Creating and retaining customers: perspective from Pakistani small and medium retail stores

Abstract

Purpose

Nowadays customers want to enjoy their shopping experience with convenience and maximum value for their money. The purpose of this paper is to examine the role of in-store logistics in crafting store image and perceived value to customers, thus creating satisfied and loyal customers.

Design/methodology/approach

A research framework was developed based on the review of relevant past research in the area of retail store service quality, perceived value, store image, customer loyalty and satisfaction. Valid data were gathered through a survey from 200 respondents who have shopping experience of small- and medium-sized retail store. Data are analysed through partial least square structural equation modelling (PLSSEM) using Smart PLS 3.2.4.

Findings

The findings of this study suggest that in-store logistics play a major role in developing customers’ satisfaction followed by store image and perceived value. Further, satisfied customers are expected to return to the same retail store, thus showing loyalty.

Practical implications

This research provides insight into retail decisions makers regarding the factors which enhance customer satisfaction and retention. This study also helps marketers and operations managers to develop strategies for retail stores based on the findings of this research.

Originality/value

From a retailer’s perspective the paper explains the factors empirically that impact shoppers in the retail store environment.

Citation

Irfan, W., Siddiqui, D.A. and Ahmed, W. (2019), "Creating and retaining customers: perspective from Pakistani small and medium retail stores", International Journal of Retail & Distribution Management, Vol. 47 No. 4, pp. 350-367. https://doi.org/10.1108/IJRDM-03-2018-0045