Retail mix instruments influencing customer perceived value and customer engagement: a conceptual framework and research agenda

COVID-19 has transformed customer behavior, notably in FMCG retailers. Although online stores grow, retail mix instruments remain essential for traditional shops, as these affect customer value perceptions and engagement. While previous studies suggest that customer value perceptions and engagement are linked, little is known about the effects of retail mix instruments on customer value perceptions and engagement. This study aims to fill this knowledge gap. In this study, the stimulus-organism-response (S-O-R) framework was used to propose the a priori conceptual framework, which was further employed in investigating the phenomena and the three concepts: the impact of retail mix instruments (S) on consumer value perceptions (O) and customer engagement (R). Interviews were conducted with 40 informants recruited by convenience sampling and snowballing techniques. They were Gen-X and Gen-Y and had experience visiting two FMCG retailers in Thailand. A thematic analysis was undertaken to analyze the obtained data. The a priori conceptual framework had been revised iteratively according to the emerging theme, resulting in a new conceptual framework containing descriptive details in terms of significant themes identified from the field data and potential relationships among the three concepts. Findings revealed 12 retail mix instruments and the effect of COVID-19, which were found to affect six types of customer value perceptions, resulting in four customer engagement behaviors. The proposed conceptual framework, the study's primary theoretical contribution of the study, is used to guide potential future research agenda. To suggest how FMCG retailers may leverage the proposed conceptual framework to design strategies to promote customer engagement behaviors, an application of sales promotions is illustrated and suggests how to use sales promotion activities to induce customer value perception and their engagements.