Effective Communication Strategies for Store Remodeling

Abstract

Hospitality operators spend millions of dollars on store remodeling; however, existing research offers little guidance on how to effectively communicate such investments to consumers. This study examines the joint effects of explanation type (customer-focused vs. brand-focused vs. control) and relationship type (communal vs. exchange) on consumers’ opinions of remodeling, feelings of trust, and brand attitudes. Overall, the results indicate that a customer-focused explanation is more effective in gaining customer support for store remodeling. The positive impact of a brand-focused explanation is limited to brand attitudes among exchange-type customers, while a customer-focused explanation is effective in both communal and exchange relationships. Furthermore, the results show that feelings of trust are the underlying mechanism explaining the relationship between explanation type and brand attitudes. Findings of this study suggest that hospitality managers should consider store remodeling as a great advertising opportunity to leverage consumers’ brand evaluations.