The loyalty and satisfaction determinants: a factor analysis applied to the south and insular Portuguese traditional retail Conference Paper uri icon

abstract

  • The main purpose of this paper is to examine the determinants of customer satisfaction and loyalty and to analyse the links between customer satisfaction, image and customer loyalty, and service quality, in the South and Insular regions of Portugal, regarding traditional trade. A multi-level and hierarchical model is used as a framework to synthesize the impacts of customer satisfaction, service quality and corporate image on loyalty of customers in the traditional trade. Presently one of the vital challenges for managers in the retail industry is to provide and maintain customer satisfaction. Therefore, the ability to create a satisfactory experience for the consumer remains, to a considerable degree, a priority that is hold on the hands of both the management and the retail staff. It is essential for managers of traditional retail stores to have a good and clear understanding of exactly what the customers want and wish. The research results suggest that service quality is the main determinant of customer satisfaction and corporate image. Additionally, corporate image significantly influences customer satisfaction. Furthermore, customer satisfaction, corporate image and service quality significantly affect customer loyalty. This research contributes to the development of literature concerning retail management and provides some relevant insights for practitioners and retail managers in their quest for customer satisfaction and loyalty, therefore allowing to improve the sustainability and profitability of traditional trade, which has been increasingly under pressure from more modern retail models.

publication date

  • January 1, 2018