The influence of retailer reputation on store patronage

Retailer reputation is an important factor that influences consumer's store patronage. A survey was conducted among 356 grocery store shoppers to study the effects of retailer reputation on their store choice patterns. A Structural Equation Modeling approach was used. Results show that retailer reputation has an effect on purchase frequency, travel time and expenditure levels only when its influence was moderated by demographic variables. This suggests that the mode of influence on the dependent variables is more complex than the literature suggests. Retailers must think of their reputation within specific target markets, as the payoff in terms of shopping expenditure differs per target group. We discuss implications for retailing research and practice.