Exploring the influence of flagship store experience and consumer interactions on purchase behaviour

Abstract

Purpose: Flagship stores are designed to provide the ultimate shopping experience, substantially improving customer satisfaction and loyalty in competitive retail markets. This study investigates how customer experience (CX) influences retail success in Brazil by comparing customer perceptions and experiences in flagship and conventional stores. Design/methodology/approach: A survey was collected from 220 participants in a Brazilian fitness store chain and analysed with multiple analytical techniques. Initially, analysis involved a multigroup partial least squares structural equation modelling (PLS-SEM) framework to assess measurement models and structural relationships, followed by necessary condition analysis (NCA) to identify essential antecedents required for positive customer experiences and high purchase intentions. Main Findings: The results indicate that CX significantly influences retail purchase intentions, with no substantial differences in how this effect manifests in flagship versus conventional store formats. However, additional value perceptions specific to flagship stores, along with physical ambiance and cognitive-emotional customer connections, have emerged as necessary conditions to augment CX. Theoretical contribution: This study adds to retail theory by exploring CX across different retail environments using an integrated PLS-SEM and NCA methodology. Practical contribution: This encourages retailers to integrate effective interpersonal interactions, strategic marketing efforts, and value-added services to enhance customer satisfaction and cultivate loyalty. Relevance/Originality: This study empirically validates how customer experience elements drive purchase decisions across flagship and conventional stores. The study urges retailers to enhance customer satisfaction and loyalty through effective interactions and marketing, while showcasing the value of combining PLS-SEM and NCA.