Empirical assessment of loyalty drivers using consumers' retail format choice

Abstract

Using Stimulus-Organism-Response (S-O-R) framework, this study examines StimulusResponse relationships of fresh vegetable consumers' behavior in Klang Valley, Malaysia. In particular, the study focused on how loyalty drivers affect retail formats choice by the fresh vegetable (FV) consumers. The Stimuli that pertain to loyalty drivers include promotional activities, perceived price and social interaction and the Response is the retail format choice. Three hypotheses were developed and tested with the data collected from a survey using simple random sampling technique. Structural Equation Model (SEM) was used in analyzing the data. Results of the study revealed that Stimuli (loyalty drivers) influence Response (retail format choice) for the different FV markets in Malaysia. Based on the finding of the research, Malaysian retailers have different marketing strategies to be considered with regards to loyalty drivers.