Hard discounters, such as Aldi and Lidl, have become more important in the last decade. Recent research suggests that the presence of a hard discounter (HD) decreases customers’ share of wallet. In a newly released study, the aim was to understand why this occurs, by considering how HD presence affects store attributes and store satisfaction. In particular, we investigate whether HD presence affects store satisfaction formation as well as the effect of store satisfaction on share of wallet. In the report Dutch data was analyzed on store attribute evaluations, store satisfaction and share of wallet.
Our results show that HD presence decreases convenience evaluations of a store, satisfaction and share of wallet. Moreover, the report shows that the relationship between convenience and store satisfaction becomes more important when a HD is present, while the report then also finds a stronger positive relationship between satisfaction and share of wallet. Simulations based on report's model estimations show that especially price-oriented retailers should fear decreases in share of wallet when a HD is present.
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