Perceived values, retail service quality, mediating trust and customer satisfaction on customer loyalty towards hypermarkets in Klang Valley, Malaysia

Abstract

Hypermarkets operating in Malaysia are encountering extreme complications due to intense competition in the retail sector. Hypermarkets that are able to comprehend and acknowledge the significance of customer loyalty are more likely to survive and sustain their presence in the long run. Therefore, the present study examined the effects of two multidimensional independent variables, namely retail service quality and perceived value, on customer loyalty through the mediating role of trust and customer satisfaction. For the purpose of data collection, a self-administered questionnaire was developed and a total of 361 usable responses were gathered from customers of hypermarkets located in Klang Valley. Afterwards, statistical tools particularly, Statistical Package for Social Science (SPSS) and Analysis of Moment Structures (AMOS) were used for analysing the data. Structural Equation Modelling (SEM) was run for verifying the conceptual framework of the study. Findings showed that perceived value, customer satisfaction and trust carry positive effects on customer loyalty whereas, retail service quality does not have a significant effect on customer loyalty. Furthermore, findings also disclosed that there is a positive effect of retail service quality and perceived value on customer satisfaction and trust. However, satisfaction does not have a significant effect on trust. In terms of the mediating relationships, the findings demonstrated that customer satisfaction and trust fully mediate the relationship between retail service quality and customer loyalty whereas, the relationship between perceived value and customer loyalty is partially mediated by customer satisfaction and trust. The findings derived from the study will facilitate managers of hypermarkets, particularly in Malaysia, in creating effective marketing strategies for enhancing customer loyalty. The findings will also be valuable for academics, researchers and practitioners. Based on the findings of the study, it is recommended that hypermarkets in Malaysia should continuously satisfy customers and build trust by ensuring quality retail service in order to get customer loyalty. As perceived value is important for attaining customer satisfaction, trust and loyalty, it is suggested that both utilitarian and hedonic dimensions of value should be offered to create positive experience and persuade customers to revisit hypermarkets. It is vital for hypermarkets to offer training programs to enable employees to deal with customers more effectively. Physical facilities and policies of hypermarkets should also be improved as per customers’ demand.