Understanding Customer Loyalty Formation in Urban Retail: The Sequential Role of Purchase Decision and Customer Satisfaction
Nory Fani · Fauziah Eddyono ORCID ↗
International Journal of Research in Business and Social Science · 2026 · Vol. 15 / Issue 5 · 57-68
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Abstract
This study aims to examine the effects of price discount and delivery service on purchase decision and their subsequent impact on customer satisfaction and customer loyalty within an urban franchise retail context. A quantitative approach was employed using a survey of 220 consumers of Indomaret Anggrek Rosliana Raya, West Jakarta. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that price discount has a significant but relatively weak effect on purchase decision, while delivery service demonstrates a stronger influence, highlighting the increasing importance of service convenience in urban retail environments. Furthermore, purchase decision has a substantial effect on customer satisfaction, which in turn strongly influences customer loyalty. The study also confirms a sequential mediation mechanism, where marketing stimuli influence customer loyalty indirectly through purchase decision and customer satisfaction. Unlike previous customer loyalty studies that predominantly examine the direct effects of marketing stimuli on satisfaction or loyalty, this study develops a sequential framework in which purchase decision functions as a cognitive mediator preceding customer satisfaction as an affective mediator. This model extends existing customer loyalty frameworks by demonstrating that loyalty emerges through a two-stage evaluation process rather than through isolated direct relationships.
Keywords: {'name': 'Price discount'}, {'name': 'Delivery service'}, {'name': 'Purchase decision'}, {'name': 'Customer satisfaction'}, {'name': 'Customer loyalty'}, {'name': 'Franchise retail'}, {'name': 'Urban consumer behavior'}
Authors & affiliations
Nory Fani
Sahid University
Fauziah Eddyono
Universitas Sahid
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