Analysis of shopping mall attractiveness and customer loyalty

Abstract

In a highly competitive retail market like Malaysia, shopping mall facilities and management services that are not customer oriented may drop out of competition and business. This is contingent upon the fact that growing competition among shopping malls in Malaysia in response to rising affluence and purchasing power has raised the challenge of customer loyalty as customers find it easier to defect to other shopping malls. Based on a survey of 250 customers and multiple regression method, three models were developed to assess the strength of the relationship between customer loyalty and shopping mall attractiveness. The models are (I) repeat shopping oriented customer loyalty model; (II) bring friends for shopping oriented customer loyalty model; (III) get rewards and free gift oriented customer loyalty model. In terms of predictive power, model II which accounted for 71% of variance in customer loyalty was found to be the best followed by model I which accounted for 59% of variance in customer loyalty. The third model though significant accounted for only 29 % and hence, did not yield much result in predicting customer loyalty.