Understanding the Antecedents of Customer Loyalty by Applying Structural Equation Modeling

Abstract

The objective of this chapter is to form a model of customer loyalty for supermarkets in the Turkish retailing sector, which investigates the extent to which customer loyalty is influenced by customer perceptions of service quality, customer perceptions of product quality, comparative price perceptions, discount perceptions, value perceptions, and customer satisfaction. Structural equation modeling has been used to analyze the data collected from 1530 customers of four major supermarket chains in Turkey. After building a measurement model for customer loyalty and its potential antecedents, the relationships are examined. The direct effects of customer satisfaction, comparative price perceptions, and discount perceptions on customer loyalty; value perceptions, comparative price perceptions, and service quality perceptions on customer satisfaction; comparative price perceptions, discount perceptions, product quality perceptions, and service quality perceptions on value perceptions; and discount perceptions and service quality perceptions on product quality perceptions are empirically supported.