Measuring customer loyalty through satisfaction towards retail marketing strategy : an empirical study of Malaysian hypermarkets perspectives

Abstract

Today, global market is targeted by so many established retailers, as they are looking for new potential market expansion. Malaysian hypermarkets are growing rapidly challenging in the current decades; as a result customer loyalty has become a crucial phenomenon. The purpose of this study is to measure the customer loyalty through satisfaction towards retail marketing strategy in Malaysian hypermarkets perspectives. Primary data was collected by distributing self-administered questionnaire among 350 consumers of Malaysian hypermarkets in Kuala Lumpur applying random sampling method. Data analysis conducted using descriptive statistics as well as exploratory and confirmatory factor analysis. Subsequently, by using AMOS through structural equation modeling, 292 respondents conducted to test the hypothesized relationship among the variables in the research conceptual model. Based on the result obtained from the confirmatory factor analysis, structural equation modeling was then drawn to examine the developed hypothesis as well as to test the fitness of the proposed model. Findings revealed that, there is positive impact of customer satisfaction on service quality, product quality, price strategy and store attribute. Similarly, overall customer satisfaction has direct relationship with customer loyalty, as customer satisfaction is the antecedent of customer loyalty in Malaysian hypermarket setting. Finally, it is hoped that this study could facilitate the improving customer loyalty through customer satisfaction in Malaysian hypermarkets.