The Impact of Perceived Availability of Consumer Data on Loyalty in Retail Channels: A Relational Exchange Perspective

Abstract

Purpose By building on social exchange theory (SET), this study aims to investigate the role of perceived availability of consumer sensitive data in shaping consumer loyalty by proposing and testing a conceptual model that considers both a negative (through perceived risk) and a positive (through perceived convenience and perceived inspiration) mechanism underlying this phenomenon. This study also explores the moderating role of purchase channel (online versus offline) in the relationship between perceived availability of consumer sensitive data and perceived risk, perceived convenience and perceived inspiration. Design/methodology/approach A field study with 923 retail consumers was carried out across 13 UK grocery retailers from both online and offline channels (e.g. Tesco, Asda, Morrison’s, Ocado, Aldi, Waitrose and Lidl). The statistical analysis was conducted using a partial least squares approach. Findings Results show that perceived availability of consumer sensitive data impacts consumer loyalty towards the retailer through the mediating mechanisms of perceived risk, convenience and inspiration, which help shape consumer relationships with retailers. The findings suggest that the online channel can improve the retail shopping experience and thus contribute to consumer acceptance of data disclosure. Research limitations/implications The authors acknowledge that this work suffers from methodological limitations. First, perceptual data from consumers was used to operationalize all the constructs in the model. Objective measures of consumer loyalty are not available or reliable. Therefore, this paper used perceptual data from consumers, who are more likely to be able to accurately assess their loyalty to a retailer. Beyond the limitations, this study provides more opportunities for future research. One relevant avenue for future studies is that this paper can investigate the moderating role of other online services such as mobile apps and the mediating roles of perceived risk, convenience and inspiration. This is important given the continuing growth in digitization: consumers today indeed interact with retailers across multiple channels simultaneously, online, mobile and offline channels, known as “omnichannel” marketing. Practical implications Through the availability of consumer sensitive data, retailers could improve consumers’ perceived convenience and inspiration by showcasing how their products or services provide consumers with a sense of meaning, purpose and connection. Additionally, retailers should empower consumers with control over their personal data and its use, enabling them to manage their data preferences effectively, and they should be aware of the varying levels of sensitivity in personal data and so tailor consumer data collection strategies accordingly. Originality/value By advancing on the SET, this study demonstrates the moderating effect that online versus offline channels can have on the relationship between perceived availability of consumer sensitive data and the three mediators regarding perceived risk, perceived convenience and perceived inspiration. Managerial relevance of this study is evidenced through the reciprocated exchange orientation, whereby availability of sensitive data that consumers may perceive as either high (online data disclosure beyond demographic information) or low (offline interaction associated with the exchange of demographic information) can offset the perceived risk and gain perceived convenient and inspirational experience.