Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 62 - 80 |
| Number of pages | 19 |
| Journal | Journal of Marketing |
| Volume | 78 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2014 |
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Comparing the effect of store remodeling on new and existing customers. / Danaher, Tracey Sara; Danaher, Peter Joseph.
In: Journal of Marketing, Vol. 78, No. 3, 2014, p. 62 - 80.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - Comparing the effect of store remodeling on new and existing customers
AU - Danaher, Tracey Sara
AU - Danaher, Peter Joseph
PY - 2014
Y1 - 2014
N2 - Although retailers invest millions of dollars in redesigning, refreshing, and remodeling their stores, it is unclear that such large investments are worthwhile. Prior research has indicated that remodeling has only a short-term effect. However, a previously unexplored area is its effect on those who visit the store for the first time after it is remodeled (new customers) versus those who had visited before the remodeling (existing customers). This study contrasts the effect of store remodeling on new and existing customers in two field experiments with stores that underwent a major remodeling. Treatment and control stores are used in both experiments. The authors measure sales before and after the remodeling for new and existing customers; in one store, they also measure customers psychological responses. In both cases, sales increased after the remodeling effort. However, sales for new customers are significantly higher than sales for existing customers after the remodel, and this difference persists for a year. Higher sales to new customers are primarily due to more new customers being drawn to the remodeled store, their higher spend per visit, and their subsequent increased visit frequency.
AB - Although retailers invest millions of dollars in redesigning, refreshing, and remodeling their stores, it is unclear that such large investments are worthwhile. Prior research has indicated that remodeling has only a short-term effect. However, a previously unexplored area is its effect on those who visit the store for the first time after it is remodeled (new customers) versus those who had visited before the remodeling (existing customers). This study contrasts the effect of store remodeling on new and existing customers in two field experiments with stores that underwent a major remodeling. Treatment and control stores are used in both experiments. The authors measure sales before and after the remodeling for new and existing customers; in one store, they also measure customers psychological responses. In both cases, sales increased after the remodeling effort. However, sales for new customers are significantly higher than sales for existing customers after the remodel, and this difference persists for a year. Higher sales to new customers are primarily due to more new customers being drawn to the remodeled store, their higher spend per visit, and their subsequent increased visit frequency.
U2 - 10.1509/jm.13.0272
DO - 10.1509/jm.13.0272
M3 - Article
VL - 78
SP - 62
EP - 80
JO - Journal of Marketing
JF - Journal of Marketing
SN - 0022-2429
IS - 3
ER -