Structural Equation Model of Customer Loyalty: Case Study of Traditional Retail Shop Customers in Hatyai District, Songkhla Province, Thailand

Abstract

This research aimed to develop a structural equation model of customer loyalty to traditional retail shop in Hat Yai district, Songkhla province. The sample consisted of 500 cases of multi-stage sampling. The questionnaires were used as a research instrument with the cronbach’s alphas ranging from 0.6447 to 0.9016. Data was significantly statistical analyzed by using LISREL program. The results indicated the developed model was valid and fitted to empirical data. The ratio of chi-square per degrees of freedom was 1.98, GFI=0.93, AGFI=0.90, CFI=0.99, RMR=0.018, RMSEA=0.044 and CN=312.57. The factors of CSR expectation, switching cost and customer trust were described 74 percent of the variance of customer loyalty. Customer trust factor was the highest direct effect on customer loyalty at significant level 0.01 with effect sizes of 0.64 while customer satisfaction was the highest indirect effect with effect sizes of 0.62 as well