The effect of day-of-the-week
The next step was to determine the benefit, if any, of isolating the social value construct.
We hypothesized that social value would increase from weekdays to Saturday because
of the greater number of customers on the weekend. As noted previously, enhancing
one’s status – which requires the presence of others – contributes to social value.
Data were collected on Thursday (27.7 percent), Friday (35.4 percent), and Saturday
(36.9 percent). The purpose was to examine whether model parameters differed
between weekdays (Thursday and Friday were combined) and Saturday. As before,
measurement models were allowed to vary freely in each case. Three tests were
performed using a x 2 test, results of which appear in Table VII. These tests indicate
that there is a significant difference between weekdays and Saturday by the second
order constructs on the third level, total customer value. Specifically, the significant
difference lies in test 1: social value parameters are not equal between weekdays and
Saturday. The social value parameter estimate was 0.90 on weekdays and 1.86 on
Saturdays, a twofold increase (Table VIII). Thus, on Saturday the social value is
significantly greater, as hypothesized. Hence, the relative contribution of social value
varies by day-of-week. This is particularly interesting since social value is introduced
here as an independent shopping value dimension that complements utilitarian and hedonic value. There was no significant difference between weekdays and Saturday for
the latter two dimensions.
Discussion
To create and deliver customer value retailers are pursuing differentiation
strategies, adding hedonic and social value in an effort to increase customer
patronage. Unfortunately doing so is not costless, hence the need to better understand
the drivers of total customer value. Successful retailers understand that customer value
encompasses concrete and abstract aspects of the shopping experience, from entrance
to check-out, and from choice (buying) to using (consuming) and experiencing. This
research responded to the need for an expanded definition of customer value that
emphasizes experiential and social aspects of consumption. The principal contribution
is the tripartite conceptualization of total customer value that incorporates utilitarian,
social and hedonic value dimensions in a department store shopping context.
The results suggest several managerial implications. On the basis of the results of
this study, we can repeat the proposition that was originally presented three decades
ago: “Many retailers would benefit by defining their business as being part of the
social-recreational industry” (Tauber, 1972, p. 49). We have provided empirical support
for this proposition.
Orchestrating a value providing shopping experience calls for an understanding of
the relationships between benefit and value dimensions. As is true with brand
management, at best only a small number of retailers can pursue a cost leadership
strategy, i.e. emphasize value and convenience, for example, through an
everyday-low-price strategy – a strategy fundamentally at odds with increasing
hedonic and social value. Others must, therefore, differentiate by creating hedonic and
social value, the costs of which must be recovered via higher product prices or a greater
quantity of sales per customer. Creating hedonic value is common. Upscale stores, for
example, have maze like floor layouts, put-up extensive seasonal adornments, and let
consumers use/play with product offerings. Our insights suggest expending effort that
boosts one’s status or self-esteem could be a viable differentiation strategy as it would
create social value. Using narrowcast media directed toward specific segments and
incorporating messages that appeal to esteem needs are means of doing so. Another is
to train and retain “expert” salespersons that dress and act like the store’s desired
clientele. Thus, by becoming aware of the utilitarian, social and hedonic dimensions
that comprise total customer value, and the benefits that customers associate with
these dimensions, the concept of customer value can be used as a managerial tool in
planning advertising and promotions, segmentation strategies, managing store
atmospherics, and in staging integrated and memorable shopping experiences.