Premium versus affordable clothing retailers: what are customer expectations for satisfaction and repurchase intentions?

Purpose: Within the highly competitive clothing retail industry, retailers (both affordable and premium) need to consider which customer experience elements drive customer satisfaction and repurchase intentions. The purpose of this study is to determine whether customer expectations are different for various types of clothing retailers, and what customers specifically expect when purchasing from a retailer. Design/methodology/approach: For this study, a positivistic quantitative research design and a non-probability convenience sampling method were used. A total of 222 useable questionnaires were used to conduct descriptive statistics. Confirmatory factor analysis, structural equation modelling and multi-group analysis were run to test the hypotheses. Findings: The results indicate that customers expect affordable retailers to provide them with convenience and to create a positive shopping experience, while premium clothing retailers should offer added-value and convenience. In addition, the presence of other customers influences the experience. For both groups, satisfaction was a predictor of loyalty, which, in turn, was a predictor of repurchase intentions. Originality/value: The study is unique as it compares the customer expectations for satisfaction and repurchase intentions for both affordable retailers and premium retailers. The study is conducted in an emerging market context where the growth of the retailing industry is visible. By conducting this study, both affordable and premium clothing retailers are more informed with regards to their customer's expectations and how those expectations should be managed in order to ensure satisfaction and repurchase intention.