What Drives Client Satisfaction at Non-profit Thrift Stores?

Wodon, Divya and Wodon, Naina and Wodon, Quentin (2013): What Drives Client Satisfaction at Non-profit Thrift Stores?

Abstract

While thrift stores are associated with the idea of thrift, it does not follow that they attract only clients with limited resources who are highly price sensitive. Today thrift stores are becoming less stigmatized and are attracting middle class clients and the better off as well. This suggests that beyond low prices, the clientele may be sensitive to other aspects of the thrift store experience, including good old customer service. The purpose of this paper is to measure and assess the drivers of client satisfaction using quantitative and qualitative data. The paper relies on a client survey implemented among the clientele of Martha’s Outfitters, a highly successful non-profit thrift store located in Washington, DC, in order to assess through basic statistics, regression analysis, as well as responses to open ended questions what drives the high level of satisfaction observed among the clientele. The results suggest that the principal factor leading to high satisfaction among the clientele is the quality of the store’s customer service. Low prices, variety in the available stock of merchandize, quality of the available merchandize, and convenience (including in terms of location) also play a role, but a less important one.

• Item Type: MPRA Paper
• Language: English
• Keywords: Thrift stores, Nonprofits, Client satisfaction, Customer service, Secondhand clothing
• Subjects: L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L31 - Nonprofit Institutions ; NGOs ; Social Entrepreneurship

References

Albinsson, P. A., and Perera, B. Y. (2009), “From trash to treasure and beyond: the meaning of voluntary disposition”, Journal of Consumer Behavior, Vol. 8, pp. 340-53

Alexander, A., Cryer, D. and Wood, S. (2008), “Location planning in charity retailing”, International Journal of Retail & Distribution Management, Vol. 36, (7), pp. 536-50.

Bardhi F., (2003), “Thrill of the hunt: thrift shopping for pleasure”, Advances in Consumer Research, Vol. 30, pp. 375-6.

Bardhi, F. and Amould, E. (2005), “Thrift shopping: combining utilitarian thrift and hedonic treat benefits”, Journal of Consumer Behaviour, Vo. 4, (4), pp. 223-33.

Cervellon, M. C., Carey, L., and Harms, T. (2012), “Something old, something used: determinants of women's purchase of vintage fashion vs. second-hand fashion”, International Journal of Retail & Distribution Management, Vol. 40, No. 12, pp. 956-74.

Christiansen, T., and Snepenger D. J. (2005), “Information sources for thrift shopping: is there a ‘thrift maven’?", Journal of Consumer Marketing, Vol. 22, No. 6, pp. 323 – 331.

Croft, N. (2003), “Product qualify strategy in charity retail: a case study”, International Journal of Nonprofit and Voluntary Sector Marketing, Vol. 8, (1), pp. 89-98.

Darley, W. K., and Lim, J. S. (1999), “Effects of store image and attitude toward second hand stores on shopping frequency and distance travelled”, International Journal of Retail & Distribution Management, Vol. 27, No. 8, pp. 311-18.

Ferrell, J. (1990), “Degradation and rehabilitation in popular culture”, Journal of Popular Culture, Vol. 3, pp. 89–100.

Guiot, D., and Roux, D. (2010), “A second-hand shoppers’ motivation scale: antecedents, consequences, and implications for retailers”, Journal of Retailing, Vol. 86, No. 4, pp. 383–99.

Guo, B. (2009), “Beyond the public safety net: the role of nonprofits in addressing material hardship of low-income households”, Nonprofit and Voluntary Sector Quarterly, Vol. 39, No. 5, pp. 784-801.

Home, S. (1998), “Charity shops in the UK”, International Journal of Retail & Distribution Management, Vol. 26, (4), pp. 155-161.

James, S. (2011), “Adapting to hard times: family participation patterns in local thrift economies”, Family Relations, Vol. 59, No. 4, pp. 383–95.

Mitchel, M., and Montgomery, R. (2010), “An examination of thrift store shoppers”, The Marketing Management Journal, Vol. 20, No. 2, pp. 94-107.

Petrecca, L (2008), “Secondhand stores reap benefits of recession”, USA TODAY, December 12.

Parsons, E. (2002), “Charity retail: past, present and future”, International Journal of Retail & Distribution Management, Vol. 30, No. 12, pp. 586-594.

Puccinelli, N. M., Goodstein, R., Grewal, D., Price, R., Raghubir, P. and Stewart, D. (2009), “Customer experience management in retailing: understanding the buying process”, Journal of Retailing, Vol. 85 No. 1, pp. 15-30.

Roux, D., and Korchia, M. (2006), “Am I what I wear? An exploratory study of symbolic meanings associated with second hand clothing”, Advances in Consumer Research, Vol. 33, pp. 29-35.

Solomon, M. R., and Rabolt, N. J. (2004), Consumer Behavior in Fashion, Englewood Cliffs, NJ: Prentice Hall.

Spena, T. R., Caridà, A., Colurcio, M., and Melia, M. (2012), “Store experience and co-creation: the case of temporary shop”, International Journal of Retail & Distribution Management, Vol. 40 No. 1, pp. 21-40.

Turley, L.W. and Milliman, R.E. (2000), “Atmospheric effects on shopping behaviour. a review of the experimental evidence”, Journal of Business Research, Vol. 49 No. 2, pp. 193-211.

Verhoef, P.C., Lemon, K.N., Parasuraman, A., Roggeveen, A., Tsiros, M. and Schlesinger, L.A. (2009), “Customer experience creation: determinants, dynamics and management strategies”, Journal of Retailing, Vol. 85 No. 1, pp. 31-41.

Williams, C. C. (2003), “Participation in alternative retail channels: a choice or necessity?”, International Journal of Retail & Distribution Management Vol. 31, No. 5, pp. 235-43.

Williams, C. C., and J. Windebank (2000), Modes of goods acquisition in deprived neighbourhoods, The International Review of Retail, Distribution and Consumer Research Vol. 10, No.1, pp. 73-94.

Williams, C. C., and C. Paddock (2003), “The meanings of informal and second-hand retail channels: some evidence from Leicester”, The International Review of Retail, Distribution and Consumer Research Vol. 13, No. 3, pp. 317-36.

Wodon, D., Wodon, N., and Wodon, Q. (2013a), Opening a new thrift store: performance, competition, pricing, and financial sustainability, Washington, DC: Non-profit Research Project.

Wodon, D., Wodon, N., and Wodon, Q. (2013b), Thrift stores funding food Pantries: a win-win strategy for nonprofits serving the poor?, Washington, DC: Nonprofit Research Project.