Investigating the Impact of Store Attributes on Customer Loyalty in Bangladesh's Retail Sector

Abstract

The retail shopping industry in Bangladesh has witnessed significant growth, particularly with the proliferation of superstores in urban areas. This study aims to investigate the impact of store characteristics on store loyalty in Bangladesh, focusing on major retail chains operating in Dhaka city. Data were collected from 101 shoppers of these retail chains, and a conceptual model was developed to examine the relationship between store characteristics and store loyalty. Multiple regression analysis was employed to test the hypotheses derived from the conceptual model. The empirical findings reveal several key insights. Firstly, store appearance emerged as the most influential factor in determining store loyalty, highlighting the importance of aesthetics and ambiance in attracting and retaining customers. Additionally, store convenience, product quality, and service quality were also found to significantly influence store loyalty, underscoring the importance of factors related to customer experience and satisfaction. Surprisingly, product assortment and product price were not found to have a significant effect on store loyalty, suggesting that while important, these factors may not be primary determinants of customer loyalty in the context of retail chains in Dhaka city. This study offers valuable insights for retail managers and practitioners seeking to enhance store loyalty in Bangladesh's retail landscape. By prioritizing store appearance, convenience, product quality, and service quality, retailers can foster stronger connections with customers and cultivate long-term loyalty. Furthermore, the study underscores the need for further research to explore additional factors that may influence store loyalty and to validate the findings in different contexts within the retail industry in Bangladesh.