SERVICE INNOVATION AND BRAND LOYALTY: A SYSTEMATIC LITERATURE REVIEW COMPARING ONLINE AND OFFLINE RETAILERS

Abstract

The rapidly changing retail landscape due to digital transformation and changes in consumer preferences increases efforts to understand how innovations in services affect cross-channel (online and offline) customers’ loyalty. Some studies have found that retailing industry mainly uses technology and customizes services to promote loyalty. This systematic literature review explores the possible association between service innovation and brand loyalty by contextually analyzing the disparate frameworks of multichannel marketing and consumer linkages. In contrast, offline retailers emphasize on service innovations concerning interpersonal relations and physical interaction. Nonetheless, the seamless integration of the offline and online channels is a significant breakthrough that fades the boundaries of traditional marketing and creates new opportunities for enhancing loyalty. The research also identifies the lack of cross-channel and the enduring consequences of service innovation on brand loyalty as well as foundational research questions.