Modeling specialty store customers’ buy/no-buy decisions
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 23 November 2017
Issue publication date: 28 November 2017
Abstract
Purpose
The purpose of this paper is to develop, test, and validate a model in a specialty retail environment to assess the influence of a salesperson’s sales- or customer-orientation and customer characteristics related to buy/no-buy decisions.
Design/methodology/approach
Backward stepwise discriminant analysis was used to identify variables that most differentiated buyers from non-buyers. The discriminant model was estimated with survey data provided by a judgment sample of consumers asked to recall details about a recent in-store purchase experience (n=240). One significant discriminant function emerged. The model correctly classified 87.5 percent of buy/no-buy decisions by consumers in a separate validation sample (n=40).
Findings
Customers who believe a salesperson is sales oriented (i.e. only interested in closing) are more likely to make a no-buy decision even when retailer-related attributes – such as positive prior experience with the retailer, susceptibility to normative interpersonal influence, and positive attitude toward retailing – suggest otherwise. Surprisingly, neither customer orientation nor susceptibility to interpersonal informational influence relates significantly to making a buy/no-buy decision.
Practical implications
Specialty retailers should avoid a sales-outcome-based orientation. To add value in a competitive marketplace where buyers can avoid salespeople, the focus of a sales interaction should be on identifying customer needs and characteristics.
Originality/value
Adaptations of sales people’s personas and selling efforts – fostered by new managerial training practices – and the need for specialty retailers to adopt behavior-based control systems are suggested. In addition, sales or customer orientation typically is reported by the salesperson. Here, customers’ belief – which is more germane to modeling buy/no-buy decisions – designates the salesperson’s orientation.
Keywords
Citation
Goudge, D., Good, M.C., Hyman, M.R. and Aguirre, G. (2017), "Modeling specialty store customers’ buy/no-buy decisions", International Journal of Retail & Distribution Management, Vol. 45 No. 12, pp. 1260-1276. https://doi.org/10.1108/IJRDM-03-2017-0036
Publisher
:Emerald Publishing Limited
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