The Design of Franchised Retail Stores Environment and Its Influence on Store Loyalty
Abstract
Franchising is a form of modern retail business in which there is a contractual relationship between the franchisor and the franchisee, where the franchisor is obliged to safeguard the interests of the franchisee continuously in the field of business [1]. When compared with traditional retail stores, franchised retail stores have a more orderly store environment. The design of a retail store environment has distinctive features that distinguishes it from other retail stores. However, whether the attractive retail store environment design affects consumer loyalty in shopping. The purpose of this study is (1) to describe consumer perceptions about the design of franchised retail stores environment, (2) to analyze the influence of franchised retail stores environment partially on store loyalty, (3) to analyze influence of franchised retail stores environment simultaneously on store loyalty, (4) to find out the dominant factors affecting store loyalty, and (5) to find out the difference of consumer perceptions in the city and in the village about franchised retail stores environment. The research design is explanatory research with quantitative approach. The sample of this research is 200 consumers of Indomaret franchised retail store in the city and in the village area of Malang, East Java, Indonesia. Data analysis was done using multiple regression and comparing mean with the help of SPSS for Windows version 25.0. The result of research indicates that (1) Consumer perceptions about franchised retail store environment is good with comfortable environment, bright light, cool temperature and quick service; (2) there is significant positive influence of the design of franchised store environment partially on store loyalty, but there is no significant influence of ambient factor on store loyalty; (3) there is significant positive influence of franchised retail store environment simultaneously on store loyalty; (4) the dominant factor influencing store loyalty is design factor; and (5) there is no difference in consumer perceptions in the city and in the village about the franchised retail store environment.
Keywords: retail store environment, store loyalty
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