Proximity and Retail Loyalty: Mediation of Time Convenience

Abstract

The success of convenience stores is not only the proximity factor but also time, especially for postmodern individuals who are characterized by the need for speed and social interaction. Research linking proximity and time is still very limited, while the two variables are closely related to shopping activities. This study aims to examine the relationships between both material and immaterial proximity to retail loyalty; and the mediating role of time management and time saving (time convenience). This study used quantitative methods by means of PLS, where a total of 150 responses were collected from minimarket consumers in residential areas in Indonesia using a purposive sampling method. The results show that access, functional and social proximities affect time management, while time saving factors are only functional and relational proximities. Both time management and time saving have a positive relationship with loyalty. The mediation test found that time management mediates the effects of access, functional and social proximities on loyalty. Meanwhile, time saving mediates the effects of functional and relational proximities on loyalty. This finding mainly fills a gap in research that is still limited in linking the immaterial dimensions of intimacy and customer loyalty. This research enriches the concept of location for the service industry, especially retailers and provides practical implications in store operational management.