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Modelling of customer retention in multi-format retailing

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Abstract:

The objective of this study is to offer a model of the formation process of loyalty towards the services provided by retail food companies. Specifically, the case of a Spanish company, which is a leader in the retail food market is taken. The company operates using different retail formats, and it has customers with various levels of loyalty and behavioural patterns. The research tries to determine implications for managing the loyalty towards the company. Different customer groups are analysed. Four working hypotheses are proposed and contrasted through the formulation and estimation of two theoretical models or conceptual maps. After the empirical analysis, the proposed models show a good fit, and the formulated hypotheses are confirmed. By using this kind of modelling, the companies that operate under the considered framework may reach significant conclusions prior to making decisions in the area of customer retention.

Keywords: BEHAVIOURAL LOYALTY; COGNITIVE ANTECEDENTS; CUSTOMER SATISFACTION; MULTI-FORMAT RETAILING; STRUCTURAL LOYALTY

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/09593960210139634

Publication date: July 1, 2002

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