A Study Of Relationship Between Customer Satisfaction And Store Loyalty

With the rapid development of the retail industry in China, the competition between retailers is getting fierce. How to keep customer loyalty is the critical success factor for retailers as it is one primary source of a long-term business performance. The relationship of customer satisfaction and customer loyalty is controversy among scholars. Some research suggests that customer satisfaction doesn't result in customer loyalty. A satisfied customer doesn't necessarily become a loyal customer. Others suggest the relationship between customer satisfaction and loyalty is more complex and indirect. These arguments provide a basis for the current study.This study proposes a store loyalty model using the concept of customer satisfaction. A review of literature suggests that involvement, perceived value, trust and affective commitment can be the mediators between the relationship of customer satisfaction and store loyalty. In addition, store loyalty is examined from the perspectives of attitudinal loyalty and behavioral loyalty. An empirical study was undertaken using six clothing brand chain stores in Chengdu. Structure equation modeling (SEM) was used for data analysis and model building.Results of the study suggest that involvement has a mediating effect between customer satisfaction and attitudinal loyalty, but its mediating effect between customer satisfaction and behavioral loyalty was not evident. The respective mediating effect of perceived value, trust and affective commitment in the relationship between customer satisfaction and store loyalty (attitudinal loyalty and behavioral loyalty) was evident. Moreover, comparatively, the impact of affective commitment on store loyalty was stronger than other three mediating variables (i.e., involvement, perceived value, trust). In addition, this study did not support the direct relationship between customer satisfaction and store loyalty. Findings of the study enhance our understanding of the relationship between customer satisfaction and store loyalty in a retail setting. This study therefore provides a guideline for retailers to keep customer loyalty.