The effect of service marketing mix elements and customer retentiontowards clothing store brands in ChIna

The aim of this paper was to analyse the impact of service marketing mix (promotion, price, place, product, people,process, physical evidence and after sale service) on customer retention towards clothing store brands in China. Basedon the analysis of past literature, it appeared that there were only few studies examining the empirical relation betweenthe two constructs, particularly in the clothing sector in China. A comprehensive survey approach was used to collectdata from a total of 385 customers visiting clothing stores in the middle part of China (Hubei). SPSS and PLS were usedto analyse the obtained data. The findings showed that there were significant positive effects on customer retention inall dimensions of the service marketing mix. Finally, the findings suggested that after-sales service plays an importantrole in impacting the retention of customers. The contribution of this research was supporting the significancerelationship of the marketing mix elements in influencing the retention of customers in the clothing industry with empiricaldata from China.

Effect of Service Quality on Service Value and Customer Retention for Clothing Store Brands in China

An increasing number of new Chinese clothing store brands are selling and offering similar products and services and consequently clothing store brand providers must compete to survive in this industry. They need to focus on customers’ special needs and preferences to maintain and retain a long-term relationship. The objective of this study is thus to examine the relationship between service quality and customer retention for clothing store brands in China, and the mediated effect of service value in the relationship between service quality and customer retention for clothing store brands in China. A quantitative research for data collection was implemented. As many as 385 questionnaires were collected by the professor, PhD students, MSc students and BSc students of different nationalities in China. The data was analysed using SmartPLS and SPSS software. Customer perception of the quality of a service product in all sizes has a beneficial effect on customer retention. Service value affects customer retention positively. Practical implications for the target market of the clothing sector should be focused on young individuals aged 36 to 45 years, holding a Master’s degree and earn more than €1,000/month. Findings indicated significant and direct relationships between service quality, service value and customer retention. It was also found that service value has a full mediated effect. This study will be of interest to the clothing store brands in understanding how service quality is essential for maintaining a long-term relationship with customers.

Store-brand introduction and production arrangement in the presence of multiple retailers

Store brands play an increasingly important role in retailing business, leading more and more retailers to introduce store brands. Abundant research focuses on competition between store brands and national brands and counterstrategies that national-brand manufacturers can take to counter store-brand introduction. A little research studies the store-brand production issue, however, all under single-retailer scenarios. To approach the real world, we employ game theory to model interaction between a national-brand manufacturer and multiple locally monopolist retailers, one of whom has capability and motivation to introduce a store brand. Five Stackelberg games are build and solved to investigate: how the presence of the non-store-brand retailers affects the store-brand retailer’s decision on and profitability in the store-brand introduction; how the store-brand retailer should arrange store-brand production; whether there is a win–win situation where both the store-brand retailer and the national-brand manufacturerare better off with the latter producing the store brand. Accordingly, our study offers a novel rationale for why so many, especially leading, national-brand manufacturers are involved in the store-brand production. Some useful managerial suggestions are proposed on the store-brand introduction and production arrangement.