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

The study addresses how retail mix instruments in FMCG brick-and-mortar settings influence customer perceived value and customer engagement, especially in the post–COVID-19 environment where physical stores remain important but face intensified competition and shifting consumer expectations. Drawing on the stimulus–organism–response (S-O-R) framework, the authors propose that retail mix instruments (stimuli) activate customer value perceptions (organism), which then shape customer engagement behaviors (responses). The research gap lies in limited understanding of the interrelationships among retail mix elements, multidimensional customer value perceptions, and engagement. The study focuses on FMCG hypermarkets in Thailand and explores which retail mix instruments attract Gen-X and Gen-Y customers and how these instruments influence value perceptions and engagement, ultimately proposing a revised conceptual framework and practical guidance (illustrated via sales promotions).

The literature review adopts S-O-R (Mehrabian & Russell, 1974) as the overarching theory, conceptualizing retail mix instruments as stimuli, customer perceived value as the organism, and engagement as behavioral response. Prior work identifies numerous retail mix instruments suitable to context (e.g., products, services, brands, incentives, communication, price, distribution) and emphasizes their role in shaping behavior and experiences (e.g., Blut et al., 2018). Customer value is multidimensional: beyond the prevalent utilitarian/hedonic distinction, the review details functional, economic, social, epistemic, and conditional value dimensions relevant to retail contexts. Customer engagement has been approached as behavioral manifestations beyond purchase, psychological states, dispositions, and process/stages, with behavioral manifestations most studied (e.g., WOM, loyalty, reviews). Prior studies indicate links between retail mix and customer value, between retail mix and engagement, and between perceived value and post-purchase behaviors, but rarely integrate all three in one framework. The review motivates a proposition that retail mix instruments trigger value perceptions that, in turn, drive engagement, with potential mediating and moderating roles and context-specific nuances (e.g., COVID-19 as a situational factor).

Qualitative design using semi-structured interviews grounded in the S-O-R framework to elaborate retail stimuli, value perceptions, and engagement responses. Context: FMCG hypermarkets in Thailand (two key players, anonymized as Store-A and Store-B). Sampling: convenience and snowball sampling targeting Gen-X and Gen-Y consumers who had visited both stores. Screening ensured age cohort and store visitation experience. Data collection: 40 interviews in February 2023 (12 on-site at store locations, 28 online). Interview guide followed Spradley (1979), beginning with rapport-building, then open-ended exploratory questions on retail mix instruments, reasons, and experiences; probes examined specific elements (e.g., sales promotions). Participants recalling online were asked to focus on a recent in-store visit and to keep answers to one retail location per interview. Field notes and audio recordings were transcribed verbatim and translated. Analysis: inductive thematic analysis per Braun and Clarke (2006), line-by-line coding to categories and themes. Triangulation across on-site and online sources showed convergence. Saturation was reached around the 28th–30th interview; total N=40. Two investigators (social constructionist paradigm) iteratively refined themes; extensive literature search supported and strengthened interpretations. Inter-judge reliability reached 90% (Weber, 1990). Ethics: Approval by Khon Kaen University Ethics Committee (Record No.4.3.01: 32/2565; Ref. HE653290). Thematic results informed a revised conceptual framework and a practice-oriented illustration focusing on sales promotions.

• Identified 12 retail mix instruments as stimuli influencing six value dimensions and four engagement behaviors.
• Retail mix instruments (stimuli): store reputation; product quality; product and brand variety; store layout and shelf arrangement; store ambiance; location and parking facility; store variety (co-located shops/entertainment); sales promotions; advertising; staff service (personal selling); delivery service (home delivery, click-and-collect/drive-through); self-service (e.g., self-service kiosks).
• Customer perceived value (organism): functional (convenience, time/effort saving, quality), economic (savings, deals), emotional (affect during shopping), social (doing activities with others, feeling recognized), epistemic (curiosity/novelty/knowledge), conditional (time-bound/seasonal contexts).
• Customer engagement (response): continue shopping at the store (revisit/retention), additional purchases, customer recommendations (WOM/referrals), follow store news (e.g., via social media/app).
• Instrument-specific insights: • Store reputation signaled quality (Store-A) or low prices (Store-B), mapping to functional and economic value; reputation and perceived quality interrelated. • Product quality was central to store choice and continued patronage. • Product and brand variety increased perceived convenience (functional value) and predicted revisits, purchase intention, and retention. • Store layout and shelf arrangement supported functional value (speed, ease, time-saving); poor arrangement (e.g., messy clearance) diminished perceived quality/value. • Store ambiance (light, air, cleanliness) affected emotional value, revisit intentions, and even reputation perceptions. • Location and parking created functional value (proximity, time-saving) and emotional outcomes (reduced irritation); lack of parking deterred visits. • Store variety (restaurants, cinemas, other retail) enhanced functional, social, and emotional value, encouraging longer stays and future engagement. • Sales promotions generated economic, functional, social, epistemic, and conditional value depending on format and timing; time-bound coupons could reduce emotional value if expire too soon; ready-to-eat markdowns sometimes decreased perceived quality (functional) under hygiene concerns; promotions interacted with product quality and store reputation. • Advertising via preferred channels (Gen-X: traditional; Gen-Y: digital) facilitated interactions, referrals, and perceived value; misaligned channels reduced emotional value (e.g., SMS annoyance). • Staff service transferred key information (e.g., promotions), raising economic/functional value and spurring additional purchases and recommendations; service mindset during peak times mattered. • Delivery service supported functional value (convenience/logistics), aiding continued shopping; demand for drive-through increased post-COVID-19. • Self-service (e.g., kiosks) sought for convenience, time saving, and hygiene (especially post-COVID-19), supporting functional value.
• COVID-19 as situational factor (other stimulus) elevated hygiene concerns and demand for service innovations (drive-through, SSKs), shaping value perceptions and engagement.
• Generational differences emerged (e.g., media preferences; differing reactions to gifts/promotions).
• Sample: N=40; data saturation ~28–30; inter-judge reliability 90%.

The findings substantiate the S-O-R proposition that retail mix instruments (stimuli) activate multiple customer value dimensions (organism), leading to engagement behaviors (responses). The study advances theory by classifying the 12 instruments into two categories: integrated marketing communication tools (sales promotions, advertising, staff service/personal selling) and store characteristics (reputation, quality, assortment, layout/arrangement, ambiance, location/parking, co-located variety, delivery, self-service). This classification highlights their complementary roles and potential interactions (e.g., promotions amplifying perceived product quality/value-for-money, staff amplifying promotional impact). The proposed framework also incorporates situational factors (e.g., COVID-19) as external stimuli and acknowledges demographic moderators (Gen-X vs Gen-Y) and interrelationships among value dimensions (e.g., economic value from discounts cascading into functional evaluations). The research agenda suggests examining additional IMC elements (PR, direct marketing), new store features (e.g., children’s play areas), interactions among combined instruments, nuanced positive/negative effects (e.g., time-limited deals), other external stimuli (peer interactions, macro events), broader value dimensions (e.g., environmental value), and extending outcomes to loyalty, satisfaction, customer experience, and journey perspectives.

The study develops and qualitatively substantiates a comprehensive conceptual framework explaining how retail mix instruments influence customer perceived value and engagement in FMCG retail. Through 40 interviews with Gen-X and Gen-Y shoppers in Thailand, it identifies 12 retail stimuli, six value dimensions, and four engagement behaviors, and organizes stimuli into IMC tools and store characteristics. An application centered on sales promotions demonstrates how specific tactics can be designed to induce targeted value perceptions and engagement. The work contributes a research agenda for testing and extending the framework and offers practical guidance for constructing retail mixes aligned with customer decision processes.

The proposed conceptual framework requires validation (the article states validation with qualitative data) and testing with broader and more diverse customer groups. Future research should include other generational cohorts and income levels in Thailand, examine other countries to assess generalizability, and investigate retail contexts beyond FMCG.