Providing a Paradigmatic Model of Customer Value Propositions Based on Increasing Customer Loyalty in the Retail Industry

Document Type : Original Article

Authors

1 Ph.D. Candidate, Department of Business Management, Faculty of Management, Economics and Accounting, Ta.C., Islamic Azad University, Tabriz, Iran.

2 2Assistant Prof., Department of Business Management, Faculty of Humanities, Bon.C., Islamic Azad University, Bonab, Iran.

3 Department of Management, Faculty of Management, Economics and Accounting, Ta.C., Islamic Azad University, Tabriz, Iran.

Abstract

Objectives: This study presents a paradigmatic model of customer value propositions aimed at increasing customer loyalty in the retail industry. It seeks to explore how retail chains can design and implement value propositions that effectively align with customer expectations and foster long-term loyalty.
Methods: The research is applied in purpose and qualitative in methodology, adopting a grounded theory approach. Data were collected through in-depth, semi-structured interviews with 16 experts and specialists from the retail chain industry in Tabriz, selected via purposive sampling. Analysis followed Strauss and Corbin’s grounded theory procedures, including open, axial, and selective coding. Validity and credibility were ensured through member checking and peer review, while reliability was assessed via test-retest coding of randomly selected interviews.
Results: The analysis resulted in a conceptual framework comprising six interrelated components, encompassing causal factors (strategic versus operational, perception versus proposition), central phenomena, intervening factors (customer, company, co-creation, and context), contextual elements (competitive customer value propositions, service development, resource allocation), strategic approaches (value creation, goal setting, performance measurement), and consequences related to customer loyalty. The framework highlights how companies can design and manage customer value propositions to foster loyalty while aligning academic insights with industry practices.
Conclusion: The proposed model offers a practical foundation for integrating customer value management into retail strategy, supporting both theoretical advancement and industry application, and providing actionable insights to enhance customer loyalty.

Keywords

Main Subjects

References

Abid, M. F., Shamim, A., Thaichon, P., Quach, S., & Siddique, J. (2025). Designing an information technology-enabled framework in the retail service ecosystem. Technological Forecasting and Social Change, 215, 124078. https://doi.org/10.1016/j.techfore.2025.124078.
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.
Atulkar, S., & Kesari, B. (2017). Satisfaction, loyalty and repatronage intentions: Role of hedonic shopping values. Journal of Retailing and Consumer Services, 39, 23–34. https://doi.org/10.1016/j.jretconser.2017.06.013.
AYDIN, K. (2013). Perakende Yönetiminin Temelleri. Nobel Akademik Yayıncılık.
Babin, B. J., James, K. W., Camp, K., Jones, R. P., & Parker, J. M. (2019). Pursuing personal constructs through quality, value, and satisfaction. Journal of Retailing and Consumer Services, 51, 33–41. https://doi.org/10.1016/j.jretconser.2019.05.021.
Banik, S., & Gao, Y. (2023). Exploring the hedonic factors affecting customer experiences in phygital retailing. Journal of Retailing and Consumer Services, 70, 103147. https://doi.org/10.1016/j.jretconser.2022.103147.
Bettman, J. R. (1979). Memory factors in consumer choice: A review. Journal of marketing, 43(2), 37–53. https://doi.org/10.1177/002224297904300205.
Bischoff, P., Hogreve, J., Elgeti, L., & Kleinaltenkamp, M. (2023). How salespeople adapt communication of customer value propositions in business markets. Industrial Marketing Management, 114, 226–242. https://doi.org/10.1016/j.indmarman.2023.08.009.
CCAGM, China Commerce Association for General Merchandise, (2019). China’s Department Stores Report 2018-2019. Available at: https://www.fbicgroup.com/sites/default/files/CDSR_2018-2019_ENG.pdf. (Accessed 14 July 2020).
Chan, C. Y. R., & Zailani, S. (2024). Capabilities to create new value for business sustainability: a retailer case study from Malaysia. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-07-2023-0499.
Cheng, F.-F., Wu, C.-S., & Chen, Y.-C. (2020). Creating customer loyalty in online brand communities. Computers in Human Behavior, 107, 105752. https://doi.org/10.1016/j.chb.2018.10.018.
Corvellec, H., & Hultman, J. (2014). Managing the politics of value propositions. Marketing Theory, 14(4), 355–375. https://doi.org/10.1177/1470593114523445.
Day, G. S. (2011). Closing the marketing capabilities gap. Journal of marketing, 75(4), 183–195. https://doi.org/10.1509/jmkg.75.4.183.
Day, G. S. (2020). The dynamics of customer value propositions: An outside-in perspective. Industrial Marketing Management, 87, 316–319. https://doi.org/10.1016/j.indmarman.2019.10.010.
Dehdashti Shahrokh, Z. & Agili, Z (2014). The effect of service ease of use on word-of-mouth advertising and repurchase intention. Modern Marketing Research, 5th Year, 2(17), 15-36. (In Persian). https://doi.org/10.34785/J018.2022.682.
Dehdashti Shahrokh, Z. & Nabizadeh, M (2018). A comprehensive study of customer experience with thematic analysis approach, how to create a great experience for the customer?, Business Management Essays, Year 18, No. 4, (73), 98-117. (In Persian). https://doi.org/10.29252/jbmp.18.40.98.
Dogra, N., Nasir, M., & Adil, M. (2023). Does shopping values influence consumers' well-being: empirical evidence from e-retail. International Journal of Retail & Distribution Management, 51(12), 1698–1718. https://doi.org/10.1108/IJRDM-03-2023-0167.
Eggert, A., Ulaga, W., Frow, P., & Payne, A. (2018). Conceptualizing and communicating value in business markets: From value in exchange to value in use. Industrial Marketing Management, 69, 80–90. https://doi.org/10.1016/j.indmarman.2018.01.018.
Engel, J., Kollat, D., & Blackwell, R. (1968). Consumer Behavior. Hold, Rinchart and Winston. Inc., New York.
Fathali, M., Heidarzadeh Hanzaee, K., Khounsiavash, M., & Zaboli, R. (2025). Development and validation of omni-channel shopping value scale in Iran. Journal of Product & Brand Management, 34(1), 21–43. https://doi.org/10.1108/JPBM-12-2023-4861.
Fernandes, T., & Moreira, M. (2019). Consumer brand engagement, satisfaction and brand loyalty: a comparative study between functional and emotional brand relationships. Journal of Product & Brand Management, 28(2), 274–286. https://doi.org/10.1108/JPBM-08-2017-1545.
Ferreira, D., & Paiva, D. (2017). The death and life of shopping malls: an empirical investigation on the dead malls in Greater Lisbon. The International Review of Retail, Distribution and Consumer Research, 27(4), 317–333. https://doi.org/10.1080/09593969.2017.1309564.
Frow, P., & Payne, A. (2011). A stakeholder perspective of the value proposition concept. European journal of marketing, 45(1/2), 223–240. https://doi.org/10.1108/03090561111095676.
Gallarza, M. G., Arteaga, F., Del Chiappa, G., Gil-Saura, I., & Holbrook, M. B. (2017). A multidimensional service-value scale based on Holbrook’s typology of customer value: Bridging the gap between the concept and its measurement. Journal of Service Management, 28(4), 724–762. https://doi.org/10.1108/JOSM-06-2016-0166.
Gallarza, M. G., Ruiz-Molina, M. E., & Gil-Saura, I. (2016). Stretching the value-satisfaction-loyalty chain by adding value dimensions and cognitive and affective satisfactions: A causal model for retailing. Management Decision, 54(4), 981–1003. https://doi.org/10.1108/MD-07-2015-0323.
Ganthika, D., & Wahdiniwaty, R. (2020). The effect of customer value on customer loyalty at Bandung tourist location. International Conference on Business, Economic, Social Science, and Humanities–Economics, Business and Management Track (ICOBEST-EBM 2019). https://doi.org/10.2991/aebmr.k.200108.026
Ghiasabadi Farahani, M., Ghafari Ashtiani, P., Shababi, H., & Gholipour Fereidooni, S. (2022). Designing a resilience model in the tourism industry in the prevalence of Covid disease 19. Journal of Tourism and Development, 11(2), 131–144. (In Persian). https://doi.org/10.22034/JTD.2021.279504.2312  
Grönroos, C. (2009). Marketing as promise management: regaining customer management for marketing. Journal of Business & Industrial Marketing, 24(5/6), 351–359. https://doi.org/10.1108/08858620910966237.
Haghkhah, A., Rasoolimanesh, S. M., & Asgari, A. A. (2020). EFFECTS OF CUSTOMER VALUE AND SERVICE QUALITY ON CUSTOMER LOYALTY: MEDIATION ROLE OF TRUST AND COMMITMENT IN BUSINESS-TO-BUSINESS CONTEXT. Management Research & Practice, 12(1). https://mrp.ase.ro/v12i1/f3
Har, L. L., Rashid, U. K., Te Chuan, L., Sen, S. C., & Xia, L. Y. (2022). Revolution of retail industry: from perspective of retail 1.0 to 4.0. Procedia Computer Science, 200, 1615–1625. https://doi.org/10.1016/j.procs.2022.01.362.
Harahap, M. I. (2018). Pengaruh Customer Experience, Customer Value, dan Customer Satisfaction terhadap Customer Loyalty pada Komunitas Sepeda Motor Yamaha Tipe NMAX Medan. https://doi.org/10.47200/jcob.v5i02.1094.
Haryani, D. S. (2019). Pengaruh Kualitas Pelayanan dan Harga Terhadap Nilai Pelanggan pada Bank Riau Kepri Syariah Tanjungpinang. Jurnal Benefita, 4(2), 243–255. https://doi.org/10.22216/JBE.V4I2.3193.
Heshmati, I., Saeednia, H.R. & Badiazadeh, A (2018). Designing a customer experience management model for banking services. Scientific Journal of Business Management Explorations, 11 (21), 247-269. (In Persian). https://doi.org/10.1108/JIMA-10-2018-0200.
Heydarzadeh, K., Zendehdel, A. & Soltani, H.A (2005). Assessing the relationship between customer expected value and customer relationship management (CRM) performance. Economics and Management, 3(66), 45-58. (In Persian). https://sanad.iau.ir/fa/Article/786487?FullText=FullText
Hirschman, E. C., & Holbrook, M. B. (1982). Hedonic consumption: emerging concepts, methods and propositions. Journal of marketing, 46(3), 92–101. https://doi.org/10.1177/002224298204600314.
Holbrook, M. B. (1999). Consumer value. A framework for analysis and research, 91–97. http://dx.doi.org/10.4324/9780203010679.
Holbrook, M. B. (2018). Essay on the origins, development and future of the consumption experience as a concept in marketing and consumer research. Qualitative Market Research: An International Journal, 21(4), 421–444. https://doi.org/10.1108/QMR-04-2018-0041
Holbrook, M. B., & Hirschman, E. C. (1982). The experiential aspects of consumption: Consumer fantasies, feelings, and fun. Journal of consumer research, 9(2), 132–140. https://doi.org/10.1086/208906.
Howard, J. A., & Sheth, J. N. (1969). The theory of buyer behavior. New York, 63(331), 145. http://dx.doi.org/10.2307/2284311.
Huang, L., Wang, M., Chen, Z., Deng, B., & Huang, W. (2020). Brand image and customer loyalty: Transmitting roles of cognitive and affective brand trust. Social Behavior and Personality: an international journal, 48(5), 1–12. http://dx.doi.org/10.2224/sbp.9069.
Islam, S., Zahin, M., & Rahim, S. B. (2024). Investigating how consumer-perceived value and store image influence brand loyalty in emerging markets. South Asian Journal of Business Studies, 13(4), 505–526. http://dx.doi.org/10.1108/SAJBS-04-2023-0097.
Karimian, M., Irani, H. R., Jafari, A., Kordnaeij, A., & Yazdani, H. (2024). Providing a framework of touch points in the multichannel shopping journey of young women consumers. Journal of Business Management Perspective, 22(56), 13-34. (In Persian). https://doi.org/10.48308/jbmp.2024.234517.1579
Kashefi, F., Badiei, H., & Rezazadeh, R. (2014). Effects of Practical Value of Products on Customers Perceived Value. Journal of Industrial Strategic Management, 11(33), 25-36. (In Persian). https://sanad.iau.ir/fa/Article/980487?FullText=FullText.
Kikha, H., Kikha, A. & Tash, M (2022). Investigating the relationship between marketing innovation capability and communication network with special brand value with the mediating role of cooperation value and customer value in private banks. Modern Marketing Research, 12, 3(46), 71-88. (In Persian). https://doi.org/10.22108/nmrj.2022.131698.2601.
Kordheydari, R., Ghasemian Sahebi, A., Kiani Gohar, M. H., & Sangari, N. (2023). Investigating big data management and its impact on customer satisfaction and organizational performance in the Iranian retail industry. Journal of Business Management Perspective, 22(54), 13-46. (In Persian). https://doi.org/10.48308/jbmp.2023.103544.
Kumar, V., & Pansari, A. (2016). Competitive advantage through engagement. Journal of marketing research, 53(4), 497–514. https://doi.org/10.1509/jmr.15.0044
Kwiatek, P., Morgan, Z., & Thanasi-Boçe, M. (2020). The role of relationship quality and loyalty programs in building customer loyalty. Journal of Business & Industrial Marketing, 35(11), 1645–1657. http://dx.doi.org/10.1108/JBIM-02-2019-0093.
Leroi-Werelds, S. (2019). An update on customer value: state of the art, revised typology, and research agenda. Journal of Service Management, 30(5), 650–680. https://doi.org/10.1108/JOSM-03-2019-0074.
Leroi-Werelds, S. (2021). Conceptualising Customer Value in Physical Retail: A Marketing Perspective. In The Value of Design in Retail and Branding (pp. 9–24). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80071-579-020211002.
Leroi-Werelds, S., Streukens, S., Brady, M. K., & Swinnen, G. (2014). Assessing the value of commonly used methods for measuring customer value: A multi-setting empirical study. Journal of the academy of marketing science, 42, 430–451. http://dx.doi.org/10.1007/s11747-013-0363-4.
Leroi-Werelds, S., Streukens, S., Van Vaerenbergh, Y., & Grönroos, C. (2017). Does communicating the customer’s resource integrating role improve or diminish value proposition effectiveness? Journal of Service Management, 28(4), 618–639. https://doi.org/10.1108/JOSM-11-2015-0366.
Leroi-Werelds, S., Verleye, K., Line, N., & Bove, L. (2021). Value proposition dynamics in response to external event triggers. Journal of Business Research, 136, 274–283. https://doi.org/10.1016/j.jbusres.2021.07.041
Lindgreen, A., Di Benedetto, C. A., Brodie, R. J., & Jaakkola, E. (2021). How to develop great conceptual frameworks for business-to-business marketing. Industrial Marketing Management, 94, A2-A10.‏. https://doi. rg/10.1016/j.indmarman.2020.04.005.
Mansoor, M., & Paul, J. (2022). Mass prestige, brand happiness and brand evangelism among consumers. Journal of Business Research, 144, 484–496. https://doi.org/10.1016/j.jbusres.2022.02.015.
Mansouri Moayed, F., Moradi, M. & Molai, F (2016). Investigating the effect of service recovery performance on word-of-mouth advertising: the mediating role of customer perceived value, customer experience, emotional response and brand loyalty. Tourism Management Studies Quarterly, Year 12, No. 39, 49-72. (In Persian). https://doi.org/10.22054/tms.2017.16637.1464.
Merikhnejad Asl, I., Heydarzadeh, K. & Mezmadi, R (2019). Investigating the effect of various types of sales promotions on brand display in hypermarkets and benefits perceived by customers: an experimental study. Journal of Marketing Management, 15(46), 1-15. (In Persian). https://sanad.iau.ir/Journal/jomm/Article/811227
Mobini, M., Alei, S., Bafande Zenda, A. & Taghizadeh, H (2023). Construction and validation of a tool for measuring the antecedents of customer participation based on a two-way value perspective (case study: 5-star hotels in Tabriz and Mashhad), Geographical Journal of Tourism Space, 12th year, (47), 60-78. (In Persian). https://sanad.iau.ir/Journal/gjts/Article/999514
Moharana, T. R., & Pradhan, D. (2020). Shopping value and patronage: when satisfaction and crowding count. Marketing Intelligence & Planning, 38(2), 137–150. https://doi.org/10.1108/MIP-07-2018-0264
Nardiman, N. (2017). Pengaruh Customer Relationship Management dan Customer Value terhadap Kepuasan Nasabah dan Dampaknya Pada Loyalitas Nasabah Bank BRI Unit Tiku Cabang Bukittinggi. Jurnal Ekobistek, 6(2).
Nicosia, F. M. (1966). Consumer Decision Processes; Marketing and Advertising Implications. https://books.google.com/books/about/Consumer_Decision _Processes.html?id=blhCAAAAIAAJ
Pandya Amit, R., & Bariya Kameshvari, J. (2012). A Study on Consumer behaviour of organized and unorganized retail outlets in Vadodara city. International Journal of Engineering and Management Sciences, 3(4), 466–474. http://www.scienceandnature.org/IJEMS/IJEMS-Vol3(4)-Oct2012/IJEMS_V3(4)11
Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution, development, and application in marketing. Journal of the academy of marketing science, 45, 467–489. http://dx.doi.org/10.1007/s11747-017-0523-z.
Payne, A., Frow, P., Steinhoff, L., & Eggert, A. (2020). Toward a comprehensive framework of value proposition development: From strategy to implementation. Industrial Marketing Management, 87, 244–255. https://doi.org/10.1016/j.indmarman.2020.02.015
Plazibat, I., Dadić, M., & Petričević, D. (2017). Do the millennials make a difference in retail. TAKE 2017 Proceedings–Theory and Applications in the Knowledge Economy, 186–196. https://doi.org/10.56578/jcgirm040203
Rahimi Aghdam, S., Faryabi, M. & Azizkhah Alanq, S (2019). The Impact of Relationship Marketing on Customer Lifetime Value, Business Reviews, No. 18(105), 72-84. (In Persian). https://dor.isc.ac/dor/20.1001.1.26767562.1399.18.105.5.8  
Reagan, J. R., & Singh, M. (2020). Management 4.0: Cases and Methods for the 4th Industrial Revolution. http://dx.doi.org/10.1007/978-981-15-6751-3.
Rintamäki, T. (2016). Managing Customer Value in Retailing-An integrative perspective. http://urn.fi/URN:ISBN:978-952-03-0077-7
Rintamäki, T., & Kirves, K. (2017). From perceptions to propositions: Profiling customer value across retail contexts. Journal of Retailing and Consumer Services, 37, 159–167. https://doi.org/10.1016/j.jretconser.2016.07.016.
Rintamäki, T., Kuusela, H., & Mitronen, L. (2007). Identifying competitive customer value propositions in retailing. Managing Service Quality: An International Journal, 17(6), 621–634. http://dx.doi.org/10.1108/09604520710834975.
Rintamäki, T., & Saarijärvi, H. (2021). An integrative framework for managing customer value propositions. Journal of Business Research, 134, 754–764. https://doi.org/10.1016/j.jbusres.2021.05.030.
Rompas, J. J., Mananeke, L., & Worang, F. G. (2020). Customer relationship management dan customer value pengaruhnya terhadap kepuasan nasabah serta implikasinya terhadap loyalitas nasabah pada nasabah kredit komersil PT. Bank sulutgo kantor cabang utama Manado. JMBI UNSRAT (Jurnal Ilmiah Manajemen Bisnis dan Inovasi Universitas Sam Ratulangi). 7(2). https://doi.org/10.35794/jmbi.v7i3.30297.
Rudrabasavaraj, M. (2010). Dynamic global retailing management. Himalaya Publishing House. https://himpub.com/product/dynamic-global-retailing-management.
Salehpour, S., Emari, H., & Bafandeh Zendeh, A. (2024). Antecedents and Consequences Affecting the Creation of Customer Value in the Phygital Space of Chain Retailing with an Emphasis on Increasing Customer Loyalty Using the Glaser Approach. Business Strategies, 20(22), 217–242. (In Persian). https://doi.org/10.22070/cs.2025.19674.1401.
Sanburn, J. (2017). Why the death of malls is about more than shopping. Time Magazine, 20. https://time.com/4865957/death-and-life-shopping-mall.
Sarker, M., Munerah, S., Yinyi, A. T., Kasem, N., & Hoque, I. (2024). What makes consumers buy from the informal rather than formal retail market? A consumption value perspective. The Bottom Line, 37(3), 309–331. https://doi.org/10.1108/BL-07-2023-0225.
Simaremare, S. I. V., & Mujiasih, E. (2018). Hubungan antara customer value dengan impulse buying pada mahasiswi angkatan 2017 Psikologi Universitas Diponegoro Semarang Undip]. https://doi.org/10.14710/empati.2018.23439
Skålén, P., Gummerus, J., Von Koskull, C., & Magnusson, P. R. (2015). Exploring value propositions and service innovation: a service-dominant logic study. Journal of the academy of marketing science, 43, 137–158. https://doi.org/10.1007/s11747-013-0365-2
Vargo, S. L. (2020). From promise to perspective: Reconsidering value propositions from a service-dominant logic orientation. Industrial Marketing Management, 87, 309–311. https://doi.org/10.1016/j.indmarman.2019.10.013
Vilkaite-Vaitone, N., & Skackauskiene, I. (2020). Service customer loyalty: An evaluation based on loyalty factors. Sustainability, 12(6), 2260. https://doi.org/10.3390/su12062260.
Wardhana, R. E. (2016). Pengaruh customer experience terhadap loyalitas pelanggan dengan kepuasan pelanggan sebagai variabel intervening (Studi pada konsumen Mie Rampok Tahanan Surabaya). Jurnal Ilmu Manajemen, 4(3), 1–9. http://ejournal.unesa.ac.id/index.php/jim/article/view/17075
Willems, K., Leroi-Werelds, S., & Swinnen, G. (2016). The impact of customer value types on customer outcomes for different retail formats. Journal of Service Management, 27(4), 591–618. https://doi.org/10.1108/JOSM-11-2015-0364
Woodruff, R. B. (1997). Customer value: the next source for competitive advantage. Journal of the academy of marketing science, 25, 139–153. http://dx.doi.org/10.1177/0092070397253006.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence. Journal of marketing, 52(3), 2–22. https://doi.org/10.2307/1251446 .
Zeithaml, V. A., Verleye, K., Hatak, I., Koller, M., & Zauner, A. (2020). Three decades of customer value research: paradigmatic roots and future research avenues. Journal of Service Research, 23(4), 409–432. https://doi.org/10.1177/1094670520948134
Zhou, J., Dahana, W. D., Ye, Q., Zhang, Q., Ye, M., & Li, X. (2023). Hedonic service consumption and its dynamic effects on sales in the brick-and-mortar retail context. Journal of Retailing and Consumer Services, 70, 103178. https://doi.org/10.1016/j.jretconser.2022.103178.
Zhu, J., & Tian, X. (2022). Value of High-Quality Distribution in Front Warehouse Mode Retailing. Procedia Computer Science, 199, 110–117. https://doi.org/10.1016/j.procs.2022.01.014.
Journal of Business Management Perspective
Volume 24, Issue 61
May 2025
Pages 92-118

Files

Share

How to cite

Statistics