The Contribution of Store and Customer Characteristics to Perceived Value and Customer Loyalty in a Chinese Retail Context

Resulting from a developing economy, deregulation and direct foreign investment, the past two decades have seen a spectacular growth in market forces and consumerism in China. Because of the huge population and market potential of China, understanding consumer preferences and likely behaviours provide rich areas for research. This paper reports on a study that tested the relationships between store and customer characteristics with perceived value and customer loyalty in retail stores in Tianjin, China. The sample consisted of 400 actual shoppers in three department stores (n=200) and three supermarkets (n=200). Multiple regression analysis showed that service orientation, customer orientation, and price consciousness were the best predictors of both perceived value and customer loyalty. A major implication of the findings is that managers can use the relevant store characteristics to enhance the likelihood of their retail success