Building retail tenant trust: neighbourhood versus regional shopping centres

Jane Roberts · Bill Merrilees · Carmel Herington · Dale T. Miller

23 citations0/0 files storedInternational Journal of Retail & Distribution Management

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Customer Service Quality and Loyalty Quality and Supply Management Consumer Retail Behavior Studies

Abstract

Purpose Trust is the basis of business relationships. The purpose of this paper is to explore the antecedents of trust in the context of the relationship between shopping centre management and retail tenants, primarily from the retailer perspective, as a first test of trust in such business‐to‐business relationships. A contrast is made between neighbourhood and regional centres to determine if centre size affects trust development. Design/methodology/approach Quantitative research methods are used. The focus is a sample of 201 retail tenants in Australian shopping centres. Psychometric properties were assessed for all multi‐item scales used to capture variables of interest. Multiple regression analysis is used to explain trust in terms of five key influences: power of the centre manager (as a negative relationship), empowerment of the retailer, flexibility, responsiveness and the shopping centre brand. Findings Empowerment, restraint of power and responsiveness are the main determinants of trust. Power is especially critical in regional shopping centres. The shopping centre brand and flexibility play important support roles in neighbourhood centres. Research limitations/implications The lack of comparable studies limits the generalizability of the results to other countries. Practical implications Centre managers, in larger planned shopping centres, who want greater retail tenant trust, should not demonstrate their power overtly in, say, rent negotiations. They could also learn from small centres about being flexible and projecting a more unified centre brand. Originality/value This empirical study probes the antecedents of trust in Australian shopping centres, a previously neglected area in the shopping centre literature. The paper is unique because it contrasts neighbourhood and regional shopping centres.

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References

1994The Commitment-Trust Theory of Relationship Marketing 1994Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques 2003Development and Validation of a Brand Trust Scale 2000The determinants of perceived service quality and its relationship with satisfaction 1982An Applied Service Marketing Theory 1999Organizing and Managing Channels of Distribution 2006Service quality, customer satisfaction, and behavioral intentions in the service factory 1998Empowerment: theory and practice

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