The Impact of Servitization on Perceived Quality, Purchase Intentions and Recommendation Intentions in the Ready-To Sector

Abstract

PurposeThis study examines the impact of servitization in the form of repair and maintenance services on consumers' quality perceptions, purchase intentions and recommendation intentions while considering consumer frugality as a moderator in the retail ready-to-wear sector.Design/methodology/approachA quantitative approach based on consumer research was pursued. Study 1 tested the research model using a fictitious ready-to-wear brand within an experimental design. To increase the generalizability of results, Study 2 retested the model with a well-known ready-to-wear brand. For both studies, regression, mediation and moderation analyses were conducted in SPSS.FindingsBoth studies showed that servitization positively influences perceived quality. Servitization positively affects purchase intentions and recommendation intentions indirectly via the mediating role of perceived quality. Frugality moderates the relationship between servitization and perceived quality for the fictitious brand (Study 1), whereas it is not significant for a well-known ready-to-wear brand (Study 2). Servitization positively influences perceived quality regardless of consumers' frugality levels for a stronger brand.Originality/valueThis study suggests and tests an original conceptual model that relies on signaling theory. It is among the first studies to examine the impact of servitization on retail fashion consumers' quality perceptions and consequent purchase and recommendation intentions. This study also contributes to the literature by presenting empirical findings based on consumer research on servitization while considering frugality as a moderator.Practical implicationsBundling products with additional services can contribute to quality perceptions and consequently to purchase and recommendation intentions for ready-to-wear brands.