The Impact of User-Generated Content on Customer Loyalty in Food and Beverages Retail: An Empirical Study

Abstract

This study analyses the effect of user-generated content (UGC) on the loyalty of UGC recipients in a European retail environment. An online experiment was conducted, which returned 1,074 completed questionnaires. Intensive involvement with UGC significantly increases the affective loyalty of retail customers, but no significant effect was found on conative loyalty. Furthermore, trust in UGC results in significantly higher conative and affective loyalty levels. Specifically, we reveal differences in the loyalty dimensions of millennials, with UGC significantly impacting affective loyalty in this age group. Our results suggest that UGC contributes to customer loyalty and patronage in a retail setting.