A Conceptual Framework on Reconceptualizing Customer Share of Wallet (SOW): As a Perspective of Dynamic Process in the Hospitality Consumption Context

Jooa Baek and Jaeseok Lee
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Jooa Baek: Doctor of Business Administration Program, Goldey-Beacom College, Wilmington, DE 19808, USA
Jaeseok Lee: Faculty of Hospitality and Tourism Management, Macau University of Science and Technology, Macao, China

Sustainability, 2021, vol. 13, issue 3, 1-11

Abstract: The consumer decision journey is a complex and situation-dependent process. In highly competitive markets with diverse brands in the hospitality industry, it is important to understand how customers’ wallets are allocated to a particular brand among a set of competing brands. A review of the literature indicates that customers generally follow a previous purchasing experience and its evaluation (e.g., satisfaction, preference) but may change their former decisions at the purchasing moment through the dynamic process. This study builds upon the concept of brand categorization to understand complex choice behavior and the customer’s share of wallet. This study proposes a conceptual framework incorporating several recent theoretical developments in consumer research to better understand customers’ purchasing behavior in the hospitality industry. As such, it provides guidelines for designing a more effective marketing and communication strategy for hospitality entities.

Keywords: share of wallet (SOW); consumer choice behavior; brand categorization (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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