Academic journal article Researchers World

Impact of Shopping Experience on Consumer Loyalty: An Empirical Study of Organized Retailers

Academic journal article Researchers World

Impact of Shopping Experience on Consumer Loyalty: An Empirical Study of Organized Retailers

Article excerpt


Indian retail is a mix or organized as well as unorganized retail stores. Shopping experience plays is an important determinant factor of consumer's loyalty, irrespective of type of retail store (Organized or Unorganized). Favorable shopping experience leads to positive propensity towards consumers' loyalty where as unfavorable shopping experience leads to dis-loyalty.

This paper is an attempt to identify the impact that shopping experience has on consumer's loyalty in organized retail setup. Structural Equation Modeling technique was applied on a sample of 706 consumers to know the impact of various factors of shopping experience taking place in consumer loyalty. The results indicate that every factor of shopping experience considered for the study has positive impact on consumer loyalty. Execution Related Excellence (which means patiently explanation and advice, checking stock, helping find products, having product knowledge and providing unexpected product quality) has the least impact with CR value of 2.18 whereas Problem Recovery (which means helping resolve and compensate for problems, upgrading quality and ensuring complete shopper satisfaction) has the highest impact on consumer Loyalty with CR value of 3.41.

Keywords: : Shopping Experience, Consumer Loyalty, Organized retailers, SEM.


Indian retail is moving towards the modernization and evolving new ways of retailing day by bay. Traditional markets commonly known as unorganized retail markets are improving their retailing activities and moving towards new formats for instance departmental stores, supermarkets, specialty stores etc. Mall culture can be seen in metro cities as well as in tier-II cities, familiarizing Indian consumers with an implausible experience while shopping. A.T. Kearney a well known US based research agency in 2012 ranked India fourth which indicate that India among the most proffered markets for international retailers to enter and establish businesses. All this and many more similar reports had made India the favorable business junction leading to the cynosure of many foreign eyes.

Indian retail setup is well occupied by majority small retailers like kirana shops, general grocery stores, chemist stores, footwear shops, apparel shops, paan and beedi shops, hawkers, pavement vendors, etc. all this clubbed together to form unorganized retail or traditional retail. In the recent past organized retailers had opened a number of stores in a variety of modern formats in metros and other big and small cities. These unorganized retailers have unorganized business activities like sourcing, procurement, Purchase, Distribution, quality management, selling, marketing etc.

On the other hand organized retailing is recognized by the trading activities of licensed retailers, who are registered for paying sales tax, income tax, etc and there business activities are organized, say sourcing, procurement, Purchase, Distribution, quality management, selling, marketing etc. For example hypermarkets, Supermarkets, retail chains, private retail businesses etc. According to A.T. Kearney report for the year 2012, organized retailing in India accounts for 7% of India's approximately US$ 435 billion retail market, which is expected to be around 20 per cent by 2020.


This review of literature is divided into two main parts. First part is related to the shopping experience and later part with consumer loyalty. Through literature review three main factors of shopping experience was selected. These factors were Execution related excellence, Expediting and Problem recovery.


The Shopping environment means the type of environment and the way people shop; it has evolved with time from the primitive to the modern day retail shop to the online or virtual stores. It was observed that consumers behavior changes with the type of shopping environment (Sinha & Uniyal, 2005). …

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