Abstract
The objective of this research is to examine the direct relationship of customer satisfaction, customer trust andswitching barriers on customer retention as well as the relationship between customer satisfaction and trust. Thisdescriptive research was conducted within the context of the hypermarkets in Kuala Lumpur, the capital city ofMalaysia. There were 150 set of questionnaires being distributed as the mean of data collection and analyzed byStatistical Package for Social Sciences (SPSS) version 17. This research confirmed the significant positiverelationship of customer satisfaction, trust and switching barriers on overall customer retention in Malaysiahypermarkets. It is also confirmed that customer satisfaction has a direct relationship with customer trust inMalaysia hypermarkets.
Highlights
The topic of customer retention is well covered in the extant literature due to its important in influencing the organization’s financial profitability
It is observed for citizenship category that 55.7 percent of the respondents were Malaysian while the non Malaysian respondents were 44.3 percent
Based on the principal components analysis and VARIMAX procedure in orthogonal rotation that were adopted in the factor analysis, the results showed that the Eigenvalues for all the tested constructs were greater than 1.0 as indicated in Table 3, ranging from the lowest of 1.146 to the highest of 5.561
Summary
The topic of customer retention is well covered in the extant literature due to its important in influencing the organization’s financial profitability. Various factors have contributed to the customer retention, such as customer trust, customer satisfaction and switching barriers (Ranaweera and Prabhu, 2003). The current literature only evaluates the direct impacts of customer trust, customer satisfaction and switching barriers on customer retention. There is a lack of extant literature to evaluate the inter-relationships among the customer trust, customer satisfaction, switching barriers and customer retention. With this research gap in mind, this research would like to study the impacts of customer trust, customer satisfaction and switching barriers on customer retention as well as the relationship between customer satisfaction and customer trust in the Malaysia hypermarket context. The tested hypotheses will be evaluated through quantitative research in the form of survey among all the walked-in customers of the Giant and Carrefour hypermarkets within Kuala Lumpur. The study will be concluded with the data findings and recommendations will be suggested
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