Larry P. Pleshko

Customer satisfaction and loyalty in the Kuwaiti retail services market: why are satisfied buyers not always loyal buyers?

The authors investigate the relationship between customer satisfaction and customer loyalty in the domain of food retailing, focusing on the western-style coffee shop sector of the coffee category in the State of Kuwait. On the basis of more than 600 responding users of the 39 coffee shop retailer brands, the authors provide evidence that satisfaction and loyalty are positively related: as satisfaction levels increase, levels of loyalty also increase. Additionally, the study investigates three hypotheses proposed to explain why satisfied consumers are not always loyal consumers. Evidence is provided supporting all three explanations: (1) satisfied buyers may not be loyal because they are loyal to other brands, (2) satisfied buyers may not be loyal because they are inherent switchers with more experience regarding the category, and (3) satisfied buyers may not be loyal because they are more satisfied with their overall experiences in the category. In general, the findings suggest that satisfaction is highly relevant in developing long-run customer loyalty, but that satisfaction is indeed a necessary but insufficient factor in generating loyalty.

The impact of strategic consistency on market share and ROA

Purpose – The purpose of this paper is to take a contingency theory approach to examine how performance is affected by the relationships between the Miles & Snow strategic groupings and a variety of marketing strategy concepts, including a firms service focus, service growth, market coverage, marketing initiative, market growth, Porter strategy, and market orientation. Design/methodology/approach – Data for the study were gathered from a statewide survey among 125 chief executives of credit unions belonging to the Florida Credit Union League (FCUL). ROA figures were derived from government-mandated accounting reports in the state of Florida. ANOVA and correlation analysis were employed to analyze data. Findings – This study shows that firms that match an aggressive Miles and Snow profile with a more aggressive approach to seven other strategy dimensions often enjoy higher market share relative to credit unions characterized by a different alignment of the various aspects of marketing strategy. The result...

Customer-Focus or Competitor-Focus? A Financial Services Example

ABSTRACT The present article examines the relationship between an organizations market-orientation, in terms of either customer focus or competitor focus, and the organizations market share performance in a financial services environment. The study includes samples of chief executive officers in the financial services sector, specifically credit unions. The paper begins with the development of a market orientation typology matrix, and is followed by a presentation of the hypotheses. The authors find that increases in a firms market share are associated with high levels of competitor-focus and not with customer-focus or interactions between the two.

The Relationship of Organizational Size to Strategic Classifications in the Financial Services Industry

The paper presents an empirical investigation into the association of firm size with the Miles and Snow typology (1978) in the financial services industry. The study includes a sample of chief executive officers of credit unions. In particular, the authors find that smaller firms are more likely to be Defenders while larger firms are more likely to be Prospectors or Analyzers. No relationship is evident with size and Reactor firms.

Using Direct Observation to Examine the Relationship between Religiosity, Demographics, and Consumption in a Middle Eastern Retail Services Setting

ABSTRACT The authors investigate religiosity among customers in Kuwait coffee shops, collecting data through more than 1,700 direct observations. About 60% of customers were classified as low in perceived religiosity and 40% as high in perceived religiosity. Consumers high in perceived religiosity were more likely to be Kuwaiti and more likely to be older in age. They also visited coffee shops with fewer friends and were less likely to actually purchase coffee, yet they exhibited a greater amount of dwell time. The study validates the use of religiosity as a viable segmentation variable in Islamic retail markets and of direct observation as a classificatory method.

Conspicuous Consumption of Branded Accessories

Veblen (1918) was the first to report and analyze the visible display of wealth, referring to this tendency as conspicuous consumption. In the mind of a conspicuous consumer, such displays serve as a means of attaining or maintaining social status. Various theories predict that cultural, social and individual level factors all affect conspicuous consumption in some way. In order to further understand the relative importance and relationships among these factors, the current research intends to examine their joint impact on consumers’ conspicuous consumption within a specific market context — widespread accessibility of luxury accessory products. Thus, the objectives of the current research are to a) identify the main factors that influence conspicuous consumption of luxury accessories, once these are mass marketed, and b) comprehend whether or not the purchase of branded accessories is motivated by consumers desire to reflect their social status, boost their self concept and set differences between them and the rest of people (i.e., power distance).

Making Up Lost Ground: The Relative Advantage of Achieving Relationship Marketing Outcomes Versus Time-In-Market Effects

ABSTRACT The authors study the time-in-market phenomenon among Kuwait coffee shops. Data was collected from more than 600 users of 39 separate coffee shop brands in the Kuwait market. The evidence does not support a direct effect for time-in-market impact on market share. The evidence does, however, show an interaction effect, with time-in-market interacting with relationship marketing (RM)-related consumer outcome measures to influence market share. Specifically, (1) coffee shops in the market longer and that exhibit higher levels of consumer preference exhibit higher market shares, and (2) coffee shops in the market for a shorter period, yet with higher rates of consumer trial, also exhibit higher market shares. Additionally, evidence shows that two RM outcomes (the percentage of respondents that include a retailer in their brand repertoire and the percentage of respondents indicating a preference for a given retailer) are positively related to market share. Therefore, time-in-market may not be as important in this setting as RM efforts to establish consumer trial and preference.