Price, Service Quality, Product and Health Components as Drivers of Customer Loyalty

Description

DOI: https://doi.org/10.5281/zenodo.22703076

Siyasanga Queen Sifumba¹ and Takalani Ramukumba² (Department of Financial Administration, Walter Sisulu University, South Africa¹
Department of Tourism, Hospitality and Sport Management, Faculty of Management and Public Administration Sciences, Walter Sisulu University, South Africa²)

This study investigates the influence of price, service quality, product components, and health components on customer loyalty within retail settings in South Africa. Guided by Oliver’s Expectation-Confirmation Theory, the research aims to understand how consumers’ perceptions of these factors shape satisfaction and subsequent loyalty behaviour. A quantitative research design was employed using a structured, self-administered questionnaire distributed to retail shoppers in East London, South Africa. Data were collected from 150 respondents through convenience sampling in major retail shopping areas. The measurement instrument assessed perceptions of service quality, price fairness, product attributes, health-related product offerings, and customer loyalty using 5-point Likert-scale items. Reliability and validity were confirmed through Cronbach’s alpha and composite reliability, while Structural Equation Modelling (SEM) was used to test the hypothesised relationships. The findings reveal that price, service quality, and product attributes significantly influence consumers’ perceptions of product health, which in turn mediates customer loyalty. Among these predictors, price emerged as the strongest determinant of perceived product health, while service quality showed a modest positive influence. Unexpectedly, product components displayed a negative relationship with perceived product health, suggesting that deficiencies in product attributes may weaken health-related evaluations. The study concludes that health perceptions play a critical mediating role in shaping loyalty behaviour among retail consumers. These results contribute to marketing literature by integrating health-related considerations into traditional determinants of customer loyalty. The research implies that retailers should emphasise transparent pricing, consistent service delivery, and the provision of health-oriented products to strengthen customer loyalty.