Important Components that affect Hypermarket Customer Loyalty in Bangkok on Partial Least Square Path Modeling

Abstract

            This study aimed to 1) study the relationship between the various components, such as awareness, convenience environmental product, quality service, quality of service and hypermarkets, self-congruity and commitment, that encourage loyalty of  hypermarket customer in Bangkok.  2) identify the components that have a causal relationship to hypermarket customer’s loyalty in Bangkok on partial least square path modeling 3) develop guideline for encouraging hypermarkets customer’s loyalty in Bangkok according to the AEC paradigm.

The research methodology was quantitative research. The research tool were questionnaires which were collected from 814 hypermarket customers in Bangkok.  The survey was conducted from April to August 2016. The statistical analysis was done by using SPSS and WarpPLS including frequency, percentage, arithmetic mean, the standard deviation and structural equation modeling: SEM technique.

            The research found that all components were related to loyalty of hypermarket customers in Bangkok at high level. Causal factors affecting the loyalty of hypermarket customers in Bangkok revealed that awareness has a positive effect on the self-congruity of the hypermarket. If trust is very high, customers are more likely to be loyal to hypermarket. It also found that if customers who lived near hypermarkets had more trust, they would have more loyalty to the hypermarket business and had a causal relationship to customer loyalty as well.  Moreover, the distance between the residence and the nearest hypermarket was the moderator variable on the effect of trust on customer loyalty with the squared multiple correlation (R2) of 0.436 or 43.6 percent at significance level of 0.05. The recommendation for strengthening customer loyalty within the ASEAN Economic Community paradigm by using the 4P of marketing were to improve the quality of the product. Setting standard price which was suitable for each positioning. Improving distribution channels by marketing through the online channel and augmenting the promotion to emphasize more international advertising.