The efficacy of consumer-employee and consumer-retailer relationships in predicting store loyalty among Korean consumers

Relationship marketing literature emphasizes that a stable relationship between consumers and marketers is beneficial to both parties. This perspective has been adopted in the service literature, and many service marketing researchers have investigated the effects of consumer-service provider relationships on business performance.; In the present study, the researcher proposed a conceptual framework and associated model to explain Korean consumers' relationships with and shopping behaviors in department stores. Specifically, this study has the following objectives: (1) to propose and test the multiple levels and dimensions of a consumer's relationship with a retailer, (2) to determine the effect of antecedent variables on the retail relationships, (3) to determine the effect of the retail relationships on consumer store loyalty, (4) to determine the effect of the length of the relationship on the dimensions of the retail relationships, and (5) to determine the effect of the relationship on the mediating role of consumer voluntary participation between the retail relationship and consumer store loyalty.; Empirical survey instruments were developed to measure Korean consumers' perceptions of and attitudes toward department stores and their employees. All measures used in the study were previously developed and tested. The sample consisted of Korean female consumers who reside in greater Seoul, S. Korea. Data were collected during July 2003; four hundred and eight usable questionnaires were analyzed.; In the present study, structural equation modeling analyses were conducted to test the hypotheses. The results of the second-order factor analysis supported the existence of two levels of retail relationship (consumer-employee and consumer-retailer). As proposed, a two-dimensional consumer-employee relationship (satisfaction with employees and trust in employees) and a three-dimensional consumer-retailer relationship (satisfaction with, trust in, and commitment to store) were supported.; This study found that employee service, retail operations, retail facilities, and business ethics positively affect the consumer-employee relationship, while only merchandise quality and retail operations positively affect the Consumer-Retailer Relationship. The results indicate that it is the consumer-employee relationship that is directly affected by various retail attributes, however, this consumer-employee relationship ultimately affects the consumer-retailer relationship. A two-group comparison SEM analysis found that trust in employees becomes more important in the consumer-employee relationship for consumers with a longer relationship with the department store, and store commitment was more important for long-term consumers in the consumer-retailer relationship. Marketing implications for retailers are discussed.