Hypermarket customer loyalty: product attributes and image mediated by value and customer satisfaction

Abstract

The purpose of this research to analyze the effect of product attributes and image on customer loyalty mediated by value and customer satisfaction. This research was conducted on the existing hypermarket customers in Malang City, namely, Carrefour, Giant and Sun hypermat by using sample size as many as 120 respondents. Sampling technique was done using Convenience sampling technique. The collected data were analyzed by using Structural Equation Model (SEM) with a variance based or component-based approach involving Partial Least Square (PLS). The results showed that product attributes directly affect the loyalty of hypermarket customers in Malang City, while the image does not affect customer loyalty directly. This indicates that hypermarket image concerning the price offered is in accordance to the quality of goods and attributes attached to the same goods with the conditions that exist in the supermarket. This what makes the customers do not have the same level of loyalty regarding the imaging activity done. Customer value and customer satisfaction serve as a complete mediation of the indirect effect of the image on customer loyalty. However, customer value and customer satisfaction serve as partial mediation from the indirect effect of product attributes on customer loyalty.