Retail Patronage: When Customer–Retailer Relationships Go Beyond Transactions

The purpose of this master thesis is to conceptualize retail patronage as a multidimensional construct. A clear understanding of patronage is essential. It refers to a long-term relationship grounded on mutual exchange between customer and retailer and is therefore clearly separated from loyalty. Although retail patronage has been widely examined in research, existing studies predominantly focus on isolated determinants offered by the retailer. A coherent conceptualization that integrates the retailer’s investments and the customer’s commitment has not been developed. To address this gap, the study combines insights from a literature review, established theories and findings from interpersonal relationships in a preliminary concept of retail patronage.
To refine and validate this model, 81 semi-structured interviews with customers were conducted to gain deeper insights and enhance the initial concept. Findings reveal that the customer shows commitment with offering satisfaction, loyalty, WOM, trust and forgiveness toward the retailer. The retailer responds with service-based (sales personnel, service quality, store atmosphere), economic (assortment, price and value, location, product quality, store layout) and relational (personalization, store image) investments. Additionally, the retailer demonstrates investment by offering loyalty through individual discounts and loyalty programs. The interaction of these reciprocal exchanges generates customer experience, emotional bonds, familiarity, reciprocity and a long-term relationship.
The study proposes several theoretical implications by advancing a multidimensional understanding of patronage. Practitioners may also benefit from enhanced insights into patronage and relationship dynamics. However, since interviews were only conducted with customers and the age distribution is not well balanced, there is room for future research.