· web viewloyalty is one of the most important drivers of business growth because profitable...
TRANSCRIPT
REFINEMENT AND VALIDATION OF RETAIL CONSUMER LOYALTY SCALE: A CONFIRMATORY FACTOR ANALYSIS APPROACH
Adil Zia 1 Asif Akhtar2 M. Khalid Azam3
1 Research scholar Dept. of Business Administration, AMU, Aligarh2Assist. Prof. Dept. of Business Administration, AMU, Aligarh
3Prof. Dept. of Business Administration, AMU, Aligarh
Adil Zia, Research Scholar, (Corresponding Author)Dept. of Business Administration, FMSR, Aligarh Muslim University, Aligarh.Contact E-mail: [email protected]; Mobile No 9897496905
Asif Akhtar (Assist. Prof.), Dept. of Business Administration, FMSR, Aligarh Muslim University, Aligarh.Contact E-mail: [email protected]; Mobile No 9897447806
M. Khalid Azam (Prof.), Dept. of Business Administration, FMSR, Aligarh Muslim University, Aligarh.Contact E-mail:[email protected]; Mobile No 9412527091
Biological Notes1. Adil Zia MBA from Jamia Hamdard University New Delhi India. Presently he is pursuing
PhD at AMU, Aligarh Uttar Pradesh India. He has one year industry and three years teaching experience along with two years of research work. His areas of interest include Consumer Behavior and Marketing Management. Email: [email protected]
2. Mohammad Khalid Azam PhD and MBA from Aligarh Muslim University UP India. Presently he is Professor at AMU, Aligarh Uttar Pradesh India. He has 29 years teaching experience along with 25 years of research work. His areas of interest include Finance, retailing and Marketing Management. Email: [email protected]
3. Asif Akhtar PhD and MBA Aligarh Muslim University UP India. Presently he is Assistant Professor at AMU, Aligarh Uttar Pradesh India. He has one year industry and five year teaching experience along with five year of research work. His areas of interest include Islamic Banking and Marketing Management. Email: [email protected]
Abstract
In the retail market environment in particular, slow growth and intense competition have
refocused retailers’ attention on the need to retain their existing consumers as more and more
retailers began to realize that acquiring a new consumer is much more expensive than keeping
an existing one. Beside the cost of acquiring new consumers, Knox and Denison found that store
loyal consumers in the grocery sector spend larger budgets and larger proportions of budgets at
the stores they are loyal to. So in light of this fact the study of consumer loyalty encloses great
importance for the retailers as well as producers. Further knowing the factors responsible for
consumer loyalty interests both retailers and producers so to influence it whenever required.
This paper attempts to refine and validate Shopping Experience and Consumer Loyalty Scale
(RSECLS) and to further explore consumer loyalty dimensions that help retailers and producers
in designing marketing strategies and further to develop a retail consumer loyalty scale in Indian
context. A structured questionnaire consisting of 48 items was administered on 1200 retail
consumers. Out of which 670 filled questionnaires were returned for further analysis making it a
response rate of 55.83%. Analytical tools such as SPSS 16.0 and AMOS 16.0 were used to refine
the instrument, to test the scale reliability, exploratory factor analysis (EFA) and confirmatory
factor analysis (CFA) to confirm the fitness of the proposed model.
Keywords: Consumer Loyalty, Retailing, Consumer Loyalty Scale, Consumer Behavior,
Confirmatory Factor Analysis.
Introduction
Loyalty is one of the most important drivers of business growth because profitable business
growth cannot be achieved without customer loyalty (Reichheld, 2003). Store loyalty is the most
important factor in retail business success (Anic, 2006; Ray 2009). Therefore, store loyalty
concept has been investigated a lot during the past few decades (Anic, 2006). How customers
develop true store loyalty and how store loyalty can be maintained are still open questions (Anic,
2006). In order to improve store performance, marketers are interested in customer loyalty
drivers and their practical usage (Anic, 2006). It requires less marketing effort and resources to
2
keep a loyal customer than to acquire a new customer (Ray, 2009; Sreedhara, Babu & Nagendra,
2010), because the loyal customer is less price sensitive (Tsai, Tsai & Chang, 2010), and more
willing to recommend company to other people, thus bringing into business new customers
(Bove, 2009; Reichheld, 2003; Tsai, Tsai & Chang, 2010).
During economic recession, strengthening customer‘s loyalty is even more important, because
when the incomes in general decrease and the ordinary customers may re-evaluate their
purchasing behavior. Some studies suggest that during recession not only customer behavior
changes but also their way of thinking. So it is important for retailers to recognize those trends
not just during recession period, but also in the future (post-recession), because it is expected that
recession customer behaviors and patterns will continue in recovery period and beyond (Miller,
2010; Lodes, 2009). Consequently retailers ought to be responsive of consumer behavior in order
to serve their customers accordingly and to be successful in keeping customers loyal.
Literature Review
Dick and Basu (1994) define loyalty as a combination of strong relative attitude and high repeat
patronage. Oliver (1999) argues that loyalty is a deeply held commitment to re buy or re-
patronizes a preferred product or a service consistently in future, thereby causing repetitive
same-brand or same brand-set purchasing, despite situational influences and marketing efforts
having the potential to causes switching behavior.
Reichheld (2003) defines loyalty as willingness of someone a customer, an employee, a friend to
make an investment or personal sacrifice in order to strengthen a relationship. In other words, to
stick in long term with particular supplier who gives to customer good value of product or
service, even though supplier does not offer the best available price. Further Reichheld explains
that Consumer Loyalty is one of the most important drivers of business growth because
profitable business growth cannot be achieved without customer loyalty.
Dimensions of Consumer Loyalty
Numerous researches have been done to unearth the factors responsible for consumer loyalty in
retail setup but still it is very difficult to illustrate all the factors. However it is a complex 3
concept (Bustos-Reyes and González-Benito, 2008). Even though loyalty has been widely
investigated in recent decades, there is no best way to define and measure customer loyalty
(Bustos-Reyes and González-Benito, 2008).
Drivers of store loyalty investigated in past researches are satisfaction, location, product range,
in-store promotions, frequent buyer/loyalty programs, store operation, store appearance, spatial
layout, relative price, convenience (Magi, 2003; Miranda et al., 2005; Noble et al., 2006; Sirohi
et al., 1998), store affect (Ray, 2009), demographic factors (Anic 2006), store atmosphere
(Baker, Parasuraman 2002; Ray, 2009), merchandise value (Baker, Parasuraman, 2002; Ray,
2009; Sirohi, 1998), interpersonal service quality (Baker and Parasuraman, 2002; Ray, 2009;
Sirohi, 1998), customers self concept and store image congruity (He and Mukherje, 2007; Sirgy,
1985) etc. Yavas 2009) suggests that store loyalty drivers can be captured in three dimensions:
store environment, perceived quality and price (Yavas, 2009).
In order to understand Consumer Loyalty more appropriately researches has been grouped into
eight dimensions. These dimensions are Execution Related Excellence, Expediting, Problem
Recovery, Shopping Motives, Engagement, Store Attributes, Store Purchase Experience and
Product Attributes.
Execution Related Excellence
Execution Related Excellence is a term given to the Shopping convenience, Physical aspects of
the store, Personal Attention given by the staff, Courteousness of staff and to the feeling of
enjoyment experienced by the consumers in the store. This terminology was coined by Verde
Group (2009) Discovering “WOW” a study of Great Retail Shopping Experiences in North
America. There are numerous studies of these dimensions but only relevant studies have been
discussed.
Kumar (2011) did a study on the strategies of unorganized retailers with reference to consumer
durables and found that a product strategy which means merchandise is the most important factor
followed by price, distribution and promotion. Kushwaha (2011) compared the perception of
consumers in organized and unorganized retail market and found that factors like cleanliness,
distance, price, quality, safety and space for shopping are the determinant factors for unorganized 4
retail. Adil, Mohd and Asif (2012) used the term Executional excellence as one of the
dimensions to measure shopping experience which in turn measures consumer loyalty.
Expediting
Backstrom & Johansson (2006) studied factors such as the behavior of the personnel, a
satisfactory selection of products, price and a layout that facilitates the store visit. Anselmsson
(2006) eight factors are important they are selection, atmosphere, convenience, sales people,
refreshments, location, promotional activities and merchandising policy. N.S. Terblanche and C.
Boshoff (2006) face-to-face interaction between retail staff and shoppers are of critical
importance. Favorable perceptions of shopping quality, checkout speed, shopping efficiency and
quality of time spent shopping leads to satisfaction, farther satisfaction leads to repeat patronage
intentions and positive word-of-moth (Anic, 2006). Molina (2009) found that customer
expectations are more positive, if there are more sales people visible in the store. Expectations
are positive, because customers believe that personnel will help them in buying and checkout
process (Molina, 2009). Whereas when store is crowded, customers have more negative
expectations (Molina, 2009). Adil, Mohd and Asif (2012), Raut and Das (2011) quick and error
free purchase determines the shopping experience.
Problem Recovery
The store policies that were considered included the return or exchange of purchases, shopping
hours, payment options, and the system to deal with enquiries or complaints by consumers
(Westbrook, 1981; Mazursky & Jacoby, 1985; Dickson & McLachlan, 1990; Dickson &
Albaum, 1977). Adil, Mohd and Asif (2012), Raut and Das (2011) effective complaint handling
system, good after sales service, error free billing and easy product return policy by the store.
Shopping motives
This dimension measures that what is the reason for a person to go out to shop. This dimension
further emphasizes that there can be two broad reason for shopping which are necessity or
leisure. The necessity concept is related to the product requirement and availability where as the
leisure concept is related to entertainment, window shopping and fun. Dholakia (1999) identified
5
key empirically tested three reasons behind going for shopping are ‘interactions with family’,
‘utilitarian’ and ‘shopping as pleasure’. Adil, Mohd and Asif (2012), Babin et al. (1994), Howard
(2007) explained that the purpose of shopping can be non utilitarian that is shopping of goods for
non utilitarian or hedonic purposes. These hedonic motive may be entertainment, fun, outing and
gettogather. These two broad motives of product and experience is also related to emotions while
shopping (Dawson et al., 1990) (Millan and Howard, 2007).
Engagement
Engagement is another dimension which determines consumer loyalty. This dimension
emphasizes the concept of being polite, genuinely caring and demonstrating sincere interest in
helping, acknowledging and listening and the availability of place to enjoy. Adil, Mohd and Asif
(2012) If retailers want to realize the elusive goal of store loyalty, they have to ensure positive
shopping experience that is ease of shopping, friendly staff, sufficient choice and merchandise
value. A satisfactory in-store shopping experience enhances cumulative or ‘overall’ consumer
satisfaction, which in turn enhances both attitudinal loyalty and behavioral loyalty (actual sales).
Goswami & Mishra (2009) Customer patronage to grocery stores was found to be positively
related to location, helpful, trustworthy salespeople, home shopping, cleanliness, offers, quality
and negatively related to travel convenience. Interaction quality and customer‘s satisfaction with
it is an effective predictor of loyalty (Ghosh, Tripathi, Kumar, 2010; Vogel, 2008; Yavas, 2009).
Many researchers have found a significant relationship between service quality and customer
repeat patronage (Anic, 2006; Brady et al., 2002; Ghosh, Tripathi, Kumar, 2010; Vogel, 2008,
Yavas, 2009; Zeithaml et al., 1996).
Store attributes
Store attributes are those attributes which directly contribute to consumer loyalty. These include
loyalty programs run by the stores, variety of products available inside the store, store
appearance both outside and inside the store and the location of store. These dimensions has been
studied by various researchers from time to time and found to be relevant for both organized as
well as unorganized retail setup. Baker (1994) found that prestigious atmosphere leads to
favorable stores social impressions than discount store atmosphere. Lights and music
6
communicate stores social image much more than some practical cues, for instance more
merchandise displayed (Schlosser, 1998). Decor can express social information, such as social
status, ethnic identity and self concept (Schlosser, 1998). In order to develop positive store
image, social identity information can be communicated to customers through stores atmosphere
(Kotler, 1973 cited by Schlosser, 1998). Store atmosphere can communicate stores customers‘
type: people who make shopping in particular store, own products sold in this store and their
social class where do they belong (Kotler, 1973 cited by Schlosser, 1998, Adil, Mohd and Asif
2012).
Customers make inferences based on cues which are available in specific environment (Huber &
McCann, 1982). Such store attributes like music (Kellaris and Rice, 1993; Ghosh, Tripathi,
Kumar, 2010), crowding (Bateson and Hui, 1992), number of sales people (Baker et al., 1992),
layout, lightening, décor (Bitner, 1990; Ghosh, Tripathi, Kumar, 2010), noise, colors, visual
communications (Ghosh, Tripathi, Kumar, 2010) etc. have significant impact on store image
(Ghosh, Tripathi, Kumar, 2010; Schlosser, 1998) and may determine customer‘s store patronage
behavior (Schlosser, 1998).
Purchase experience
The next important dimension that determines consumer loyalty is purchase experience. This
dimension includes all the aspects of shopping related to consumer loyalty which encompasses
things like the exciting store design, consistently great product quality, making customers feel
they’re special and that they always get a deal. This include items like reliability of the product
its manufacturing dates and expiry dates, its proper storage, true brand of the product, after sales
service, and related support. The next item included in purchase experience is transactions which
mean that the billing process is accurate, the amount of money charged is genuine, no undue
billing is done. Merchandize is another item included in purchase experience this includes the
availability of length and berth of products. The next important items are uniqueness of
assortment and purchase convenience which means that is a product is available in one store is
not available anywhere else then the consumers become loyal to that store. Secondly purchase
convenience plays a vital role in consumer loyalty both for organized and unorganized retail
setup because without purchase convenience consumers are not going to turn back to the stores. 7
The physical attributes of a store, its layout, appearance, and physical presentation combine to
provide a major supporting role in the store's product offering (Greenley & Shipley, 1989).
Product attributes
Product attributes is the next important dimension encompasses store image, product prices and
the product quality related things which have impact on consumer loyalty. These attributes are
directly related to the product and its usability. He and Mukherje, (2007) found that retailers
must be aware of consumer behavior in order to serve their customers accordingly and to be
successful in keeping customers loyal. It is also important for retailers to understand that
symbolic store image plays a significant role in customer store loyalty behavior, something most
retailers have not paid too much attention before. Retailers are required not only to realize how
customers see their stores personality, but also how their customers see themselves, because
customers tend to shop at stores whose images are similar to their own self images (He and
Mukherje, 2007; Sirgy, 1985). If store personality matches up to most of stores customers, then
retailer has won half the battle getting customer loyalty (Sirgy, 1985). If store personality doesn‘t
match with customer‘s personality, then retailer should change symbolic store images in
direction of customers, through various promotional effort (He and Mukherje, 2007; Sirgy,
1985).
Sivadas and Baker (2000) found that loyalty in this phase can break down and cause switching, if
competitor offers better price, better quality, better value for money or better service, because
customer‘s evaluation is based on costs and benefits. Consumer has an opinion about brand,
based on his/ her previous satisfaction with product or service (Oliver, 1999). Customer‘s
personal feelings create individuals attachment to a store, which leads to consumer purchase
intentions conative loyalty (Anic, 2006). Strong commitment to brand leads to an intention to
repeat patronage in future (Oliver, 1999)
Jhamb and Kiran (2012) consumers’ prefer modern retail formats due to its significant product
attributes like improved quality, variety of brands and assortment of merchandise and store
attributes like parking facility, trained sales personnel and complete security. Adil, Mohd and
Asif (2012) the retention strategies, promotional strategies, growth and improvement strategies,
8
pricing strategies and competitive strategies are the major contributors for the growth of
organized retailing and play an important role in enhancing the sales of retail formats.
Conclusion
On the basis of above researches it may be summarize that the Consumer Loyalty is a multi-
dimensional construct and that it has eight dimensions namely shopping motives, Engagement,
Store Attributes, Purchase Experience and Product Attributes. Further these five dimensions
encompasses items like necessity, exploring, helpfulness, acknowledgement, place to enjoy,
loyalty programs, product variety, store appearance, store location, reliability, transactions,
merchandize, uniqueness of assortment, purchase convenience, store brand image, product price
and product quality. The respective summary is shown in table 2.2.
Objectives
The main objectives of this research are:-
1. To validate and refine RSCELS.
2. To re access various dimensions important for consumer loyalty in Indian scenario where
organized and unorganized retail setup co exist.
Methodology
Population is defined as active retail shoppers which mean the shoppers who are physically involved in
the act of purchase. The sample consisted of 670 retail shoppers. Personal interviews were conducted
immediately after the completion of the shopping. Retail shoppers were selected for analysis because they
offer a mix of merchandise and service while individual retail shops were identified on convenience
sampling basis. In all, 32 retail stores were selected from Delhi and national capital region. The retail
stores varied in their size from small to big stores and were selected across stores setups such as food,
clothing, consumer durables, books, music, etc. Shoppers were interviewed while they finished shopping
or outside the stores. The instrument used was questionnaire with 48 questions which employed a 5-point
Likert scale (5-strongly agree, 1-strongly disagree).
9
Model Development
Extensive literature survey egged various models and theories explaining relationships among several
factors responsible for consumer loyalty. After hypothesized model have been developed (Figure 1),
overall reliability and validity was checked. After getting the model reliable and valid, exploratory factor
analysis and then confirmatory factor analysis was performed. The hypothesized model for shopping
experience consists of eight independent variables and one dependent variable.
Table:1 Consumer LoyaltyS.No Dimensions Elements
1Execution related Excellence
Shopping conveniencePhysical aspectPersonal attentioncourteousnessEnjoyment
2 Expediting Shopping TimeStore Service Quality
3 Problem Recovery
Complain HandlingReturns and Exchange
4 Shopping Motives
NecessityExploring
5 EngagementHelpfulnessAcknowledgement/listeningPlace to enjoy
6 Store attributes
Loyalty ProgramsProduct VarietyStore AppearanceStore Location
7 Store purchase Experience
ReliabilityTransactionsMerchandiseUniqueness of assortmentPurchase convenience
8 Product attributes
Store brands imageProduct PriceProduct Quality
Reliability and Validity Of Scale
The trustworthiness and stability of an instrument is determined by its reliability. Reliability refers to the
degree of dependability and stability of a scale. It reflects the scales ability to consistently yield the same
responses.
10
The reliability of the construct is determined by computing the alpha coefficient of internal consistency
(Chronbach, 1951). Chronbach’s coefficient alpha value of 0.6 is considered acceptable for the
exploratory purposes, 0.7 is considered adequate, and 0.8 good for confirmatory purposes. It is also worth
mentioning here that an alpha coefficient of 0.6 and above is considered to be good for research in social
sciences. The reliability estimates based on the actual data collected is shown as under.
The overall chronbach alpha value obtained is 0.894 which shows high reliability of the scale (Table 2).
Since the value is well above 0.7 it is valid to use this scale. The individual alpha values were above 0.7
except for D6 which is frequent buyer program
Figure 1 Conceptual Model
ConsumerLoyalty
Execution relatedExcellence
Expediting
ProblemRecovery
ShoppingMotives
StoreEngagement
StoreAttributes
PurchaseExperience
ProductAttributes
D4
D5
D6
D7
D8
Factor Model for Consumer Loyalty
D3
D2
D1
As overall chronbach alpha value is under the acceptable limits so the scale is adapted for further
analysis.
Table 2: Overall Cronbach’s alpha value = 0.871
Dimension No. Factors / Dimensions No of items Cronbach’s alphas value
D1 Execution Related Excellence 9 0.794D2 Expediting 5 0.804D3 Problem Recovery 3 0.868
11
D4 Shopping Motives 3 0.711D5 Store Engagement 6 0.812D6 Store Attributes 7 0.771D7 Purchase Experience 9 0.819D8 Product Attributes 6 0.910
Exploratory Factor Analysis (EFA)
In order to develop structure of shopping experience for unorganized retail consumers, an exploratory
factor analysis on all 17 items was performed. This was performed for the factor structure using the
principal components factoring method and varimax rotation with Kaiser Normalization. The results of
Table 3: Exploratory Factor Analysis
12
the
factor analysis indicates that the 17 items obtained gives a three factor structure (Table 3). Also, the
factors did not load according to the factor structure given by Dabholkar (1996). Other rotation methods
13
Items of Questionnaire
Factors
Mean
Std.
Deviation1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00
S1 0.73 2.90 0.97S2 0.46 2.73 0.99S3 0.75 2.83 1.15S4 0.87 2.63 0.98S5 0.65 3.21 1.40S6 0.73 3.17 1.35S7 0.41 3.02 1.31S8 0.47 3.36 1.48S9 0.71 3.62 1.47S10 0.83 3.81 1.30S11 0.66 3.37 1.14S12 0.49 3.13 1.14S13 0.71 2.83 0.95S14 0.80 3.19 1.04S15 0.51 3.14 1.42S16 0.47 3.66 1.49S17 0.61 3.06 1.39S18 0.56 3.25 1.26S19 0.71 3.24 1.26S20 0.64 3.24 1.26S21 0.81 3.24 1.25S22 3.23 1.25S23 0.82 3.23 1.24S24 0.64 3.22 1.24S25 0.73 3.22 1.24S26 0.52 3.22 1.23S27 0.64 3.21 1.23S28 0.47 3.21 1.23S29 0.80 3.20 1.22S30 3.20 1.22S31 0.76 3.20 1.22S32 0.67 3.19 1.21S33 0.51 3.19 1.21S34 0.62 3.18 1.20S35 0.79 3.18 1.20S36 0.66 3.18 1.20S37 0.50 3.17 1.19S38 0.74 3.17 1.19S39 0.74 3.16 1.19S40 0.65 3.16 1.18S41 0.65 3.16 1.18S42 0.74 3.15 1.17S43 0.48 3.15 1.17S44 0.67 3.14 1.17S45 0.66 3.14 1.16S46 0.41 . 3.13 1.16S47 0.71 3.11 1.16S48 0.74 3.14 1.15
such as Equamax rotation with Kaiser Normalization also failed to improve the factors loading and factor
structure.
Confirmatory Factor Analysis (CFA)
Confirmatory Factor Analysis is the extension of Exploratory Factor Analysis. After attaining
total nine factors at 72% of variance and a KMO of 0.79, the questionnaire was further subjected
to CFA. This methodology was suggested by Gerbing and Anderson (1988) to assess the
measurement model. A confirmatory factor analysis (CFA) was used on D1, D2, D3, D4, D5,
D6, D7, D8 and D9 to investigate model fitness. As shown in Table 4 the overall model fit
indices show that all fit indices measures are within acceptable levels.
Table: 4
S.No. Parameters Recommended Value Observed Value
1 CMIN/DF 2.5- 4.5 4.131
2 GFI >=0.90 0.8121
3 AGFI <0.937 0.719
4 CFI >0.90 0.912
5 RMSEA <0.08 0.071
6 Chi-square/df <5.0 4.120
Hair et al. (1998) suggested that all standardized factor loadings should reach a significance level
of over 0.6. The results of the analysis show that all standardized factor loadings are over 0.6 and
significant at the p = 0.01 level. After the overall model was accepted, each of the constructs was
evaluated separately by examining the indicator loadings for statistical significance (Hair et al.,
1998).
The construct reliability (CR) should be over 0.7, and the construct’s average variance extracted
(AVE) should be over 0.5. The observed values in the present study are shown in Table 5. It
shows that the CR ranges from 0.702 to 0.861, the constructs’ average variance extracted (AVE)
ranges from 0.531 to 0.721, and the constructs’ AVE of each latent variable is over 0.5, which
represents sufficient convergent validity (Hair et al., 1998).
Table: 6
14
S.No FACTORS CR AVE Cronbach’s Alpha
D1 Execution Related Excellence 0.701 0.557 0.794D2 Expediting 0.812 0.541 0.804D3 Problem Recovery 0.714 0.622 0.868D4 Shopping Motives 0.731 0.630 0.711D5 Store Engagement 0.861 0.790 0.812D6 Store Attributes 0.711 0.531 0.771D7 Purchase Experience 0.810 0.691 0.819D8 Product Attributes 0.806 0.721 0.910D9 Overall Consumer Loyalty 0.751 0.690 0.871
Retail Consumer Loyalty Scale (RCLS)
The Retail Consumer Loyalty Scale (RCLS) obtained after the CFA and EFA contain all together
nine dimensions. Out of nine dimensions one is dependent and rest eight are independent. The
dependent dimension is Consumer Loyalty where as eight independent dimensions are
Execution Related Excellence, Expediting, Problem Recovery, shopping motives, Store
Engagement, Store Attributes, Purchase Experience and Product Attributes. All these dimensions
are measured by 48 items of questionnaire.
15
Figure:2
16
1.17
D1
.21
D2
2.05
D3
.04
D6
.10
D7
2.96
D5
1.62
D9
s21.33
7
1.001 s6
.956
.201 s5
1.065
.171 s171.73
4.711 s15
.703 1.191 s14
.672 1.09
1 s13.96
1 .681
s38.81
111.00
1 s121.31
101.521 s10
.579 1.121 s9
.678 1.48
1
s37.63
141.001 s23
.7913
.901 s11.97
12 .631
s20.78
231.001
s32.84
247.021
s301.17
251.12 1
s24.79
264.58 1
s25.83
275.14
1
s291.41
28
2.081
s191.16
291.00
1
s211.04
30.811
s181.36
31.651
s33.98
322.88 1
s16.84
334.12 1
s34.79
344.37
1
s401.43
35
1.921
s281.13
36
.221
s46.15
221.00
1 s47.37
21.961 s31
1.6620
.481 s8.86
19 .071 s7.90
18 -.031
s481.1048
1.00
1s451.0747
.89
1s44.8746
.04
1s26.9445
.54
1s361.1944
.13
1s271.0243
.75
1s22.7742
.76
1
1.28
D4s4
.5117
1.001 s3.32
161.111 s1
1.4015 .501
.89
D8
s42.24
371.001
s43.24
38.82 1
s41.70
39.90 1
s35.61
40.83 1
s39.72
41.47
1
.21
.07
.24
.15
-.14
.12
.60
.05
.07
.29
.39
.56
.301.94
.42
.26
.34
1.401.48
.49
1.43
.06
.23.26
.18
.04
2.08 .47
.28
.53
.09
.51
.03
.16
1.75
.28
CFA for Consumer Loyalty Scale
Table: 7 Retail Consumer Loyalty ScaleS.No Dimension Sub- Dimension Item
D1
Exec
utio
n R
elat
ed
Exce
llenc
eShopping Convenience
The store makes it easy for me to find what I need.The store layout makes it easy for me to move around in the store.
Physical Aspect The store has modern equipment and display panels.The store has attractive product and promotional display
Personal Attention The store employees give me individual attention.Courteousness The store employees are consistently courteous to me.Enjoyment I come here for shopping just to get out of house.
D2
Expe
ditin
g
Shopping Time The store employees are Sensitive to checkout times.The store employees are proactive in helping speedup the process of clearance and delivery.
Store Service Quality
The store employees are willing to go out of the way to help me.I receive prompt service when I reach at this store.
D3
Prob
lem
R
ecov
ery Complain
Handling The store employees are able to handle customer complaints directly and immediately.Returns and Exchange
The store willingly handles returns and exchanges.The return and exchange terms and conditions are clearly mentioned.
D4
Shop
pin
g M
otiv
es Necessity I come here for shopping to fulfill my household responsibilities.
Exploring I come here for shopping to bargain about the price of the product.I come here shopping to find variety of products.
D5
Stor
eEn
gage
men
t Helpfulness The store employees give me prompt service.Acknowledgement and Listening The store employees have the knowledge to answer my questions.
Place to EnjoyThe store is a good place for window shopping.It has Kids Play area adds to the overall experience.It has Movie Theater that attracts me to the store.
D6
Stor
e A
ttrib
utes Loyalty Programs The store has merchandise available when I want it.
The store has attractive frequent buyer program.Product Variety The store provides latest products that are available in the market.
Store Appearance The store has modern looking posters and fixtures.The store building is attractive.
Store Location The store location is convenient and easily approachable for me.
D7
Purc
hase
Exp
erie
nce
Reliability The store provides its services at the time it promises to do so.The store products are free from defects.
Transactions The store insists on error-free sales transactions and records.
Merchandise Materials associated with this store’s service (such as shopping bags, catalogues or statements) are visually appealing.
Uniqueness of Assortment
The store has convenient public areas (e.g., rest rooms)The store has convenient public areas (e.g., rest rooms)The store has convenient public areas (e.g., rest rooms)
Purchase Convenience The store has operating hours convenient for me.
D8
Prod
uct
Attr
ibut
es Store Brand Image I recommend this store to my friendsI frequently visit this store.
Product Price In general the prices at this store are low.Prices at the store offer value for money.
Product Quality This retailers merchandise always meets my quality standards.
D9
Ove
rall
Con
sum
er
Loya
lty
The store physical facilities are visually appealing. (Checkout counters, shelves etc)The store provides plenty of convenient parking for me.Billing process is quick and accurate.The store surrounding area is clean.When I leave the store, I usually feel that I had a good experience.The products available here are not available anywhere else.It has food court is a good place to hang around.
17
Findings
Finally the RCS has eight dimensions instead of 10 dimensions as it was in RSECLS. Further the
items of questionnaire got re arrange and regrouped as shown in table 7. In all the no of items
remained same as it was in the original RSECLS.
Managerial Contributions
The results of the study provide managers information about the retail consumer loyalty in Indian
scenario. This questionnaire is helpful in collecting information about the loyalty of consumers.
The results of this questionnaire are measured on a five point likert scale ranging from 1 to 5.
The more score towards 5 higher is the consumer loyalty or the propensity towards the loyalty
exists. This questionnaire is very simple to administer, easy to understand and quick to evaluate
so it can be used more frequently and swiftly. Further this questionnaire is developed considering
the diverse Diaspora of India because of the coexistence of organized and unorganized retail all
together.
Limitations and Further Research directions
Although the results can be considered statistically significant, still the study has several
limitations that affect the reliability and validity of the findings. First of all, the sample selected
was too less in number and limited to Delhi and national capital region which might limits the
generalization of results, the researchers believe that it represents a necessary and economical
first step in identifying relevant unorganized shopping experience dimension that can later be
tested in larger, more representative samples in Indian context.
The second limitation concerns the sampling. Convenient sampling procedure was employed to
collect data from unorganized retail consumers this may restrict the generalization. Moreover the
impact of other factors like consumer loyalty on shopping experience have not been taken into
consideration which might have significant impact which might have diminished the impact of
six factors taken into consideration. The other limitation of this work concerns the limited
geographic extent of the study necessitates that findings be viewed with caution.
18
These limitations pave the way to future studies. As the geographical extent of this study was
limited to Delhi NCR, similar studies in other regions of the country would add both breadth and
depth to our understanding of perceptions customer towards shopping experience in unorganized
retail. Alternative and complementary research approaches like observational studies; interactive
interviewing and focus group interviews can also be adopted to supplement findings from purely
quantitative studies as the present one. Furthermore, another interesting avenue for further
research could be a detailed study on the factors effecting shopping experience in unorganized
retail. We should also measure the existence and impact of organized retail shopping experience
on unorganized retail shopping experience with other possible factors derived from different
sources of literature.
References
Adil Zia, Mohd. Khalid Azam and Asif Akhtar (2012), “Shopping experience and consumer
loyalty in india- scale development and validation”, International Journal of Retailing and
Marketing, Vol.1, pp. 118-132.
Anic I.D., Radas S., Privredna kretanja i ekonomska politika 108 (2006), “The Role of
Satisfaction and Demographic Factors in Building Store Loyalty”, Vol. 19, pp. 67-86.
Baker, J., Parasuraman, A., Grewal, D. and Voss, G.B., Journal of Marketing, 65 (2002), “The
influence of multiple store environment cues on perceived merchandise value and patronage
intentions”, pp. 120-141.
Brady, M. & Cronin, J. (2001) “Customer orientation: effects on customer service perceptions
and outcome behaviors”, Journal of Service Research, Vol.3, 241–251.
Bustos-Reyes C.A., González-Benito O.B., “Store and store format loyalty measures based on
budget allocation”, Journal of Business Research (2008),Vol.10, pp. 1015–1025.
Dholakia, R.R., 1999 “Going shopping: key determinants of shopping behavior and
motivations”, International Journal of Retail and Distribution Management Bradford, Vol. 27,
pp. 154–165.
Donovan R.J., Rossiter J.R., (1982),“Store Atmosphere: An Environmental Psychology
Approach”, Journal of Retailing, Vol. 22, pp. 34 – 56.
19
Emerging Trends of Organized Retailing in India: A Shared Vision of Consumers and Retailers
Perspective Deepika Jhamb and Ravi Kiran School of Management & Social Sciences, Thapar
University, Patiala, India
Ghosh H. S and Srivastava K. B. L (2010), “Impact of service quality on customer satisfaction,
loyalty, and commitment in the Indian banking sector”, The Indian journal of marketing, Vol. 40,
No. 5, May 2010, pp. 23-35.
Ghosh P., Tripathi V.,Kumar A., Journal of Retail & Leisure Property (2010), “Customer
expectations of store attributes: A study of organized retail outlets in India”, Vol.9, pp.75 – 87.
He, Hongwei, Mukherje, Avinandan (2007), “I am, ergo I shop: does store image congruity
explain shopping behaviour of Chinese consumers?”, Journal of Marketing Management, Vol.17,
pp.443-460
Kaul, Subhashini (2007) “Measuring retail service quality: Examining applicability of
international research perspectives in India”, Vikalpa, Vol. 32, No. 1, January - March 2007, pp.
15-26.
Kushwaha S., Gupta M. K (2011) “Customer perception in Indian retail industry: A comparative
study of organized and unorganized retail industry”, Research Journal of Economics and
Business studies, Nov. 2011, Vol. 1, No. 1, pp. 61-73.
Mägi, A.W. (2003) “Share of wallet in retailing: the effects of store satisfaction, loyalty cards
and shopper characteristics”, Journal of Retailing, Vol. 79, pp. 97-106.
Miranda M J & Havrila I (2005) Shoppers’ satisfaction levels are not the only key to store
loyalty. Journal of Marketing Intelligence & Planning. Vol.23, No.2, pp.220-232.
Mittal K.C, Arora M. and Parashar A (2011), “An Empirical Study on factors affecting consumer
preferences of shopping at organized retail stores in Punjab”, KAIM journal of management and
research, Vol. 3, No. 2 November-April 2011, pp. 38-40.
Noble, Stephanie M., David A. Griffith and Mavis T. Adjei (2006). “Drivers of Local Merchant
Loyalty: Understanding the Influence of Gender and Shopping Motives,” Journal of Retailing,
vol.3, pp. 177–188.
Raut, Manmath and Dash Saroj Kumar (2011), “The Factors predicting Buying Behavior in
Organized Retailing: A Study with Special Reference to Malls in Noida and Greater Noida”,
International Journal of Business and Management Tomorrow, Vol.1, No.3, pp. 1-10.
20
Ray I., Chiagouris L., Journal of Strategic Marketing, “Customer retention: examining the roles
of store affect and store loyalty as mediators in the management of retail strategies”, No.1,
(2009),Vol. 17,pp. 1–20.
Sirgy M. J., Samli A. C. (1985), “A Path Analytic Model of Store Loyalty Involving Self-
Concept, Store Image, Geographic Loyalty, and Socioeconomic Status”, Journal of the Academy
of Marketing Science, Vol.13, pp.265-291
Sirohi, N., McLaughlin, E.W., Wittink, D.R. (1998), “A model of consumer perceptions and
store loyalty intentions for a supermarket retailer”, Journal of Retailing, 74, 223–245
Verde Group (2009) Discovering “WOW” a study of Great Retail Shopping Experiences in
North America surveyed
Vogel V., Evanschitzky H., Ramaseshan B. (2008), Journal of Marketing, Vol. 10, pp. 98–108.
Westbrook, Robert A. and Richard L. Oliver (1981), " Sources of consumer satisfaction with
retail outlets”, Journal of Retailing, Vol.3, pp.68-85.
Yavas U & Babakus E (2009) Correlates Of Retail Store Loyalty: An Empirical Study. Journal
of Management, Vol.3, pp23-39.
Zeithaml, V.A., Berry, L.L., Parasuraman, A. (1996), “The behavioral consequences of service
quality”, Journal of Marketing, Vol.60, pp.31–46.
21