Retail service innovations and their impact on retailer shareholder value: evidence from an event study

Lien Lamey (), Els Breugelmans (), Maya Vuegen () and Anne ter Braak ()
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Lien Lamey: KU Leuven, Faculty of Economics and Business (Leuven)
Els Breugelmans: KU Leuven, Faculty of Economics and Business (Antwerp)
Maya Vuegen: KU Leuven, Faculty of Economics and Business (Antwerp)
Anne ter Braak: Maastricht University, Department of Marketing & Supply Chain Management

Journal of the Academy of Marketing Science, 2021, vol. 49, issue 4, No 10, 833 pages

Abstract: Abstract To survive in the competitive retail landscape, retailers launch service innovations designed to grant additional value to consumers. This study investigates whether and in which circumstances retail service innovations create shareholder value, using stock returns to capture investors’ point of view. An event study is used to analyze a broad, varied set of 350 service innovation announcements by publicly listed retailers. The study shows that the customer value benefit(s) aimed for by the retail service innovation (i.e., its level of convenience and engagement) has an impact on shareholder value. Moreover, this impact is contingent upon the stage of the consumer purchase process that the innovation targets, and upon the hedonic or utilitarian nature of the products offered by the retailer that initiates the innovation. The impact on retailer shareholder value is more positive for service innovations high on convenience that speed up and simplify the shopping process, when implemented at the purchase stage or by retailers offering utilitarian products. Service innovations high on engagement that focus more on non-transactional initiatives instead fare well in the post-purchase stage.

Keywords: Retailing; Service innovation; Shareholder value; Event study (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s11747-021-00777-z

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