The Effect of Store Image on Store Loyalty Mediated by Customer Satisfaction and Trust

Abstract

Purpose: This study aims to identify the influence of store image on store loyalty in the context of the Bangladesh retail market. It also observes the mediating roles of trust and customer satisfaction on store image and store loyalty.

Methods: This is a quantitative cross-sectional study based on survey data.  Data were collected through a structured questionnaire. The study used a non-probability, convenience sampling technique. Responses from 534 supermarket shoppers were included for analysis. Partial Least Square (PLS) based Structural Equation Modeling (SEM) was used to analyze the data.

Results: The results revealed that the store image has a direct relationship with store loyalty. The study also validates an indirect relationship between store image and store loyalty via customer satisfaction and trust.

Implications: This paper contributes to the theoretical and practical knowledge to formulate effective retail marketing strategies which may affect customer loyalty.  The results of the study also have a contribution to the overall development of the retailing industry of Bangladesh.

Originality: This study envisioned a unique model considering the multi-dimensional hierarchical concept of store image and customer loyalty. Additionally, this study validated the intervening role of trust between store image and store loyalty which is a pioneering attempt in this regard.

Limitations: The study would have been made more effective if other variables like service quality, store choice, purchase intention, store reputation affecting store loyalty, etc. were also included. In addition, the use of non-probability sampling (convenience sampling) also restricts the generalizability of the findings.