AU Thesis Fulltext 222932

Factors Affecting Customer Satisfaction and Customer Loyalty towards Belle
Footwear Company in Lanzhou City, Gansu Province of the People's Republic of

China
Ms. Jiao Li
.
A Thesis Submitted in Partial Fulfillment of the Requirements
for the Degree of Master of Business Administration in Marketing
Graduate School of Business
Assumption University
Academic Year 2013
Copyright of Assumption University
Thesis Title Factors Affecting Customer Satisfaction and Customer Loyalty
towards Belle Footwear Company in Lanzhou City, Gansu
Province of the People's Republic of China
By Ms. Jiao Li
Major Marketing
Thesis Advisor Assistant Professor Sirion Chaipoopirutana, Ph.D.
Academic Year 2013
The Graduate School of Business, Assumption University, has approved this thesis
as a partial fulfillment of the requirements for the Degree of Master of Business Administration in
Marketing.
School of Business
(Kitti Phothikitti, Ph.D.)
THESIS EXAMINATION COMMITTEE
-~-·---~-~'
~"~_1 ~_~ __ __ Thesis Advisor
(Assistant Professor Sirion Chaipoopirutana, Ph.D.)
~-t&~,x~ Member
(Chamchai Athichitskul, Ph.D.)
ABSTRACT
The shoe industry in China now faces grim challenges due to rapidly changing
tastes of shoe buyers and fierce competition in the footwear market. Besides, shoes
marketers are increasingly concerned about how to keep the good and long term
relationship with customers and also increase customer loyalty at shoe stores. This
research focuses on customer satisfaction and customer loyalty of footwear products
in Lanzhou, China. The purpose of this research is to explore the possible
antecedents of customer loyalty among Belle shoes store customers. The researcher
theorizes and investigates that there is a positive relationship between image, price,
perceived quality (in terms of reliability, tangibles, empathy, responsiveness and
assurance) and perceived value with customer satisfaction, which in turn,
significantly influences customer loyalty towards Belle Footwear Company. 400
self-administered questionnaires were distributed to respondents who have bought
footwear products at ten Belle shoes stores in Lanzhou. The data were analyzed and
summarized by using the Statistical Package for Social Science (SPSS 16.0). The
Pearson's product moment correlation coefficient tool was applied to test the ten
hypotheses.
The results of this study indicate that all independent variables (image, pnce,
reliability, tangibles, empathy, responsiveness, assurance and perceived value) have
a significant relationship with the intervening variable (customer satisfaction) and
dependent variable (customer loyalty). Shoe marketers will have a better
understanding about Chinese consumers and also could learn to improve their
strategies to improve their product quality and gain more customers to extend their
market size.
ACKNOWLEDGEMENT
This research cannot be completed without the continuous help and strong support
from many people, as well as the support of many individuals and organizations.
First and foremost, I would like to express my deepest appreciation to my thesis
advisor, Assistant Professor Dr. Sirion Chaipoopirutana, for her guidance, assistance,
valuable comments, patience and understanding, without her encouragement and
impressive skills, I could not have completed my thesis. I am really thankful for
everything you have done for me.
Secondly, I also would like to thank all my thesis committee members, Dr.
Thongdee Kijboonchoo, Dr. Charnchai Athichitsful and Dr. Apichart, for their
valuable suggestions and recommendations to help me to improve my thesis writing.
Special thank to Dr. Srinath who is patiently editing the grammar of my thesis.
Last but not least, I am extremely indebted to my dear mum, who was always behind
me, gave me unconditional love, understanding and encouraged me all my life and
towards my study. Finally, I also owe great thanks to all my dear friends including
Ms. Zhu Bing, Ms. Li Ying Zi, Mr. Ryan Coughlin, Mr. Liu Jie, Ms. Chen Li Xia
and Ms. Yan Hui Nan, thank you all for unconditional company, understanding and
encouragement in helping me during my graduate life.
Jiao Li
August.2013
ii
TABLE OF CONTENTS
ABSTRACT..............................................................................................................ⅰ
ACKNOWLEDGEMENT......................................................................................ⅱ
TABLE OF CONTENTS………………………………………………………….ⅲ
LIST OF TABLES………………………………………………………………...ⅵ
LIST OF FIGURES……………………………………………………………….ⅸ
Chapter 1 ...................................................................................................................... 1
1.1 Introduction of The Study ............................................................................ 1
1.1.1 The Footwear Industry in the World .................................................. 3
1.1.2 The Footwear Industry in China ........................................................ 4
1.2 Company Profile........................................................................................... 6
1.3 Statement of Problems................................................................................ 13
1.4 Objectives of the study ............................................................................... 14
1.5 Scope of Research ...................................................................................... 14
1.6 Limitations of the Research ........................................................................ 15
1.7 Significance of the Study ........................................................................... 16
1.8 Definition of Terms .................................................................................... 16
Chapter 2 .................................................................................................................... 19
2.1 Definitions and Theories Related to Variables ............................................. 19
2.1.1 Customer Loyalty ............................................................................. 19
2.1.2 Customer Satisfaction ...................................................................... 20
2.1.3 Perceived Value................................................................................ 21
2.1.4 Image ................................................................................................ 22
2.1.5 Price.................................................................................................. 22
2.1.6 Perceived Quality ............................................................................. 23
2.2 Review of Related Research ......................................................................... 25
2.2.1 Review of research regarding the relationship between Image and
Perceived Value......................................................................................... 25
2.2.2 Review of research regarding the relationship between Price and
Perceived Value......................................................................................... 26
2.2.3 Review of research regarding the relationship between Perceived
Value and Customer Satisfaction .............................................................. 27
Value and Customer loyalty ...................................................................... 27
Quality and Customer Satisfaction............................................................ 28
2.2.6 Review of research regarding the relationship between Customer
Satisfaction and Customer loyalty............................................................. 30
2.3 Previous Research......................................................................................... 31
Chapter 3 .................................................................................................................... 37
3.1 Theoretical Framework................................................................................. 37
3.2Conceptual Framework.................................................................................. 42
3.3Research Hypothesis...................................................................................... 43
3.4Operationalization of the Variables ............................................................... 46
Chapter 4 .................................................................................................................... 52
4.1 Research Methods Used ............................................................................... 52
4.2 Respondents and Sampling Procedure ......................................................... 53
4.2.1 Target Population ............................................................................. 53
4.2.2 Sampling Size................................................................................... 61
4.2.3 Sampling Procedure ......................................................................... 62
4.3 Research Instruments .................................................................................... 65
4.4 Pretest ........................................................................................................... 71
4.5 Collection of Data ......................................................................................... 73
4.6 Statistical Treatment of Data ........................................................................ 74
4.6.1 Descriptive Statistics ........................................................................ 74
4.6.2 Inferential Analysis .......................................................................... 74
4.6.3 Pearson Product Moment Correlation Coefficient ........................... 74
Chapter 5 .................................................................................................................... 79
5.1 Descriptive Statistics .................................................................................... 79
5.2 Analysis of Mean and Standard Deviation ................................................... 82
5.2.1 Independent Variables ...................................................................... 82
5.2.2 Intervening Variables........................................................................ 89
5.2.3 Dependent Variables ......................................................................... 90
5.3 Reliability Analysis ...................................................................................... 91
5.4 Hypotheses Analysis..................................................................................... 92
Chapter 6 .................................................................................................................. 104
6.1 Summary of Research Findings .................................................................. 104
6.1.1 Summary of the Demographic Factors........................................... 104
6.1.2 Summary of Descriptive Analysis .................................................. 105
6.1.3 Summary of the Hypothesis Testing .............................................. 110
6.1.4 Discussion and Implications........................................................... 111
iv
6.2 Conclusions ................................................................................................ 117
6.3 Recommendation ........................................................................................ 118
6.4 Further Research ......................................................................................... 120
Bibliography ............................................................................................................. 122
Website ...................................................................................................................... 151
Appendix – A ............................................................................................................ 154
Appendix – B ............................................................................................................ 160
Appendix – C ............................................................................................................ 166
Appendix – D ............................................................................................................ 170
Appendix – E ............................................................................................................ 173
Appendix – F ............................................................................................................ 178
v
LIST OF TABLES
Table 1.1: The Top 10 Footwear Producers in the World (2 0 1 0)……………….....4
Table 1.2: The Top 10 Ladies’ Footwear Companies in China……………………...8
Table 1.3: The Annual Revenue of Belle as of Year ended 31 December, 2011…….9
Table 1.4: The Revenue of Belle’s Footwear Business as of Year ended 31
December, 2011………………………………………….…………………………..9
Table 1.5: The Number of Company-managed Retail Outlets during the Year ended
31 December, 2011....................................................................................................11
Table 1.6: The Belle’s Company Five Financial Years……………………….....…11
Table 1.7: Percentage of Revenue by Product Category…………………………...12
Table 2.1: The summary of the previous studies…………………………...….…..34
Table 3.1: Operational Definition of Customer Loyalty and Its Dimensions.......…46
Table 4.1: Ten Popular Shopping Malls in Lanzhou……………………………….57
Table 4.2: Address of Belle Stores of each Popular Shopping Mall………….....…60
Table 4.3: The Table of Questionnaire Distribution…………………………….….64
Table 4.4: Development of the questionnaire…………………………….………..67
Table 4.5: The Summary of Number of Questions for Each Variable………...…70
Table 4.6: The reliability of The Questionnaires (Cranach’s Alpha (α)
Coefficient)…………………………………………………………………………72
Table 4.7: Pearson Correlation Coefficient…………………...……………………75
Table 4.8: Statistical Method used for Hypotheses………………………...……....76
Table 5.1: The analysis of respondents` age by using frequency and percentage....80
Table 5.2: The analysis of respondents` monthly income by using frequency and
percentage…………………………………………………………………………..80
vi
Table 5.3: The analysis of respondents` educational level by using frequency and
percentage……………………………………………………………………….….81
Table 5.4: Mean score rating and Standard deviation of image…………...…...…..82
Table 5.5: Mean score rating and Standard deviation of price……………………..83
Table 5.6: Mean score rating and Standard deviation of perceived value…………83
Table 5.7: Mean score rating and Standard deviation of reliability………………..84
Table 5.8: Mean score rating and Standard deviation of tangibles………….....…..85
Table 5.9: Mean score rating and Standard deviation of empathy…………………86
Table 5.10: Mean score rating and Standard deviation of responsiveness……...….87
Table 5.11: Mean score rating and Standard deviation of assurance…………...….88
Table 5.12: Mean score rating and Standard deviation of customer satisfaction…..89
Table 5.13: Mean score rating and Standard deviation of customer loyalty……….90
Table 5.14: The reliability of the questionnaire of study…………………….…….91
Table 5.15: The analysis of relationship between image and perceived value, using
Pearson Product Moment Coefficient Correlation………………………………….92
Table 5.16: The analysis of the relationship between price and perceived value, by
using Pearson Product Moment Coefficient Correlation…………………….……..93
Table 5.17: The analysis of the relationship between reliability and customer
satisfaction, by using Pearson Product Moment Coefficient Correlation………..…94
Table 5.18: The analysis of relationship between tangibles and customer satisfaction,
by using Pearson Product Moment Coefficient Correlation………………………..96
Table 5.19: The analysis of the relationship between empathy and customer
satisfaction, by using Pearson Product Moment Coefficient Correlation…………..97
Table 5.20: The analysis of the relationship between responsiveness and customer
vii
Table 5.21: The analysis of the relationship between assurance and customer
Table 5.22: The analysis of the relationship between perceived value and customer
satisfaction, by using Pearson Product Moment Coefficient Correlation…………100
loyalty, by using Pearson Product Moment Coefficient Correlation………….…..101
Table 5.24: The analysis of the relationship between customer satisfaction and
customer loyalty, by using Pearson Product Moment Coefficient Correlation…...102
Table 5.25: Summery of hypothesis testing result………………………...….…..103
Table 6.1: Summary of Demographics represented by Highest Percentages…….104
Table 6.2：The analysis of the factors affecting respondents` customer loyalty by
illustrating Mean and Standard Deviation…………………………………….…..105
viii
LIST OF FIGURES
Figure 1.1: Location of China……………………………………………………..5
Figure 1.2: Map of Lanzhou, Gansu………………………………………………6
Figure 1.3: The Map of The Company-managed Retail Outlets of Year ended 31
December, 2011…………………………………………………………………….10
Figure 3.1: A Research Model of Image, Price, Perceived Value and Customer
Satisfaction………………………………………………………………...……….38
Figure 3.2: A Research Model of Reliability, Tangibles, Empathy, Responsiveness,
Assurance, Satisfaction and Customer Loyalty……………………………...……..39
Figure 3.3: A Research Model of Perceived Value, Customer Satisfaction and
Customer Loyalty…………………………………………………………..………41
Figure 3.4: Conceptual Framework of Perceived Value, Perceived Quality,
Customer Satisfaction and Customer Loyalty……………………………..……….43
Figure 4.1: The location of Lanzhou in China……………………………...….…..54
Figure 4.2: The location of Lanzhou in Gansu……………………….......………..55
Figure 4.3: The Logo of Belle International Company……………...…………….56
Figure 4.4: A Belle franchise store in Fashion Parkson…………………...…….…57
Figure 4.5: Location of ten Belle stores in Lanzhou…………………...……….....59
ix
Chapter 1
GENERALITIES OF THE STUDY
1.1 Introduction of The Study
In this study, the researcher intends to focus in is China’s footwear market. In recent
years, the footwear industry and the business environment have significantly
changed and have also become more sophisticated and competitive, specifically in
Lanzhou, Gansu. This study focuses on Belle International Footwear Company, the
biggest footwear and sportswear manufacturer in China, to analyze how this
company uses customer loyalty factors to achieve a huge sales volume and compete
with other international brands. This study also assesses how this company can
strengthen its position in the market for shoes in China.
Today in the footwear industry, the reflection of how consumers` perceptions make a
good brand impression on customers has become more and more important. Image
can be held in memory by various associations (de Chernatony and McDonald, 2003;
Keller, 2008), with it being stated that it is a shared subconscious mental picture
(Reizebos, 2003). Verdict (2009) mentioned that if consumers continued to look for
low prices, the role of footwear’s brand image has become more important to attract
consumers to make initial and repeat purchases. Therefore, a footwear’s brand
image is a required momentum for purchases for the way intended to be achieved
(Leroux and Hawkes, 2008; Mulyanegara and Tsarenko, 2009).
1
As price often sends quality cues to customers, low prices of a product reflect the
perceptions of quality (Jobber, 2010), underlining that repeat purchases at certain
footwear stores do not depend on quality but on price. These kinds of consumers’
product purchases could be due to the basic experiential and hedonic motivations of
consumers (Geuens et al., 2004). Customers often use their perceived value to
compare the differences between perceived benefits and sacrifices (Zeithaml, 1988 ;
McDougall and Levesque, 2000).
According to the Zeithaml (1988) and Aaker et al. (1994), that judgment about the
benefit or superiority of a footwear product is determined by consumer’s subjective
perceptions. Perceived quality is an attitude formed when customers compare the
difference between expectations with the actual performance (Parasuraman et al.,
1985). For footwear companies, the perceived benefits help produce customer
satisfaction and keep customer loyalty (Hennig-Thurau et al., 2002).
Customer satisfaction can generate positive comments and feedback which affects
repeat purchases from consumers. Thus, footwear companies need to determine
customer loyalty and consider its importance in order to provide better service
delivery (Lewis and Soureli, 2006). Customer loyalty depends to a great extent on
customization of service (Ball et al., 2006) and making the customer enjoy shopping
at a particular footwear store (Wong, 2004). That is why customer satisfaction and
loyalty are very important to Belle international company’s future.
2
With the development of globalization, people have more brands to choose from the
market for shoes. Therefore, building strong customer loyalty is the primary task of
many firms in order to achieve long-term and healthy profits. And companies can
gain more market shares in the process of building customer loyalty.
This study aims to further investigate the relationship among image, price, and
perceived value with five dimensions of perceived quality, customer satisfaction and
loyalty. With the recent changes in footwear trends, this study hopes to analyze all
possible effects of factors on the brand image, price, perceived value, service quality,
customer satisfaction and loyalty of Belle footwear store in Lanzhou.
The market for shoes is highly competitive everywhere, in this study, the researcher
would focus on customer satisfaction in order to build customer loyalty. Meanwhile,
with an increase in competitiveness and unpredictability in the markets for shoes,
the major key for success in footwear business is customer loyalty.
1.1.1 The Footwear Industry in the World

China is the top country in the world as a producer, manufacturer and exporter for all
the footwear producers. China producers had 62.4% of world share and production
capacity, which as 12,597 million pairs of shoes in 2010. Much of the production is
made in the provinces of Guangdong, Fujian and Zhejiang. The regional neighbors of
India, Vietnam, Indonesia, Pakistan, and Thailand account for 20% among the world’s
top 10 world footwear producing countries.
3
Some of those countries are enjoying strong production growth in their world
market share. Thus China is competing with those countries as Table 1.1 below
shows.
Table 1.1: The Top 10 Footwear Producers in the World (2 0 1 0)
Source: http://www.apiccaps.pt/c/document_library/get_file?uuid=7200889f-26e8-4
329-855d-5bdb268eb49a&groupId=10136 (13/October/2012)
1.1.2 The Footwear Industry in China
China is the world’s second–largest country located in East Asian with 1,347.6
million people living in China with a total land of 9.6 million square kilometers
(http://www.iom.int/jahia/Jahia/china, 09/Octobor/ 2012). In 2011, China produced
4.271 billion pairs of leather shoes (http://www.bizjournals.com/prnewswire/pressre
leases/2012/10/03/SP86244, 13/October/2012).
4
Accordingly, in 2010 the footwear market of China had about 62.4 percent of the
world’s share in total footwear production. Women’s footwear itself captured a
significant share over 50 percent of the total domestic footwear sales (http://ww
w.reportlinker.com/p089506-summary/China-Footwear-Market-Analysis.html,
09/Oct ober/2012).
Figure 1.1: Location of China
Source: http://www.lonelyplanet.com/maps/asia/china/ (06 October/2012)
5
Figure 1.2: Map of Lanzhou, Gansu
Source: http://www.cfguide.com/prov/gansu.htm (06 October/2012)
Gansu is a province in the northwestern part of China and Lanzhou is a capital city.
There are 25.58 million peoples living in Gansu of 430000 square kilometers
(http://www.cfguide.com/prov/gansu.htm, 13/October/2012).
1.2 Company Profile
Belle International Holdings Limited was founded in 1978, it’s broadly divided into
two main segments: the footwear and sports business. Both that engages in trade and
6
retail sales and both manufactures and distributes shoes and footwear products in the
mainland of China, Hong Kong, Macau, and Taiwan (http://investing.businesswee
k.com/research/stocks/snapshot/snashot.asp?ticker=1880:HK, 13/October/2012). As
the mainland’s biggest footwear company, it had an annual sales or 16.02 billion
Yuan in 2011 (http://uk.reuters.com/article/2012/08/21/belle-earnings-idUKL4E8J
F11P20120821, 13/October/2012). As at 31 December 2011, Belle operates 14,950
franchised stores in mainland China and close to 200 retails outlets in Hong Kong
and Macau (http://www.belleintl.com/en /aboutus/index.jsp, 13/October/2012).
Belle stands on its own two feet as a Chinese shoe company in the footwear market,
this study will explore how Belle should build and achieve stronger customer loyalty
for its footwear industry by considering various factors affecting the perceived value
of Belle footwear and whether perceived quality really affects people’s evaluation of
their customer satisfaction to Belle footwear products.
Belle is the majority stakeholder of many manufacturing and retail footwear
businesses, including Belle, Staccato, Teenmix, Tata, Fato, JipiJapa, Joy & Peace,
Senda, Basto, Millie’s, Joy & Peace, Mirabell and Bata (http://investing.businesswe
ek.com/research/stocks/snapshot/snapshot.asp?ticker=1880:HK,14/October/2012).
Belle, which distributes retail brands, including first-tier sportswear brands such as
Nike and Adidas, and second-tier sportswear brands such as Kappa, PUMA,
Converse and Mizuno (http://www.reuters.com/article/2012/03/21/belle-acquisitio
n-idUSL3E8EL0C820120321?type=companyNews, 14/October/2012).
7
Table 1.2: The Top 10 Ladies’ Footwear Companies in China
Ranking Brand
1st Belle
2nd Teenmix
3rd Tata
4th Daphne
5th Staccato
6th Kisscat
7th Walker shop
8th Basto
9th Senda
10th Cbanner
Source: http://www.03964.com/read/1b0a17cc05f7ff26d686350f.html (14/October/
2012)
According to the Industrial Information Center of China (Table 1.2), in 2011, some
brands are famous and have a very strong brand presence, such as Daphne, Kisscat,
Walker shop, Cbanner, Hush Puppies etc. Of the top 10 brands in the ladies’ leather
footwear market in PRC (People’s Republic of China) in terms of sales revenue,
Belle Company had six of the top ten brands in the ranking list, including Belle (1st),
Teenmix (2nd), Tata (3rd), Staccato (5th), Basto (8th) and Senda (9th),
(http://www.belleintl.com/en/a boutus/index.jsp, 14/October/2012).
8
Table 1.3: The Annual Revenue of Belle as of Year ended 31 December, 2011
Source: http://www.belleintl.com/wcms-common/temp/201204241053250339/Ann
ual%20Report%202011.pdf (14/October/2012)
Table 1.4: The Revenue of Belle’s Footwear Business as of Year ended 31
December, 2011
9
As indicated in Table 1.3 and Table 1.4, the total 2011 revenue was 28,994,704 yuan,
a 19% increase compared to 2010. Out of the total revenue, 90.2% come from sales
under company-owned brands while 8.2% from distribution of retail brands and
1.6% by sales from international exports.
Figure 1.3: The Map of The Company-managed Retail Outlets of Year ended 31
December, 2011
10
The following map Figure 1.3 shows the geographical distribution of the
company-managed retail outlets. Gansu provinces had 115 retail outlets in Mainland
China as at 31 December 2011.
Table 1.5: The Number of Company-managed Retail Outlets during the Year ended
31 December, 2011
As Table 1.5 shows, Belle has many retail outlets by regions in China and has most
of its stores in the Northwestern region, including 686 company-owned retail outlets
and 84 distribution brand retail outlets. Then, there are a total of 770 retail outlets in
the Northwestern region.
Table 1.6: The Belle’s Company Five Financial Years
11
Table 1.6 shows that the company has enjoyed consecutive years of high growth
with increased revenues from 2007 to 2011. In 2007, the company had a revenue of
11, 671,858 Yuan. Five years later, it has increased to 28, 944,704 Yuan.
Table 1.7: Percentage of Revenue by Product Category
Table 1.7 indicated that in 2011, gross profit in footwear sales increased 28.0% from
12
9,958.8 million in 2010 to 12,746.0 million in 2011. And gross profit in sportswear
sales increased 17.2% from 3,249.6 million in 2010 to 3809.9 million in 2011,
respectively.
1.3 Statement of Problems
This study intends to measure the level of customer satisfaction and customer
loyalty in a footwear franchise. Therefore, the researcher focuses on Belle footwear
stores new branches that have to compete with other footwear shops in order to
become a dominant operator in China’s footwear industry, and also on how to
maintain a high sales-volume is a big issue for shoe providers. In addition,
understanding loyalty of customers is important. This study aims to determine if
perceived value, perceived quality and customer satisfaction are key elements that
influence customer loyalty towards the Belle Company. This is done in order to
clarify to what extent these factors influence experienced Chinese customers who
make repeat purchase of footwear products from Belle stores. Therefore, the
researcher developed a framework and for getting answers from this study as
follows:
1. Is there any relationship between image and perceived value?
2. Is there any relationship between price and perceived value?
3. Is there any relationship between perceived quality in term of reliability,
tangibles, empathy, responsiveness and assurance and customer satisfaction?
4. Is there any relationship between perceived value and customer satisfaction?
5. Is there any relationship between perceived value and customer loyalty?
6. Is there any relationship between customer satisfaction and customer loyalty?

13
1.4 Objectives of the study
The objective of this study was to find out how to enhance customer satisfaction and
customer loyalty at Belle international shoes company. This study focuses on
examining the impact of brand image, price, perceived quality, perceived value,
customer satisfaction and customer loyalty. The study will be examining issues on
customer loyalty within Lanzhou city in Gansu province, China. The objectives of
this study are as follows:
1. To investigate the relationship between image and perceived value.
2. To evaluate the relationship between price and perceived value.
3. To study the relationship between perceived quality in terms of reliability,
tangibles, empathy, responsiveness, assurance and customer satisfaction.
4. To analyze the relationship between perceived value and customer satisfaction.
5. To assess the relationship between perceived value and customer loyalty.
6. To determine the relationship between customer satisfaction and customer
loyalty.
1.5 Scope of Research
This research is conducted to study the factors that influence the customer loyalty of
customers at Belle international shoe company in Lanzhou, China. This study
explores the factors that include image, price, perceived quality (reliability, tangibles,
empathy, responsiveness and assurance), perceived value and customer satisfaction.
The dependent variable was customer loyalty, while the independent variables were
image, price, perceived quality, perceived value and customer satisfaction. A total of
14
400 questionnaires were distributed and the survey method was used for collecting
information from customers who purchased shoes of Belle footwear product in
Lanzhou city, and who had an experience of more than two year within Belle
footwear. Ten locations of Belle store branches in Lanzhou (namely Yaou, Xidan,
Guofang, Hualian, Parkson, Baian, Wangfujing, New World, Meilun and Wanshang)
were determined to collect the data. The researcher selected these ten branches that
were mostly located in the main popular shopping malls in Lanzhou.
1.6 Limitations of the Research
There were some limitations to this study. The firstly limitation of this study is that
the researcher only focused on footwear of Belle brand in their retail outlets.
Therefore, the findings cannot cover other shoes` brands. Secondly, this study only
focus on those who purchased a Belle footwear product and who had an experience
of more than two years with Belle footwear product, thus the findings cannot
represent customers with less experience. Thirdly, the place where the research is
carried out is Lanzhou city in the Gansu provinces.
Therefore, the results of this study may not be applicable to other areas in Gansu.
Fourthly, this research studies only a single industry, the customer loyalty of
footwear store was measured. Hence, the findings perhaps are not generalized to
other industries. The further limitation is the period of collecting questionnaires. The
questionnaires were collected during November 3rd to 12th, 2012, thus, the results
my change in other periods.
15
1.7 Significance of the Study
The researcher studied the relationship among image, price, perceived value,
perceived quality, customer satisfaction and loyalty in the Belle International
Company in Lanzhou, China. The Belle Company was the newest international
footwear store in China and it needs to pay attention to performance in order to
understand customer’s needs and to be able to improve service so as to compete
with other brands. This study also provides useful information to the management
team of the footwear store in terms of measuring employee’s ability to provide
perceived quality in order to obtain customer satisfaction and loyalty. Moreover, the
study can help the footwear stores to know the overall weaknesses and strengths of
the perceived value and quality which will help establish better customer satisfaction
and loyalty among the shoe stores.
1.8 Definition of Terms
Assurance: is the opinion of a firm’s employees that they have ability, knowledge
and courtesy to inspire trust and confidence (Parasuraman et al., 1988)
Belle: is a Chinese shoe brand that designs, produces, manufactures and sells in its
retail chain (http://www.ximancolor.com/chineseconsumercolor/op4.asp, 15/October/
2012).
Customer satisfaction: according to Huddleston et al. (2008), is a measure of how
well shoppers feel about a product’s service and their evaluation of a product’s value
and quality as compared to a customer’s expectations of service by shoes stores.
16
Customer loyalty: is a measurement of how likely consumers are to engage in
relationship activities and repurchase the product/shoes with a firm (McIlroy and
Barnett 2000).
Customers: Windham and Orton (2002) defined consumer as an individual or an
organization that who are interested on buying form commodities and services for
customer use.
Empathy: is the caring and personalized attention received by customers from the
firm (Parasuraman et al., 1988).
Image: is the main reason for shopping and patronizing a store with pleasant
environment in the consumers` mind (Jin and Kim, 2003).
Price: means the amount in consideration for a sale for a shopper or a seller, which
the firm sets on their product or service in a market (Hornby et al., 2004).
Perceived value: according to Cronin et al. (2000) and Zeithaml (1988), based on
customer’s perception of the utility in what is received and given in a product.
Reliability: is the ability of firms (such as shoes company) to perform the promised
service accurately and dependably (Parasuraman et al., 1988).
17
Responsiveness: is the symbolic meaning with firm provides willingly to give
prompt service to customers (Parasuraman et al., 1988).
Tangibles: are the physical facilities, equipment, and appearance of a firm’s
personnel (Parasuraman et al., 1988).
18
Chapter 2
LITERATURE REVIEW AND RELATED STUDIES
In this chapter, the researcher will discuss the theories related to the variables of the
study and do a review of the literature and previous studies. In this study the
researcher focuses on research related to each of the study’s variable and the
relationship between the independent and dependent variables by investigating all
the research variables, namely image, price, reliability, tangibles, empathy,
responsiveness, assurance, customer satisfaction and customer loyalty. The
researcher tries substantiating the variables used by a review of related studies. In
the final section, past research on the topic is explained and summarized.
2.1 Definitions and Theories Related to Variables
2.1.1 Customer Loyalty
Oliver (1997) defined loyalty as a deeply held commitment to re-buy or re-patronize a
preferred product or service consistently in the future. Recent studies have
conceptualized customer loyalty on the basis of both behavioral and attitudinal aspects
(Evanschitzky and Wunderlich, 2006; Fitzgibbon and White, 2005; Olsen et al., 2005;
Yi and La, 2004). Customer loyalty is divided into two possible ways: one is aspect is
the behavior of customers, which is demonstrated by repetitive purchases of the same
brand, a preference of a brand and the recommendation of the brand to others; another
aspect is the attitude of customers, which is the internal affect and perception
components of customer loyalty. Customers may exhibit repurchase behavior due to
limited choice available or inertia (Bloemer and Kasper, 1995). Customers have
19
exhibited, over a recent period, much repeat purchases of Belle company products and
significant spending for Belle shoes in terms of the customer’s total outlay. Real
customer loyalty extends beyond behavior and includes preference and desire
(Lovelock and Wirtz, 2007).
2.1.2 Customer Satisfaction
Customer satisfaction is defined as customers’ needs and goals when a service is
providing a pleasurable level of fulfillment and emotional response (Oliver, 1997).
Customer satisfaction is an important factor to understand to satisfy customers about
what they need and want. Pleasurable means that fulfillment increases pleasure or
reduces displease or anxiety. Fulfillment is determined by the customers’ expectations.
Moreover, if the perceived service performance does not meet customer expectations,
the likely result is dissatisfaction (Churchill and Surprenant, 1982; Oliver, 1980; Yi,
1990). The level of satisfaction or dissatisfaction is reflected from perceptions and
attitudes from previous service experiences, and may also influence repurchase
intentions (McGuire, 1999).
Customer satisfaction is a significant element in service delivery because
understanding and satisfying customers’ needs and wants can engender increased
market share from repeat purchases and referrals (Barsky, 1992). Overall contentment
felt by the customer results from the ability of the service to fulfill the customer’s
desires, expectations and needs in relation to the service. Customer satisfaction is
rated highly as a strategic end in and of itself, as it affects customer retention and
profits directly (Jones and Sasser, 1995; Reichheld, 1996). Customer satisfaction will
20
affect future repeat purchase intentions and the customers will share their positive
experiences with other consumers.
2.1.3 Perceived Value
Perceived value has been defined as the benefit from services which customers
believe they receive in consideration for the cost of that service (McDougall and
Levesqu, 2000). Rust and Oliver (1994) stated that if the price was too high and a
service is of a good quality, then customers rated it as a poor value service. Heskett et
al. (1997) found that high value was not necessary associated with low prices, because
services with a high perceived value may in fact have high or low prices. When
perceived value increases, maybe customers will stay loyal and have increased
expectations, whereas a decrease in value will result in customers being more
receptive to competitors’ marketing (Grönroos, 2000).
Companies can employ two strategies, one is adding more benefits from their
services, and another is reducing the costs associated with the purchase that will
enhance the customers’ perceived value (Lovelock and Wirtz, 2007). Perceived value
is the trade-off between what customers receive and what they have to pay to obtain a
service (Monroe, 1991; Zeithaml, 1988). Customer perceived costs are often
represented and measured by price (Brady and Cronin, 2001; Lam et al., 2004;
Sweeney et al., 1999; Varki and Colgate, 2001; Wang et al., 2004). Other
non-monetary costs include time and physical and mental effort (Zeithaml et al.,
2009). These types of costs are different across individual consumers and situations
(Tam, 2004).
21
2.1.4 Image
Keller (1993) stated that image is based upon the customers’ beliefs about a brand and
its associations held in memory and that the image comes from the perceptions of the
consumers. In the marketing services, image was identified as a significant factor in a
company’s overall evaluation (Bitner, 1991; Grönroos, 1984; Gummesson and
Grönroos, 1988). Image has been described as an individual knowledge such as an
attitude or a combination of product characteristics that’s identified by product and it
is different from the product physical characteristics (Nguyen & LeBlanc, 1998). And
image has also been described as the overall impression left in the minds of customers
(Zimmer & Golden, 1988). According to Grönroos (1984), image was defined as a
filter that affects the perception of a company operation. The overall image of the
company is affected it’s by perceived value, service quality and customer satisfaction.
2.1.5 Price
Price is a major determinant of consumer choice (Kotler et al., 2009). That is it’s the
cost incurred in making a purchase (Tse, 2001), which together with perceived service
quality and perceived value influence spending behavior (Rust and Oliver, 1994).
Consumers will determine what price can be paid based upon their discretionary
spending limits (Monroe, 1990). How much a customer is willing to pay depends on
what they need, what they expect and their evaluation of the quality of a service at its
given time and place (Heskett et al., 1997). High price products and services are
believed to be high-quality products and services and their prices are normally higher
than lower-quality equivalent products or services as price impacts perceived quality
(Curry and Riesz, 1988; Erickson and Johansson, 1985; Lichtenstein et al., 1988). If
22
consumers have no experience in obtaining a service, they therefore make a decision
based upon their expectation, image, perception of quality and price (Dodds et al.,
1991; Monroe, 1990; Zeithaml et al., 1990).
2.1.6 Perceived Quality
Perceived quality is judgment superiority by customers about a product’s overall
excellence or (Zeithaml, 1988) it’s like an attitude (Zeithaml, 1988; Parasuraman et al.,
1985). Perceived quality is defined as the customers compare between their
expectation and perception of service performance (Lehtinen & Lehtinen, 1982;
Lewis & Booms, 1983, Gronroos, 1984; Parasuraman et al., 1985; 1988; Caruana,
2002).
Five dimensions of service quality:
Reliability:
Parasuraman et al. (1988) defined reliability as the ability of a firm to perform the
promised service dependably and accurately. Zeithaml et al. (2006) mentioned that
this dimension is critical as customers want to deal with a company that keep its
promises with as all its customers and generally simply show that company has good
communication with them. Nguyen & Leblanc (2001) mentioned that, considering
reputation about reliability, customers’ past experiences are related to the reliability of
service quality (Ndubisi, 2006).
23
Tangibles:
Tangibles have been defined as personal appearance, physical facilities like store
decorations, display and equipment (Parasuraman et al., 1988). It refers to the shoes
interior, the appearance and condition of the shelf space, uniform of the staff, the
appearance and design of the brochure, the store’s sign and its advertisements
(Zeithamal et al., 2006). Tangibles are basic elements such as access to the facilities
and the safety and convenience for customers (Bellini et al., 2005). Tangibles are used
by firms to convey their image and signal quality (Zeithaml et al., 2006).
Empathy:
Parasuraman et al. (1988) and Zeithaml et al. (2006) defined empathy as the firms`
personalized attention for their customers and for giving them care and assistance.
This dimension is also more suitable to companies that are trying to build a
relationship with customers as opposed to “transaction marketing”. This ensures the
firms survival (Andaleeb & Conway, 2006). Empathy has several ways that can be
shown to customers such as knowing the customer’s name, preferences and needs.
Many companies use this competence to provide customized services as a competitive
advantage over other firms (Zeithaml et al., 2006).
Responsiveness:
According to Parasuraman et al. (1988), responsiveness is the employees express
willingness to help customers and provide quick service. This dimension is
concerned with dealing with the customer’s requests, questions and complaints
promptly and attentively. When it communicates to its customers, a firm needs to
24
know how to be responsive and how long it would take to get answers and solve
problems. If companies want to be successful, they needs to look at the view point
of the customer rather than the company’s perspective (Zeithaml et al., 2006).
Assurance:
Parasuraman et al. (1988) defined assurance as the trained courtesy of employees
and also the ability to inspire trust and confidence from them. According to
Zeithaml et al. (2006), assurance represented the personnel who link the customer to
the organization by trust and confidence. It’s about traditional selling and
relationship marketing expressed information and shared understanding to customer
(Ndubisi, 2006; Lymperopoulos et al., 2006).
2.2 Review of Related Research
2.2.1 Review of research regarding the relationship between Image

and Perceived Value
A brand or store image has an important effect on perceived value and satisfaction
(Andreassen and Lindestad, 1998; Bloemer and Reyter, 1998; Cretu and Brodie, 2007;
Lai et al., 2009; Patterson and Spreng, 1997; Ryu et al., 2008). Andreassen and
Lindestad (1998) found a relationship between a store’s image and its customers’
perception of the value of it’s the service. Patterson and Spreng (1997) mentioned that
service context can interpret consumer behavior as perceived value and also found
that, it has a positive and direct effect on customer satisfaction. Cretu and Brodie
(2007) found that customers` perception of value had a direct impact on brand image
and firm reputation and found that brand image had a positive relationship with
25
perceived value. Lai et al. (2009) found that brand image influenced perceived value,
and that customer satisfaction and perceived value were significant predictors of
customer loyalty.
2.2.2 Review of research regarding the relationship between Price

and Perceived Value
One of essential component of value perception is price. Value could be called a
balance between what consumers receive in an exchange for what they pay (Dodds,
Monroe, and Grewal, 1991; Zeithaml, 1988). Blattberg and Neslin (1990) mentioned
that price is the discount in the presence, it can save perception of present a
reference price. Recent research has suggested that additional value is driven from
the internal reference price (Grewal, Monroe, and Krishnan, 1998; Lichtenstein and
Bearden, 1989). Grewal et al (1998) argued that if the individual’s reference price is
more than the price paid, it will improve buyers` perception of value. Therefore a
fair price directly affects perceived value (Lai et al., 2009).
Customers always want to obtain greater benefits yet spend less either in monetary
or non-monetary costs than what they obtain. If there process of purchasing is
related with reducing costs, it’s an important way to improve perceived value (Chen
and Hu, 2010). Customer perceived value is related to price，when a company tries
to cut costs, it wants to enhance competitive advantage to keep its perception of
value (Spiteri and Dion, 2004). Customer perceived value is an important aspect of
competition regarding the real price of a product. Satisfaction regarding price
enhances the perception of value and there is a direct relationship between price and
26
perceived value (Ralston, 2003).
2.2.3 Review of research regarding the relationship between

Perceived Value and Customer Satisfaction
Based on Bagozzi’s (1992) cognition-affect model, perceived value has a positive
relationship with satisfaction. The customers’ perceived value of a service determines
the satisfaction that the customers will feel with the service (Kotler and Levy, 1969;
Howard and Sheth, 1969). (Hu et al., 2009; Lam et al., 2004; Tam, 2004) showed that
perceived value has a positive influence on satisfaction. If a firm wants to gain more
of a competitive advantage, one underlying source is by delivering and creating
superior value for customers (Ravald and GrO¨ nroos, 1996; Sweeney and Soutar,
2001; Woodruff, 1997).
Customers’ value judgments have an effect on satisfaction, while overall judgments
on experience and value are related to overall customer satisfaction (Spiteri and Dion,
2004). Perceived value can lead to customer satisfaction and determines whether the
level is higher or not, and an increase of customer satisfaction relies to an extent on
perceived value (Kuo et al., 2009; Turel and Serenko, 2006). An important factor
among the determinants of satisfaction is the perceived value of a product (Chen and
Chen, 2010) and this perceived value connects service and customer satisfaction
(Chen and Tsai, 2008).

Perceived Value and Customer loyalty
Heskett et al. (1997) mentioned that loyal employees create value for customers and
27
this drives customer satisfaction and in turn influences customer loyalty. Perceived
value does not only directly affect customer satisfaction but also strongly influences
customer loyalty (Brady et al., 2005; Szeinbach et al., 1999; Wang et al., 2004).
Perceived value has positive relationship with customers` repurchase intentions and
customer loyalty (Chen and Dubinsky, 2003; Sweeney et al., 1999; Yang and
Peterson, 2004). Lai et al. (2009) mentioned that perceived value has a higher effect
on customer loyalty than any other evaluative variables such as quality or corporate
image. Thus perceived value affects customer satisfaction and it leads to positive
behavioral effects such as customer loyalty (Lai et al., 2009).

Perceived Quality and Customer Satisfaction
Customer satisfaction is a significant expectation in the full meeting (Oliver, 1980)
and described who has been used after product or service by customer feeling or
attitude (Evans et al., 2006). While some researchers have mentioned a causal
relationship between service quality and customer satisfaction, a few have
investigated the relationship between each service quality dimension with customer
satisfaction (Anderson and Sullivan, 1993; Bolton and Drew, 1991; Cronin and Taylor,
1992; Woodside et al., 1989)
 Reliability and Customer Satisfaction

Reliability is looked as the most significant dimension of service quality (Chowdhary
and Prakash, 2007; Zeithaml et al., 2006). Reliability is defined as delivering
promises to customers dependably in deals processed by a firm (Zeithaml et al., 2006).
Zhou (2004) mentioned that reliability has significant influence on customer
28
satisfaction. The more that a firm delivers on promises to customers, the more
satisfied the customers (O’Neill and Palmer, 2003; Buttle, 1996).
 Tangibles and Customer Satisfaction

Yavas et al. (1997) found that tangibles are important predictors of satisfaction among
customers. Tangibles are expressed as the brand’s image and quality by firms
(Zeithaml et al., 2006). Tangibles of service quality include physical facilities,
equipment and employee appearance as they relate to the service environment (Bitner,
1990, 1992). Since this relates to the psychology of the environmental, consumers will
make inferences about the main aspects of the business based on environmental cues
(Baker et al., 1994, 2002).
 Empathy and Customer Satisfaction

Empathy is proved to be influential in customer satisfaction (Butcher, 2001; Ndubisi,
2006; Ehigie, 2006). Empathy is defined as caring and individualized attention
provided by firms to customers who are felt to be important to the organization
(Zeithaml et al., 2006; O’Neill and Palmer, 2003).
 Responsiveness and Customer Satisfaction

Responsiveness is also likely to have an important and positive effect on customer
satisfaction (Jun & Cai, 2001; Diaz & Ruiz, 2002; Joseph et al., 2005; Glaveli et al.,
2006). Responsiveness is the willingness of a provider to deliver prompt help and
service to customers (Zeithaml et al., 2006; O’Neill and Palmer, 2003). If a
company wants to be successful, it needs to be more concerned towards the
responsiveness of its customers’ requests (Zeithaml et al., 2006).
29
 Assurance and Customer Satisfaction
Arasli et al. (2005) mentioned that the assurance dimension of service quality
influences customer satisfaction. Assurance is defined as employees` knowledge,
skills and ability of providing service to the customers to bring about trust and
confidence. The trust and confidence may come from the behavior of the personnel
who act as communicators for customers from to the organization (Zeithaml et al.,
2006).

Customer Satisfaction and Customer loyalty
Oliver (1999) found that customer sense things like attainment of pleasure and that the
process of consumption needs some desires and goals, therefore customer loyalty is
affected by their satisfaction. Asuncion et al. (2004) mentioned that customer
satisfaction was the key factor influencing service loyalty. Fornell (1992) has found a
strong correlation between customer satisfaction and customer loyalty. In
investigations in how customer satisfaction affects on customer loyalty, a positive
relationship has been shown (Li et al., 2008; Ndubisi et al., 2009; Yi and Gong, 2009;
Bowen and Chen, 2001).
Although customer satisfaction alone cannot be depended upon for customer loyalty
(Shankar ad Amy, 2002; Bloemer and Kasper 1995; Oliver 1999), it is positively
related to customer loyalty (Ehigie, 2006). Guiltinan et al. (1997) believed that
satisfied customers are more likely to be repeat customers however will become loyal
customer. According to Mittal et al. (1999) the relationship between customers`
satisfaction and loyalty has changed over time nevertheless it was dependent on
30
product quality and services. Several studies have mentioned that there is a
relationship between satisfaction and loyalty by Coyne (1989); Oliva et al., (1992);
Fornell (1992); Guiltinan, et al. (1997); Sivadas and Baker-Prewitt (2000); Bowen,
and Chen (2001); Bansal and Gupta (2001); Silvestro, and Low (2006).
2.3 Previous Research
Lu (2010) investigated the relationships among perceived quality, country-or-origin,
brand loyalty and brand equity of Chinese footwear, Nanjing, China. This study
surveyed individual purchases of Li-Ning footwear in shopping malls in the
Xinjiekou area of Nanjing. The researcher distributed 400 questionnaires and
collected them from 369 respondents who have effectively purchased Li-Ning
footwear products at least once and who have an experience with the Li-Ning brand.
There were five parts to the questionnaire, part two and part three used five-points
Likert Scale to measure the level of each factor, and part four applied an ANOVA
test to analyze the hypotheses testing. The last part measured demographic data. In
this study, the findings have shown that there was a significant difference between
price, store image and perceived quality. The researcher concluded that price and
advertising spending have a low positive relationship with perceived quality while
store image can strongly influence perceived quality, the study suggested that in
order to keep consumers’ positive perspective with their products, the Li-Ning
company should count on a pricing strategy, store decoration and advertising
investment to increase or improve perceived quality of their products.
31
Yossakorn (2007) studied the relationship between customer satisfaction and
customer loyalty at True Fitness health clubs in Bangkok, Thailand. In this study,
the researcher used SERVQUAL dimensions to investigate club members’
satisfaction with True Fitness clubs. The results of this study came from an analysis
of 364 responses from 4,000 people who use the service and who have a
membership with of the True Fitness health clubs in 2006. There were eight
demographic variables such as gender, age, marital status and monthly income, etc.
In this study, the researcher used a five-point Likert scale and five dimensions of
SERVQUAL to measure tangibles, reliability, responsiveness, assurance and
empathy. The results showed that the service quality overall dimensions had a
positive significant relationship with customer satisfaction which in turn affects
customer loyalty. These factors were significant predictors to help True Fitness
health club managers improve their service quality and keep current customers
satisfied as well as to obtain new members.
Chitty et al. (2007) applied the ECSI model of satisfaction and loyalty for
backpacker hostels in Perth, Australia. The major purpose of this research is to
compare four factors: brand image, technical dimensions, functional and price with
satisfaction of a hostel, assuming that perceived value indicated a degree of loyalty
towards the brand. Two-hundred and eighty-one questionnaires were collected from
backpackers staying at the three youth hostels. The researcher used the SPSS and
AMOS 4.01 programs software for analyzing the data. The findings showed that
perceived value mediated the relationship between service processed and
satisfaction. Loyalty included two variables, the customer satisfaction and brand
32
image, whereas customer satisfaction related to the service processes and results,
while brand image had an important effect upon customer loyalty in the long term.
The researcher concluded that the brand’s image helped meet its target market,
while brand image influenced customer satisfaction via perceived value and this
builds long-term loyalty to the brand in the future.
Jamal et al. (2009) investigated the effects of service quality dimensions and
expertise on customer loyalty in Thessaloniki, Greece. In this study, the researcher
used SERVQUAL dimensions to investigate bank users` satisfaction in Greece. A
total of 250 questionnaries were sent out to retail bank users in four branches of the
two major Greek banks. The completed results gave an effective total of 200 useable
questionnaires. The reasercher measured reliablity, services quality and loyalty by
using a seven-points Likert type scale from 1= “strongly disagree” to 7=“strongly
agree.” The researchers analyzed the relationships among each facors by using
AMOS 6.01 with a multiple regression method. The findings revealed that expertise
has a negative relationship with customer loyalty. They suggested that managers can
focus on tangibles, reliability and empathy dimensions of service quality to try to
measure, control and improve the satisfaction and loyalty of their customers. The
results from the study showed that servie quality factors affects tangibles , reliablity
and empathy significantly and it is related to loyalty via satisfaction and expertise
moderated the related between satisfaction and loyalty , it is nagativley related with
customer loyalty.
Tam (2012) studied the service context and the moderating role of perceived risk in
loyalty intentions in private sector health care in Hong Kong. The major purpose of
33
this study was to investigate the relationship between service quality, perceived
value, satisfaction and loyalty. In addition the researcher examined the moderating
effect of perceived risk on loyalty with perceived value and customer satisfaction. In
this study, a multiple regression method was applied to analyze the relationship of
perceived value and customer satisfaction with customer loyalty by using a
seven-point scale. The findings show that the relationship of satisfaction with
loyalty and the relationship between perceived value with loyalty had a significant
difference between the low and high perceived risk groups. Moreover, the results
show that customer loyalty was positively influenced by customer satisfaction and
perceived value.
Critical analysis: the researcher found the store image is a significant factor that
affected perceived quality. And service quality that consists of reliability,
responsiveness, assurance, tangibles and empathy are related to consumer
satisfaction and loyalty. Also findings show a relationship between satisfaction with
loyalty and perceived value with loyalty.
Table 2.1: The summary of the previous studies
Topic Researcher Purpose Statistic Finding

Method
The relationship Lu (2010) Investigate ANOVA Store image is a
among perceived between and significant factor
quality, consumers Multiple that affected
country-or-origin, perception Regression perceived quality.
brand loyalty and of quality Method The
brand equity of and brand country-of-origin
34
Chinese loyalty of factor can also
footwear,Nanjing, Li-Ning lead to stronger
China. footwear brand loyalty.
companies
brand equity
The relationship Yossakorn Examine the Multiple Service quality
between customer (2007) relationship Regression dimensions that
satisfaction and among Method consist of
loyalty: a study of service reliability,
True Fitness health quality responsiveness,
clubs in Bangkok. dimensions, assurance,
satisfaction tangibles and
and loyalty empathy are
related to
consumers`
satisfaction and
overall loyalty.
An application of Chitty, B., Determine SPSS and Brand image has a
The ECSI model Ward,S. & the factors of AMOS significant
as a predictor of Chua, C. customer influence on
satisfaction and (2007) satisfaction customer
loyalty for with a satisfaction via
backpacker service and perceived value
hostels. their loyalty and loyalty.
Investigating the Jamal, A. & Investigate AMOS The finding was

effects of service Anastasiadou. the effects of and that expertise has a
quality dimensions K. (2009) service Multipe negative
and expertise on quality Regression relationship
loyalty. dimensions Method between customer
on customer loyalty and that
loyalty tangibles,
reliability and
empathy
dimensions of
sevice quality have
35
positve effects
on satisfaction and
loyalty
The moderating Tam, L. J. Investigate Multipe The findings show
role of perceived (2012) the impact of Regression a relationship
risk in loyalty service Method between
intentions: an quality satisfaction with
investigation in a dimensions loyalty and
service context. on perceived perceived value
value, with loyalty. There
customer was a significant
satisfaction difference between
and loyalty low and high
in high perceived risk
contact groups.
services
36
Chapter 3
RESEARCH FRAMEWORK
In this chapter the researcher provides the framework of the research, which is the
summary of the overall concept of this paper. This chapter has four parts. The first
part includes the theoretical framework in which the researcher discusses theories
from different articles that relate to perceived value, perceived quality and customer
satisfaction. The second part is the modified conceptual framework that shows how
the researcher sets up all of the variables for the conceptual framework of this study.
In the third part, the research hypotheses will be explained and in the last part, the
operationalization of each variable will be presented to make the variables and
operational component in this study clear.
3.1 Theoretical Framework

In this study, the researcher has developed the conceptual framework based on many
previous studies. There are four major empirical research models previously done
that will be used as sources for the conceptual framework in this study. The first
research model was developed by Chitty et al. (2007), who studied about an
application of the ECSI model as a predictor of satisfaction and loyalty for
backpacker hostels (Figure 3.1). The second research model was developed by
Jamal et al. (2009), who investigated the effects of service quality dimensions and
expertise on loyalty (Figure 3.2). The third research model was developed by Tam.
(2012), who studied about the moderating role of perceived risk in loyalty intentions:
an investigation in a service context (Figure 3.3). All details of each research model
are as follows:
37
Figure 3.1: A Research Model of Image, Price, Perceived Value and Customer
Satisfaction
Source: Chitty, B., Ward, S. and Chua, C. (2007). An application of the ECSI model
as a predictor of satisfaction and loyalty for backpacker hostels, Marketing
Intelligence & Planning, 25 (6), 563 – 580
Chitty et al. (2007) examined the relationship between image, technical dimension,
functional dimension, price and customer satisfaction with customer loyalty toward
the service provider. This study aimed to investigate how brand image and price will
affect customer satisfaction and loyalty in a Chinese footwear context.
The results of this study revealed that brand image and price were all significant
dimensions of customer satisfaction and perceived value in regard to loyalty. Finally,
image and price had a positive relationship with satisfaction which in turn influenced
loyalty.
38
Figure 3.2: A Research Model of Reliability, Tangibles, Empathy, Responsiveness,
Assurance, Satisfaction and Customer Loyalty
Source: Jamal, A., Anastasiadou, K. (2009). Investigating the effects of service
quality dimensions and expertise on loyalty, European Journal of Marketing, 43 (3),
398 – 420
Jamal et al. (2009) investigated the effects of service quality dimensions on customer
loyalty. The objective of this study was the five specific dimensions of service quality
in creating and enhancing customer loyalty via customer satisfaction. These five
dimensions of service quality would be used in this research study to conceptualize a
measurement of perceived quality and its effect on customer satisfaction.
The findings of this paper showed that the reliability, tangibility, empathy,
responsiveness and assurance were positively related to customer satisfaction which is
39
positively related to loyalty. This study involves the relationship between customer
service quality, customer satisfaction and customer loyalty. The results of the
investigation about customer service quality and customer satisfaction showed that
these variables had a significant impact on customer loyalty.
40
Figure 3.3: A Research Model of Perceived Value, Customer Satisfaction and
Customer Loyalty
Source: Tam, L. J. (2012), the moderating role of perceived risk in loyalty intentions:
an investigation in a service context, Marketing Intelligence & Planning, 30(1), 33 –
52
Tam (2012) investigated how service quality dimensions have an impact on perceived
value, customer satisfaction and customer loyalty. The researcher examined customer
loyalty, perceived value and customer satisfaction in certain businesses. The findings
of this study show that perceived value had a direct and positive effect on both
customer satisfaction and customer loyalty and customer satisfaction had a positive
effect on customer loyalty. The results also showed that there was a significant
relationship between perceived value and customer loyalty.
41
3.2Conceptual Framework
The modified conceptual framework is shown in Figure 3.4. This conceptual
framework is designed to analyze the circumstances that affect customer loyalty for
Belle brand in order to understand which variable is most important in the formation
of customer loyalty. The main objective of this study is to analyze the relationship
between perceived value, customer satisfaction and customer loyalty. Also this
research will consider the relationship between image, price and perceived value and
the relationship between reliability, tangibles, empathy, responsiveness, assurance
and customer satisfaction. The relationship between image, price and perceived
value has been established by the research by Chitty et al. (2007). From the research
by Jamal et al. (2009) a relationship was found between perceived quality with
reliability, tangibles, empathy, responsiveness, assurance and customer satisfaction.
And the theoretical framework by Tam (2012) reveals the association between
perceived value, customer satisfaction and customer loyalty.
42
Figure 3.4: Conceptual Framework of Perceived Value, Perceived Quality,
Customer Satisfaction and Customer Loyalty
3.3Research Hypothesis
The research hypotheses were developed based on the conceptual framework of the
study to provide a clear implication from relationship testing. Therefore, in order to
make it clear in terms of hypothesis setting, the hypotheses were divided into three
groups. In the first group, the independent variables are image and price and they
can be affected by the dependent variable which is perceived value. In the second
group, the dependent variable is customer satisfaction and it is affected by the
independent variables of reliability, tangibles, empathy, responsiveness and
assurance. In the third group, customer loyalty is the dependent factor that can be
influenced by perceived value and customer satisfaction.

43
In the conceptual framework, customer loyalty is the dependent factor that can be
influenced by customer satisfaction and perceived value, but also by image, price,
reliability, tangibles, empathy, responsiveness and assurance.
All hypotheses are as follows:
Group 1: The relationship between image and price with perceived value
H1 0 : There is no relationship between image and perceived value.
H1 a : There is a relationship between image and perceived value.
H2 0 : There is no relationship between price and perceived value.
H2 a : There is a relationship between price and perceived value.
Group 2: The relationship between perceived service quality in terms of reliability,

tangibles, empathy, responsiveness and assurance with customer satisfaction
H3 0 : There is no relationship between perceived quality in terms of reliability and
customer satisfaction.
H3 a : There is a relationship between perceived quality in terms of reliability and
H4 0 : There is no relationship between perceived quality in terms of tangibles and
H4 a : There is a relationship between perceived quality in terms of tangibles and
44
H5 0 : There is no relationship between perceived quality in terms of empathy and
H5 a : There is a relationship between perceived quality in terms of empathy and
H6 0 : There is no relationship between perceived quality in terms of responsiveness
and customer satisfaction.
H6 a : There is a relationship between perceived quality in terms of responsiveness
H7 0 : There is no relationship between perceived quality in terms of assurance and
H7 a : There is a relationship between perceived quality in terms of assurance and
Group 3: The relationship between perceived value, customer satisfaction and

customer loyalty
H8 0 : There is no relationship between perceived value and customer satisfaction.
H8 a : There is a relationship between perceived value and customer satisfaction.
H9 0 : There is no relationship between perceived value and customer loyalty.
H9 a : There is a relationship between perceived value and customer loyalty.
H10 0 : There is no relationship between customer satisfaction and customer loyalty.
H10 a : There is a relationship between customer satisfaction and customer loyalty.
45
3.4Operationalization of the Variables
Table 3.1: Operational Definition of Customer Loyalty and Its Dimensions
Variables Concept of Operational Measurement

Variable Component Scale
Image "An abstract, - The reputation of Interval
subjective, Belle is an important
multidimensional factor for me.
concept consisting - This footwear store
of a person's makes a good
total impressions impression on its
and experience with consumers.
a service or a - The footwear
product" products have a good
(Hampton et al., reputation among
1987) fashionable people.
- I feel this footwear
store suits my needs.
Price Price is also a cue - The price at Belle Interval
often used by footwear is
customers to make reasonable.
patronage decisions, - The prices at Belle
to determine what to footwear are cheap
expect, and to in relation to
46
evaluate the quality competing brands.
of a service relative - The price at Belle
to how much they footwear is
paid. (Evans et al., reasonable and it is
1996) worth buying.
Perceived Perceived value of a - I believe the Interval

Value
service has been footwear of Belle
defined by provides good
McDougall and quality for the price.
Levesque (2000) as - I enjoy my
the benefits shopping time at
customers believe Belle shop.
they receive relative - I like Belle stores
to the costs because they
associated with its frequently offers
consumption. promotions for sales.
Perceived Parasuraman et al. - Belle employees Interval

Quality on
Reliability (1988) defined provide service
reliability as the dependably.
ability to perform - When I walk into a
the promised service Belle store it offers
dependably and the right services the
accurately. first time.
- When I have
47
problems with the
shoes, Belle provides
services as they
promised such when
I want to change the
size of shoes.
Perceived Tangibles have been - Employees of Belle Interval

Quality on
Tangibles defined as physical are well dressed.
facilities, equipment - Employees of Belle
and appearance of appeared neat and
personnel professional.
(Parasuraman et al., - The Belle company
1988). makes the store to be
visually appealing.

Quality on
Empathy (1988) defined always give the
empathy as the consumers individual
caring, attention such as
individualized when customers
attention the firm want to try on shoes.
provides for its - Belle employees
customers. help me to find my
desired shoes.
- It is realistic to
48
expect Belle stores to
have their
customers` best
interests at heart.
Perceived According to - Employees of Belle Interval

Quality on
Responsiveness Parasuraman et al. are always willing to
(1988), provide service or
responsiveness is help to customers
willingness to help promptly.
customers and - When customers
provide prompt have complaints,
service. Belle employees are
ready to respond the
customers’ requests.
-Customer’s receive
prompt service from
Belle employees.

Quality on
Assurance (1988) defined have ample
assurance the knowledge of shoes
knowledge and to properly answer
courtesy of customer’s
employees and their questions.
ability to inspire - Belle employees
49
trust and confidence. were consistently
courteous.
- Employees get
adequate support
from Belle to do
their jobs well.
Customer Satisfaction is a - I am satisfied with Interval

Satisfaction
response that occurs my decision to visit
when consumers this footwear shop.
experience a - I have good
pleasurable level of experience with
consumption-related Belle’s staff.
fulfilment when - I am satisfied as it
evaluating a product was worth the price I
or service (Oliver, paid for.
1997, p.13). - I have like other
customers had a
good time in Belle
store.
Customer Oliver (1997, p. - I consider myself to Interval

Loyalty
392) defined be loyal to Belle.
customer loyalty as: - Belle would be my
a deeply held first choice for my
commitment to purchases.
50
re-buy or - If I were faced with
re-patronize a the same choice
preferred again, I would go to
product/service this Belle store.
consistently in the - I would go to Belle
future, thereby which is operated
causing repetitive under the same chain
same-brand or same name everywhere.
brand-set - I will recommend
purchasing, despite this brand to my
situational friends.
influences and - I will say positive
marketing efforts word of mouth about
having the potential Belle brand.
to cause switching
behavior.
51
Chapter 4
RESEARCH METHODOLOGY
This study has focused on perceived value and perceived quality and the relationship
between Belle Company’s customer satisfaction and their loyalty. The respondents
were Belle shop members in Lanzhou, The People’s Republic of China. This chapter
discusses the research methodology which includes the methods used in this study
as well as information about the target respondents and sampling procedures.
Furthermore, it includes the research instruments and the characteristics of the
questionnaire as it relates to the conceptual framework. Moreover there is also an
explanation about the pretest of questionnaire, the collection of data and the
procedures for gathering information. In the last part of this chapter are the details of
the statistical treatment of data for this study.
4.1 Research Methods Used
This study has adopted a descriptive research method and a survey method. The
researcher chose a descriptive method to describe the determinants (image, price,
reliability, tangibles, empathy, responsiveness, assurance and customer satisfaction)
which may have a direct or indirect effect on customer loyalty of the Belle Company
in Lanzhou. This descriptive research is designed to describe the characteristics of
Chinese consumers, which is sought by the researcher to determine the answer who,
what, when, where and how questions (Zikmund 2003). In this study, the researcher
applied a survey technique by distributing questionnaires to gain feedback from
52
respondents and to gain more understanding about customer loyalty of Belle
customers in China. According to Zikmund (1994), a survey technique can gather
data from a sample of people by using a questionnaire. Therefore, this survey uses
self-administered questions obtained from the respondents in Lanzhou (China) to
collect data. The questionnaire was developed to study customers of Belle
International Footwear Company in Lanzhou, Gansu Province China. The
questionnaire was designed in English and Chinese to avoid any possible
misunderstanding due to language.
4.2 Respondents and Sampling Procedure
4.2.1 Target Population

A target population is the group of people who have the information that the
researcher looks for and from which conclusions and results can be acquired (Birks
et al., 2007). In this case, the target population would mostly be the respondents who
had purchased Belle footwear products and who had an experience of more than two
years with Belle footwear. In this study, the researcher investigated the relationship
among various variables that affect the customer loyalty in Belle stores in Lanzhou
city, Gansu province, China.
Sekaran (2003) mentioned that recall-dependent question is some questions require
respondents to recall experiences from their past memories. Jones (2005) found
lower levels of customer loyalty with short brand relationship, especially if the
length was less than two years. Therefore, any customer who has had less than two
53
years experience with Belle products or those who just started walking in Belle
stores may not be able to give correct answers and may be way off in their
responses. In this study, the researcher selected Chinese consumers who had
purchased the Belle footwear before and who have had an experience of more than
two years with Belle footwear in Lanzhou city.
Figure 4.1: The location of Lanzhou in China
Source: http://www.chinahighlights.com/lanzhou/map.htm accessed on 23 May,
2012
As shown in Figure 4.1, Lanzhou is second largest city in Northwest China (Duan,
2011). Its geographical location shows that it is an ideal region for this study in
Northwest China.
54
Figure 4.2: The location of Lanzhou in Gansu
Source: http://www.chinatrekking.com/maps/gansu-maps/lanzhou-maps accessed
on 25 May, 2012
As shown in Figure 4.2, Lanzhou is one of the largest cities in Gansu province,
which is in Northwest China and is located besides the Yellow River. The city is the
transportation and telecommunications hub of the region that was a significant Hexi
Corridor, a crucial eastern stop on a major stretch on the ancient Silk Road. Lanzhou
is a modern beautiful city with much of the historical and cultural relics of Southern
cities (http://www.travelchinaguide.com/cityguides/gansu/lanzhou/20/04/2012). In
this study, the researcher chooses Lanzhou as the target city.
55
Belle International Company and Franchised Store
Belle International Holding Ltd. as well as its subsidiaries are China’s top women’s
shoe retailer in mainland China. Belle brand started the business in 1992 and has
opened 17 stores since 2012 in popular shopping areas in Lanzhou to sell its
footwear products. Belle often uses one classic advertising line that it is “always
changing, yet beautiful”. Belle has had so many styles including comfort, career,
mature and fashionable. Its brand image is known for desirable prices and good
product quality. The logo of Belle International Company and a Belle franchise store
in Fashion Parkson presented in Figure 4.3 and 4.4.
Figure 4.3: The Logo of Belle International Company
Source: http://www.yesfont.com/tag/belle, accessed on 5 June, 2012
56
Figure 4.4: A Belle franchise store in Fashion Parkson
Source: http://fashion.365jia.cn/news/2010-10-20/C7B5A7C9E9A316D4.html
(29/May/2012)
The fashion Parkson store is one of the branches of Belle, all stores of Belle were
operating with the same standard such as shop’s design, price, logo, staff uniform,
shop environment etc.
Table 4.1: Ten Popular Shopping Malls in Lanzhou
Name of Shopping Mall Name of Shopping Area
1 Guofang Mall Dongfanghong Square
2 Yaou Emporium Xiguan Area
3 Wangfujing Mall Ruidemoer Area
4 Xidan Mall Xiguan Area
5 New World Mall Zhangyelu Road
57
6 Fashion Parkson Nanguanshizi Road
7 Meilun Shopping Center Yantan Area
8 Wanshang International Donggang east Road
9 Hualian Emporium Dongfanghong Square
10 Baian Shopping Mall Nanguanshizi Road
Source: http://baike.baidu.com/view/5140.html (20/April/2012)
Based on the Table 4.1, in this study, the researcher chose ten popular shopping
malls in Lanzhou. Based on an online interview with three Belle managers in
Lanzhou area and used their suggestion to focus the top 10 ranking popular higher
sales volume of Belle, which are presented in the Table 4.1.
Belle managers would be choosing reliable since those ten large-scale shopping
malls had the most high volume sales in terms of Lanzhou market-share in shoes.
This study focused on shops in Lanzhou so the researcher distributed questionnaires
in those ten shopping malls. The locations of those ten stores are shown in Figure
4.5:
58
Figure 4.5: Location of ten Belle stores in Lanzhou
Source: http://www.kexiang2002.com/cn/article.asp?id=24 (29/May/2012)
Figure 4.5 shows that had the current 10 Belle International Company stores are
located in 7 districts of Lanzhou city. For the sampling in this study, based on Belle
manager’s suggestion the researcher will collect the data from ten locations: the
Xiguan area includes Yaou Emporium and Xidan Mall (2, 4), Dongfanghong Square
includes Guofang Mall and Hualian Emporium (1, 9), Nanguanshizi Road includes
Fashion Parkson and Baian Shopping Mall (6, 10), Wangfujing Mall (3) is in
Ruidemoer Area, the New World Mall (5) at Zhangyelu Road, Meilun Shopping
Center (7) is in Yantan Area and the Wanshang International (8) is in Donggang East
Road, which show in Table 4.1 and Figure 4.5.
59
Table 4.2: Address of Belle Stores of each Popular Shopping Mall
Belle Address
1. Guofang Mall Dongfanghong Square, Chengguan District
2. Yaou Emporium No.120, Yaou Emporium, Zhongshan Road
3. Wangfujing Mall No.1992, Wangfujing mall, Donggang Rast Road
4. Xidan Mall No.11, Xidan Mall, Lingxia Road, Chenggguan District
5. New World Mall No.89, Zhangyelu Road
6. Fashion Parkson No.105, Fashion Parkson, Qingyang rRad, Chengguan
district
7. Meilun Shopping Center No.3, Anning West Road, Anning District
8. Wanshang International Changlong, Donggang East Road
9. Hualian Emporium Dongfanghong Square, Chengguan District
10. Baian Shopping Mall No.296, Qingyang Road, Chengguan District
Table 4.2 shows the addresses of ten Belle International company stores, and those
stores were located in urban centers, business areas and financial districts.
Target population:
In this study, the target populations were consumers who have purchased footwear
products from a Belle store, and who have had an experience of more than two years
with Belle products in Lanzhou city.
60
4.2.2 Sampling Size
The customers of Belle international company in this study were the population of
unknown size. Therefore, according to Emory (1980), the sample size was based on
the attributes or data for which the researcher made a degree of confidence level and
was based on the interval estimate.
The formula of absolute precision is as follows:
n = Z2pq
E2
Or
n = Z2p(1-p)
E2
Where, n= number of items in sample
Z2= square of the confidence interval in standard error unit
p= estimated proportion of successes which is assumed as 50%
or 0.50 (Finkelstein et al., 1990)
q= (1-p), or estimated proportion of failures
E2= square of the maximum allowance for error between the true
proportion and sample proportion. The allowable for sampling
error is 5% or 0.05.
Malhotra (2007) mentioned that the sample size can be determined to express the
maximum possible variation in the population. The researcher supposes the
61
confidence level of 95 percent (Z=1.96). The allowable for sampling error will not
be greater than .05 percent (E) and 50 percent (p) precision is the estimated
proportion of an attribute that is present in the population.
n= (1.96)2(0.5)(1-0.5)
(0.05)2
= (3.8416)(0.5)(0.5)
0.0025
= 384.16 respondents
≈ 385 respondents
According to Bartlett et al. (2001), using larger sample sizes avoids possible errors
in the results. Based on the above formula, the researcher found the minimum
sample size of 385. Therefore, in order to avoid possible errors, the researcher
distributed 400 questionnaires for this study.
4.2.3 Sampling Procedure

There are two major sampling methods: probability and non-probability sampling.
Zikmund (1997) mentioned that probability sampling is a technique in which every
member of the population will have a known nonzero probability of selection.
Non-probability is a sampling technique in which units of the sample are selected on
the basis of personal judgment or convenience. In this research the size of the
population was unknown, therefore this research used non-probability sampling that
includes “judgmental sampling”, “quota sampling” and “convenience sampling”.
62
Non-probability sampling method includes three steps as follows:
Step 1: Judgmental Sampling
Based on Davis’s (2005) judgmental sampling, the researcher chooses the
population of interest. Judgmental sampling can be an inexpensive and time saving
procedure. In this survey the researcher applied judgmental sampling to investigate
customer loyalty influencing customer satisfaction of Belle Footwear Company. In
this study, the researcher collected the data based from the ten popular shopping
malls in Lanzhou which had Belle franchised stores: Guofang Mall, Yaou Emporium,
Wangfujing Mall, Xidan Mall, New World Mall, Fashion Parkson, Meilun,
Wanshang, Hualian Emporium and Baian Shopping Mall.
Step 2: Quota Sampling
Quota sampling is the second stage after judgmental sampling. It is normally used
for surveys technique. According to Barnett (1991), quota sampling is used to
ensure various pertinent quota subgroups, which are represented within the sample
from an inconsistent population. Therefore, quota sampling is completely
non-random which will collect the data based on each Belle store equality level.
In this study, the researcher selected ten franchise stores of Belle out of seventeen in
Lanzhou city. The sample was collected from the target population of Belle who had
visited any of the ten Belle stores. Quota sampling is a non-probability sampling
method, which in this study was used to divide the 400 questionnaires in total to and
an equal or proportionate representation. Therefore, with a sample size of 400
questionnaires and ten department stores, it means the researcher needed to distribute
63
40 questionnaires (400/10=40) at each store for gaining a greater accuracy and to
minimize errors by setting and filing quota controls. The data were collected from
questionnaires which were distributed in the following franchise stores:
Table 4.3: The Table of Questionnaire Distribution
Name of Belle franchised No. of questionnaires to
store in each Shopping be distributed
Mall
1 Guofang Mall 40
2 Yaou Emporium 40
3 Wangfujing Mall 40
4 Xidan Mall 40
5 New world Mall 40
6 Fashion Parkson 40
7 Meilun Shopping Center 40
8 Wanshang International 40
9 Hualian Emporium 40
10 Baian Shopping Mall 40
Total: 400
Step 3: Convenience Sampling
Cooper et al. (2001) defined convenience samplings as an unrestricted and
non-probability sampling method. Researchers can simply collect the data and
64
gather them using the least time and cost. In this study, based on convenience, the
questionnaires were distributed directly to consumers in ten Belle franchised stores,
of around 40 respondents for each store. The convenience sampling method chooses
respondents by finding Belle customers who are the target population and most
conveniently available to complete the questionnaire.
4.3 Research Instruments
In this study, the researcher used the surveying technique to distribute questionnaires.
The first part of the questionnaire is a screening question, in order to select the
accurate respondent for this research. Cooper at el. (2006) mentioned that screening
questions include one or more question(s) in order to filter respondents and ensure
that they have the knowledge and experience essential to be involved in the study.
In the second to the fifth part of the study, the researcher applied the five-points
Likert-scale for research instruments. Malhotra (2007) mentioned that it is a
measurement scale with five answers ranging from “strongly disagree” to “strongly
agree”, in which respondents need to select from within the five strata. The
researcher then used a five-point Liker-scale in the second to fifth parts of the
questionnaire for evaluating customer loyalty towards the Belle brand in its store
franchises. The five-points of Likert-scale are as follows:
65
1= Strongly Disagree
2= Disagree
3= Neutral
4= Agree
5= Strongly Agree
The researcher used identical questionnaires as the instrument to gather the data
from the sample of people which involved both male and female customers from ten
different Belle departmental stores. This questionnaire was used to gather the
necessary data from the targeted group of respondents and was designed based on
the conceptual framework to test the relationship between each variable. The
English version of the questionnaire is shown in Appendix A of and the Chinese
version is in Appendix B. Data was collected by asking customers to respond to a
number of questions. Appendix A & B includes 6 parts and the total number of
questions is 32 items.
Research Instrument:
The researcher developed the questionnaire which is shown in Table 4.3 and which
also includes certain research authors and variable concepts. The questionnaire was
modified in order to achieve greater reliability.
66
Table 4.4: Development of the questionnaire
Research Definers of Each Descriptive Questions of
Variables Variable Concept Questionnaire
Chitty, Ward and Chua Should involve questions about Belle

Image
(2007) brand based on customers` beliefs
Gil , Andres and Salinas Should measured the meaning of
Price (2007) perception of price when making a
comparison between shoes stores
Chitty, Ward and Chua Should ask questions concerning
Perceived Value (2007) perceived value whether image and
price about shoes
Jamal and Anastasiiadou Should inquire about service ability
Reliability (2009) & Kang and from shoes store employees and if
James (2004) they’re dependable and accurate
Jamal and Anastasiiadou Should include questions associated
Tangibles (2009) & Kang and with appearance of employees and
James (2004) shoes store
Jamal and Should ask questions related to
Empathy Anastasiiadou(2009) perception of caring, individual
attention from employees
Jamal and Should include question about the
Responsiveness Anastasiiadou(2009) Belle’s staff and their willingness to
help customers
67
Jamal and Should ask questions related to the
Assurance Anastasiiadou(2009) staff’s knowledge when customers
have a problem about the product
Chitty, Ward and Chua Should ask question concerning

Customer
(2007) customer satisfaction when
Satisfaction
purchasing shoes
Chitty, Ward and Chua Should ask respondents about
Customer (2007) & Jamal and re-buying preferred shoes or
Loyalty Anastasiiadou(2009) re-choosing the same brand in the
future
Based on conceptual framework, the questionnaire was divided in to six parts:
Part 1: Screening question
In this part the researcher used screening questions in order to exclude the
respondents who are ineligible in the targeted population. The researcher asked
participants who have bought footwear products of Belle and who have any
experience with Belle shoes for more than two years. These questions can be
answered as a “Yes” or “No” and therefore it is a nominal scale variable. The
respondents who answered “No,” will be excluded in this study.
Part 2: Perceived value
This part evaluates the effect of image and price on perceived value. There are 10
questions which are measured by five-points Likert-scale (from “strongly disagree”
68
to “strongly agree”). The perceived value factor has two variables which are image
and price about Belle brand. The questions of this part evaluate the level of
agreement from the respondents, which are cited from the previous studies
developed by Chitty and Gil et al. (2007).
Part 3: Perceived quality
This part includes questions that measure the variables regarding perceived quality
that are reliability, tangibles, empathy, responsiveness and assurance. The researcher
provided three questions for the variables of reliability, tangibles and assurance, and
two questions for the variables of empathy and responsiveness, which are cited from
the previous studies developed by Jamal et al. (2009) and Kang et al. (2004). There
are 13 questions which are measured with an interval scale as a five-point
Likert-scale (from “strongly disagree” to “strongly agree”).
Part 4: Customer satisfaction
The customer satisfaction part of the survey had four questions to measure the level
of agreement from respondents, which come from a previous study developed by
Chitty et al. (2007). This part estimates the level of customer satisfaction. It is
measured with an interval scale as a five-point Likert-scale (from “strongly
disagree” to “strongly agree”).
Part 5: Customer loyalty
The customer loyalty section is used to evaluate the relationship with customer
satisfaction, which is based upon a previous study developed by (Chitty et al. 2007)
69
and (Jamal et al. 2009). This part measures the level of customer loyalty, there were
five questions measured with an interval scale as a five-point Likert-scale (from
“strongly disagree” to “strongly agree”).
Part 6: Respondents’ profile
The questionnaire tries to ascertain personal information of the respondents; this part
included 3 questions, which inquire about age, income and educational level.
Table 4.5: The Summary of Number of Questions for Each Variable
Variables Questions
Part 1
Screening Question 2
Part 2
Image 1-4
Price 5-7
Perceived Value 8-10
Part 3
Reliability 11-13
Tangibles 14-16
Empathy 17-19
Responsiveness 20-22
Assurance 23-25
70
Part 4
Customer Satisfaction 26-29
Part 5
Customer Loyalty 30-35
Part 6
Age 1
Income per month(RMB) 2
Educational Level 3
4.4 Pretest
Vanichbancha (2003) mentioned that the number of pretest should include least 25
respondents. The researcher distributed 50 questionnaires to Chinese customers who
were part of the target population and were willing to answer the survey questions in
order to guarantee the reliability of this research. The trial data was collected in June
2012 from all of the ten selected Belle franchised stores. There were five customers
for each store. A Crobach`s alpha test was used to test the reliability of ten variables
in conceptual framework.
Sekaran (2003) mentioned that if the reliability is less than 0.6, the questionnaires
will be considered to be of poor, therefore, if the reliability is greater than 0.6, it can
be considered to be certain to apply for this study.
71
Table 4.6: The reliability of The Questionnaires (Cranach’s Alpha (α) Coefficient)
Items No. of Items No. of respondents Reliability
Image 4 50 0.822
Price 3 50 0.728
Perceived Value 3 50 0.705
Reliability 3 50 0.825
Tangibles 3 50 0.857
Empathy 3 50 0.883
Responsiveness 3 50 0.793
Assurance 3 50 0.859
Customer Satisfaction 4 50 0.818
Customer Loyalty 6 50 0.876
As showed in Table 4.6, the results of Cranach’s Alpha coefficient of items that
image is (0.822), price (0.728), perceived value (0.705), reliability (0.825), tangibles
(0.857), empathy (0.883), responsiveness (0.793), assurance (0.859), customer
satisfaction (0.818) and customer loyalty (0.876). Based on the results of reliability
in table 4.6, all reliabilities were greater than 0.6, therefore, the researcher can apply
this research instrument for the purposes of this study.
72
4.5 Collection of Data
Questionnaires were distributed in Lanzhou shopping malls, to those respondents
who had purchased from Belle footwear and who had an experience of more than
two years of using Belle brand very as the questionnaire was designed to gather the
data from that specific targeted population. In this study, the researcher used both
primary data and secondary data for the purposes of research.
Primary data:
Zikmund (2003) mentioned that primary data is the data which is gathered and
which has originated for a specific purpose by a research project at hand. In this
study, the primary data was gathered by distributing a total of 400 questionnaires at
ten Belle franchised stores in Lanzhou city to Chinese customers, during the period
of 10 June to 20 June, 2012 and the research time was from 9:30 am to 9:30 pm at
the ten Belle franchised stores.
Secondary data:
Zikmund (2003) mentioned that secondary data are data gathered and previously
collected for some purpose, other than the one at hand. Secondary data are usually
historical and do not require access to respondents because it was already assembled.
For secondary data, the researcher used such sources as research journals, articles,
textbooks, E-news, statistics from the Chinese government, websites, etc. that were
relevant to this study.
73
4.6 Statistical Treatment of Data
The researcher applied the descriptive analysis that was used to summarize the data
and calculated the average of respondents. The researcher also used the Statistical
Package for Social Science (SPSS) program and Pearson Product Moment
Correlation Coefficient for data analysis.
4.6.1 Descriptive Statistics

According to Zikmund (2003), descriptive statistics is a statistical analysis used to
describe a sample and summarize information about a population such as percentage
from data collected. In this research, the main descriptive analysis used frequency
and percentage in the demographic profiles.
4.6.2 Inferential Analysis

According to Zikmund (2003), inferential statistics are statistical analyses used to
make inferences or judgments about a population on the basis of a sample. The
statistical tool has two applications: one is about describing the characteristics of a
population or sample, the other one is about generalizing from the sample to the
population. In this study, inferential analysis is used to test different variables in the
hypotheses setting. The inferential analysis method applied in this study is Pearson
Product Moment Correlation Coefficient.
4.6.3 Pearson Product Moment Correlation Coefficient

Malhotra (2007) mentioned that Pearson Correlation Coefficient (r) is the most
widely used statistical tool that is used to measure two metric variables such as
74
either interval or scaled variables and for summarizing the strength of an association
between each.
Table 4.7: Pearson Correlation Coefficient
Correlation (r) Explication
1 Perfect positive Liner association
0 No liner association
-1 Perfect negative Liner association
0.09 to 0.99 Very strong positive correlation
0.70 to 0.89 Strong positive correlation
0.40 to 0.69 Moderate positive correlation
0 to 0.39 Weak positive correlation
0 to -0.39 Weak negative correlation
-0.40 to -0.69 Moderate negative correlation
-0.70 to -0.89 Strong negative correlation
0.09 to -0.99 Very strong negative correlation
Source: Hussey, J. and Hussey, R. (1997). Business research: a practical guide for
undergraduate and postgraduate students, pp.227, London: Macmillan Press Ltd.
As shown Table 4.7, the expression of the extent of the linear relationship between
-1 to +1, that value between two quantitative variables. In this study, the researcher
has set up ten hypotheses. The product moment correlation (r) can be calculated as:
75
Where, r = the correlation coefficient between x and y
x = the average score on the X variable
y = the average score on the Y variable
X = sample means of X
Y = sample means of Y
x i = the individual s score on the X variable
y i = the individual s score on the Y varialbe (Malhotra, 2007)
The Pearson Correlation Coefficient (r) calculated all the ten hypotheses for testing
and verified the relationship of the different variables by using the SPSS program.
The statistical method used in testing hypotheses is shown in Table 4.8.
Table 4.8: Statistical Method used for Hypotheses
Hypothesis statements Statistical used
H1 0 : There is no relationship between image and perceived
value.
H1 a : There is a relationship between image and perceived Pearson’s Correlation
value.
H2 0 : There is no relationship between price and perceived

Pearson’s Correlation
value.
76
H2 a : There is a relationship between price and perceived
value.
H3 0 : There is no relationship between perceived quality in
terms of reliability and customer satisfaction.
H3 a : There is a relationship between perceived quality in Pearson’s Correlation
terms of reliability and customer satisfaction.
terms of tangibles and customer satisfaction.
terms of tangibles and customer satisfaction.
terms of empathy and customer satisfaction.
terms of empathy and customer satisfaction.
terms of responsiveness and customer satisfaction.
terms of responsiveness and customer satisfaction.

Pearson’s Correlation
terms of assurance and customer satisfaction.
77
H7 a : There is a relationship between perceived quality in
H8 0 : There is no relationship between perceived value and
H8 a : There is a relationship between perceived value and Pearson’s Correlation
H9 0 : There is no relationship between perceived value and
customer loyalty.
H9 a : There is a relationship between perceived value and Pearson’s Correlation
customer loyalty.
H10 0 : There is no relationship between customer satisfaction
and customer loyalty.
H10 a : There is a relationship between customer satisfaction Pearson’s Correlation
78
Chapter 5
PRESENTATION OF DATA AND DISCUSSION OF RESULTS
In this chapter, the researcher describes the results of the sample data analysis that
were collected from customers who had visited the ten branches of Belle stores in
Lanzhou, Gansu. The researcher has used the SPSS programs to analyses the data
collected from a sample of 400 respondents. This chapter is divided into four parts.
The first section is descriptive statistics about the respondents’ demographic factors.
The second section is the analysis of the independent, intervening and dependent
variables of the statistics by using mean and standard deviation, the third section
describes the result of the reliability analysis, the last section focuses on the
hypothesis testing which will be used as inferential analysis to test the ten
hypotheses.
5.1 Descriptive Statistics
In this study, the researcher used descriptive statistics to analyze the information
about the characteristics of respondents, which are age and income and education
levels. The demographic factors are shown from Table 5.1 to Table 5.3 classified by
calculating the frequency distribution and percentage distribution.
79
Table 5.1: The analysis of respondents` age by using frequency and percentage
Age
Cumulative
Frequency Percent Valid Percent Percent
Valid 20 below 19 4.8 4.8 4.8
21-25 86 21.5 21.5 26.3
26-30 132 33.0 33.0 59.3
31-35 77 19.3 19.3 78.5
36-40 57 14.3 14.3 92.8
40 above 29 7.3 7.3 100.0
Total 400 100.0 100.0
Table 5.1 indicated that the highest percentage of respondents` age was 33%
(132 out of the total 400 respondents) of the 26 to 30 years old, followed by 86
respondents who were in the group aged between 21 to 25 years old representing
21.5% and 19.3% of the 77 respondents were between 31 to35 years old. Next, the
percentages of respondents aged between 36 to 40 years old and 40 above were 14.3%
(57 respondents) and 7.3% (29 respondents). The lowest percentage was the group
aged below 20 years old with 4.8% (19 respondents).
Table 5.2: The analysis of respondents` monthly income by using frequency and
percentage
Income per month (RMB)
Cumulative
Valid 1500 below 27 6.8 6.8 6.8
1501-2500 111 27.8 27.8 34.5
2501-3500 161 40.3 40.3 74.8
3501-4500 65 16.3 16.3 91.0
4501-5500 20 5.0 5.0 96.0
5500 above 16 4.0 4.0 100.0
Total 400 100.0 100.0
80
Table 5.2 indicated that the highest percentage of respondents` monthly income
ranged was between 2,501 to 3,500 RMB (40.3%), 161 out of total of 400 respondents.
Followed by 111 respondents earned in the monthly range between 1501 to 2500
RMB representing 27.8% and 16.3% of the 65 respondents earned between 3501 to
4500 RMB; 27 respondents had a monthly income below 1500 RMB and accounted
for 6.8%, another 5% (20) had a monthly income between 4501 to 5500 RMB. The
lowest percentage was 4%, whereas 16 respondents had a monthly income range
above 5500 RMB.
Table 5.3: The analysis of respondents` educational level by using frequency and
percentage
Educational level
Cumulative
Valid High School or

105 26.3 26.3 26.3
Less
College
134 33.5 33.5 59.8
Graduate
Bachelor Degree 138 34.5 34.5 94.3
Master Degree
23 5.8 5.8 100.0
or Higher
Total 400 100.0 100.0
Table 5.3 indicated that the highest percentage of respondents’ education level
was bachelor degree, accounting for 34.5% (138 respondents). Very close to it is
college graduates with 134 respondents, representing 33.5%. Followed by 105
respondents (26.3%) with high school or less and 5.8% (23) of the respondents’ have
a masters degree or higher, respectively.
81
5.2 Analysis of Mean and Standard Deviation
Mean and standard deviation were used to describe and analyze all the
independent, intervening and dependent variables. Table 5.4 to Table 5.13 shows the
mean and standard deviation of each variable.
5.2.1 Independent Variables

Table 5.4: Mean score rating and Standard deviation of image
Descriptive Statistics
N Mean Std. Deviation
The reputation of Belle is

400 3.56 .913
an important factor for me.
The footwear store makes
a good impression on its 400 3.67 .824
consumers.
The footwear products
have a good reputation 400 3.72 .864
among fashionable people.
I feel this footwear store

400 3.57 .873
suits my needs.
Valid N (listwise) 400
In terms of image, Table 5.4 indicated that the highest mean is “The footwear
products have a good reputation among fashionable people” at 3.72, followed by “The
footwear store makes a good impression on its consumers”, which has a score of 3.67,
“I feel this footwear store suits my needs” which has a score of 3.57. The lowest mean
was 3.56 comes from “The reputation of Belle is an important factor for me”. For the
standard deviation of image, “The reputation of Belle is an important factor for me”
shows the highest standard deviation value of 0.913, followed by “I feel this footwear
store suits my needs” with 0.873, “The footwear products have a good reputation
among fashionable people” with 0.864. The lowest standard deviation is 0.824, which
came from “The footwear store makes a good impression on its consumers”.
82
Table 5.5: Mean score rating and Standard deviation of price
The price at Belle footwear is reasonable.

400 3.25 .983
The prices at Belle footwear are cheap in relation

400 3.21 .991
to competing brands.
The price at Belle footwear is reasonable and it is

400 3.35 .895
worth buying.
In terms of price, Table 5.5 indicated that “The price at Belle footwear is
reasonable and it is worth buying” got the highest mean with 3.35, followed by “The
price at Belle footwear is reasonable” with 3.25, the lowest mean was for “The
prices at Belle footwear are cheap in relation to competing brands” with 3.21. The
highest standard deviation was for “The price at Belle footwear is reasonable” with
0.983, followed by “The price at Belle footwear are cheap in relation to competing
brands” with 0.991. The lowest statement is “The price at Belle footwear is
reasonable and it is worth buying” with 0.895.
Table 5.6: Mean score rating and Standard deviation of perceived value
I believe the footwear of Belle provides good

400 3.56 .885
quality for the price.
I enjoy my shopping time at Belle shop. 400 3.58 .837
I like Belle stores because they frequently

400 3.55 .919
offers promotions for sales.
83
In terms of perceived value, Table 5.6 indicated that “I enjoy my shopping time
at Belle shop” got the highest mean at 3.58, followed by “I believe the footwear of
Belle provides good quality for the price” at 3.56, the lowest mean is “I like Belle
stores because it frequently offers promotions for sales” with 3.55. The highest
standard deviation is “I like Belle stores because they frequently offers promotions
for sales” with 0.919, followed by “I believe the footwear of Belle provides good
quality for the price” with 0.885. The lowest statement is “I enjoy my time at Belle
shop” with 0.837.
Table 5.7: Mean score rating and Standard deviation of reliability

Belle employees provide

400 3.70 .875
service dependably.
When I walk into a Belle
store it offers the right 400 3.77 .880
services the first time.
When I have problems
with the shoes, Belle
provides services as they

400 3.81 .877
promised such when I
want to change the size of
shoes.
In terms of reliability, Table 5.7 indicated that “When I have problems with the
shoes, Belle provides services as they promised such as when I want to change the
size of shoes” got the highest mean at 3.81, followed by “When I walk into a Belle
store it offers the right services the first time” at 3.77, the lowest mean was for
84
“Belle employees provide service dependably” at 3.70.
For the standard deviation of reliability, “When I walk into a Belle store it
offers the right services the first time” has the highest standard deviation (0.880),
followed by “When I have problems with the shoes, Belle provides services as they
promised such as when I want to change the size of shoes” with 0.877. The lowest
standard deviation is 0.875, was for “Belle employees provide service dependably”.
Table 5.8: Mean score rating and Standard deviation of tangibles
Employees of Belle are

400 3.77 .903
well dressed.
Employees of Belle
appeared neat and 400 3.80 .910
professional.
The Belle company
makes the store to be 400 3.59 .910
visually appealing.
In terms of tangibles, Table 5.8 indicated that “Employees of Belle appeared
neat and professional” got the highest mean with 3.80, followed by “Employees of
Belle are well dressed” with 3.77, the lowest mean was for “The Belle company
makes the store to be visually appealing” with 3.59. For the standard deviation of
tangibles, “Employees of Belle appeared neat and professional” and “Belle company
makes the store to be visually appealing” had the highest standard deviation of 0.910.
The lowest score was for “Employees of Belle are well dressed” at 0.903.
85
Table 5.9: Mean score rating and Standard deviation of empathy
Belle employees always give
the consumers individual
attention such as when 400 3.77 .851
customers want to try on
shoes.
Belle employees help me to

400 3.78 .840
find my desired shoes.
It is realistic to expect Belle
stores to have their

400 3.74 .851
customers` best interests at
heart.
In terms of empathy, Table 5.9 indicated that “Belle employees help me to find
my desired shoes” had the highest mean at 3.78, followed by “Belle employees
always give consumers individual attention such as when customers want to try on
shoes” with 3.77, the lowest mean was for “It is realistic to expect Belle stores to
have their customers` best interests at heart” at 3.74. For the standard deviation of
empathy, “Belle employees always give consumers individual attention such as
when customers want to try on shoes” and “It is realistic to expect Belle stores to
have their customers` best interests at heart” had the highest standard deviation of
0.851. The lowest statement was for “Belle employees help me to find my desired
shoes” with 0.840.
86
Table 5.10: Mean score rating and Standard deviation of responsiveness
always willing to provide

400 3.74 .866
service or help to
customers promptly.
When customers have
complaints, Belle
employees are ready to 400 3.72 .886
respond the customers`
requests.
Customers receive
prompt service from 400 3.82 .770
Belle employees.
In terms of responsiveness, Table 5.10 indicated that “Customers receive
prompt service from Belle employees” got the highest mean with 3.82, followed by
“Employees of Belle are always willing to provide service or help to customers
promptly.” with 3.74, the lowest mean was for “When customers have complaints,
Belle employees are ready to respond the customers` requests.” with 3.72.
For the standard deviation of responsiveness, “When customers have complaints,
Belle employees are ready to respond the customers` requests” (0.886), followed by
“Employees of Belle are always willing to help customers promptly” with 0.866. The
lowest standard deviation is 0.875, was for “Customers receive prompt service from
Belle employees”.
87
Table 5.11: Mean score rating and Standard deviation of assurance
Belle employees have ample
knowledge of shoes to
400 3.73 .874
properly answer customer’s
questions.
Belle employees were

400 3.75 .855
consistently courteous.
Employees get adequate
support from Belle to do 400 3.71 .886
their jobs well.
In terms of assurance, Table 5.11 indicated that “Belle employees were
consistently courteous” which had the highest mean of 3.75, followed by “Belle
employees have ample knowledge of shoes to answer customer’s is questions” at
3.73, while the lowest mean was for “Employees get adequate support from Belle to
do their jobs well” with 3.71.
For the standard deviation of assurance, “Employees get adequate support from
Belle to do their jobs well (0.886), followed by “Belle employees have ample
knowledge of shoes to answer customer’s is questions” with 0.874. The lowest
standard deviation was 0.855, which came from “Belle employees were consistently
courteous”.
88
5.2.2 Intervening Variables
Table 5.12: Mean score rating and Standard deviation of customer satisfaction
I am satisfied with my
decision to visit this 400 3.66 .901
footwear shop.
I have good experience

400 3.73 .821
with Belle’s staff.
I am satisfied as it was
400 3.56 .940
worth the price I paid for.
I have like other customers
had a good time in Belle 400 3.63 .906
store.
Table 5.12 showed in terms of customer satisfaction part with four variables
“I have good experience with Belle’s staff” has the highest mean with 3.73.
Followed by “I am satisfied with my decision to visit this footwear shop” with 3.66.
“I have like other customers had a good time in Belle store” have mean 3.63, the
lowest mean was “I am satisfied as it was worth the price I paid for” with 3.56. It
indicates that the respondents think that they had a good experience with Belle’s
staff.
Moreover, “I am satisfied as it was worth the price I paid for” has the highest
standard deviation with 0.940, followed by 0.906, “I have like other customers had a
good time in Belle store”. The statement “I am satisfied with my decision to visit
this footwear shop” has the standard deviation with 0.901. The lowest standard
89
deviation is 0.821 which is “I have good experience with Belle’s staff”. It indicates
that the respondents think that they are satisfied as it was worth the price they paid
for.
5.2.3 Dependent Variables

Table 5.13: Mean score rating and Standard deviation of customer loyalty
I consider myself to be loyal to Belle. 400 3.66 .909
Belle would be my first choice for my purchases. 400 3.52 .901
If I were faced with the same choice again, I would

400 3.68 .875
go to this Belle store.
I would go to Belle which is operated under the same

400 3.78 .807
chain name everywhere.
I will recommend this brand to my friends. 400 3.81 .797
I will say positive word of mouth about Belle brand.

400 3.78 .837
Table 5.13 showed that customer loyalty part has six variables “I will recommend this
brand to my friends” has the highest mean with 3.81. “I would go to Belle which is
operated under the same chain name everywhere” and “I will say positive word of
mouth about Belle brand” had a mean of 3.78. Followed by “If I were faced with the
same choice again, I would go to this Belle store” with a mean of 3.68, “I consider
myself to be loyal to Belle” with a mean of 3.66. The lowest mean was for customer
loyalty for “Belle would be my first choice for my purchases” at 3.52.
Moreover, the highest standard deviation of customer loyalty is 0.909 which come
from “I consider myself to be loyal to Belle”, followed by “Belle would be my first
choice for my purchases” with 0.901, “If I were faced with the same choice again, I
would go to this Belle store” with 0.875, “I will say positive word of mouth about
90
Belle brand” with 0.837, “I would go to Belle which is operated under the same chain
name everywhere” with 0.807. The lowest statement is “I will recommend this brand
to my friends” with 0.797.
To summarize the questionnaires, the result shows that the highest mean was
3.82, which was for the responsiveness part statement “Customers receive prompt
service from Belle employees”, and the lowest mean was for the price part statement
“The prices of Belle footwear are cheap in relation to competing brands” with only
3.21.
5.3 Reliability Analysis

The researcher distributed 400 questionnaires to respondents in Lanzhou during
22nd April, 2013 until 13th June 2013. The reliability of the research instrument was
examined by applying Cronbach’s coefficient alpha test in this study. The results and
analysis are summarized in Table 5.14 as follow:
Table 5.14: The reliability of the questionnaire of study

Items No. of Items No. of respondents Reliability
Image 4 400 0.837
Price 3 400 0.813
Perceived Value 3 400 0.793
Reliability 3 400 0.872
Tangibles 3 400 0.873
Empathy 3 400 0.842
Responsiveness 3 400 0.891
Assurance 3 400 0.862
Customer Satisfaction 4 400 0.881
Customer Loyalty 6 400 0.914

91
Table 5.14 indicated that all variables` reliability test have alpha values greater
than 0.6. Therefore, the questionnaires were reliable to be applied in this research.
5.4 Hypotheses Analysis
For the hypothesis testing, there are ten hypotheses from three groups in this
study. Group one describes the testing of relationships between image, price and
perceived value at Belle store in Lanzhou, Gansu. Group two describes the testing of
the relationship between perceived quality in terms of reliability, tangibles, empathy,
responsiveness, assurance with customer satisfaction. Group three analyzes the
relationship between perceived value, customer satisfaction and loyalty of customer
to Belle store. In this research, Person’s Correlation Coefficient was applied to test
all ten hypotheses.
Group 1: The relationship between image and price with perceived value
Hypothesis 1
H1 0 : There is no relationship between image and perceived value.
H1 a : There is a relationship between image and perceived value.
Table 5.15: The analysis of relationship between image and perceived value, using
Pearson Product Moment Coefficient Correlation
92
Correlations
MEANIM MEANPV
MEANIM Pearson
1 .599(**)
Correlation
Sig. (2-tailed) . .000
N 400 400
MEANPV Pearson
.599(**) 1
Correlation
Sig. (2-tailed) .000 .
N 400 400
** Correlation is significant at the 0.01 level (2-tailed).
As indicated in Table 5.15, the result from the Pearson Correlation analysis
shows that significance is equal to .000, which is less than 0.01. Therefore, the null
hypothesis was rejected. It means that there is a relationship between image and
perceived value at 0.01 significance level.
At 0.599 indicated there is a moderate relationship between image and perceived
value. These two variables move in the reverse direction. Thus, if Belle store has a
high image, customers will have high perceived value.
Hypothesis 2
H2 0 : There is no relationship between price and perceived value.
H2 a : There is a relationship between price and perceived value.
Table 5.16: The analysis of the relationship between price and perceived value, by
using Pearson Product Moment Coefficient Correlation
93
Correlations
MEANPR MEANPV
MEANPR Pearson
1 .608(**)
Correlation
N 400 400
MEANPV Pearson
.608(**) 1
Correlation
N 400 400
hypothesis was rejected. It means that there was a relationship between price and
perceived value at 0.01 significance level. At 0.608 it indicated that there was a
moderate relationship between price and perceived value.
Group 2: The relationship between perceived service quality in terms of reliability,
tangibles, empathy, responsiveness and assurance with customer satisfaction
Hypothesis 3
H3 0 : There is no relationship between perceived quality in terms of reliability and
H3 a : There is a relationship between perceived quality in terms of reliability and
Table 5.17: The analysis of the relationship between reliability and customer
satisfaction, by using Pearson Product Moment Coefficient Correlation
94
Correlations
MEANRLB MEANCS
MEANRLB Pearson
1 .713(**)
Correlation
N 400 400
MEANCS Pearson
.713(**) 1
Correlation
N 400 400
shows that significance was equal to .000, which was less than 0.01. Therefore, the
null hypothesis was rejected. It means that there was a relationship between
perceived quality in terms of reliability and customer satisfaction at 0.01
significance level.
At 0.713 it indicated that there was a strong relationship between reliability and
customer satisfaction. These two variables move in the reverse direction. Thus, if the
Belle store increases its perceived quality, they will have a high level of customer
satisfaction.
Hypothesis 4
H4 0 : There is no relationship between perceived quality in terms of tangibles and
H4 a : There is a relationship between perceived quality in terms of tangibles and
95
Table 5.18: The analysis of relationship between tangibles and customer satisfaction,
by using Pearson Product Moment Coefficient Correlation

Correlations
MEANCS MEANTGB
MEANCS Pearson
1 .650(**)
Correlation
N 400 400
MEANTGB Pearson
.650(**) 1
Correlation
N 400 400
As indicated in Table 5.18, the result from the Person Correlation analysis
hypothesis was rejected. It means that there was a relationship between perceived
quality in terms of tangibles and customer satisfaction at 0.01 significance level.
At 0.650 it indicated that there is a strong relationship between tangibles and
customer satisfaction. These two variables move in the reverse direction. Thus, if
satisfaction.
Hypothesis 5
H5 0 : There is no relationship between perceived quality in terms of empathy and
H5 a : There is a relationship between perceived quality in terms of empathy and
96
Table 5.19: The analysis of the relationship between empathy and customer

Correlations
MEANCS MEANEPTH
MEANCS Pearson
1 .720(**)
Correlation
N 400 400
MEANEPTH Pearson
.720(**) 1
Correlation
N 400 400
quality in terms of empathy and customer satisfaction at 0.01 significance level.
At 0.720 it indicated that there was a strong relationship between empathy and
satisfaction.
Hypothesis 6
H6 0 : There is no relationship between perceived quality in terms of responsiveness
H6 a : There is a relationship between perceived quality in terms of responsiveness

97
Table 5.20: The analysis of the relationship between responsiveness and customer

Correlations
MEANCS MEANRSP
MEANCS Pearson
1 .748(**)
Correlation
N 400 400
MEANRSP Pearson
.748(**) 1
Correlation
N 400 400
quality in terms of responsiveness and customer satisfaction at 0.01 significance
level.
At 0.748 it indicated that there was a strong relationship between responsiveness
and customer satisfaction. These two variables move in the reverse direction. Thus, if
satisfaction.
Hypothesis 7
H7 0 : There is no relationship between perceived quality in terms of assurance and
H7 a : There is a relationship between perceived quality in terms of assurance and
98
Table 5.21: The analysis of the relationship between assurance and customer

Correlations
MEANCS MEANAUR
MEANCS Pearson
1 .790(**)
Correlation
N 400 400
MEANAUR Pearson
.790(**) 1
Correlation
N 400 400
quality in terms of assurance and customer satisfaction at 0.01 significance level.
At 0.790 it indicated that there was a strong relationship between assurance and
satisfaction.
Group 3: The relationship between perceived value, customer satisfaction and

customer loyalty
Hypothesis 8
H8 0 : There is no relationship between perceived value and customer satisfaction.
H8 a : There is a relationship between perceived value and customer satisfaction.
99

Correlations
MEANCS MEANPV
MEANCS Pearson
1 .683(**)
Correlation
N 400 400
MEANPV Pearson
.683(**) 1
Correlation
N 400 400
value and customer satisfaction at 0.01 significance level.
At 0.683 it indicated that there was a strong relationship between perceived value
and customer satisfaction. These two variables move in the reverse direction. Thus, if
Belle store increases its perceived value, they will have a high level of customer
satisfaction.
Hypothesis 9
H9 0 : There is no relationship between perceived value and customer loyalty.
H9 a : There is a relationship between perceived value and customer loyalty.
100
loyalty, by using Pearson Product Moment Coefficient Correlation

Correlations
MEANCL MEANPV
MEANCL Pearson
1 .660(**)
Correlation
N 400 400
MEANPV Pearson
.660(**) 1
Correlation
N 400 400
value and customer loyalty at 0.01 significance level.
At 0.660 it indicated that there was a strong relationship between perceived value
and customer loyalty. These two variables move in the reverse direction. Thus, if
Belle store increases its perceived value, they will have a high level of customer
loyalty.
Hypothesis 10
H10 0 : There is no relationship between customer satisfaction and customer loyalty.
H10 a : There is a relationship between customer satisfaction and customer loyalty.
101
Table 5.24: The analysis of the relationship between customer satisfaction and
customer loyalty, by using Pearson Product Moment Coefficient Correlation
Correlations
MEANCL MEANCS
MEANCL Pearson
1 .719(**)
Correlation
N 400 400
MEANCS Pearson
.719(**) 1
Correlation
N 400 400
hypothesis was rejected. It means that there was a relationship between customer
satisfaction and customer loyalty at 0.01 significance level.
At 0.719 it indicated that there was a strong relationship between customer
satisfaction and customer loyalty. These two variables move in the reverse direction.
Thus, if customers perceived high satisfaction, they will have a high level of customer
loyalty.
102
Table 5.25: Summary of hypothesis testing result
Null Hypothesis Significant Test results

H1 0 : There is no relationship between image and 0.000 Rejected H o
perceived value.
H2 0 : There is no relationship between price and 0.000 Rejected H o
perceived value.
H3 0 : There is no relationship between perceived 0.000 Rejected H o
quality in terms of reliability and customer
satisfaction.
quality in terms of tangibles and customer satisfaction.
quality in terms of empathy and customer satisfaction.
quality in terms of responsiveness and customer
satisfaction.
quality in terms of assurance and customer
satisfaction.
H8 0 : There is no relationship between perceived value 0.000 Rejected H o
H9 0 : There is no relationship between perceived value 0.000 Rejected H o
H10 0 : There is no relationship between customer 0.000 Rejected H o
satisfaction and customer loyalty.
As indicated in Table 5.25, all the null hypotheses out of the ten hypotheses are
rejected in this study, which means that there is a statistically significant relationship
between each independent variable, intervening variable and dependent variable.
103
Chapter 6
SUMMARY, CONCLUSION, AND RECOMMENDATION
This chapter is divided into five sections. The first section discusses the summary of
demographic factors and hypotheses testing. The second section discusses the
implications of this research. The third section is the conclusion of this study. The
fourth section draws the recommendations for Belle stores and the last section
provides the researcher’s suggestions for future study.
6.1 Summary of Research Findings

The researcher investigated the relationships among variables, which includes a
summary of the respondents` demographic factors, image, price, perceived value,
perceived quality in terms of reliability, tangibles, empathy, responsiveness,
assurance, customer satisfaction, customer loyalty and hypotheses testing.
6.1.1 Summary of the Demographic Factors

In this research, the questionnaire was collected from 400 respondents who had
purchased Belle footwear products and who had an experience of more than two
years with Belle footwear store in Lanzhou, China. There are three respondent’s
demographic factors in this study, which include age levels, income levels and
education levels. All the highest percentages of demographic factors are summarized
in Table 6.1:
Table 6.1: Summary of Demographics represented by Highest Percentages
Demographic Factors Variables Percentage (%)
Age level 26 to 30 years old 33%
Monthly Income Level RMB 2501 to 3500 40.3%
Education Level Bachelor Degree 34.5%
104
Table 6.1 indicated that the main range of age level was between 26 to 30 years old
at 33 percent. Respondent’s monthly income was between 2501 RMB to 3500 RMB
which accounted for 40.3 percent. For the education level, the highest percentage
was bachelor’s degree with 34.5%.
6.1.2 Summary of Descriptive Analysis

Table 6.2：The analysis of the factors affecting respondents` customer loyalty by
illustrating Mean and Standard Deviation

Variables N Mean Std. Deviation
Image
The reputation of Belle is an important factor for me. 400 3.56 .913
The footwear store makes a good impression on its

400 3.67 .824
consumers.
The footwear products have a good reputation among

400 3.72 .864
fashionable people.
I feel this footwear store suits my needs. 400 3.57 .873
Total 400 3.63 0.8685
Price
The price at Belle footwear is reasonable. 400 3.25 .983
The prices at Belle footwear are cheap in relation to

400 3.21 .991
competing brands.
The price at Belle footwear is reasonable and it is

400 3.35 .895
worth buying.
Total 3.27 0.9563
Perceived Value
I believe the footwear of Belle provides good quality

400 3.56 .885
for the price.
105
I like Belle stores because they frequently offers
400 3.55 .919
promotions for sales.
Total 3.5633 0.8803
Reliability
Belle employees provide service dependably. 400 3.70 .875
When I walk into a Belle store it offers the right

400 3.77 .880
When I have problems with the shoes, Belle provides
services as they promised such when I want to change 400 3.81 .877
the size of shoes.
Total 3.76 0.8773
Tangibles
Employees of Belle are well dressed. 400 3.77 .903
Employees of Belle appeared neat and professional. 400 3.80 .910
The Belle company makes the store to be visually

400 3.59 .910
appealing.
Total 3.72 0.9076
Empathy
Belle employees always give the consumers individual
attention such as when customers want to try on 400 3.77 .851
shoes.
Belle employees help me to find my desired shoes. 400 3.78 .840
It is realistic to expect Belle stores to have their

400 3.74 .851
customers` best interests at heart.
Total 3.7633 0.8473
Responsiveness
Employees of Belle are always willing to provide

400 3.74 .866
service or help to customers promptly.
When customers have complaints, Belle employees are

400 3.72 .886
ready to respond the customers` requests.
106
Customers receive prompt service from Belle
400 3.82 .770
employees.
Total 3.76 0.8406
Assurance
Belle employees have ample knowledge of shoes to

400 3.73 .874
properly answer customer’s questions.
Belle employees were consistently courteous. 400 3.75 .855
Employees get adequate support from Belle to do their

400 3.71 .886
jobs well.
Total 3.73 0.8716
Customer Satisfaction
I am satisfied with my decision to visit this footwear

400 3.66 .901
shop.
I have good experience with Belle’s staff. 400 3.73 .821
I am satisfied as it was worth the price I paid for. 400 3.56 .940
I have like other customers had a good time in Belle

400 3.63 .906
store.
Total 3.645 0.892
Customer Loyalty
If I were faced with the same choice again, I would go

400 3.68 .875
to this Belle store.

400 3.78 .807
I will say positive word of mouth about Belle brand. 400 3.78 .837
Total 400 3.705 0.8543
Table 6.2 showed that the highest average mean of factors affecting customer loyalty
in Lanzhou was 3.7633 for empathy, 3.76 for reliability and responsiveness,
107
followed by 3.73 for assurance, 3.72 for tangibles, 3.705 for customer loyalty, 3.645
for customer satisfaction, 3.63 for image,3.5633 for perceived value, the lowest
average mean was 3.27 for price. For the highest average standard deviation of
factors affecting customer loyalty in Lanzhou was 0.9563 for price, 0.9076 for
tangibles, 0.892 for customer satisfaction, followed by 0.8803 for perceived value,
0.8773 for reliability, 0.8716 for assurance, 0.8685 for image, 0.8543 for customer
loyalty, 0.8473 for empathy, the lowest average standard deviation is 0.8406 for
responsiveness.
The results of descriptive analysis are indicated as follows:
Image: obtained the average mean score of 3.63 which means that most consumers
generate a positive image about Belle store. The highest mean score is 3.72 for the
statement “good reputation amongst fashionable people”, exhibiting that there is a
tendency for fashionable people to be in Lanzhou.
Price: obtained the average mean score of 3.27 which means that some respondents
keep buying footwear products if the prices of Belle products are cheaper than other
competing brands while others might not. The highest mean score was 3.35 for
statement “The price at Belle footwear is reasonable and it is worth buying”, which
mean that Belle product has been perceived as fair priced by some consumers.
Perceived value: obtained the average mean score of 3.5633 which means that
consumers acknowledged the perceived value of Belle product. The highest mean
scores was 3.58 for the item “I enjoy my shopping time at Belle shop”, showing that
the consumers felt very comfortable to purchase footwear products at Belle stores.
108
Reliability: the average mean score was equal to 3.81 which means that the
consumers think that Belle store performs the service right the first time. The
highest mean scores was 3.81 for the statement of “When I have problems with the
shoes, Belle provides services as they promised such as when I want to change the
size of shoes”, which means that belle cares for customer’s needs and is responsible
for its’ promise.
Tangibles: gained an average mean score of 3.72 and the highest mean scores was
3.80 for the statement “Employees of Belle appeared neat and professional”, which
mean that the respondents agree that belle employees dress neatly and
professionally.
Empathy: received an average mean score of 3.7633, which can be realistic to
expect Belle store to have their customers` best interests at heart. The highest mean
score was 3.78 for the item “Belle employees help me to find my desired shoes”. It
indicates that employees of belle are helpful and did not hesitate to offer service to
fulfill customer’s needs.
Responsiveness: obtained an average mean score of 3.76, which means that Belle’s
employees are always willing to help customers promptly. The highest mean score
was 3.82 for the statement “Customers receive prompt service from Belle
employees”. It indicates that respondents acknowledge the prompt service from
Belle employees.
109
Assurance: the average mean score is equal to 3.73, which means that Belle’s
employees have ample knowledge about shoes to answer customer’s questions. The
highest mean score was 3.75 for the item “Belle employees were consistently
courteous”. It indicates that respondents think that Belle’s employees are
consistently courteous with them.
Customer Satisfaction: got an average mean score of 3.645, which means that
consumers have a very positive satisfaction with Belle store. The highest mean score
was 3.73 for the statement “I have good experience with Belle’s staff”. It indicates
that respondents agree that they have good experience with Belle’s staff.
Customer Loyalty: the average mean score was equal to 3.705, which means that
respondents in Lanzhou affirm their loyalty to Belle products. The highest mean
score was 3.81 for the item “I will recommend this brand to my friends”. In
indicates that respondents think that they will recommend Belle’s stores to their
friends.
6.1.3 Summary of the Hypothesis Testing

There are ten hypotheses which were formed for this research. Each hypothesis was
used for analyzing the data by Pearson’s Product Correlation Coefficient. According
to the results of the hypothesis, there is a significant relationship between each
independent variable, intervening variable and dependent variable at the 0.01
significance level. Therefore, all the null hypotheses are rejected. It indicates that
there is a statistically positive relationship between each variable. The summary of
110
the findings of ten hypotheses analyses are as follows:
Hypothesis one: There is a positive relationship between image and perceived value.
Hypothesis two: There is a positive relationship between price and perceived value.
Hypothesis three: There is a positive relationship between perceived quality in terms
of reliability and customer satisfaction.
Hypothesis four: There is a positive relationship between perceived quality in terms
of tangibles and customer satisfaction.
Hypothesis five: There is a positive relationship between perceived quality in terms
of empathy and customer satisfaction.
Hypothesis six: There is a positive relationship between perceived quality in terms
of responsiveness and customer satisfaction.
Hypothesis seven: There is a positive relationship between perceived quality in
Hypothesis eight: There is a positive relationship between perceived value and
Hypothesis nine: There is a positive relationship between perceived value and
customer loyalty.
Hypothesis ten: There is a positive relationship between customer satisfaction and
customer loyalty.
6.1.4 Discussion and Implications

The research findings from the hypotheses testing showed that all of the null
hypotheses were rejected. The details of all ten hypotheses are shown as follows:
Hypothesis one (H1): The result of the analysis indicated that there was a positive
111
relationship between image and perceived value.
From the results of hypothesis one, the researcher found that the correlation value
of .599 for image and perceived value has a positive moderate relationship. It
implies that there is customer’s perception based on the perceived benefits, the
physical attributes and branding, so greater importance is placed on image or brand
name. This conclusion is supported by Mitra et al. (1999) that image positively
affects perceived value. According to Olson and Jacoby’s (2003) study, image can be
considered to be an extrinsic product cue related to consumer perception on how
well they can satisfy needs and wants, from the process of image building of both
cognitive and affective impressions on service transactions by Belle store.
Hypothesis two (H2): The result of the analysis indicated that there was a positive
relationship between price and perceived value.
According to the results of hypothesis two, the researcher found that a correlation
value of .608 which shows that price and perceived value has a positively moderate
relationship. It implies that price has a strong impact on consumers` perceived value
of footwear product. As the price increases consumers` purchase intentions and
perceived value are strong and positive, which was similar results of the study by
Urbany et al. (1988) who found that the price has greatly influenced consumers`
perceived value.
Hypothesis three (H3): The result of the analysis indicated that there was a positive
relationship between perceived quality in terms of reliability and customer
satisfaction.
112
From the results of hypothesis three, the researcher found that a correlation value
of .713 which shows that consumers` perceptions of Belle store’s ability to perform
the service dependably and accurately tend to become positive once they perceived
that they also keep promises and provide services at the promised time when
customers have any problems. Reliability and customer satisfaction had a positively
strong relationship. It implies that reliability has a strong impact on customer
satisfaction. This conclusion is supported by several authors who found that
reliability positively affects customer satisfaction (Parasuraman et al., 1988; Jun and
Cai, 2001; Diaz and Ruiz, 2002; Joseph et al., 2005; Glaveli et al., 2006; Arasli et al.,
2005; Zhou, 2004).
Hypothesis four (H4): The result of the analysis indicated that there was a positive
relationship between perceived quality in terms of tangibles and customer
satisfaction.
From the results of hypothesis four, the researcher found a correlation value of .650.
Tangibles and customer satisfaction has positively strong relationship. It implies that
tangibility has a direct impact on customer satisfaction. This result is in line with the
finding of Arasli et al., (2005) and Yavas et al., (1997), which reported that tangibles
is important predictor of customer satisfaction. In addition, this finding is also
supported by the finding of (Wakefield and Blodgett, 1999), that tangible cues can
influence consumers` affective responses which are pleasure, relaxation and feeling
of excitement.
Hypothesis five (H5): The result of the analysis indicated that there was a positive
113
relationship between perceived quality in terms of empathy and customer
satisfaction.
From the results of hypothesis five, the researcher found a correlation value of .720
which shows that empathy and customer satisfaction have a positively strong
relationship. It implies that empathy has a direct impact on customer satisfaction.
From the highly valued relationships characterized by empathy, the researcher
suggest that Belle store needed to give individual attention and show more
understanding to customers, and also satisfy consumers` specific needs. According
to Wong and Sohal’s (2003) study, the researchers found the importance of
empathy-related factors should be conducive to the characteristics of customer
relationships in the services.
Hypothesis six (H6): The results of the analysis indicated that there was a positive
relationship between perceived quality in terms of responsiveness and customer
satisfaction.
From the results of hypothesis six, the researcher found a correlation value of .748
which showed that responsiveness and customer satisfaction have a positively strong
relationship. It implies that responsiveness has an important and positive effect on
customer satisfaction, which is similar to the findings of various researchers (Jun &
Cai, 2001; Diaz & Ruiz, 2002; Joseph et al., 2005; Glaveli et al., 2006). Also, 40.3
percent respondents had at least a bachelor’s degree, so customers are more
educated and knowledgeable.
114
Hypothesis seven (H7): The result of the analysis indicated that there was a positive
relationship between perceived quality in terms of assurance and customer
satisfaction.
From the results of hypothesis seven, the researcher found a correlation value
of .790 which shows that assurance appeared as the strongest predictor of
satisfaction. Assurance and customer satisfaction had a positively strong relationship.
It implies that assurance had an important and positive effect on customer
satisfaction and was consistent with the studies of Lymperopoulos et al. (2006) and
Ndubisi (2006). In some studies the researcher has found that assurance was an
important predictor of customer satisfaction and communication was a strong
indicator and important source of overall satisfaction in the footwear sector.
Hypothesis eight (H8): The results of the analysis indicated that there was a
positive relationship between perceived value and customer satisfaction.
From the results of hypothesis eight, the researcher found that correlation value
of .683 shows that perceived value and customer satisfaction had a positively strong
relationship. It implies that perceived value has an important and positive effect on
customer satisfaction. This concept can be verified from previous researches Spiteri
and Dion (2004) that perceived value was an antecedent of overall satisfaction of
end customers. According to Lapierre (2000), perceived value is a key element in
decision making of consumers for the image or reputation. (Eggert and Ulaga, 2002),
mentioned that corporations created a positive perceived value for consumers who
will tend to be more satisfied with the store.
115
Hypothesis nine (H9): The result of the analysis indicated that there was a positive
relationship between perceived value and customer loyalty.
From the results of hypothesis nine, the researcher found a correlation value of .660
which shows that perceived value and customer loyalty had a positively strong
relationship. It implies that perceived value has an important and positive effect on
customer loyalty. According to Eggert and Ulaga (2002)`s suggestion, the
importance of personal relationships should play an important role in the generation
of higher perceived value by the firm’s employees and mangers, so that the store
gained more loyalty. Similar to the findings of various authors as Prahalad and
Ramaswamy (2004) and Vargo and Lusch (2004).
Hypothesis ten (H10): The result of the analysis indicated that there was a positive
relationship between customer satisfaction and customer loyalty.
From the results of hypothesis ten, the researcher found a correlation value of .719
shows that customer satisfaction and customer loyalty had a positively strong
relationship. It implies that customer satisfaction had an important and positive
effect on customer loyalty. This conclusion is supported by Bowen and Chen (2001)
that as customer satisfaction increased, customer loyalty indices more than doubled.
In the other words, customers who feel satisfied with their experience with Belle
store had an increased confidence on their loyalty and may choose to stay with Belle
store for longer than expected.
116
6.2 Conclusions
The main objective of this study was to find the factors that potentially affect
customer satisfaction and customer loyalty towards Belle Footwear Company in
Lanzhou. The researcher targeted Chinese customers who had purchased Belle
footwear products and who had an experience of more than two years with Belle
footwear. Due to the limitations of this study, the questionnaires were distributed to
a total of 400 respondents from ten stores of Belle footwear in Lanzhou city, Gansu
province, China.
In this research, the independent variables including image, price, perceived value,
and five dimensions of perceived quality which are reliability, tangibles, empathy,
responsiveness, assurance. Customer satisfaction represents the intervening variable
and customer loyalty represents the dependent variable. For the demographic factors
of this research, the majority of respondents were aged between 26 to 30 years old,
holding bachelor degree, and earning monthly income between 2501 to 3500 RMB.
For the hypothesis testing part, the researcher concludes that image, price, perceived
quality (in terms of reliability, tangibles, empathy, responsiveness and assurance)
have statistically significant influences on perceived value and customer satisfaction.
Moreover, from the hypothesis testing results, both perceived value and customer
satisfaction toward the footwear stores proved to be positively associated with
customer loyalty.
117
6.3 Recommendation
All the positive ten hypotheses were validated by the research findings. As such
there are a number of recommendations that can be given in line with each of the
group.
The result of group 1 from hypothesis one and two shows that there is a relationship
between image and price with perceived value. Image (H1) and price (H2) does
indeed have a positive influence upon perceived value at a moderate level. Both
image and price positively impact perceived value, and price is the most influential
determinant of perceived value (.608). As such it can be recommended that the
marketers must assess the total customer value and total customer cost associated
with each competitor’s offer in order to know how their offer prices in the
consumer’s mind. Belle Company has to strengthen and augment the offer’s product,
services and image benefits. The researcher founded that image (0.599) was
concerned that belle stores should provide positive perceived image to consumers
and design marketing strategies such as advertising, direct mail, trade press,
word-of-moth communication and promotion activities that convey a good
reputation with the brand image to their target market. Price also can affect
perceived value it the relationship is not very strong. Therefore, if the company
wants to change to have a strong relationship, Belle Company must improve product
quality and designs to influence consumers` perceived value because price is found
to have only a moderate positive relationship with perceived value.
The result of group 2 from hypothesis three to hypothesis seven show that there is a
relationship between perceived service quality (in term of reliability, tangibles,
118
empathy, responsiveness and assurance) with customer satisfaction. Reliability (H3),
tangibles (H4), empathy (H5), responsiveness (H6), assurance (H7) does indeed
have a positive influence upon customer satisfaction at a strong level. Each term has
a positive impact on customer satisfaction and assurance is the most influential
determinant of customer satisfaction (.790). The researcher would like to suggest
that the company has to improve their service quality of tangible, from five
sub-variables which found that tangibility was concerned with environmental
psychology. Therefore, the company should improve the visually pleasing
appearance of Belle store and its personnel need to dress neatly as Belle’s employees.
Belle should consider improving employee communication skills with training
programs to enable them in assisting customers and providing them with relevant
information about shoes. Thus, belle store may gain a greater chance in attracting
customers to make their own final purchase decision. Moreover, Belle store may
consider improving their product and service quality, keeping more attention to their
customers to satisfy them in the long term.
The result of group 3 from hypothesis eight to hypothesis ten shows that there is a
relationship between perceived value and customer satisfaction with customer
loyalty. Perceived value (H8) and customer satisfaction (H10) does indeed have a
positive influence upon customer loyalty at a strong level. Perceived value impacts
both customer satisfaction and customer loyalty, and customer satisfaction is also
the most influential determinant of customer loyalty (.719). In order to effectively
influence customer loyalty, it is important that Belle company understand how best
to improve the perception of value to satisfy customers. Customers would evaluate
Belle’s store performance mainly on the basis of both perceived value and perceived
119
quality. If the marketers know how best to outperform in both perceived value and
perceived quality, this could enhance customers satisfaction and customers loyalty
towards Belle company. Since today’s consumers change tastes for shoes rapidly,
Belle’s marketers should improve the shoes to have a fashion-forward design and
offer more quality to attract customers. In addition, image and price associated with
branding should be used to exert maximum influence via perceived value on
customer satisfaction and build long-term loyalty to Belle customers.
6.4 Further Research

This research was conducted to investigate the relationship between factors
influencing customer loyalty in Lanzhou and to give useful information for the
marketers of shoe products. The researcher would like to suggest some
recommendations for future studies as follows:
Firstly, this research considered only seven variables (image, price, reliability,
tangibles, empathy, responsiveness and assurance) affecting perceived value towards
customer satisfaction, which in turn, was related to customer loyalty toward Belle
footwear store.
For the further studies, some other sophisticated variables which may also influence
customer loyalty in the footwear industry such as trust and reputation maybe added
and explored to influence customer loyalty. Therefore, managers may gain specific
benefits from exploring such factors as a propensity to best-know what the customer
needs.
120
Secondly, the research data collected only focuses on the capital city in northwest
china, Lanzhou, therefore, the results only represent the customer loyalty of
northwest Chinese only, and different regions have different life styles and cultures.
Future research should be extended to other cities or other municipalities similar to
Gansu. Moreover, due to the limitation of turn in collecting data, the researches only
distributed 400 questionnaires to respondents for investigation, future researches,
could acquire more respondents in order to explore and obtain precise investigation.
Thirdly, this research only examined the relationship among variables in the shoe
store. The result is limited to ten stores in urban districts only. In the future research,
replication of this research can be explored to other stores from new districts to
examine if there are any changes in the results.
121
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153
Appendix – A
Questionnaire
(English Version)
154
Questionnaire
Research on the Customer Loyalty of Belle Footwear Company in

Lanzhou City, Gansu Province of the People’s Republic of China
This questionnaire aims to study about the level of customer loyalty of the company
named “Belle”, Chinese footwear in Lanzhou, People’s Republic of china. Please fill
out all the following questions and your information will be only used for the
research. Thank you very much for your time and cooperation.
The questionnaires are totally six parts：
Part 1: Screening question.

1. Have you ever bought any footwear product of Belle brand?
□ Yes □ No
(If you answer “No”, please do not fulfil question.)
2. How many years of experience have you had with Belle shoes?
□ More than 2 years □ Less than 2 years
(If you answer “more than 2 years”, please continue to answers questions.)
From Part 2 to Part 5, please read the statement related to your

opinion of the footwear product of Belle brand and indicate your level
of agreement or disagreement as following:
1= Strongly Disagree
2= Disagree
3= Neutral
4= Agree
5= Strongly Agree
155
Part 2: Questions about factors affecting perceived value.
Image
The reputation of Belle is an important factor
1 1 2 3 4 5
for me.
This footwear store makes a good impression

2 1 2 3 4 5
on its consumers.
The footwear products have a good reputation

3 1 2 3 4 5
among fashionable people.
4 I feel this footwear store suits my needs. 1 2 3 4 5
Price
5 The price at Belle footwear is reasonable. 1 2 3 4 5
The prices at Belle footwear are cheap in

6 1 2 3 4 5
relation to competing brands.
The price at Belle footwear is reasonable and

7 1 2 3 4 5
it is worth buying.
Perceived Value
8 1 2 3 4 5
9 I enjoy my shopping time at Belle shop. 1 2 3 4 5

10 1 2 3 4 5
Part 3: Questions about perceived quality.

Reliability
11 Belle employees provide service dependably. 1 2 3 4 5
12 When I walk into a Belle store it offers the 1 2 3 4 5
156
right services the first time.
When I have problems with the shoes, Belle
13 provides services as they promised such when 1 2 3 4 5
I want to change the size of shoes.
Tangibles
14 Employees of Belle are well dressed. 1 2 3 4 5
Employees of Belle have appeared neat and

15 1 2 3 4 5
professional.
The Belle company makes the store to be

16 1 2 3 4 5
visually appealing.
Empathy
Belle employees always give the consumers
17 individual attention such as when customers 1 2 3 4 5
want to try on shoes.
Belle employees help me to find my desired

18 1 2 3 4 5
shoes.
It is realistic to expect Belle stores to have

19
their customers` best interests at heart.
Responsiveness
Employees of Belle are always willing to
20 provide service or help to customers 1 2 3 4 5
promptly.
When customers have complaints, Belle

21 1 2 3 4 5
employees are ready to respond the
157
customers’ requests.
Customers receive prompt service from Belle

22
employees.
Assurance
Belle employees have ample knowledge of
23 shoes to properly answer customer’s 1 2 3 4 5
questions.
24 Belle employees were consistently courteous. 1 2 3 4 5
Employees get adequate support from Belle

25 1 2 3 4 5
to do their jobs well.
Part 4: Questions about customer satisfaction.

Customer Satisfaction
I am satisfied with my decision to visit this
26 1 2 3 4 5
footwear shop.
27 I have good experience with Belle’s staff. 1 2 3 4 5
I am satisfied as it was worth the price I paid

28 1 2 3 4 5
for.
I have like other customers had a good time

29 1 2 3 4 5
in Belle store.
Part 5: Questions about customer loyalty.

Customer Loyalty
30 I consider myself to be loyal to Belle. 1 2 3 4 5
31 Belle would be my first choice for my purchases. 1 2 3 4 5
32 If I were faced with the same choice again, I would 1 2 3 4 5

158
33 I would go to Belle which is operated under the same 1 2 3 4 5
34 I will recommend this brand to my friends. 1 2 3 4 5
35 I will say positive word of mouth about Belle brand. 1 2 3 4 5
Part 6: Respondent’s Profile

1. Age □ 20 below
□ 21-25
□ 26-30
□ 31-35
□ 36-40
□ 40 above
2. Incomer per month (RMB) □ 1500 below
□ 1501-2500
□ 2501-3500
□ 3501-4500
□ 4501-5500
□ 5500 above
3. Educational level □ High School or Less
□ College Graduate
□ Bachelor Degree
□ Master Degree or Higher

159
Appendix – B
Questionnaire
(Chinese Version)
160
调查问卷
百丽公司顾客忠诚度研究
（中国甘肃省兰州市）
本问卷针对研究顾客对百丽品牌鞋袜类产品的感知价值和感知质量以及与顾
客忠诚度之间的关系。所填内容仅作为学术研究使用，在此感谢您对本研究的
合作与支持。
此次调查问卷共有 6 部分：
第一部分：
1. 您是否曾经有购买过百丽品牌鞋袜类的产品？
□ 是 □ 否
(如果您的答案是“否”, 请不用完成此问卷)
2. 您曾经有多久对百丽品牌鞋袜类产品有了解或是使用过？
□ 超过两年 □ 少于两年
(如果您的答案是“超过两年”，请您继续完成此问卷)
二至四部分请按以下提示作答：
请在所提供的五个选项中选择一个最能反应你对百丽品牌的态度，为表示您对
以下说法的同意程度，请在相应的空格内打勾：
1= 强烈不同意
2= 不同意
3= 中立
4= 同意
5= 强烈同意
161
第二部分：
形象
百丽品牌具有较高的名气，这点对我来说是
1 1 2 3 4 5
非常重要的。
2 百丽店铺留给消费者很好印象。 1 2 3 4 5
3 百丽的产品在时尚人士中有良好的声誉。 1 2 3 4 5
4 我认为百丽店铺很符合我的要求。 1 2 3 4 5
价格
5 百丽品牌鞋袜类的价格是合理的。 1 2 3 4 5
与竞争品牌相比，百丽品牌鞋袜类的产品价
6 1 2 3 4 5
格低于竞争品牌的价格。
7 百丽产品的价格值得消费者去购买。 1 2 3 4 5
感知价值
我相信百丽的鞋袜在价格的基础上也同时
8 1 2 3 4 5
拥有很好的质量。
9 我很享受在百丽店铺购买产品。 1 2 3 4 5
我很喜欢百丽是因为经常有促销的折扣价
10 1 2 3 4 5
格。
第三部分：
可靠性
11 百丽的员工提供服务时是值得信任的。 1 2 3 4 5
每当我走进百丽店铺会在第一时间得到服
12 1 2 3 4 5
务。
162
当我遇到购买的问题，百丽总会履行她们
13 给予的承诺，例如当我想要更换鞋子的尺 1 2 3 4 5
码时。
有形性
14 百丽的员工穿着很得体。 1 2 3 4 5
15 百丽的员工看起来很整洁并且专业。 1 2 3 4 5
16 百丽的店铺从视觉上感觉装潢很吸引人。 1 2 3 4 5
共鸣性
当顾客试穿鞋子时，总能得到百丽员工的
17 1 2 3 4 5
独特照顾。
18 百丽员工总会帮助我找到满意的鞋子。 1 2 3 4 5
顾客有非常大的兴趣和期望对于百丽店
19
铺。
响应性
20 百丽员工总是乐意的帮助顾客。 1 2 3 4 5
当顾客有批评或者投诉，百丽员工会理解
21 1 2 3 4 5
并回复顾客的要求。
22 顾客可以得到百丽员工及时的服务。
保证性
百丽员工对鞋子有专业的知识去回答顾客
23 1 2 3 4 5
的问题。
24 百丽的员工始终如一彬彬有礼。 1 2 3 4 5
百丽的员工获得百丽公司足够的支持，使
25 1 2 3 4 5
她们很好的完成工作。
163
第四部分：
顾客满意度
我每次决定去百丽店铺，都会使我感到满
26 1 2 3 4 5
意。
27 百丽员工带给我很好的体验。 1 2 3 4 5
28 购买百丽的产品我觉得价格很值得。 1 2 3 4 5
我有和我的朋友在百丽店铺度过美好的时
29 1 2 3 4 5
光。
第五部分：
顾客忠诚度
我认为自己是百丽品牌鞋袜类产品的忠诚
30 1 2 3 4 5
顾客。
31 百丽品牌鞋袜类产品会是我的首选。 1 2 3 4 5
如果我有相同的选择，我还会再次选择百
32 1 2 3 4 5
丽品牌。
33 我也会光顾百丽旗下的其他连锁店。 1 2 3 4 5
34 我将会推荐百丽品牌给我的朋友们。 1 2 3 4 5
35 我将会宣传百丽品牌良好的口碑。 1 2 3 4 5
164
第六部分：个人资料
4. 年龄 □ 20 岁以下
□ 21-25 岁
□ 26-30 岁
□ 31-35 岁
□ 36-40 岁
□ 40 岁以上
5. 月收入（人民币） □ 1500 元以下
□ 1501-2500 元
□ 2501-3500 元
□ 3501-4500 元
□ 4501-5500 元
□ 5500 元以上
6. 教育程度 □ 高中或高中以下
□ 大专学历
□ 本科学历
□ 研究生学历或更高
165
Appendix – C
Pre-testing
Reliability of Questionnaires
166
1. Image
Reliability Statistics
Cronbach's
Alpha N of Items
.822 4
2. Price
Cronbach's
Alpha N of Items
.728 3
3. Perceived Value
Cronbach's
Alpha N of Items
.705 3
4. Reliability
Cronbach's
Alpha N of Items
.825 3
167
5. Tangibles
Cronbach's
Alpha N of Items
.857 3
6. Empathy
Cronbach's
Alpha N of Items
.883 2
7. Responsiveness
Cronbach's
Alpha N of Items
.793 2
8. Assurance
Cronbach's
Alpha N of Items
.859 3
168
9. Customer Satisfaction
Cronbach's
Alpha N of Items
.818 4
10. Customer Loyalty
Cronbach's
Alpha N of Items
.876 5
169
Appendix – D
Descriptive Analysis of Demographic Factors
170
1. Age
Cumulative
Valid 20 below 19 4.8 4.8 4.8
21-25 86 21.5 21.5 26.3
26-30 132 33.0 33.0 59.3
31-35 77 19.3 19.3 78.5
36-40 57 14.3 14.3 92.8
40
29 7.3 7.3 100.0
above
Total 400 100.0 100.0
2. Income per month

Cumulative
Valid 1500 below 27 6.8 6.8 6.8
1501-2500 111 27.8 27.8 34.5
2501-3500 161 40.3 40.3 74.8
3501-4500 65 16.3 16.3 91.0
4501-5500 20 5.0 5.0 96.0
5500 above 16 4.0 4.0 100.0
Total 400 100.0 100.0
171
3. Education level
Cumulative
Valid High School or

105 26.3 26.3 26.3
Less
College
134 33.5 33.5 59.8
Graduate
Bachelor
138 34.5 34.5 94.3
Degree
Master Degree
23 5.8 5.8 100.0
or Higher
Total 400 100.0 100.0
172
Appendix – E
Descriptive Analysis of Variables
173
1. Image
The reputation of Belle is

400 3.56 .913
an important factor for me.
The footwear store makes
a good impression on its 400 3.67 .824
consumers.
The footwear products
have a good reputation

400 3.72 .864
among fashionable
people.
I feel this footwear store

400 3.57 .873
suits my needs.
2. Price
The price at Belle footwear is reasonable.

400 3.25 .983
The prices at Belle footwear are cheap in

400 3.21 .991
relation to competing brands.
The price at Belle footwear is reasonable and it

400 3.35 .895
is worth buying.
3. Perceived Value

400 3.56 .885

400 3.55 .919
174
4. Reliability
Belle employees provide

400 3.70 .875
service dependably.
When I walk into a Belle
store it offers the right 400 3.77 .880
When I have problems
with the shoes, Belle
provides services as they

400 3.81 .877
promised such when I
want to change the size of
shoes.
5. Tangibles
Employees of Belle
400 3.77 .903
are well dressed.
Employees of Belle
appeared neat and 400 3.80 .910
professional.
The Belle company
makes the store to be 400 3.59 .910
visually appealing.
6. Empathy
Belle employees always

400 3.77 .851
give the consumers
175
individual attention such as
when customers want to try
on shoes.
Belle employees help me to

400 3.78 .840
find my desired shoes.
It is realistic to expect Belle
stores to have their

400 3.74 .851
customers` best interests at
heart.
7. Responsiveness
always willing to provide

400 3.74 .866
service or help to
customers promptly.
When customers have
complaints, Belle
employees are ready to 400 3.72 .886
respond the customers`
requests.
Customers receive
prompt service from 400 3.82 .770
Belle employees.
8. Assurance
Belle employees have
ample knowledge of shoes

400 3.73 .874
to properly answer
customer’s questions.
Belle employees were 400 3.75 .855
176
consistently courteous.
Employees get adequate
support from Belle to do 400 3.71 .886
their jobs well.
9. Customer Satisfaction
I am satisfied with my
decision to visit this 400 3.66 .901
footwear shop.
I have good experience

400 3.73 .821
with Belle’s staff.
I am satisfied as it was
400 3.56 .940
worth the price I paid for.
I have like other customers
had a good time in Belle 400 3.63 .906
store.
10. Customer Loyalty
If I were faced with the same choice again, I would

400 3.68 .875

400 3.78 .807
I will say positive word of mouth about Belle brand.

400 3.78 .837
177
Appendix – F
Inferential Statics of Hypothesis Testing
178
1. Hypothesis 1
Correlations
MEANIM MEANPV
MEANIM Pearson
1 .599(**)
Correlation
N 400 400
MEANPV Pearson
.599(**) 1
Correlation
N 400 400
2. Hypothesis 2
Correlations
MEANPR MEANPV
MEANPR Pearson
1 .608(**)
Correlation
N 400 400
MEANPV Pearson
.608(**) 1
Correlation
N 400 400
3. Hypothesis 3
Correlations
MEANRLB MEANCS
MEANRLB Pearson
1 .713(**)
Correlation
179
N 400 400
MEANCS Pearson
.713(**) 1
Correlation
N 400 400
4. Hypothesis 4
Correlations
MEANCS MEANTGB
MEANCS Pearson
1 .650(**)
Correlation
N 400 400
MEANTGB Pearson
.650(**) 1
Correlation
N 400 400
5. Hypothesis 5
Correlations
MEANCS MEANEPTH
MEANCS Pearson
1 .720(**)
Correlation
N 400 400
MEANEPTH Pearson
.720(**) 1
Correlation
N 400 400
6. Hypothesis 6
Correlations
180
MEANCS MEANRSP
MEANCS Pearson
1 .748(**)
Correlation
N 400 400
MEANRSP Pearson
.748(**) 1
Correlation
N 400 400
7. Hypothesis 7
Correlations
MEANCS MEANAUR
MEANCS Pearson
1 .790(**)
Correlation
N 400 400
MEANAUR Pearson
.790(**) 1
Correlation
N 400 400
8. Hypothesis 8
Correlations
MEANCS MEANPV
MEANCS Pearson
1 .683(**)
Correlation
N 400 400
MEANPV Pearson
.683(**) 1
Correlation
181
N 400 400
9. Hypothesis 9
Correlations
MEANCL MEANPV
MEANCL Pearson
1 .660(**)
Correlation
N 400 400
MEANPV Pearson
.660(**) 1
Correlation
N 400 400
10. Hypothesis 10
Correlations
MEANCL MEANCS
MEANCL Pearson
1 .719(**)
Correlation
N 400 400
MEANCS Pearson
.719(**) 1
Correlation
N 400 400
182

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Factors Affecting Customer Satisfaction and Customer Loyalty towards Belle

Footwear Company in Lanzhou City, Gansu Province of the People's Republic of

THESIS EXAMINATION COMMITTEE

research focuses on customer satisfaction and customer loyalty of footwear products

in Lanzhou, China. The purpose of this research is to explore the possible

perceived quality (in terms of reliability, tangibles, empathy, responsiveness and

assurance) and perceived value with customer satisfaction, which in turn,

significantly influences customer loyalty towards Belle Footwear Company. 400

self-administered questionnaires were distributed to respondents who have bought

reliability, tangibles, empathy, responsiveness, assurance and perceived value) have

a significant relationship with the intervening variable (customer satisfaction) and

dependent variable (customer loyalty). Shoe marketers will have a better

First and foremost, I would like to express my deepest appreciation to my thesis

valuable comments, patience and understanding, without her encouragement and

everything you have done for me.

valuable suggestions and recommendations to help me to improve my thesis writing.

encouragement in helping me during my graduate life.

Table 1.1: The Top 10 Footwear Producers in the World (2 0 1 0)……………….....4

Table 1.2: The Top 10 Ladies’ Footwear Companies in China……………………...8

Table 1.4: The Revenue of Belle’s Footwear Business as of Year ended 31

Table 1.6: The Belle’s Company Five Financial Years……………………….....…11

Table 1.7: Percentage of Revenue by Product Category…………………………...12

Table 2.1: The summary of the previous studies…………………………...….…..34

Table 3.1: Operational Definition of Customer Loyalty and Its Dimensions.......…46

Table 4.1: Ten Popular Shopping Malls in Lanzhou……………………………….57

Table 4.2: Address of Belle Stores of each Popular Shopping Mall………….....…60

Table 4.3: The Table of Questionnaire Distribution…………………………….….64

Table 4.4: Development of the questionnaire…………………………….………..67

Table 4.5: The Summary of Number of Questions for Each Variable………...…70

Table 4.6: The reliability of The Questionnaires (Cranach’s Alpha (α)

Table 4.7: Pearson Correlation Coefficient…………………...……………………75

Table 4.8: Statistical Method used for Hypotheses………………………...……....76

Table 5.4: Mean score rating and Standard deviation of image…………...…...…..82

Table 5.5: Mean score rating and Standard deviation of price……………………..83

Table 5.7: Mean score rating and Standard deviation of reliability………………..84

Table 5.8: Mean score rating and Standard deviation of tangibles………….....…..85

Table 5.9: Mean score rating and Standard deviation of empathy…………………86

Table 5.10: Mean score rating and Standard deviation of responsiveness……...….87

Table 5.11: Mean score rating and Standard deviation of assurance…………...….88

Table 5.14: The reliability of the questionnaire of study…………………….…….91

Pearson Product Moment Coefficient Correlation………………………………….92

using Pearson Product Moment Coefficient Correlation…………………….……..93

satisfaction, by using Pearson Product Moment Coefficient Correlation………..…94

by using Pearson Product Moment Coefficient Correlation………………………..96

satisfaction, by using Pearson Product Moment Coefficient Correlation…………..97

satisfaction, by using Pearson Product Moment Coefficient Correlation…………..99

satisfaction, by using Pearson Product Moment Coefficient Correlation…………100

loyalty, by using Pearson Product Moment Coefficient Correlation………….…..101

customer loyalty, by using Pearson Product Moment Coefficient Correlation…...102

Table 5.25: Summery of hypothesis testing result………………………...….…..103

Table 6.1: Summary of Demographics represented by Highest Percentages…….104

Table 6.2：The analysis of the factors affecting respondents` customer loyalty by

illustrating Mean and Standard Deviation…………………………………….…..105

Figure 1.1: Location of China……………………………………………………..5

Figure 1.2: Map of Lanzhou, Gansu………………………………………………6

Figure 3.2: A Research Model of Reliability, Tangibles, Empathy, Responsiveness,

Assurance, Satisfaction and Customer Loyalty……………………………...……..39

Figure 3.3: A Research Model of Perceived Value, Customer Satisfaction and

Figure 3.4: Conceptual Framework of Perceived Value, Perceived Quality,

Customer Satisfaction and Customer Loyalty……………………………..……….43

Figure 4.1: The location of Lanzhou in China……………………………...….…..54

Figure 4.2: The location of Lanzhou in Gansu……………………….......………..55

Figure 4.3: The Logo of Belle International Company……………...…………….56

Figure 4.4: A Belle franchise store in Fashion Parkson…………………...…….…57