Explaining Customer Loyalty to Retail Stores In U.S. Hispanic Markets

Abstract

Explaining customer store loyalty in emerging markets, in particular Hispanic markets, is the main purpose of this paper. Acknowledging that there have been many attempts to better understand customer store loyalty, this study employs an explanation chain and, thus, a model describing key relationships in the generation of customer loyalty, from initial customer satisfaction to trust, to commitment, to loyalty. Additional variables are explored as moderators of the relationships taking place within the explanation chain. Using both SPSS and SEM analyses, the results support a strong explanation chain of customer store loyalty with moderators adding less than 5% explained variance. Managerial implications and research limitations are also examined.
Classification-JEL: D1
Keywords: Retail customer; Customer store loyalty; Trust; Commitment; Satisfaction; U.S. Hispanic Consumers.