A MODEL FOR CUSTOMER LOYALTY FOR RETAIL STORES INSIDE SHOPPING MALLS- AN INDIAN PERSPECTIVE

Aveek Majumdar
India has witnessed a boom in organized retail trade in the last 5 years. More and more players are coming into the retail business in India to introduce new formats like malls, supermarkets, discount stores and department stores. The retail format that has shown the maximum growth among all is the multipurpose shopping complexes or the shopping malls. Customer loyalty is viewed as the strength of the relationship between an individual’s relative attitude and repeat patronage. The relationship is mediated by social norms and situational factors. In our research we have tried to investigate the effects of the determinants in building loyalty for a particular retail store located inside a shopping mall. A study was conducted to identify the determinant factors for store loyalty and their effects on store loyalty intentions. We have looked into Store Loyalty in a holistic manner incorporating factors like service quality, location factors, value perceptions, and store image in our model. Managerial implications for the management of customer loyalty of the mall store are discussed.

INTRODUCTION

O

rganized retail business in India is developing at a rapid pace than never before (Business World, 2004). Studies indicate that organised retail will grow from a mere 2% of the total retail industry to a significant 20% by the end of the decade (India Retail Review, 2003). Organized retailing has grown from a mere Rs. 5000 crore in 1999 to an estimated Rs. 30,000 crore in 2004 (Business Standard, Dec. 2004)- making it among fastest growing industries in India. India is expecting over 40 million sq. ft of quality retail real estate space by 2006 (India Retail Review 2003). The retail format that has shown the maximum growth among all, is the multipurpose shopping complexes or the Shopping Malls. The malls are being positioned as a one-stop entertainment destination for a family, where they can not only do their shopping, but also watch a movie and dine at the restaurants and food courts inside. The future of malls would depend upon the wonderful ambience associated with them as well as the right tenant-mix. As more and more malls come into existence competition between malls would increase which may lead to a decline in mall patronage. The mall developers therefore need to consider alternative methods to build excitement with customers.
Journal of Services Research, Special Issue, (December, 2005) © 2005 by Institute for International Management and Technology. All Rights Reserved.

The loyalty for a particular store in a mall would be influenced by the loyalty for the mall itself. 1984) and represents an important basis for developing a sustainable competitive advantage. provides a discussion of results. In section five. The last section and probably the most important among all. BRIEF REVIEW OF LITERATURE Although new in India. specialty stores. the task of managing loyalty is definitely going to emerge as a focal managerial challenge. Shoppers Stop. Although most marketing research on measuring loyalty of the consumers has focused on frequently purchased goods (brand loyalty). (December. Special Issue. and store image. the loyalty concept is also important for services (service loyalty) and retail establishment (store loyalty). 1994). The next section deals with the conceptual model. saree stores. retail mix. the shopping mall has been in existence around the Journal of Services Research.48 A Model for Customer Loyalty The malls that can build a strong patronage will ultimately survive in this intense competition. women and children garments. In the present environment of an evolving market for organised retail trade in India and with increasing global competition. managerial implications of our findings. The success of a mall as a complete unit is determined by the success of the retail stores inside it in attracting serious shoppers in their stores. and Westside etc. stores of national retail chains like Pantaloons. In section two. The apparel stores includes stores selling men. location factors. In our study we have considered apparel stores to test and validate our model. a brief review of literature on shopping malls and customer loyalty literature in a retail setting is discussed. Store Loyalty has been looked upon in a holistic manner in this study incorporating factors like service quality.an advantage that can be realized through marketing efforts (Dick and Basu. The objective of our research is to study the determinants of loyalty for a retail store (store loyalty) inside a shopping mall. Section four deals with the methodology used and sampling plan. the results of multiple regressions have been presented. The remainder of the paper is organized as follows. 2005) . Customer loyalty constitutes an underlying objective for strategic marketing planning (Kotler. limitations of the present study and suggestions for future research directions. The study was conducted in two metropolitan cities: Chennai and Kolkata covering a wide demographic profile of apparel shoppers.

little home entertaining and lack of interest in deals. (1973) but drawing on earlier work (Enis and Paul. 1980) may have on patronage. (Bloch. (1991) note that one would be “hard pressed to find scholarly treatment to malls” in the academic journals. The behavior patterns and the causes that draw consumers to the mall have been explored in this paper. 1994). 1970) is also negative but emphasizes a lifestyle with commitments outside the home including work. Tate. keeps them shopping and brings them back again (Kowinski. Such people are averse to shopping and do not experiment. Findings from their study suggest that malls have transformed from being strictly purchase sites to being centers for many activities. l A third approach is proposed by Dunn and Wrigley (1984) who noted that the growth in size of supermarkets and shopping centers in many Journal of Services Research. The mall provides the basic environment that attracts customers. 1961) are forced to use one store much of the time and therefore obliged to be loyal.49 Majumdar world for several decades.specified by Charlton. However the importance of mall in retail research studies cannot be marginalized. 1987). 1996) and the level of liking for a shopping area (Nevin and Houston. THEORIES ON STORE LOYALTY The theories of store loyalty at a micro level (store level) as found in literature can be broadly divided in three major categories: l The first approach. There has been some past research work on shopping malls as a total unit. In the field of retail research. the emphasis has primarily been upon the store rather than the mall as the unit of analysis. 1961) . l The second approach (Carman. A few research studies have examined the retail patronage at the mall level. time and transport. advertising and shopping. The mall has been looked upon as consumption sites and parallels have been drawn from an ecological habitat. 1985). (December. But the amount of scholarly literature available on malls is very limited. 1970. A number of studies have described the demographic and psycho graphic characteristics of mall patrons (e. Other studies have pointed towards the importance of the effect that shopping center image (Finn and Louviere. 1994. Special Issue. 2005) . Jarboe and Mc Daniel. or whose environment lacks choice (Tate.g. Fienberg and Meoli.is that store loyalty is essentially negative and is the outcome of limited resources: those who lack money. Bloch.

Journal of Services Research. (December. Special Issue. The factors were found to be significant predictors of store loyalty but accounted for a negligible portion of the predicted variance. 2005) . and have the opportunity to be efficient by virtue of car ownership and income.50 A Model for Customer Loyalty countries could have affected patterns of behavior. Dunn and Wrigley found that some store loyalty arose as one-stop shopping. amenities. ownership of cars. ambience. Discretionary loyalty is an adaptation to circumstances that are most likely to be found among population segments that need to be efficient because of household and work commitments. rising disposable income have combined to produce a new pattern of one-stop shopping at shopping complexes. The loyalty for a specific shopping complex or mall would help in building loyalty for stores inside the mall. retail mix (which includes price. often in large comprehensive supermarkets. This is what is called “discretionary loyalty. Increased car and freezer ownership (allowing more transport and storage) and larger retail units. A third segment could fit the discretionary loyalty model. variety. Those with limited incomes will have more need to shop around to secure the best value for money. It seems likely that new large stores. CONCEPTUAL FRAMEWORK AND MODEL DEVELOPMENT A review of retail literature to identify the determinants influencing customer loyalty for retail store reveals the following major factors in customer loyalty studies: accessibility. assortment. In the current study the interest was on studying the determinants of loyalty for a retail store located inside a shopping complex (mall). can all assist discretionary loyalty. There might be one shopper segment whose loyalty depends on lack of resources while another group of shoppers can be loyal because they disliked shopping and one-stop shopping minimized their discomfort.” It differs from the first approach it implies that the possession of appropriate resources raises store loyalty. retail store personnel service). Samli and Sirgy (1981) conducted a study to test to study the effects of tendency of shoppers to shop in specific geographic regions (area loyalty and shopping complex loyalty). and this would reduce store loyalty. store promotional activities. Several patterns of loyalty could be found.

The mall amenities would include presence of escalators. The micro accessibility factor considered here is availability of good and adequate car parking facility. layout. Mall amenities are features provided to make the shopping trip more comfortable and enjoyable (Wakefield and Baker. clean and adequate restrooms. 1985). traffic flow. 1998). electronic communication facilities like internet café. colour schemes. 2001). Journal of Services Research. traffic congestion etc). The mall accessibility construct refers to both macro and micro accessibility factors (Levy and Weitz. road condition. 2001). The macro factors consider the primary trade area. good fire safety equipments. (December. They depend on the public transport facilities for commute. presence of information kiosks. telephone booths. entertainment facilities for children. ingress/egress. Special Issue. 2005) . and background music played inside the mall (Levy and Weitz. l Mall Amenities: Amenities refers to the presence of features that makes a place pleasant. comfortable and easy to use/live in. lighting. car parking. presence of bank ATMs. condition of roads (road pattern.51 Majumdar In the current context we identify the following determinant factors for building store loyalty and discuss the hypotheses developed: l Mall Accessibility: The accessibility of a site is the ease with which a customer may get into and out of it. l Mall Ambience: The ambience factor refers to the character and atmosphere of a place. The construct on Mall Ambience refers to the internal atmospherics of the mall like décor. nearness of the mall from the consumer’s house/place of work. l Shopping Complex/Mall Loyalty: The factor on shopping complex/ mall loyalty refers to the tendency to shop in a specific shopping mall or surrounding areas (Sirgy and Samli. lifts. In retail literature micro accessibility factors refer to issues in the immediate vicinity of the site such as visibility. This factor is extremely important for the Indian context as a sizeable number (nearly 50%) of the mall visitors do not have/do not use their own vehicle to visit the mall.

Special Issue. for assessing levels of service quality. In soft good merchandise like apparels/garments an SKU usually means the size. However. Supporting Services: This factor as such has not been used in any previous studies on store image. we give a much broader scope Journal of Services Research. Personnel Service: Store personnel service is an important dimension of overall service quality. This scale is designed for use in studying retail business that offer a mix of goods and services. Assurance. The construct refers to other supporting services. and styles. This factor refers to the overall quality perceptions of merchandise at the store. colour. and Berry (1988) for service quality had 22 items and were distributed among the five dimensions: Tangibility. size. design. Thorpe and Rentz (1996). mall ambience and mall amenities have a positive effect of the loyalty for a shopping mall. This scale had 9 items under the dimension of Personal Interaction. and for detecting needed changes in services provided. 2005) . Responsiveness.52 A Model for Customer Loyalty Hypothesis 1: The three determinants namely mall accessibility. In our study. Merchandise Quality: Merchandise quality is one of the most important attributes for shopping store image. which essentially captures the service offered by store service personnel. and Empathy.e. the depth of merchandise category. designs. STORE SPECIFIC FACTORS l l l l l Store Amenities: This factor refers to the store amenities available for the convenience of shoppers. There are 9 items related to the personnel service under dimensions of responsiveness and assurance. The original SERVQUAL scale developed by Parasuraman. Reliability. which are provided by the store to benefit its customers. Assortment: Assortment is the number of different items in a merchandise category i. The items for this factor are taken from scales being developed and used by past researchers. (December. An extension of the SERVQUAL scale suited for retail stores was developed by Dabholkar. colors etc. Zeithaml. This factor refers to the variety of items available for a given product category in terms of price ranges. effects of such allied services on overall service quality or satisfactions have been explored by Dabholkar et al (1996) under the dimension Store Policy.

Superior service quality has been described as the third ring of perceived value (Clemmer. Special Issue. 1990). The construct on value perceptions here. Most previous research in this area focuses either on the impact of service quality Journal of Services Research. (December.53 Majumdar and meaning for the allied services. The service quality and merchandise quality are combined in one indicator and are compared with the perception of the price being paid vis-à-vis the quality offered. l Overall Impressions about the Store: This factor refers to the general perception of the customer regarding the retail store. The supporting services include: acceptance of all credit/ debit cards. DETERMINANTS OF STORE LOYALTY INTENTIONS In this study. Hypothesis 2: The components of the retail mix like store amenities. 2005) . The perceptions may be due to past reputation of the store as well as the impression that a shopper has after visiting the store. The impression is based on general attribute dimension of the store. Value can be defined as: “what you get for what you pay. the three measures for the construct of store loyalty intentions of current customers’ are: likelihood to continue shopping in future. In this definition of value for money. In many cases the reputation that the store builds up over the years also helps in creating a good impression of the store in the shoppers mind. there is an implicit tradeoff between money and the benefit components of exchange. likelihood of purchasing in other categories of merchandise in future. supporting service along with the price-quality value perceptions have a positive effect on the overall impression of the store. thus refers to the perceived value of product and service quality relative to price paid. store personnel service. alteration facilities.” This is similar to the utility per unit price measure of value used by Hauser and Urban. l Value Perception: Value is very important to marketers. child care and children entertainment services. which the store extends to satisfy its customers. and willingness to recommend the store to friends and peer groups. 1986. facilities of return/exchange of merchandise. assortment. the first two being the basic product/ service and extended support service. merchandise quality. We call it supporting services and it includes all the extra services.

a serious concern for marketers. sale items. l Store Loyalty Intention: This is defined as a biased. Zeithmal. The determinants are explained in brief and the hypotheses are framed next: l Sales Promotion: This dimension tries to capture the effect of different promotional initiatives taken by the store (like discounts and special offers. On the other hand. 1985.54 A Model for Customer Loyalty and/or customer satisfaction on store loyalty intentions or impact of perceived value on store loyalty intentions. (December. 1991. Sirohi et al (1998) have studied the effect of service quality. The frequency of patronage and recency of store visits have been used by some researchers to measure loyalty. a high relative attitude with low repeat patronage reflects latent loyalty. Whereas the loyal customers will have high relative attitude Journal of Services Research. expressed over time. Dick and Basu (1994) explain loyalty in terms of relative attitude and repeat patronage. To ascertain the loyalty of consumers with a particular retail store is difficult. and is a function of psychological process. perceived value on store loyalty in a single setting. rewarding loyal customers from time to time) on building loyalty with its consumers. 1991). quality and vise versa) and in-store promotions on store loyalty intentions. Some research papers focus on the effect of perceived value on behavioral intention (Dodds et al. 2005) . may not be a sufficient indicator of loyalty. 1988. by some decision making unit (consumers) with respect to one or more alternative stores out of a set of stores.. value perceptions (price vs. Cronin and Taylor (1992) using a single item purchase intention scale. They explain that a low relative attitude for a retail store with low repeat purchase from the store signifies an absence of loyalty. behavioral response.. Sweeny et al. A low relative attitude for the store accompanied by a high repeat patronage is spurious loyalty characterized by non-attitudinal influences on behavior. 1988). Previous researches have shown that consistent repurchase. find service quality affects customer satisfaction but do not find a significant effect of service quality on purchase intention. The sales promotion here refers to only in-store promotional activities offered by retailers from time to time. 1995. Ziethaml. Perceived value has been proposed as a mediating construct in the effects of price and other information on purchase intention (Dodds and Monroe. Special Issue. In this research we examine the impact of overall impression of the store. It does not include the advertising campaigns undertaken by the retail store. Dodds. by itself.

A low relative attitude accompanied by high repeat patronage is spurious loyalty (Dick and Basu. Similar phenomenon was observed between store loyalty and brand loyalty. The aim of the exercise was to determine the extent to which each item reflected one of the 13 dimensions of the loyalty model. Sekaran. 1995. The face validity of these items were evaluated through conducting a screening exercise (Litwin. Based on literature review and followed up by a pretest survey. including marketing professors. Journal of Services Research. a pool of 50 items were generated to operationalise the mall store loyalty model. The screening exercise involved 10 judges. 1985). 1994). Shopping complex loyalty is expected to have a positive influence on the store loyalty for a store inside the mall (Sirgy and Samli. So a positive relationship is expected between shopping complex loyalty and store loyalty. Hypothesis 3: The value perception has a positive effect on the store loyalty intentions of current customers. 2005) . sale of discounted items give rise to a low relative attitude among customers. In-store promotional activities like festival discounts. Special Issue. 1992). 1992) in that a consumer perceives little differentiation among brands in a low involvement category and undertakes repeat purchase on the basis of situational cues such as lucrative deals. Hypothesis 5: In-store promotions would have a negative effect on store loyalty intentions. and managers in the retailing industry. Hypothesis 4: The factor on overall impression of the store has a positive influence on the store loyalty intentions.55 Majumdar and repeat patronage. (December. Those who express high loyalty for a shopping mall or complex may also express loyalty to a specific store within the shopping mall facility. It is conceptually similar to the notion of inertia (Assael. research scholars. They may make repeat purchase at the store. In our study we measure the loyalty intention of shoppers by their intentions in future from their current perceptions. Hypothesis 6: Shopping mall loyalty has a positive effect on store loyalty intentions.

56 A Model for Customer Loyalty Mall Accessibility ++ Shopping Mall Loyalty ++ Store Loyalty Intention ++ Mall Ambience ++ Mall Amenities ++ --- Value Perceptions ++ Sales Promotion ++ Overall Impression of the Store ++ ++ ++ ++ Store Amenities Supporting Service ++ Assortment Personnel Service Merchandise Quality Figure 1: Mall Store Loyalty Model METHODOLOGY The survey process was conducted in two large metropolitan cities of India. Special Issue. Journal of Services Research. The data was collected by intercepting mall shoppers inside the mall when they came out from a particular garment store making purchases. Both Chennai and Kolkata have a good mix of traditional and modern shoppers. (December. The emergence of shopping malls is also a very recent phenomenon in both cities. Chennai and Kolkata. Kolkata is in eastern India and is the capital of West Bengal with a population of 48.16 lakhs (2001 Census). Chennai is in southern part of India and is the capital of Tamilnadu with a population of 42.52 lakhs (2001 Census). 2005) .

SAMPLE The study was conducted in a popular mall each in the two cities. we have considered only the shoppers who have actually bought from the retail store in their current shopping trip. Every eligible shopper was explained about the purpose of the survey and was requested to participate in the study. the shopping mall setting) is preferable to sitting at the kitchen table at home amid distractions that take precedence over the task of completing the survey (Dabholkar et al. Since we are measuring customer loyalty by the propensity of the shopper to revisit the store for making future purchases based on his current shopping experience.e. Whereas some previous studies were administered to individuals who may or may not have ever shopped at the particular store. afternoon and evening hours on weekdays and weekends for seven days during the month of December. we collected evaluations of store attributes for the specific store visited so that consumers could give more meaningful responses. Special Issue. RESULTS Multiple regressions are carried out to test the stated hypotheses. 1996). Customers who had not made any purchases at the store were excluded from the sample. 2005) .57 Majumdar The rationale for our data collection method is based on the theory that respondents will be more attentive to the task of completing the questionnaire and will provide more meaningful responses when they are contextualized in the environment that they are evaluating. (December.. A systematic sample of 75 adult shoppers was intercepted as they came out of the garment store making a purchase. Being in the natural environment (i.. The results of the multiple regressions are summarized below: Journal of Services Research. Customers were sampled from morning.

Special Issue.167 2 F Value= 9.129).117 .440 -0. Hence it is dropped. Overall Impression of the store (z) = -. 2005) .115 X5+ .409 X6 + .05 significance level.04 .910 p-level . F= 10.308 2 Overall impression of the store Store Amenities (X4) Store Assortment (X5) Store Personnel Service (X6) Merchandise Quality (X7) Value Perception (X8) Store Supporting Services (X9) 0.0000.242X3 The overall regression was significant (F Value = 8. the overall model is significant at all levels (p-level=.04 . The variable X2 (Mall ambience) is not significant at .037 .279 *** . Mall Loyalty (z) = 0.828 3.242 *** 2 *** t 3.001 -1.694 (p-level: 0.01: Significant at .020 0.107 2 ** 3.975 -.237 X8 Journal of Services Research.217 (p-level: 0.44 X1+0.268 F Value= 20. On dropping X2.237** -.000 .993 1.002 .115 ** .004 .05: Significant at .01 significance level) Explanations: 1.108 .895 2.869 (p-level: 0.58 A Model for Customer Loyalty Table 1: The Result of the Multiple Regression Sl 1 Dependent Variable Independent Variables Mall Loyalty Mall Accessibility (X1) Mall Ambience (X2) Mall Amenities (X3) ß 0.125 X7 + .409 .180 .000) Adjusted R = 0.142 4.000) Adjusted R = 0. (December.217 p-level .576 1.495 1.000 .623 .125 *** ** 1. 2.272 .040 .05 significance level *** p<. Hypothesis 1 is supported with variables X1 and X3 have positive effect of dependent variable: mall store loyalty.23 -.066 0.447 *** . Hence mall loyalty in influenced by mall accessibility and mall ambience.006 F Value= 8.000.106 .516 (** p < .341 3 Store Loyalty Intentions Mall Loyalty (X10) Value Perception (X11) Overall impression of the store (X12) Sales Promotion (X13) .000) Adjusted R = 0.638 -0.

accessibility. So a large product assortment does not necessarily increase the impression for a particular store. 2005) . First. The negative sign on the coefficient of store assortment (X5) means that higher the assortment of products at the store lower will be the impression for the store. The effect of store personnel service on overall store impression is the highest.869 p-level: 0. Store Loyalty is studied in a holistic manner incorporating factors like service quality. The results illustrate that the interpersonal relationships between store sales personnel and customers is an important determinant in building an impression for the store.000). CONCLUSION The purpose of the study was twofold.000). These results confirm with earlier studies that perceived value is an important determinant in building store loyalty. value perceptions. 3. overall store impression and promotional factors. Both the variables have a positive effect on store loyalty intention. It indicates that the price-quality value perceptions have the greatest effect in building store loyalty. The variable Sales Promotion (X13) is not significant at . store personnel service. Mall loyalty and overall store impression are found to be significant predictors of store loyalty but account for a small portion of the predicted variance. Store Loyalty Intention (z) = . This can be explained by the fact that loyal customers do not look for a large variety of merchandise at the store of their choice. Special Issue.694 p-level: 0. This result confirms with earlier research on the effect of retail sales personnel on store image.447 X11 + . Value perception has the highest coefficient value with a positive sign.279 X10 + . (December. merchandise quality and value perceptions are taken as the predictor variables. this study has identified the determinant factors for store loyalty in a mall environment.18 X12 The overall model was significant (F Value= 20. The variables store amenities X4 and supportingservices X5 are not significant. Journal of Services Research. Merchandise quality and price-quality value perceptions have a positive effect on building overall store impression.59 Majumdar The overall regression model was significant (F Value= 9.05 significance level. X11 and X12 are considered as the predictor variables. They go the store they patronize with a very specific requirement that they intend to get it at the store. So store assortment. Hence it is dropped from the regression model and X10.

Overall sto re impression was also significant statistically but had a small β weight. This would help them in positioning their store to the target audience. ambience and amenities. Special Issue. Another interesting feature observed was that store assortment variable has a negative regression coefficient. The independent variables: mall accessibility and ambience were significant. They go to the store they patronize with a very specific requirement which they intend to get it at the store. The multiple regressions with store loyalty intention as the dependent variable and mall loyalty. Shopping Mall loyalty as a dependent variable was considered and regression was carried out with independent variables: mall accessibility. This means that higher the product assortment in the store lower would be the overall impression of the store. Shopping Mall loyalty was found to be positively affecting store loyalty intentions along with price-quality value perceptions. MANAGERIAL IMPLICATIONS The managerial implications of this study are: 1. This knowledge can be obtained through store image research. (December. In case of a store inside a shopping mall. But due to high correlation between the independent variables the total variation of the dependent variable explained by the independent variables was low. It is important for the retail manager to know how the consumers perceive the functional and symbolic character of his or her store. value perceptions. Multiple regressions were done on the endogenous variables: shopping mall loyalty. overall store impression and finally store loyalty intention. thus indicating that store promotional features like seasonal discounts and sale does not have any effect on building store loyalty. This can be explained by the fact that loyal customers do not look for a large variety of merchandise at the store of their choice. the store image should be in congruence Journal of Services Research. the effects of all these determinants on the store loyalty intention dimension were independently studied. overall store impression and store promotion as independent variables brought out interesting results. all the elements of the retail mix were significant apart from store amenities and supporting services. In-store promotion factor was not significant. Similarly for the regression of overall store impression as the dependent variable.60 A Model for Customer Loyalty Secondly. merchandise quality are significant along with the dimension of price-quality value perceptions. 2005) . store personnel service. Thus as expected the elements of store retail mix like assortments.

In an evolving retail market where shopping malls are in growing stage. It is essential for the retail manager to see that the shopping mall management is using sound strategies to maintain a satisfactory level of patronage and loyalty. the retail managers of the stores in malls should develop promotional strategies not for the store but for enhancing the shopping mall loyalty. In doing so. 4. 2005) . their loyalty to the particular store will decline. 3. In a mall environment it would not be enough for the retail manager to watch out for his/her store without paying any regard to what is happening with the surrounding stores in the mall. the retail managers can target those customers who are basically loyal to the area where the mall is located and to those shoppers whose socio economic status matches the pricing policies and image portrayed by the unified entity of stores. in an emerging retail market. LIMITATIONS AND FUTURE RESEARCH The results of this study provide an encouraging start in understanding the determinants of store loyalty in a mall environment. 2. In both the cities the data was collected from a single mall Journal of Services Research. This would help them in designing clear positioning strategies for the mall. (December. Perceived value is thus very important to the retail managers. Unless the customers feel that they get the quality of their choice for what they pay and vice versa. this study would help the mall developers to understand the psychology of shoppers in this nascent market. The perceived value of the merchandise available at the store is an important determinant inducing store loyalty. Special Issue.61 Majumdar with the image conveyed by the shopping complex or mall. As observed in the study. According to this study shopping mall loyalty is a significant determinant of store loyalty. The malls thus can build a strong patronage with their target segment of customers. they are unlikely to patronize the particular retail store. The study identifies the determinants of store loyalty for a retail store in a mall environment. The study was conducted in two cities of India where malls are in a growing stage. This entails cooperating and establishing harmonious relation with the mall management as well as other stores in vicinity. To increase shopping mall loyalty. individual store promotional efforts do not have a significant influence on store loyalty intentions. If the customers are not satisfied with the shopping mall as such.

This is also true of those factors that impact loyalty. Special Issue. difference in responses due gender differences may be studied. Similarly. In our present study we have used multiple regressions to analyze the effects of the determinants individually and then on the store loyalty intention construct. (December. The determinants of Journal of Services Research. the Structural model is similar to regression analysis in that the relative importance of predictor variables can be understood vis-a-vis dependent variable. It is difficult to accurately measure loyalty by asking a single question. Overall the study provides a conceptual framework for modeling store loyalty intentions in a mall environment. age may be a moderating factor in consumer response to retail environment.g. however. The role of mall loyalty in our model suggests that future research on store loyalty in mall environment should include shopping complex or mall loyalty. structural equation modeling (SEM) is employed because of its ability to explain the relationships between complex constructs and the multiple variables that underlie these constructs. such as perceived value and quality. age and socioeconomic variables. ambience and amenities discussed here. the new “niche malls” or “theme malls”) may be important contributors to mall loyalty. Since the mall market is still nascent the loyalty for a store in a mall is not as much as a stand store in traditional shopping districts or streets in the city. Undoubtedly. Thus a SEM analysis of the proposed causal model of store loyalty is going to provide greater insights than the current study. This study does. Further. Individual consumer characteristics such as environmental sensitivity or variety seeking tendencies (Wakefield and Baker. The overall impact of the determinants of store loyalty on the store loyalty intention construct cannot be studied in totality. This could have a significant influence in building the overall impression for a retail store. type (e. Conceptually. Other mall characteristics such as size. In these situations. 2005) .62 A Model for Customer Loyalty in the city. 1998) could be investigated for their influence on retail response. Customer loyalty is a complex. future research must look at multiple markets like western and northern India. offer several directions to future research. multidimensional concept that often requires sophisticated measurement and analytical tools to understand it completely. Loyalty for stores across product categories can be compared based on gender. Future research could explore other potential factors contributing to mall loyalty apart from accessibility.

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