Mobile payment in omnichannel retailing: dynamics between trust and loyalty transfer processes

Abstract

PurposeThis study presents an integrated research model to test the relationships between trust in retailers, trust in mobile payment, loyalty to retailers and loyalty to mobile payment as well as the antecedents of trust in retailers and trust in mobile payment. Thus, this study investigates how customer journey design, relationship investment, structure assurance and perceived ubiquity build trust in retailers and trust in mobile payment and how trust affects loyalty to each aspect. At the same time, this study analyzes the reinforcement of trust and loyalty transfer between a retailer and its mobile payment system.Design/methodology/approachFrom the perspective of mobile payment in omnichannel retailing, the authors proposed a framework with several hypotheses and verified the model with structural equation modeling that involves LISREL and SPSS process and based on questionnaire data collected from mobile payment users.FindingsThis study confirms the positive influences of customer journey design and relationship investment on trust in retailers and the positive impacts of structure assurance and perceived ubiquity on trust in mobile payment. Meanwhile, the findings validate the effects of trust in retailers and mobile payment on loyalty to both retailers and mobile payment and how trust in retailers transfers to trust in mobile payment and loyalty to retailers transfers to loyalty to mobile payment.Originality/valueThis study contributes to the marketing literature by filling the research gap and offering a complete model that explicates customers' trust and loyalty in omnichannel context. The findings help businesses better understand the omnichannel retailing landscape and thereby develop effective marketing strategies in order to gain customers' trust in both retailer and mobile payment and retain more loyal customers.

Does integrated store service quality turn omnichannel shoppers into price-insensitive, cross-category purchasers, and loyal webroomers? Moderating role of perceived relationship investment and alternative retailer attractiveness

“…The five-items scale for the construct “Attachment with the store” was adopted from the work of Badrinarayanan and Becerra (2019). Cross-buying behavior was measured using a four-items scale adapted from the work of Mukerjee (2020), three-items webrooming intention scale was developed from the work of Arora and Sahney (2019), willingness to pay more was measured using three-items scale adapted from the work of Izogo et al (2020), ARA was measured using five-items scale adapted from the work of Fang et al (2021), perceived retailer investment (PIV) was measured using three-items scale adapted from the work of Wu and Tang (2022). The data was collected by researchers using five-points Likert scale, with one denoting “Strongly disagree” and five indicating “Strongly Agree”.…”

“…We suspect subsequent engagement could lead to a customer’s attachment to the store, characterized as an emotional relationship between a person and a specific store (Horáková et al , 2022), leading to positive behavioral responses. In studying the direct relationship between different attributes of in-store service quality and postpurchase behaviors ( willingness to pay more, cross-buying behaviors and loyal webrooming intentions ), investigating the moderating impact of the customers’ perceived relationship investment made by the store to retain them (Menidjel et al , 2020; Wu and Tang, 2022) and their perception of alternative retailers attractiveness (Fang et al , 2021) is getting scholarly attention in a retail context.…”

How integrated store-service quality promotes omnichannel shoppers’ word-of-mouth behaviors: the moderating role of perceived relationship investment and the shopper’s perceived value

“…(3) Researchers in the past have identified perceived relationship investment as the most critical dimension impacting customers' trustworthiness towards the retailer (Wu and Tang, 2022). They have also given particular interest to the role of customer-perceived value in omnichannel retail store settings formed out of channel-integrated operations (Hossain et al, 2020;Pereira et al, 2022).…”

“…2.3.4 Perceived investment. The investment of time, effort and other irreversible resources in a relationship form psychological attachments that drive customers to stay in the relationship and establishes an expectation of reciprocation (Wu and Tang, 2022). The history of the relationship investment construct dates back to the work of Rusbult (1983) et al, (2001), perceived relationship investment is "a consumer's perception of the extent to which a retailer devotes resources, efforts and attention aimed at maintaining or enhancing relationships with regular customers that have no outside value and cannot be recovered if these relationships are terminated."…”

“…Extant literature identifies the customers' strength of the relationship with the service firm is greatly influenced by the relationship investment made by the firm to retain the customer and which effectively explains their post-purchase behavioral responses (Han and Hyun, 2019). Investing time, effort and other irrecoverable resources in a relationship generate psychological bonds that encourage customers to maintain the relationship and TQM 36,4 establish reciprocation expectations (Wu and Tang, 2022). This perception is termed a customer-perceived retailer's investment in the relationship.…”