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

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.

An Inquiry into the Effectiveness of an In-Game Sponsorship Activation Experience on Sponsorship Awareness and Share of Wallet

This article explores the impact of an In-Game Sponsorship Activation Experience (SAE) on its ability to promote sponsorship awareness and share of wallet gains for the sponsoring brand of a college basketball team. The term In-Game SAE is introduced to the literature and is defined as entertainment featuring the sponsoring brand that occurs during a game, which allows for voluntary fan participation. In addition, three other sponsors of the same team are studied that did not utilize an In-Game SAE. Results indicate that an In-Game SAE elevates awareness and share of wallet among attendees as compared to the television audience. These differences were not found for sponsors that lacked an In-Game SAE. Th ese results suggest an In-Game SAE creates memorability with attendees that translates into marketplace support. Additionally, the study finds that general purchase intentions and team identification are unreliable predictors of sponsorship awareness.

The missing link in the promotion of customer engagement: the roles of brand fan page attractiveness and agility

PurposeThe purpose of this study is threefold, which is as follows: investigate the mediating effect of brand fan page attractiveness on the relationship between user gratifications and customer engagement with brand fan pages, determine whether fan page agility moderates this effect and examine the influence of fan page engagement on customers' share of wallet and resistance to negative brand information.Design/methodology/approachBy using an online questionnaire, 614 valid responses were obtained from the followers of multiple Facebook brand fan pages. Partial least squares-structural equation modelling (PLS-SEM) was used to analyse the data.FindingsThe results indicate that fan page attractiveness mediates the relationship between user gratifications and fan page engagement. However, this relationship is moderated by fan page agility. Fan page engagement increases customers' share of wallet and resistance to negative brand information. This finding suggests that creating fan page content and interactions that are attractive to customers is not sufficient for promoting engagement; brand fan pages must also be agile to customers' changing needs and competitors' moves.Originality/valueBy proposing and testing a novel moderated mediation effect, this study enriches the uses and gratifications theory (UGT) and provides new insights into the underlying mechanisms and boundary factors driving fan page engagement. In addition, this study contributes to the customer engagement literature by introducing share of wallet and resistance to negative brand information as outcome variables.

An integrated model for customer equity estimation based on brand equity

Brand equity (BE) and customer equity (CE) are the two crucial and closely linked concepts in marketing research. This research outlines a new conceptual framework to explore the relationship between the critical elements of BE and CE. Furthermore, using marketing activities, the study quantifies the effect of these activities on CE. The value of CE is computed based on a customer lifetime value (CLV) model in which linear, logistic, and beta regression are used to predict BE, customer acquisition, and customer share of wallet, respectively. We conducted an empirical analysis through questionnaires in an elevator company. The results reveal that brand knowledge and brand differentiation positively relate to customer acquisition. Also, for both existing customers and prospects, brand differentiation plays an important role in the share of wallet. The findings also show that marketing activities have a positive and significant impact on brand knowledge and brand differentiation, and consequently, through the mediating role of BE between marketing activities and CE, on customer acquisition and share of wallet.

Rethinking share-of-wallet at the bottom of the pyramid: using financial diaries to observe monthly category trade-offs

PurposeThis study provides empirical evidence for the impact that income and expenditure fluctuations have on understanding the fundamentals of BoP household share-of-wallet in South Africa.Design/methodology/approachThe study used a longitudinal financial diary methodology to record household income in 80 households (in four different geographic areas) over four monthly waves.FindingsThe study showed the lack of reliability of aggregated population income and expenditure surveys when understanding the specific behaviour of BoP households. The study concludes that major category trade-offs occur on a monthly basis, and that these trade-offs directly impact our fundamental understanding BoP SoW.Originality/valueWhile the BoP consumer theory is developing (especially in the last decade), most of the theory is focused on development and business strategy. Empirically based consumer theory is noticeably lacking, given that the BoP is the largest population segment on earth. In addition, research is largely absent of highly rigourous and in-depth quantification of consumer SoW behaviour. This study contributes to the BoP theory by examining monthly fluctuations in income and expenditure, a line of analysis not done before to this extent. In doing so, the study proposes a new metric for the measurement of category expenditure as an index of the total spend.