Exploring Store Images, Customer Satisfaction and Customer Loyalty Relationship of Adiscount Retail Store The Case Study of Carrefour and Macro

Abstract

The discount retail business in Yogyakarta has experienced changes with many multinational corporations entering the market. The discount retail store acts the strong character in the market channel. Not only it has rapid revenue growth, but many enterprises stride in this industry. These changes have caused the high homogeneous discount retail store industry competition more shapely The urgent market environment forces both marketing academicians and practitioners, especially ofmultinational retail entities, to investigate the various factors affecting discount retail store satisfaction and loyalty. But relatively little research has directed its focus on the various dimensions of retail images relevant to the discount retail environment. This study attempted to explore the store image, customer satisfaction and customer loyalty relationship, and examined whether they have significant influence to them in Yogyakarta discount retail store. As some studies on similar topic have been conducted in other countries by using various dimensions ofretail store images, this research is expected to provide a replicate study on store images, customer satisfaction and customer loyalty relationship of Indonesian people. The sample of this research are two well-known discount retail stores French's Carrefour and Makro a joint venture between Taiwan's Feng Chun group and the Holland based company cooperation. The primary data in this study is collected from a survey of 150 respondents of Islamic University of Indonesia students in Sleman, Yogyakarta, Indonesia. Based on the research finding and the analysis, it is found that the customer demography variables do not have significant difference towards a discount retail store image. The customer's store image ofdiscount retail store is significantly associated with customer satisfaction. The discount retail store customer satisfaction significantly associated with the customer loyalty Hence the customer's store images of discount retail store are significantly associated with customerloyalty. The finding suggests that the discount retail store should try to improve their service as well as maintaining the retail business image as it is a general factor in business in order to keep the consumers loyal. These, can be enhanced by mcreasmg service which comprises both tangible and intangible factors and carried out several dimensions that will reflect its attributes, which is location, characteristic and variety ofquality, price, advertisement and promotion'