Academic journal article Asian Social Science

A Study on Corporate Image, Customer Satisfaction and Brand Loyalty in the Context of Retail Stores

Academic journal article Asian Social Science

A Study on Corporate Image, Customer Satisfaction and Brand Loyalty in the Context of Retail Stores

Article excerpt

Abstract

In the intense competitive environment, in order for a retail store to gain strength and competitive edge, it needs to possess a strong corporate image and to keep and satisfy its customers. The retail store will create a successful brand loyalty due to its ability to be equipped with a strong corporate image and to increase customer satisfaction.

Key elements that are effective in creating brand loyalty that enables the retail store to have a competitive edge, have an order of corporate image of the business, customer satisfaction, customer expectations, the product or the service quality that is perceived and perceived value. Setting from this point on, this study addresses corporate image and customer satisfaction elements that effect brand loyalty and surveys have been conducted with customers who shop from the retail stores in Istanbul and the relationship between customer satisfaction and brand loyalty is examined with regression analysis.

Keywords: retail stores, corporate image, customer satisfaction, brand loyalty

1. Introduction

In 1990s and 2000s, the retail sector has gotten into a livelier motion with the modern shopping streets and centers entering the market. With chain stores combining franchising, hypermarkets and supermarkets, the sector has transformed into a more modern structure with the increase of organized retailers who have planned, systematic, centralized management of corporate structure that records everything (Yalçin, Erdogmus, & Çobanoglu, 2009, p. 384). Thanks to the developments in retail sector, a significant increase has been observed in sustainable performance of Turkey's national economy. From 1987 to first quarter of 2007, the share of Turkish Retail Sector within Gross Domestic Product varies between 17.36%-20.97%. While the total sales of retail sector are $136.9 billion in 2006, this figure for 2010 is realized as $199 billion (Kiliç & Senol, 2010, p. 45).

While the increase in organized retailer ship in 2007 realized in EU as 2%, this rate was 10% in Turkey. According to a study, conducted by Nielsen Company, the number of hyper super and chain market stores in Turkey in 1998 was 2135 and this has increased to 8252 in 2008. Through the same period, the number of groceries and medium-sized markets has decreased from 167 thousand to 128 thousand. (Boran, 2008, p. 22). Prepared by Eva Real Estate Appraiser Consultation and Akademetre Research and Strategic Planning, "AVM (Shopping Mall) Potential Requisite Analysis" has showed that, the number of AVMs in Turkey has increased from 106 (2005) to 263 (2010) and to 279 in 2011. It is observed that the sector is growing with an average of 20-25% per year (Bloomberg, HT, 2011). In its report where the latest state of Turkish retail sector is analyzed, world's leader professional service firm, Deloitte stated that the size of Turkish retail sector has reached to $187 billion in 2010 and predicts that it will reach $250 billion in 2014. In 2010, the biggest share belonged to food, with $96 billion and it is followed by home appliances with $26.5 billion, textile with $24.3 billion and technology retail market with $7.3 billion (Deloitte Leadership Institute, 2013).

In light of all these developments and in competitive retail sector, current customers need to be kept and the brand loyalty needs to be established in order to create a sustainable competitive edge. Businesses now point out that keeping their own customers are more profitable, compared to gaining new customers. For instance, Customer Service Institute surmises that gaining a new customer is five times more costly than serving an existing customer (Guiltinan, Paul, & Madden, 1994, p. 117).

According to European Customer Satisfaction Index, the elements that have effect on the creating of brand loyalty are corporate image of the business, customer satisfaction, customer expectations, the product or the service quality that is perceived (Atalik, 2005, p. …

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