Understanding moderating effects in increasing share-of-wallet and word-of-mouth : A case study of Lidl grocery retailer

Abstract

This study examines how five moderating variables (the length of the customer relationship, following a company in print media and on social media, remembering online advertisements, and the customer’s age) affect the relationships between perceived value and loyalty and satisfaction and loyalty in the grocery retailing sector. A series of hypotheses were developed and tested with a sample of 2,072 discount retailer customers in Finland. The results support all the direct effects hypotheses and show that perceived value and satisfaction both have a positive effect on loyalty, measured as a share of wallet and word of mouth and that the effect of perceived value tends to be stronger in the study context. Also, the five moderating variables have a positive moderating effect on the linkages between perceived value and eWOM and between satisfaction and eWOM. Theoretical and managerial implications, limitations, and future research directions are presented.