The Development of Core Retailer Community Functions

Abstract

The community-building functions of socialization, mutual support, social control, and social participation are derived and tested in relation to the development of consumer loyalty and a consumer's willingness to pay more for the retailer's product. Empirical results indicate that the development of community is not, ceteris paribus, always a positive thing. Of the four core functions, retailer socialization and mutual support relate positively to consumer willingness to pay more. In addition, while retailer socialization and social participation relate positively to consumer loyalty, retailer social control relates negatively to consumer loyalty. Theoretical and managerial implications are discussed.