Abstract—Loyalty is a phenomenon that has always received
a great deal of interest among marketers, specifically from
retailing side. The study tries to further the understanding
towards this phenomenon by trying to test the inclusion of
(merchandise and service) quality, and satisfaction as the
determinants of store loyalty. The paper tries to answer the
question whether merchandise quality and service quality are
independently associated with store loyalty along with customer
satisfaction or associated through interaction. Specifically, the
present work aims to study the role of merchandise quality,
amidst store satisfaction and service quality, in the formation of
store loyalty. Hierarchical regression is employed to test the
drawn hypotheses. The findings of the study indicate that
service quality, and customer satisfaction show significant
influence on store loyalty. The merchandise quality does not
show significant influence on store loyalty. But the interactive
effect of merchandise quality and service quality is found to
improve the model. The results of the study help in identifying
the factors which are more important to focus in strategizing
issues related to store loyalty in a more specific manner.
Index Terms—Store loyalty, Customer satisfaction,
Merchandise quality, Service quality, Retailing.
Dr. N. R. V. Ramana Reddy (Principal) is with the Annamacharya PG
College of Management Studies, Rajampet, Andhra Pradesh, India 516126
(Corresponding author; phone: +919848998647; fax: +91-8565-200242;
e-mail: aitsap@yahoo.co.in).
Dr. T. N. Reddy (Head – Dept. of Humanities) is with JNTU College of
Engineering, Pulivendula, Andhra Pradesh, India (e-mail:
tnreddy_jntu@yahoo.co.in).
B. Abdul Azeem is with the Annamacharya PG College of Management
Studies, Rajampet, Andhra Pradesh, India 516126 (e-mail:
babdul.azeem@gmail.com).
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Cite:N. R. V. Ramana Reddy, T. N. Reddy, and B. Abdul Azeem, "Influence of Store Satisfaction, Merchandise Quality, and Service Quality on Store Loyalty," International Journal of Trade, Economics and Finance vol.2, no.5, pp. 351-355, 2011.