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The relationship between retail store

environment and customer loyalty


A Male’ based study
 Is There a Relationship Between Retail Store
Environment and Customer loyalty? A Male’
Based Study
 The research is focuses on the retail
environment of Maldives capital city Male’-
the central point of shopping in the country

 Such a study will give assistant for the


retailers by creating awareness among them
regarding the importance of customer
retention and the significance of their store’s
environment in creating loyal customers
Objectives
To examine the retail strategies
Understanding the significance Assessing to extent to which To recognize the key factors in
those are carried out by retailer
of store environment to create retailers have achieved this the environment that effect
to achieve loyalty through
customer loyalty through such strategies customer loyalty
enhancement of environment

Questions
What are the retail strategies
How important is the store How far have the retailers been What are the key factors in the
that are carried out by retailers
environment of a retailer to successful in building such environment that effect
to achieve loyalty through
create customer loyalty? strategies? customer loyalty?
enhancement of environment?
 How important is the store environment of a
retailer to create customer loyalty?

• “ The cognitive evaluations of store factors have a direct


impact on emotional responses. The study finding shows
that in-store aroma has a direct affect on store
satisfaction, leading to customer loyalty” Walsh, Shiu,
Hassan, et al., (2009)

• Chu & Lam, (2001), Indicated that an appropriately


designed store environment as a powerful means for
providing a pleasant shopping experience for
consumers, and enabling the retailer to obtain a
competitive advantage over its competitors
 What are the retail strategies carried out by retailers to
achieve loyalty through enhancement of environment?
 According to Gilbert, (2003), customers judge a retailer’s service quality
through the measures of the following dimensions; Tangibility),
Reliability, Responsiveness and Assurance

 “ In-store aroma has a direct affect on store satisfaction, leading to


customer loyalty” Walsh, Shiu, Hassan, et al., (2009)

 Gremlera & Brownb, (1996), suggested that selective employee


recruitment and proper training of personnel help to strengthen the
interpersonal relationships

 Similar recommendations by: Berman & Evans, (2004) and Pegler


(1997)
 What are the key factors in the environment that effect
customer loyalty?

◦ Location
◦ Store Atmospherics
◦ Store design
◦ Sales person

◦ Berman & Evans, (2004), “a retailer’s atmosphere may influence


people’s enjoyment, as well as their time spent browsing,
willingness to conserve with personnel, tendency to spend more
than originally planned, and likelihood of future patronage”

◦ Research shows that its vital to invest on training programs


focusing in product knowledge and in building interpersonal
skills, Yavas & Babakus, (n.d)
 When developing the questionnaire it will be partly
based on the aspects highlighted in the background
section with regard to store environment

 Primary research will be done to assess the customer


loyalty in terms of retail store environment and also
to evaluate strategies undertaken retailers and
salesmen's interpersonal skills also will be examined
 Sample frame: The participants of the study will the retail stores
located in the Male’ and the personnel and customers of those
stores

 Sample method used:


◦ Stratified sampling: The population will divided in to two significant strata
based on whether it is a Grocery store or a Garment store

◦ Each of the cases within the stratum was given a unique number and then
a sample of 250 retail stores will be taken simple randomly from both of
the strata

 Survey methods:
◦ The retailers will be asked open-ended questions through interviews

◦ Response of salespersons and customers will be scaled on ratings on questionnaires


and will be focused on mostly closed questions.
 The resources required to undertake this
research includes access to computer and
software, audio-tape, photocopying and
printing
Date Description of the assignment

June- July 2010 Read literature

August 2010: Define objectives for the study

October 2010: Methodology literature read and devising of research strategy

Draft literature review


September 2010

November-December 2010
Develop questionnaire, pilot test and revise questionnaires

January 2011
Primary data collected and analysis of data

February-March2011
Draft finding chapter and final analysis of data

Revise draft and final writing of the project


April-June