Abstract

The study was based on the Stimulus Organism Response (SOR) theory stated by Mehrabian-Russel which aimed to analyze the effect of retail attribute on utilitarian, hedonic shopping motivation and customer loyalty. This study also aimed to test the age as the moderation variable effect of the retail attribute on the utilitarian, hedonic shopping motivation and customer loyalty. The respondents of study were 150 people. Sampling was done by convenience sampling. Collecting data used personal questionnaire through face to face interviews. Questionnaires were distributed to customers who visited the shopping mall. Data were analyzed by Partial Least Square (PLS). The results showed that the retail attributes had positive and significant effects on the utilitarian, hedonic shopping motivation, and customer loyalty. The age was the moderating variable effect of the retail attribute on utilitarian shopping motivation. The practical implications of this research was to develop segmentation, customization and innovation of retail attributes as an important strategy to overcome the differences in store attribute effects on the values of shopping and customer loyalty.

Highlights

  • A research on customer behaviors is very important to explore their buying behavior toward certain product or service [1]

  • These results were consistent with the facts on the field that Mal Olympic Garden (MOG) visitors are teenagers or young people

  • Based on the research result, it can be concluded that better quality of product variety, product value, physical aspects, personal interaction, and accessibility owned by MOG will have an impact on the increase of utilitarian shopping motivation, hedonic shopping motivation and customer loyalty

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Summary

Introduction

A research on customer behaviors is very important to explore their buying behavior toward certain product or service [1]. Customer behavior research is divided into three perspectives, namely the decision-making perspective, the experience perspective, and behavioral-influence perspective. The behavioral-influence perspective focuses on the customer behavior and possible environment which affects it [2]. The atmosphere of a shopping center (mall) has been proven to be a greater influence on purchasing decision of customers than the influence of offered products [4]; [5]. Other studies indicated that the frequent change of mall atmosphere affects customers in purchasing unplanned goods [6]; [7]. The availability of time for shopping shows an influence on customers’ decision to purchase products either in hedonic or emotional way. Babin and Attaway (2000) [8] suggested that the physical environment in retail business can cause a positive or negative effect on customers’ decisions

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