A multidimensional customer value model for the high fashion retail industry

Abstract

a competitive environment, high fashion retailers must become proficient at not only providing quality merchandise, but also at providing value to their customers, in order to be successful. Only high fashion retailers that offer the value their customers demand, are able to increase customer satisfaction levels and remain competitive in the long term. Higher levels of customer satisfaction have been shown to lead to repurchase intention and profitability. Customer value is considered a complex construct and is viewed by many as multidimensional in nature. High fashion retailers’ unique nature highlights the fact that their customers have different expectations and may view customer value dimensions differently, as opposed to other clothing retailers. The aim of this article is to propose a multidimensional model of customer value for high fashion retailers, including the interrelationships between customer value, customer satisfaction and repurchase intention. A descriptive research design using quantitative methods was used to collect primary data. A non-probability multistage sampling approach was followed to select respondents, and 620 completed interviewer-administered questionnaires were included for analysis. Structural equation modelling (SEM) was utilised to measure the interrelationships between the three constructs of the study. Results show that high fashion retailers need to focus on sacrifice value, service value, store value, experience value and status value in order to positively influence their customers’ satisfaction levels and subsequent repurchase intention.