The Role of Retail Mix Elements in Enhancing Customer Engagement: Evidence from Thai Fast-Moving Consumer Goods Retail Sector

Abstract

The current understanding of the effect of the retail mix elements on customer engagement is limited. This study aims to investigate these relationships using a case study of Thai FMCG retail. A review of the relevant literature was conducted to propose a conceptual model consisting of the five retail mix elements (product, service, store, experience, and sales promotions) and customer engagement. A survey methodology was used to empirically validate the proposed conceptual model. Eight-hundred customers who had experience in shopping at two FMCG retail stores located in Khon Kean City participated in the survey. Obtained data were analyzed using generalized structured component analysis. Results show that four retail mix elements, all except the product aspect, significantly affected customer engagement. A multiple-group analysis was conducted using R package lavaan to further investigate the differences between the two retail stores, revealing the shortfalls of one retailer in respect of the other. This paper theoretically contributes to the retail literature by answering a call for investigation of the impact of FMCG’s retail mix elements on customer engagement. In addition, the study’s results lead to a proposition of strategies that form a pratical contribution, and which may be useful for the retailers under investigation and other retail businesses.