The Effect of Multidimensional Perceived Value on Customer Loyalty towards Retailers: The Mediating Role of Customer Satisfaction

Customer loyalty has become an issue of much concern due to cut-throat competition within the retail landscape. It has become vital to undertake a study for the purpose of attaining a clear comprehension about the factors accountable for developing customer loyalty. Thus, this study was carried out in order to examine various factors that pave the way to customer loyalty towards retail organizations. It particularly seeks to examine the effect of multidimensional perceived value on customer loyalty through the mediating effect of customer satisfaction. A conceptual framework was developed in regard to past studies. Data were gathered through the distribution of self-administered questionnaires to retail customers at Klang Valley, Malaysia. Afterwards, the data were analysed through SPSS and SEM. The findings disclosed that customer loyalty is significantly affected by perceived value and customer satisfaction, and customer satisfaction mediates the effect of perceived value on customer loyalty. The outcomes will be of great importance to marketers for developing effective strategies. Along the same line, it would also be a vital addition to the literature and benefit researchers in undertaking further studies.