Exploring Factors Influencing Customer Loyalty: An Empirical Study on Malaysian Hypermarkets Perspective

Abstract

Aims: The main purpose of this paper is to examine the factors that influencing consumers’ loyalty in Malaysian hypermarkets context. Study Design: A total of 292 respondents were selected randomly who purchased products from hypermarkets. Data were examined using descriptive frequency, correlations, principal component and exploratory factor analysis (EFA), confirmatory factor analysis (CFA), measurement model, structural model and hypothesized path coefficient. Place and Duration of Study: Data was collected from Malaysian hypermarkets (Giant, Tesco and Carrefour) in federal territory area in Kuala Lumpur, between February and April 2013. Methodology: A self-administered questionnaire was developed to collect information through random sampling method. The study employs structural equation modeling (SEM) approach using confirmatory factor analysis and test the hypothesized positive correlation between exogenous and endogenous constructs to identify the customers’ loyalty. Results: The result showed that service quality, product quality and price strategy both have positive impact on customer loyalty. The finding also revealed that price strategy was highly significant with consumers’ loyalty in Malaysian hypermarkets context. Conclusion: This research is empirically validated the proposed causal relationship between the independent and dependent variable and it also allowed in testing all the correlations concurrently. The main contribution of this study is that it proposes a way to assess customer loyalty in retail marketing strategic plan that influence consumers to repurchase product in Malaysian hypermarkets. The study has proposed a conceptual hypothesized model that is necessary for further exploration and opens the gate for future research.