IMPACT OF LOYALTY ON RETAIL SALE: AN EMPIRICAL INVESTIGATION OF SERVICE OPERATIONS AND CUSTOMER BEHAVIOR AS MEDIATORS

Abstract

This paper is a step towards verifying a retail sale model in Pakistan. To have the competitive edge, retailers have started increasing value by loyalty and efficiency through focusing on service operations. This study further seeks understanding of retail network and its connection with services and value added by retailers. It follows positivist philosophical approach. Overall design consists of literature review, data collection through field survey and analysis. Structure Equation Modeling (SEM) has been employed as technique of data analysis. Adanco 2.0.1 has been used as a tool of applying SEM. Results showed that sales operations affect customer behavior and ultimately retail sale whereas loyalty of customer also affect the retail sale. Middle class is expanding in Pakistan and buying behavior of shoppers is changing therefore it has become imperative to build the capacities in retail markets. This study provides insight to retailers for building managerial capabilities. It is subject to limitations like surveying limited number of customers only in Lahore, Pakistan.