Customer Involvement, Retail Mix Elements and Customer Loyalty in Two Diverse Retail Environments

Abstract

Customer loyalty has remained a managerial issue of particular concern in recent times. As consumers demonstrate differing levels of involvement in their buying decisions depending on the nature and characteristics of the product or service they are considering buying, the type of retailer (retail format) and the in-store retail mix on offer may become important drivers of loyalty. It can thus be expected that retailers would attempt to provide in-store retail mixes that not only address the involvement expectations of customers but also enhance customer loyalty. The primary purpose of this study was to empirically assess the validity of this contention. The empirical results revealed that customer loyalty at retail level is influenced by the nature of the different retail formats where they shop and the different in-store retail mixes on offer at each type of retailer. In-store retail mixes are, in turn, a result of customer involvement needs. In other words, customer loyalty is not driven by the same variables in all types of retail stores.