An analytical study on customer perception of store environment and its effect on brand loyalty through joy of shopping (a case study: LG home appliance store)

Abstract

This study attempted to analyze customer perception of environment in an LG store and its effect on brand loyalty through joy of shopping. This was an applied, descriptive-correlational research involving a survey. The population included all buyers of LG home appliances at stores based in Isfahan. Moreover, simple random sampling was employed. Validity of the questionnaire was calculated through content validity and confirmatory factor analysis, while its reliability was confirmed through Cronbach's alpha at 0.88. Of the 250 questionnaires distributed among customers, 231 were completed and returned for analysis. Data were analyzed through SPSS and AMOS based on descriptive statistics (frequency, percentage, mean and standard deviation) and inferential statistics (confirmatory factor analysis, path analysis with significance level). According to the results, the main hypothesis was proved, suggesting there is a significant relationship between store environments through joy of shopping on customer loyalty. Furthermore, the subhypotheses were proved, suggesting environment, human interaction and in-store design affect joy of shopping and joy shopping, in turn, affects customer loyalty. In comparison of the research hypotheses, environment left the greatest impact on joy of shopping, followed by human interaction and store interior design are effective in joy of shopping. Finally, there are three components of environment, human interaction and design indirectly leaving a significant effect on brand loyalty through joy of shopping as a mediating variable.