Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 32731
Indonesian Store Loyalty Factors for Modern Retailing Market

Authors: Lina Salim


Modern retailers such as hypermarket/supermarket need to be more customer-oriented in order to survive in today-s competitive business world. As a result, the investigation of determinant factors of store loyalty becomes important issue for modern retailing players. This study suggests that consumers- store loyalty in the modern retailing market (hypermarkets and supermarkets) is influenced by environmental factors (such as store image, store personnel). Using a model of stimulus-organismresponse (S-O-R), this research examines S-R relationship of store loyalty. S-O-R framework is derived from the existence literature and tested empirically based on Indonesian consumers- experience. The stimuli for this study are store image, store personnel, satisfaction and culture factors. Affect, or the consumers- liking to modern retailing stores, mediates the chosen environmental factors on consumer-s store loyalty. The findings showed that store image, store satisfaction and culture have significant positive relationship to store loyalty via affect.

Keywords: Affect, Culture, Store Image, Store Loyalty, StorePersonnel, Store Satisfaction

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2434


[1] D. Ball, P.S. Coelho, and A. Machás, "The role of communication and trust in explaining customer loyalty - an extension to the ECSI model," European Journal of Marketing, vol. 38, no. 9/10, pp. 1272-1293, 2004.
[2] S. Auh, "The effects of soft and hard service attributes on loyalty: the mediating role of trust," Journal of Services Marketing, vol. 19, no. 2, pp. 81-92, 2005.
[3] M. J. Miranda, L. K├│nya, and I, Havrila,"Shoppers- satisfaction levels are not the only key of store loyalty," Marketing Intelligence & Planning, vol. 23, no.2, pp. 220-232, 2005.
[4] G. Özer, S. Aydin, and Ö. Arasil, "Customer loyalty and the effect of switching costs as a moderator variable - a case in the Turkish mobile phone market," Marketing Intelligence & Planning, vol. 23, no. 1, pp. 89-103, 2005.
[5] G. Macintosh, and L. Lockshin, "Retail relationship and store loyalty: a multi-level perspective", Journal of Research in Marketing, vol. 14, pp. 487-497, 1997.
[6] S.D. Knox, and T.J. Denison, "Store loyalty: Its impact on retail revenue. An empirical study of purchasing behaviour in the UK," Journal of Retailing & Consumer Services, vol. 7, no.1, pp. 33-45, Jan. 2000.
[7] D-M. Ko, "Inter-relationships among store images, store satisfaction, and store loyalty among Korea discount retail patrons," Asia Pacific Journal of Marketing and Logistics, 15 (4) 42-71, 2003.
[8] S. Sawmong, DR., and O. Omar, "The store loyalty of the UK- Retail consumers", The Journal of American Academy of Business, Cambridge, pp. 503-509, Sept. 2004.
[9] A. Mehrabian, and J. A. Russell. An approach to environmental psychology. Cambridge, Massachusetts, and London, England: The Massachusetts Institute of Technology (MIT) Press, 1974.
[10] R. J. Donovan, and J. H. Rossiter, "Store atmosphere: an environmental psychology approach," Journal of Retailing, vol. 58, no. 1, pp. 34- 57, Spring, 1982.
[11] P. M. Anderson, "Personality, perception and emotional-state factors in approach-avoidance behaviors in the store environment," AMA Educators- Proceedings, 1986, pp. 35-39.
[12] E. Sherman, and R. B. Smith, "Mood states of shoppers and store image. Promising interactions and possible behaviors effects," in Advances in Consumer Research, 13, Richard J. Lutz (Ed.), Provo, UT, Association for Consumer Research, 1986.
[13] J. Baker, D. Grewal, and A. Parasuraman, "The influence of store environment on quality inferences and store image," Journal of Academy Marketing Science, vol. 22, no. 4, pp. 328-339, 1994.
[14] K. Spies, F. Hesse, and K. Loesch, "Store atmosphere, mood and purchasing behavior," International Journal of Research in Marketing, vol. 14, pp. 1-17, 1997.
[15] E. Sherman, A. Mathur, and R.B. Smith, "Store environment and consumer purchase behavior: mediating role of consumer emotions," Psychology and Marketing, vol. 14, no. 4, pp. 361-378, 1997.
[16] S. J. Bell, "Image and consumer attraction to intraurban retail areas: an environmental psychology approach", Journal of Retailing and Consumer Services, vol. 6, pp. 67-78, 1999.
[17] G. R. Foxall, and M. M. Yani-de-Soriano, "Situational influences on consumers- attitudes and behavior", Journal of Business Research. Article in Press, 2003.
[18] D. J. Burns, and L. Neisner, "Customer satisfaction in a retail setting - the contribution of emotion," International Journal of Retail & Distribution Management, vol. 34, no. 1, pp. 49-66, 2006.
[19] R. J. Donovan, J. H. Rossiter, G. Marcoolyn, and A. Nesdale, "Store atmosphere and purchasing behavior", Journal of Retailing, vol. 70, no. 3, pp. 283-294, Fall, 1994.
[20] A. C. Nielsen - 2006 Asia Pacific Retail and Shoppers Trends -the latest on FMCG and shopper retailing trends. 2006
[21] R. S. Woodworth, "Dynamic psychology," in Hung-Chang Chiu, Yi- Ching Hsieh, Yu-Chuan Li & Monle Lee (2004). Relationship marketing and consumer switching behavior. Journal of Business Research. Article in Press, 1928.
[22] R. W. Belk, "Situation variables and consumer behavior", Journal of Consumer Research, vol. 2, pp. 157-163, Dec. 1975.
[23] R. E. Petty and J. T. Cacioppo, The elaboration likelihood model of persuasion-advances in experimental social psychology (10th Ed.) New York, NY: L. Berkowitz Academic Press, 1986.
[24] M. Sullivan, and D. Adcock, Retail marketing. Mason, Ohio: Thomson Publishing, 2002.
[25] G. R. Foxall, Consumer behavior - a practical guide (Revised Ed.). London, New York: Routledge, 1991.
[26] G. R. Foxall, "The emotional texture of consumer environments: a systematic approach to atmospherics," Journal of Economic Psychology, vol. 18, pp. 505-523, 1997.
[27] D. L. T. Chze, and B. B. T Lin, B. B. T., "Linking consumer perception to preference of retail store: an empirical assessment of the multiattribute of store image," Journal of Retailing and Consumer Services, vol. 10, pp. 193-200, 2003.
[28] J. A. Russell, and A. Mehrabian, A., "Environmental variables in consumer research," Journal of Consumer Research, vol. 3, pp. 62-63, 1976.
[29] J. M. Carman, "Correlates of brand loyalty: some positive results," Journal of Marketing Research, vol. 7, no. 2, 67-76, Feb. 1970.
[30] E. Seggev, "Brand assortment and consumer brand choice," Journal of Marketing, vol. 34, no. 4, pp. 18-24, Oct. 1970.
[31] P. Charlton, "A review of shop loyalty," Journal of Market Research Society, vol. 15, no.1, pp. 35-51, 1976.
[32] R. M. Cunningham, "Customer loyalty to store and brand?" Harvard Business Review, vol. 39, pp. 127-137, Nov. - Dec. 1961.
[33] M. Levy, Ph.D, & B. A. Weitz, Ph.D, Retailing management. (5th Ed.). Singapore: McGraw-Hill/Irwin, 2004.
[34] J. P. Peter, and J. C. Olson, J. C., Consumer behavior and marketing strategy (7thEd.). New York, NY: McGraw-Hill/Irwin, 2005.
[35] P. A. Garton, "Store loyal? A view of "differential congruence," International Journal of Retail & Distribution Management, vol. 23,no. 12, pp. 29-35, 1995.
[36] J. Jacoby, and R. W. Chestnut, Brand loyalty measurement and management. Canada: A Ronald Press Publication - John Wiley & Sons, Inc., 1978.
[37] M. R. Solomon, Consumer behavior-buying, having and being (6thEd.). Upper Saddle River, New Jersey, 07458: Pearson Education International-Prentice Hall, 2004.
[38] I. Ajzen, and M. Fishbein, Understanding attitudes and predicting social behavior. Englewood Cliffs, NJ: Prentice Hall, 1980.
[39] J. Bloemer, and G. ├ûderkerken-Schröder, "Store satisfaction and store loyalty explained by customer and store-related factors," Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, vol. 15, pp. 68-80, 2002.
[40] P. Martineau, "The personality of the retail store. Harvard Business Review, vol. 36, no. 1, pp. 47-55, Jan-Feb 1958.
[41] J. D. Linquist, "Meaning of image - a survey of empirical and hypothetical evidence," Journal of Retailing, vol. 50, no. 4, pp. 29-38, 116, Winter, 1974-75.
[42] W. O. Bearden, "Determining attributes of store patronage: downtown versus outlying shopping areas," Journal of Retailing, vol. 53, pp. 15- 22, 1977.
[43] J. Bloemer, and K. de Ruyter, K. "On the relationship between store image, store satisfaction, and store loyalty," European Journal of Marketing, vol. 32, no. 5/6, pp. 499-513, 1998.
[44] P. Huddleston, J. Whipple, and A. VanAuken, A. (2004). "Food store loyalty: application of a consumer loyalty framework," Journal of Targeting, Measurement and Analysis for Marketing, vol. 12, no. 3, pp. 213-230, 2004.
[45] N. Nguyen, and G. Leblanc, "Corporate image and corporate reputation in customers- retention and decisions in services", Journal of Retailing and Consumer Services, vol. 8, pp. 227-236, 2001.
[46] M. J. Bitner, B. H. Booms, and L. A. Mohr, "Critical service encounters: the employee-s viewpoint," Journal of Marketing, vol. 58, no. 4, pp. 95-106, 1994.
[47] P. Anand, M. B. Holbrook, and D. Stephens "The formation of affective judgments: the cognitive-affective model versus the independence hypothesis". Journal of Consumer Research, vol. 15, pp. 386-391, Dec. 1988.
[48] R. L. Oliver, Satisfaction - a behavioral perspective on the consumer. New York: The McGraw-Hill Companies, Inc., 1997
[49] R. L. Oliver, "Cognitive, affective, and attribute bases of the satisfaction response," Journal of Consumer Research, vol. 20, no. 3, pp. 418-430, Dec. 1993.
[50] S. A. Taylor, K. Celuch, and S. Goodwin, "The importance of brand equity to customer loyalty," Journal of Product & Brand Management, vol. 13, no. 4, pp. 217-227, 2004.
[51] M. de Mooij, Consumer behavior and culture - consequences for global marketing and advertising. Thousand Oaks, CA: SAGE Publications Inc., 2004.
[52] N. Donthu, and B. Yoo, "Cultural influences on service quality expectations," Journal of Service Research, vol. 1, no. 2, pp. 178-186, 1998.
[53] O. Furrer, B.S. Liu, and D. Sudharshan, "The relationships between culture and service quality perceptions: basis for cross-cultural and resource allocation," Journal of Service Research, vol. 2, no. 4, pp. 355-371, May. 2000.
[54] G. Hofstede, Culture-s consequences: international difference in workrelated values. Beverly Hills, CA: SAGE Publications Inc., 1980.
[55] G. R. Foxall, R. E Goldsmith, and S. Brown, S., Consumer psychology for marketing (2ndEd.). London U.K.: International Thomson Business Press, 1998.
[56] J. F. Hair, JR., R. P. Bush, and D. J. Ortinau, Marketing research - within a changing information environment (2ndEd.). New York, NY: McGraw-Hill-Irwin, 2003.
[57] V. A. Zeithaml, L. L. Berry, and A. Parasuraman, "The behavioral consequences of service quality," Journal of Marketing, vol. 60, no. 2, pp. 31-46, 1996.
[58] N. Sirohi, E. W. McLaughlin and D. R. Wittink, "A model of consumer perceptions and store loyalty intentions for a supermarket retailer," Journal of Retailing, vol. 74, no. 2, pp. 223-245, 1988.
[59] H. I. Ghozali, Prof,Dr. M.Com, Akt. and SET, Fuad, MSi. Structural equation modeling-teori, konsep, dan aplikasi dengan program LISREL 8.54., Semarang, Indonesia: Badan Penerbit Universitas Diponegoro, 2005.
[60] J. F. Hair, Jr., W. C. Black, B. J. Babin, B. J., R. E. Anderson, and R. L. Tatham. Multivariate data analysis (6thEd.). Uppersaddle River, New Jersey 07458: Pearson Education International, Inc., 2006.
[61] B. Wheaton, B. Muthén, D. F. Alwin, and G. F. Summers, Assessing reliability and stability in panel models, in D.R. Heise (Ed.), Sociological methodology. San Fransisco, CA: Jossey-Bass, 1977, pp.84-136.
[62] L. Suhaily, Y. B. Suhartoko, and L. Salim, "Preference ibu rumah tangga terhadap pasar traditional dan supermarket di Jakarta Barat," Unpublished research, financed by Catholic Indonesian University of Atma Jaya, Jakarta, 1992.
[63] J. R. Nevin, and M. J. Houston, "Image as component of attraction to intra-urban shopping area," Journal of Retailing, vol. 56, no. 1, pp. 77- 93, Spring, 1980.
[64] A. Al-Awadi, "A proposed model of consumer loyalty in the retailing sector based on the Kuwaiti experience", Total Quality Management, vol. 13, no. 7, pp. 1035- 1046, 2002.
[65] W. R. Darden, A patronage model of consumer behavior. In Ronald W.Stampfl and Elizabeth Hirchman (Eds), Competitive structure in retail markets: the department store perspective. Chicago, Illinois: American Marketing Association Proceedings 1980, pp. 43-52.
[66] K. Othman, Pattern of supermarket use in Malaysia. In A.M. Findlay, R. Paddison & J.A. Dawson (Eds.), Retailing environment in developing countries. London & New York: Routledge Publishing Co., 1990, pp. 205-214.
[67] S. Sidin, Md., D. Zawawi, F. Y. Wong, R. Busu, and Z. L. Hamzah, "The effects of sex role orientation on family purchase decision making in Malaysia," Journal of Consumer Marketing, vol. 21, no. 6, pp. 381- 390, 2004.
[68] R. Sutton and A. Rafaeli, "Untangling the relationship between displayed emotions and organizational sales: the case of convenience stores", Academy of Management Journal, vol. 31, no. 3, pp. 461-487, Sept. 1988.