivery, time saving, convenience, competitive prices, search, navigation

54 Zameer, A. and

Mukherjee, M. (2011). Store choice

Gender, Age, Education, profession,

income, spends, ownership of

vehicle

Variety, quality, phone order, home delivery,

self service, time convenience,

availability, prices, credit facility, parking, promotions, courtesy,

knowledge, atmospherics, visual

merchandising

55 Zee, S. Y., and Good,

L. K. (2007). Store loyalty Students

Merchandise, Service, Atmosphere

Based on the above, the patronage definitions applied in the papers can be broadly classified in four types of

behaviours. 1) Store visits, 2) Purchase Intent and Behaviour, 3) Purchase Value 4) Word-of-Mouth Recommendations.

These are described in the following sections.

Store Visits

Store patronage begins with a store visit. Recent literature suggests 5 different possible behavioural dimensions of

store visits. These include intention to visit, store visit, frequency of visit, time spent to reach the store, and time spent

during the visit. Kim, Jin and Byoungho (2001) consider intention to revisit as a measure of the store patronage.

They compared Korean customers’ intention to revisit Korean discount stores to their intentions to revisit multi-national

discount stores. Ou and Abrat (2007) treated frequency of visits as a measure of patronage and Johnstone (2012) has

studied repeat visits as indicator of patronage. Patronage also involves a time dimension. Haiyan (2011) studied the time

consumers spent at the stores as an indication of their interest in the store and their patronage intention. In addition to the

time spent in the store, patronage intention may also be a function of the time invested to get to the store, particularly

customers travel great distances to visit a store. Frequent patronage of a distant store may be a strong indicator of patronage

intent.



Purchase Behaviour

Customer store visits mean little to retailers until purchases occur. Recent studies consider three types of

purchase-related patronage, including wllingness to buy, shopping likelihood, and actual purchase.

Baker, Parasuraman et. al. (2002) study patronage as ‘willingness to buy’ or ‘shopping likelihood’. Similarly, Song, Fiore

and Park (2006) have also studied the concept of willingness to purchase. With respect to repeat purchases, Hansen and

Singh (2008) found a strong co-relation between store brand preference with possibility of store switching.

Purchase Value

Once converted from visitor to customer, the retailer’s interest turns to purchase value. In the literature, the value

or volume of purchase assumed as patronage has been measured as transaction value, share of wallet, share of category

purchases, unplanned purchase and total profit from the household. Sudhir and Talukdar (2004) and Ou and Abrat (2007)

studied patronage as transaction value in terms of basket size (mostly in the grocery sector). The concept of overall revenue

includes dimension of share of the customers’ purchases, either as ‘share of category’ and / or ‘share of wallet’. Hayian

(2011) studied patronage in terms of unplanned purchases. Sudhir and Debabrata (2004) studied patronage as ‘total profit

from the household’.

WORD OF MOUTH (WOM) RECOMMENDATIONS

WOM may be positive or negative. Positive WOM substantially increases the productivity of the retailer. Satisfied

customers are likely to talk positively about a store, thereby increasing the likelihood of traffic. Baker, Parasuraman

et. al (2002) consider patronage as ‘willingness to recommend’ while Zee and Good (2007) measure ‘recommend to

others’. White, Breazeale and Collier (2012) have studied the effects on patronage of negative WOM’.

WOM recommendations – whether positive or negative – may be either solicited or unsolicited. The unsolicited

referral (not studied in any of the papers) is likely to have a stronger impact on others and hence would be a productivity

enhancer for a brand.

Figure 1 organises the patronage constructs explored in the literature into a four-phase process beginning with the

decision to patronize a retailer and continuing through post purchase WOM. The intermediate phases include purchase

decision and purchase value. Researchers and managers will find this simple model useful for operationalising and

measuring patronage variables along the various phases of the customer/retailer relationship.

Ghosh, Tripathi and Kumar (2010) have done a most comprehensive study covering acceptance, visit, frequency

of visit, no of items purchased, and switching behaviours in context of patronage.

Figure 1: Progression Model of Retail Patronage Concept



ANTECEDENTS OF PATRONAGE

Factors Affecting Patronage

The next step of the analysis involves identifying factors that affect retail patronage. Pan and Zinkan (2006)

classified such factors into three categories. These include product-related factors, market-related factors and customer

related factors. This meta-synthesis considers two groups of factors that affect customers’ choices to patronize particular

stores, namely customer-based factors and store-based factors. Customer-based factors include demographic,

psychographic, and other consumer variables. Store based factors include physical and non- physical store attributes.

Customer Based Factors Affecting Patronage

Most retail patronage studies include basic demographic variables. The most common include gender, age, marital

status, education level, occupation, income, disposable income, household size, number of children, ethnicity, and distance

from the shopping center. Some studies focus on retail patronage of specific demographic groups. For example, Bridges

and Burgess (2010) focused on ‘Tween’ shoppers. Hundal (2008) studied rural consumers in Punjab. Becerra and

Korgaonkar (2009) investigated information search and patronage intentions for Hispanics shopping online. Sinha,

Banerjee and Uniyal (2002) considered gender effects on store choice, Kuruvilla and Ranjan (2008) have considered

gender effects on shopping in malls. and Ghosh, Tripathi and Kumar (2010) have restricted their study to tier II and tier

III cities. They found, for example, that men opted for shops based on proximity while women chose shops based upon

merchandise. Some studies have found effects of multiple demographic characteristics also. “demographic characteristics

namely age, gender, income and education influence the relationship between reputation and shopping expenditure and

patronage frequencies” (Dr. Ou 2007).

Psychographic variables effects on store patronage are often studied. Such psychological factors like warm

relationships, fun, enjoyment, security, and convenience may be important determinants of patronage decisions. Narang

(2011) clustered apparel young buyers in four psychographic clusters. ‘Get Going Adopters’’, ‘‘Disinterested Introverts’’,

‘‘Confused Followers’’ and ‘‘Independent Life Lovers’’ on the basis of their fashion orientation. Broadly, three types of

psychographic concepts have been studied – shopping attitude, lifestyle, and values. Hassan, Muhammad and Bakar (2012)

studied the relationships of shopping orientation and lifestyle with patronage behaviour for furniture stores. Jason,

Merrilees and Dawn have classified customers of malls into six segments on the basis of their attitude towards

entertainment dimensions. Table 1 lists consumer variables studied by authors of the papers studied in this analysis.

In their paper, Liu (2007) have found that initial purchase behaviour to be determinant of patronage by loyalty

card users.

Figure 2 shows the consumer-related variables affecting patronage broadly classified in 3 groups: demographic,

psychographics, and others. The demographic variables are some of the most common and widely understood variables.

The behaviour & lifestyle variables capture the psychographic dimensions of consumer behaviour in variables such as

values and shopping attitude.

Store Factors Affecting Patronage

Store factors affecting retail patronage are typically within retailers’ control. The 53 papers analysed studied their

effects on patronage using three general approaches. The first approach limits attention to specific retail formats, such as

discount stores. Selecting a particular format filters out store attributes not common to that format. The second approach



addresses the individual effects of multiple store attributes on patronage. The third approach aggregates multiple store

attributes from earlier studies into factor clusters or latent variables and studies the clusters’ effects on patronage.

Retail Format: Some studies focus on particular retail formats such as multi-channel shopping environments

(Telci 2010), malls (Arslan, Sezer, and Isigicok, 2010), grocery stores (Miranda and Konya 2009), and shopping centres

(Clulow & Reimers 2009). Beyond retail format, these studies did not consider the effects of individual store factors on

patronage. Others, such as Bridges and Burgess (2010) studied preferences for different formats (malls, specialty stores,

shopping centres, discount stores) using format as the independent variable. However, most papers used a variety of

discrete store attributes as independent variables and studied their effects on patronage as briefly explained below.

Discrete Factors: Hundal (2008) focussed on rural customers’ brand choice, store choice, and brand loyalty for

purchasing durables. The study identified the top 7 reasons for outlet choice with the top two being ‘received the best deal’

and ‘variety of brands.’ The authors did factor analysis to arrive at the list of antecedents giving three aggregated

factors – ‘location convenience and dealer relationship’, ‘after ‘sales service’, ‘variety’, and ‘instalment facility’.

Rigopoulou and Tsiotsou (2008) used a list of 20 items from past research to assess the customer satisfaction levels

customers and shopping-orientation based segmentation. The 20 items were factor analysed to yield

3 factors– ‘product/price criteria’, ‘source of information’ and ‘service scape / personnel criteria’. Darian et al. (2001)

researched and investigated the impact of select salesperson attributes on consumer patronage intentions in a consumer

electronics store setting while on the other end, Lee et al. (2009) studied impact of self-service kiosk on patronage

intentions. Gehrt and Yan (2004) have studied the impact of situational influences. In addition to the basic demographic

factors, Baltas et al. (2010) have studied the effect of ‘store brand proneness’ and ‘satisfaction with store private label’ as

two important determinants of store loyalty.

Aggregated Factors: Liao and Liaw (2011) studied the impact of store environment on shopping mood and

patronage satisfaction. They considered 3 different environment cues as building the store environment including store

design, store music, and store employees. Wong and Sohal (2002) took another direction. They have analysed the effect of

customer – salesperson relationship commitment as an indicator of quality of customers relationship with the store.

Koo, Jim and Lee (2007) in their study on online shopping patronage, have considered two sets of store benefits

and store attributes. The store benefits studied were utilitarian and hedonic benefits. Online attributes studied were web

atmosphere, visual design, product assortment, after-sales service, and information quality.

Using a comprehensive approach Gothan and Erasmus (2008) model consists of six of the seven principal

elements of the marketing mix, including Product, Price, Physical environment, Personnel, Processes and Promotions.

However, their model excludes the most important element of retail, Place. Nonetheless, they studied customers who had

already chosen to shop at the store, so choice of place was not a variable.

In an exploratory study, Sinha, Banerjee and Unniyal (2002) used store intercept interviews to identify reasons

shoppers patronize stores in a shopping mall in Ahmedabad, India. Reasons given included: convenience, merchandise,

ambience, service, and referrals. Guenzi and Castaldo (2009) have studied the construct of trust in determining the store

patronage intentions. In their study, ‘trust’ broadly comprised of ‘trust in the salesperson’, ‘trust in the store’ and ‘trust in

the store brand products’. Each of these factors was constructed through sub factors, egg. ‘trust in the salesperson

comprised of competence, likeability, problem solving and integrity.



Theoretical Constructs: Store Patronage and Factors Affecting It

The results of the meta-synthesis help researchers select independent variables to include in future patronage

studies. More importantly, understanding which store attributes influence patronage – especially those within their

control -- is critical for retail managers who can manipulate those variables to increase store traffic and, ultimately, sales.

Proposed Model

Based on the foregoing literature review, this study proposes an easy-to-use model of retail patronage based upon

the 7Ps model of services marketing. As the most widely accepted and understood model for studying service attributes,

the 7Ps framework is the foundation of the retail patronage model proposed based upon the foregoing meta-synthesis of the

literature. It is accompanied by a research-based taxonomy of the dependent and independent variables used in earlier

research.

7Ps Framework

Retailers are the final link between branded goods and customers. Although retailers sell products, retailing is

essentially a service activity. The proposed 7Ps-based model is slightly adapted for retailers of durable goods.

Specially, two of the seven Ps --Product, and Promotion -- are each split into two sub-elements.

Product, refers to the offering of a company. In the case of a service organization, this P describes the types of services

provided (e.g. a haircut, hotel stay). For example In case of a durable retailer, the Product P contains two sub-elements.

The first is physical product sold, such as a shirt. The second includes the accompanying services, including merchandise

displays, dressing rooms, sales assistance, or payment options. Retailers keep innovating offering to differentiate against

their competitors by providing additional services. A case in point being the hybrid convenience stores (Ming et al. 2009)

Similarly, the ‘Promotion P’ includes two sub elements. The first includes traditional promotion activities like

mainline and sales promotions. Customers also promote retail stores as they share their experiences with others via word of

mouth. The proposed model labels this sub-element of promotion as ‘Reputation.’ Figure 3 is a diagram of the proposed

model.

The following sections propose several relationships among the model constructs based upon the findings of the 53 studies

analysed.

The Relationship between Customer Attributes and Importance of Store

The literature shows that different consumers consider different store characteristics when deciding on which

stores to patronize. For example –price sensitive consumers, perhaps due to financial constraints, choose discount

department stores. In contrast the prestige conscious consumers maximise their utility by choosing to shop at upscale

department stores (Moore and Carpenter – 2006). Similarly, Baltas and Papastathopoulou (2003) in their study found that

the customers with higher education exhibited a quality seeking tendency whereas consumers with large families exhibited

economy seeking behaviour. Clulow and Raimers (2009) suggest that extended trading hours may be less important to

retirees than to younger consumers because retirees have more flexible schedules. Their study also found that older

shoppers view smaller, more compact shopping venues, perhaps due to mobility limitations. The arrow connecting

boxes 3 and 5 in Figure 4 captures the relationship between shopper and store characteristics.

Consumer and Store Attributes, Reputational WOM and Store Image



The literature review reveals links between store image and consumers’ backgrounds, store features, and

reputational WOM. Depending upon whether they use public transit or drive, different consumer may have perceive the

same store to be convenient or inconvenient as a function of proximity to bus lines or available parking.Customers

receiving positive WOM mouth recommendations might perceive a store to be trustworthy. Combining consumer

characteristics and WOM, OU (2006) found that retired shoppers would travel further to a store based upon positive

WOM. Others have found that more highy educated consumers are more likely to rely on positive WOM than less

educated consumers. The arrows connecting points 1 and 6 and 3 and 6 represent these relationships Figure 4.

Store Patronage is Affected by Situational Factors and Involvement

When shopping for monthly groceries, consumers tend to patronize hypermarkets that offer large varieties, lower

prices, and better shopping environments, Those same customers patronize local convenience stores replenishing stock of

those same products on a daily basis, (Korgaonkar and Karson 2007) have shown that when buying high involvement risky

products, consumers patronize prestigious click-and-mortar stores. These same people choose pure play online retailers

when buying low involvement, low risk products. In Figure 4 for, the arrows connecting 2 and 7, 4 and 7, 5 and 7, and

6 and 7 represent these relationships

Store Purchase Depends on Store Experience

Once at the store, the likelihood of purchase and quantity purchased is depends on the quality of the

in-store experience. This is determined by features such as store atmosphere, layout, merchandise availability, and

merchandise display. Store design music influence buying emotions (Liao et al. 2011). Yun and Good (2007) have found

that a favourable store image depends upon merchandise, service, and shopping atmosphere. Better store image increases

patronage. Baker et al. (2002) have found that shopping experience and design cues negatively impact time, effort and

psychic costs and that Store design cues positively impact perceived merchandise quality. Similarly, Newman and Foxall

(2003) have established the strong role of layout, store setting, merchandise arrangements in the consumer behavior

patterns. The role of people / sales person is emphasized by many a studies. Wang (2009) have studied the impact of

positive emotions exhibited by the store personnel.

The connection between 8 and 9 in Figure 4 captures this relationship.

Total Store Experience Influences Re-Patronage Intention Positive Word-of-Mouth

As seen above, customer and store characteristics influence consumers to patronize particular stores.

In-store experiences affect purchase and post purchase decisions. The service a store provides during and after a sale is

made drives consumer re-purchase intent and willingness to recommend the store to others. As found by Yun and Good

(2007) “consumers are

likely to revisit an e-tailer that gives them a good impression, offering a high-quality product (an e-merchandise attribute),

providing reliable shipping, delivery, and tracking service (an e-service attribute), and having easy-to-find products via

navigable sites (an e-atmosphere attribute)”.The total store experience influences repatronage / WOM intentions.

The arrows connecting points 4 and 11, 6 and 11, 8 and 11, and 10 and 11 in Figure 4 capture these relationships.

CONCLUSIONS AND MANAGERIAL IMPLICATIONS

The foregoing meta-synthesis identified various ways of conceptualizing retail patronage as well as two classes of



antecedents that affect it. The proposed 7-P-based theoretical model provides a useful framework of further investigation.

Such a framework is useful not only for studying the antecedents of patronage, but also the results of patronage including

re-purchase intention and willingness to promote via positive word of mouth.

Despite decades of study, a generally agreed-upon definition remains elusive. Including a listing of the ways the

construct has been conceptualized in recent studies should help researchers and managers choose operational definitions of

patronage suitable to their own objectives. However it is defined, the dependent variable of retail patronage can be framed

within the 7 Ps model.

Another finding of the meta-analysis is that retail patronage studies address any number of retail formats.

Choice of retail formats may serve as dependent or independent study variables. This may be appropriate for retailers

considering multiple or alternative retail formats and assessing such choices on patronage and sales. With more retailers

establishing online presences, such research is timely

The meta-synthesis and the accompanying model identify a variety of consumer and store characteristics

influencing purchases. Understanding which consumer characteristics affect patronage should help researchers and

managers segment markets according to patronage preferences. Understanding how store factors retailers control should

help managers adapt their retailing efforts to the needs of a changing marketplace and increase patronage.

LIMITATION AND DIRECTIONS FOR FUTURE RESEARCH

The meta-synthesis only includes patronage studies published since 2000 onwards. Additional insights might

come from analysing earlier papers. Also, the inter-relationships of the variables have been derived on the basis of

qualitative methods. A logical next step would be an empirical study using quantitative methods to test these relationships.

While the meta-synthesis yielded a long list of patronage antecedents, reducing these variables to a more

management set using factor analysis would be useful for capturing broad, generalizable variables. Such an approach can

lead to the development of a taxonomy of patronage antecedents that can be used in future studies. Finally, the proposed

7Ps-based model can be used to study the various stages of patronage decisions beginning with store choice and continuing

through post purchase behaviour.

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APPENDICES

Demographic Gender Age Income Occupation Marital status Education level, Occupation No of people in the household No of children in the household Distance from the shopping centre Ethnicity

Behavioural & Lifestyle Lifestyle Risk perception Shopping attitude Values Self confidence Product risk Involvement Others Task (Shopping situation) Trust Perceived value Role of family members Product importance

Figure 2

People Physical Ambience Product - Services Product knowledge Air quality Shopping assistance

Showing alternatives Appealing Post sales service Product explanation Appropriate music Warranty

Explanation of good / bad Atmosphere Customised service Honesty Attractive facilities East of contact

Friendliness Can touch product Delivery Caring Checkout Time saving / convenience

Helps in choosing right products Clean Store timings Courtesy Clearly structured Phone order

Availability of salespersons Colour scheme Home delivery Competence of salespersons Comfort Self service

Appearance

Ease of shopping



Behaviour Congestion Privacy policy Number Crowded Fast to in / out

Professionalism Decoration All type of payment Speed of service Information Food courts

Attention Display Security perception Problem solving Ease of navigation Leisure activities

Trust, Commitment Ease of visualisation Delivers the right product Place Environment noise Timely delivery

Proximity Family friendly Easy returns Store accessibility Fun place Entertainment facilities

Type of traffic controls Information Social events Public transport Layout Catering facilities

External environment Size Child friendly activities Convenience of location Social place Self service kiosk

Parking facility Spacious Reliability Retail concentration Store cleanliness Promotion

Center size Stress reduction Advertising Store visibility Thermal comfort Sales promotions Neighbourhood Toilets / washrooms Promo offers

Distance from other stores Visual design Promo - Reputation / image Family permission Visual merchandising Prestigious C & M

Parking Volume Value C & M Product Window display People like me shop

Store assortment Store layout Buying of relatives Width

Trust perception

Depth Price Outperforms its competitors

Fashion ability Price Strong prospects for future growth

Merchandise attributes Negotiation Well managed Dependable products Price / value Good company

Product quality Price labeling Performance perception Availability of preferred brands Comparability Future vision

Variety of brands Leasing Processes

Product quantity Fair / competitive prices Quality control of products before

dispatch

Regular availability of products Credit facility Prices in the store coincide with

advertised prices Merchandising & safety attitude Low cost Availability of manuals for appliances

Product guarantees

Service Innovative products

Timely delivery and installation

New products

Unique products

Merchandise value

Figure 3



Figure 4: Store Patronage Model

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