Factors Influencing Customer Loyalty in Modern Retail: A Case Study of Big C and Lotus'

Abstract

Modern Trade (MT) is a critical sector in Thailand’s economy, marked by intense competition. Retailers in the modern trade sector continuously develop marketing strategies and retail mix components to foster customer loyalty. This research explores the components that contribute to customer satisfaction and loyalty in modern retail, with a focus on developing effective marketing strategies tailored to diverse customer segments. Data were collected through surveys from a sample of 259 participants and analyzed using the GSCA Pro statistical program. The study reveals that product quality and service quality are the two most significant factors influencing customer satisfaction. Consumer segments, including Generation Y and X, along with Baby Boomers, prioritize service quality. In contrast, Generation Z emphasizes a favorable shopping atmosphere. Female customers prioritize product prices, while male customers place the highest importance on excellent service and a pleasant shopping environment in modern retail stores. Thus, retailers in the modern trade sector should consistently enhance product quality and service, creating a positive shopping environment to maintain customer loyalty.