Signaling the Store Attributes on Customer Store Loyalty mediated through Hedonic, Social and Utilitarian Customer Values

Abstract

Developing customer loyalty is the primary objective for retailers. Price pressures faced by the developing economies leave a small margin for retailers. Increasing the frequency and repeat purchases can help retailers to increase their profit margins. Customers can only be retained if they are loyal. This research is carried out to understand the dynamics underlying the store attributes and customer loyalty. It has examined the impact of Store attributes on Customer Store Loyalty mediated through Customer Value. In this research, a sample of 300 customers was taken from two departmental stores, particularly, Chase Up and Imtiaz. This study has taken 3 Store attributes; Store Atmosphere, Merchandise Quality, and Relationship Marketing and assessed their impact on Store Loyalty mediated through 3 types of Customer Values; Hedonic, Social and Utilitarian. Structural equation modeling was carried out using the Partial Least Squares method in SMART-PLS software. The results showed that Merchandise Quality, Relationship Marketing and Store Atmosphere impact Store Loyalty mediated through Hedonic and Utilitarian Values. Social Value is not significant and does play a role in creating Loyalty. The study concludes by identifying gaps in the literature and recommending practical and theoretical implications for the same.