The Effect of Consistent Pricing Strategies and Integrated Return Fulfilment on Customer Satisfaction and Repurchase Intention

Abstract

Omnichannel strategies have been widely adopted among retailers over the past decade. However, research on the effect of omnichannel strategies in the Norwegian retail environment remains limited. This thesis aims to fill this research gap by investigating the effect of some omnichannel services on consumer behaviour. Based on the principles of the Stimulus-Organism-Response (SOR) framework, we propose that consistent pricing strategies and integrated return fulfilment have an indirect effect on repurchase intention, which is mediated through satisfaction and moderated by involvement. The thesis employs a 2x2x2 mixed factorial design in two retail categories to manipulate consistent pricing strategies, integrated return fulfilment, and levels of involvement.

The conceptual framework was broken down into three components for a comprehensive analysis. Our results support the well-established effect of satisfaction on repurchase intention. Furthermore, consistent pricing strategies and integrated return fulfilment were found to have a significant effect on satisfaction and repurchase intention. While involvement was found to moderate the effect of consistent pricing strategies on satisfaction, it did not moderate the effect of integrated return fulfilment. Although the overarching models were not found to be significant, this thesis provides valuable insights for Norwegian retail managers. From a customer behaviour perspective, we recommend retail managers with many high-involvement customers to implement consistent pricing strategies. Conversely, focusing on integrated return fulfilment might be more valuable for those with more low-involvement customers.