Abstract
This research aims to analyze the effect of relationship quality on a fashion retail store customer's loyalty in Indonesia. We further investigate the moderating role of personality traits (innovativeness, variety seeking, and relationship proneness) on the relationship between relationship quality and loyalty. An online survey utilizing a questionnaire was conducted, purposively sampled to potential respondents resulting in 1.341 valid responses. All valid data were analyzed with structural equation modelling, including the moderating effect. The findings showed that relationship quality positively affects loyalty while only the innovativeness trait moderates the relationship between relationship quality and loyalty. This research suggests that fashion retail stores should increase the relationship quality with their customer by developing customer service with an excellent standard service procedure, conducting email and social media marketing, and creating a loyalty program that emphasizes the functional benefit. Further, innovation in terms of product is also vital to maintain the fashion retail store's loyalty.
Highlights
The fashion industry is one of the sectors that have high growth and attracts the interest of Indonesian marketer
The purpose of this study is to investigate the effect of personality traits, namely innovativeness, variety seeking, and relationship proneness, influence the relationship between relationship quality and behavioral loyalty in the fashion retail store context
In conclusion, this study has found that relationship quality has a positive effect on loyalty
Summary
The fashion industry is one of the sectors that have high growth and attracts the interest of Indonesian marketer. According to the Ministry of Industry, the fashion industry contributed 3.76 per cent to the national gross domestic product (GDP) of Indonesia (Ministry of Industry, 2018). Data noted that the total income of the fashion industry in Indonesia is approximately IDR29.6 trillion in 2017 and IDR32.7 trillion in 2018 (Statista, 2019). The fashion industry gained IDR3.1 trillion or 10.6 per cent of income growth in 2018. Compared to Indonesia's 5.17 per cent GDP growth in the same year (Statistics Indonesia, 2018), the fashion industry's revenue growth was approximately two times greater than Indonesia's national income. The industry's high growth provides an opportunity for fashion retail stores to develop their businesses in Indonesia
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