A Structural Model of Customer Loyalty: A case study of Isfahan Hypermarkets

The aim of this study was to identify factors affecting the loyalty of hypermarkets’ customers in Isfahan province and, to investigate the effect of each factor. In this order, 40 factors were identified by literature review and by interviewing 50 managers, senior experts, and customers familiar with this field. The conceptual model was developed and a questionnaire was designed. A sample of 390 loyal customers was selected by cluster sampling in five hypermarkets in Isfahan province. The factors were categorized using exploratory factor analysis and SPSS software in seven dimensions. Using confirmatory factor analysis methods, SEM modeling, and Smart PLS software, analyzing the data, validating the model, and testing the hypothesis, were done. The Cronbach's alpha value for the whole questionnaire was calculated at 0.94. Results showed the positive effect of product, service quality, store convenience, the store’s atmosphere, price/value, staff, and location on customer loyalty. The greatest impact was created by “location” with a path coefficient of 0.815 and the least impact was created by “service quality” with a 0.100 path coefficient on the loyalty of Isfahan hypermarkets customers.  Other factors, in effect, are product, price/value, staff, convenience, and atmosphere. All these factors can cover 90% of loyalty variance.