The Determinants of Retail Loyalty of Indian Consumers

Abstract

This study investigated the influence of expectations and evaluation of functional and social attributes on Indian consumers' food retail loyalty. Structural equation modeling results indicate that social self-congruity is an important determinant of food store patronage in India. Food assortment and services are critical drivers of supermarket loyalty, whereas relative advantage is the only determinant of store loyalty among traditional food retail customers. Positive store experiences lead to increased store commitment and perception of greater relative advantage for traditional retail shoppers, whereas positive store experiences increase switching costs for supermarket customers. Implications for food market entry into India are presented.

Keywords:

• Indian consumer markets
• retail loyalty
• food store patronage
• social self-congruity
• Congruity Theory

Acknowledgments

This project was supported by the National Research Initiative of the Cooperative State Research, Education and Extension Service, USDA, Grant #2003-35400-13869.