Jun Qiao(Dr / Professor) PeiPei Fu

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A STUDY OF THE EFFECT OF DEPARTMENT STORE BRAND
IMAGE ON CUSTOMER LOYALTY
? ? (?? / ??) ??? Jun Qiao(Dr /
Professor) PeiPei Fu
??????????????? ??????????????
2009.5.27
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Part 1 Introduction

• Since having joined the WTO, department store
  industry in China faces new challenges. The sales
  of department store was in absolute dominance in
  retail business with a proportion of 80 for a
  long time. However, as the market changed,
  department store industry in China fell to a low
  point.
• Does customer loyalty have an impact on
  department store brand image? And what should the
  department stores do to sustain and improve
  customer loyalty through improving their brand
  image?
• What are the factors which have an impact on the
  brand image of department stores? And how do they
  affect ?

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Part2 The relevant theories and literature review

• The store image involves convenience, atmosphere,
  history, self-concept and commodities, price,
  service,etc. (Hopkins,2001)
• Rank of the dimensions of department store image
  is atmosphere, service, convenience, reputation,
  sales, past experience, etc. (Thang, Tan 2003)
• The store image involves four dimensions
  commodities, stores, service and promotion.
  (Davis J. 2006)

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• Building favorable store image is helpful to
  improve customer loyalty. (Kunkel, Berry 1968)
• The evaluation of the store image plays an
  important role in estimating customer loyalty.
  And the store image affects customer loyalty
  directly. (Samli, Sirgy 1995)
• A great deal of studies have shown that the store
  image has a direct impact on the purchase will.
  (Grewal ,1998)

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• Jiang Minghua and Guo Lei(2003)made an empirical
  research on store image and perceived quality of
  manufacturer-owned brand.
• Wu Changshun and Fan Shiping (2004) studied the
  factors which affected the image of department
  store and supermarket.
• Wang Yafei and Yu Kunzhang(2006) explored the
  effect of store image on consumer behavior.
• Wang Haiqun (2006)made an empirical research on
  customer satisfaction and customer loyalty,
  pointing out that the store atmosphere, location,
  facilities, prices and services affected consumer
  behavior.
• Chih-Hon Chang and Chia-Yu Tu (2005,Taiwan)studied
  the effect of brand image on customer
  satisfaction and customer loyalty in service
  industry.

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Picture 1 Chih-Hon Chang?Chia-Yu Tu (2005,
Abbreviation CT model)
Part3 Model and Hypothesis
Store image Product Convenience Service Activities
Customer satisfaction
Customer loyalty
Service brand image Products features Service quality Service convenience Shopping environment Psychological tendency
Customer loyalty Attitude loyalty Behavior loyalty
Customer satisfaction
Picture 2 CT Correction Model of department
store industry
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Table 1 Industry based on the department store C
T research correction model assumptions
Label Hypothesis
H1 Characteristics of goods in department store had a Significant positive association with customer loyalty
H2 Quality of Service in department store had a Significant positive association with customer loyalty
H3 The convenience of department store had a Significant positive association with customer loyalty
H4 shopping environment in department store had a Significant positive association with customer loyalty
H5 Customer psychological tendency to department store had a Significant positive association with customer loyalty
H6 Department store brand image perception had a Significant positive association with Customer satisfaction
H7 Customer satisfaction had a Significant positive association with customer loyalty
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(4)Study design and data analysis
1. Market research and data acquisition
Investigating 140 enterprise management
students who have been to shopping malls ,by
forecasting, we perfected the department stores,
eventually formed brand image scale formal
questionnaire .Formal questionnaire took Likerts
fifth scale .The investigation last from July
2007 to the end of August. The way to collect was
field investigation of consumer after shopping.
This investigation sent 350 questionnaires
,recycled 318 questionnaires. Valid
questionnaires were 318,except invalid
questionnaires. The ratio of effective recovery
was 87.43.
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2. Scale reliability and validity testing
1?Scale Characteristics of goods
inspection?Attributes of goods of the
Department Stores, including the basic attributes
of goods, brand attributes and properties of
three sub-dimensions of the price. 2?Service
quality scale test. Department store quality of
service received by service personnel and
post-purchase services to reflect the two
aspects. 3?Department stores to facilitate
inspection of Scale. The convenience of the
perception from the department store customers
can explain by geographic location,
infrastructural facilities and check the
efficiency of three dimensions. 4?Shopping
environment scale test. Department store shopping
environment can be explained by the layout and
the environment clean and tidy. 5?Psychological
tendency to scale test. Department stores to
bring about the psychological tendency of
customers mainly by well-known, familiar with the
flu and trust to explain the three
dimensions. 6?Customer Satisfaction Scale test.
Customer satisfaction have impact on customer
loyalty. 7?Customer loyalty scale test. Customer
loyalty can be explained by attitude loyalty and
behavior loyalty
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(3)Correlation Analysis
1. Analyze the correlation between Department
Store Brand Image Customer loyalty
Customer Satisfaction
Commodity Characteristics Pearson Correlation .197
Commodity Characteristics Sig. (2-tailed) .041
Service Quality Pearson Correlation .202
Service Quality Sig. (2-tailed) .044
Convenience Pearson Correlation .218
Convenience Sig. (2-tailed) .045
Shopping Environment Pearson Correlation .258
Shopping Environment Sig. (2-tailed) .017
Psychological Tendency Pearson Correlation .294
Psychological Tendency Sig. (2-tailed) .006
( indicates 0.01 significantly level,
indicates 0.05 level significantly, the same
below )
As can be seen from above the table, at 0.01
significant level, commodity characteristics,
service quality, convenience, shopping
environment and psychological tendency are
positively correlated with customer loyalty.
Assumptions H1-H5 are supported.
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2. Analyze the relation between Department Store
Brand Image Customer Satisfaction
Customer Satisfaction
Commodity Characteristics Pearson Correlation .197
Commodity Characteristics Sig. (2-tailed) .041
Service Quality Pearson Correlation .202
Service Quality Sig. (2-tailed) .044
Convenience Pearson Correlation .218
Convenience Sig. (2-tailed) .045
Shopping Environment Pearson Correlation .258
Shopping Environment Sig. (2-tailed) .017
Psychological Tendency Pearson Correlation .294
Psychological Tendency Sig. (2-tailed) .006
As can be seen from above the table, at 0.01
significant level, the psychological factors of
department store brand are positively correlated
with customer satisfaction at 0.05 significant
level, the product characteristics, service
quality, convenience and shopping environment and
customer satisfaction are positively correlated
with customer satisfaction.
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Analyze the relation between Department Store
Brand Image Customer Satisfaction
Customer Satisfaction
department store brand image Pearson Correlation .294
department store brand image Sig. (2-tailed) .006
The table shows that at significant level of
0.01, the department store brand image and are
positively correlated with customer satisfaction,
that is, the better customers apperceive
department store brand image, the higher their
satisfaction and thus support the assumption H6.
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3. Analysis between customer satisfaction and
customer loyalty
Behavior loyalty Attitude loyalty Customer loyalty
Customer satsifaction Pearson Correlation .303 .272 .314
Customer satsifaction Sig. (2-tailed) .005 .012 .003
It is showed from the related data result, at the
obvious level of 0.01, customer satisfaction has
positive relativity with behavior loyalty, at the
obvious level of 0.05, customer satisfaction has
positive relativity with attitude loyalty.
Besides, at the obvious level of 0.01,customer
satisfaction has positive relativity with
customer loyalty, it means department stores
customer satisfaction has positive and obvious
influence on customer loyalty, so the hypothesis
can be proved.
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(4) multi regressive analysis
1.the regressive analysis of department
store brand image on customer loyalty The
result of regressive analysis shows that, service
quality enter into the model firstly, which
illuminates this variable do the biggest
contribution to customer loyalty. Then shopping
environment?psychology preference?commodity
characters enter into the regressive model in
turn, convenience enter last into the model,
which means shopping environment?psychology
preference?commodity characters?and convenience
do the degressive contribution to the customer
loyalty.
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2. The regression analysis of customer
satisfaction on Department Stores Brand Image
In the eye of the order of Department Stores
Brand Image factors involved in the model,
Shopping Environments is the first one, which
shows that it is the largest contribution factor
to customer satisfaction. Then followed by
Psychological Tendency, Quality of Service,
Commodity Characteristics, and the last one is
Convenience, which shows the contribution of
Psychological Tendency, Quality of Service,
Commodity Characteristics and Convenience to
customer satisfaction in turn reduces. Customer
Satisfaction 0.417 Shopping Environments
0.384 Psychological Tendency 0.373 Quality
of Service0.306 Commodity Characteristics
0.265 Convenience.
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3. The regression analysis of Customer Loyalty on
Customer satisfaction
Multiple regression analysis results show that
Customer loyalty 0.483 customer satisfaction,
that means customer satisfaction of department
store has a significant positive impact on
customer loyalty .
4. The intermediary function analysis of customer
satisfaction
Before customer satisfaction is involved,
the regression analysis of customer loyalty on
all factors of Department Stores Brand Image is
totally significant. When customer satisfaction
involved in, the direct impact of all factors of
Department Stores Brand Image on customer loyalty
reduces greatly. This proves that customer
satisfaction obviously plays an intermediary role
in the impact of Department Stores Brand Image on
customer loyalty.
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Table 18 test results of C T Research
correction model
lable Hypothesis result
H1 Characteristics of goods in department store had a Significant positive association with customer loyalty consistent
H2 Quality of Service in department store had a Significant positive association with customer loyalty consistent
H3 The convenience of department store had a Significant positive association with customer loyalty consistent
H4 shopping environment in department store had a Significant positive association with customer loyalty consistent
H5 Customer psychological tendency to department store had a Significant positive association with customer loyalty consistent
H6 Department store brand image perception had a Significant positive association with Customer satisfaction consistent
H7 Customer satisfaction had a Significant positive association with customer loyalty consistent
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Table1 The hypothesis of CT correction model
based on department store industry
Label Hypothesis
H1 The products features in department store have a significant positive effect on customer loyalty
H2 The service quality in department store has a significant positive effect on customer loyalty
H3 The service convenience of department store has a significant positive effect on customer loyalty
H4 The shopping environment of department store has a significant positive effect on customer loyalty
H5 The psychological tendency of customer has a significant positive effect on customer loyalty
H6 The brand image perception of customer has a significant positive effect on customer satisfaction
H7 Customer satisfaction of department store has a significant positive effect on customer loyalty
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Department store brand image, which contains
five factors products features, service quality,
service convenience, shopping environment and
psychological tendency, has a positive
relationship with consumer loyalty (1)Products
features have a positive relationship with
consumer loyalty (2) Service quality has a
positive relationship with consumer loyalty
(3)Service convenience a positive relationship
with consumer loyalty (4)Shopping environment
has a positive relationship with consumer
loyalty (5)Psychological tendency has a
positive relationship with consumer
loyalty (6)Department store brand image has a
positive relationship with consumer
satisfaction (7)Consumer satisfaction has a
positive relationship with consumer loyalty.
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Conclusion and Future
1.Conlusion
(1) Department stores can take measures to
improve brand image from the products features,
service quality, convenience, shopping
environment and the psychological tendency,
especially from the dimension of psychological
tendency. (2) The results show that the products
features, service quality, service convenience,
shopping environment and the psychological
tendency have positive relationships with
consumer loyalty. Department store brand image
has a positive relationship with consumer
satisfaction. Consumer satisfaction has a
positive relationship with consumer loyalty. (3)
We can evaluate department store brand image,
which influence customer loyalty, from products
features, service quality, service convenience,
shopping environment and psychological tendency.
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(4)The department store brand image has a
positive relationship with consumer loyalty, but
the degrees of dimensions' influence is
different. Service quality has the strong
influences to the customer loyalty. (5)The
department store brand image has a positive
relationship with consumer satisfaction, but the
degrees of dimensions' influence is different.
Shopping environment has the strong influences to
the customer satisfaction among the various
dimensions. (6)In the process of the influence
between department store brand image and customer
loyalty, customer satisfaction is a intermediary
function. The brand image not only influences
customer loyalty directly , but also has a
indirect impact on consumer loyalty through
customer satisfaction.
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• 2.Research limitation

(1)Because of the restricted conditions, the data
used in this study was only from surveys of
consumers in Nanjing, and the results possibly
was limited by the regional culture. (2)This
study only explored the effect of brand image on
customer loyalty, but did not involve all the
factors which influence customer loyalty (3)This
study only used customer satisfaction as an
intermediate variable in analysis of the
relationship between brand image and customer
loyalty. More antecedent variables should be
added and more comprehensive and detailed
research and analysis should be made to learn all
the factors that influence customer loyalty of
department stores.
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Some Additional Readings
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Questions?
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? ? !
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