THE INFLUENCE OF VALUE ON LOYALTY IN THE SUPERMARKET INDUSTRY Nic S. TERBLANCHE (Received: January 26, 2011; revision received: August 13, 2012; accepted: April 2, 2013) The advent of service-dominant logic has led to increasing attention being given to value experi- enced by customers in the marketing literature. Customers’ shopping value is multidimensional and consists of two dimensions, namely utilitarian value and hedonic value. The main objective of this study was to determine whether selected constructs impact on value and whether value impacts on loyalty amongst customers of a firm operating in the South African supermarket industry. The find- ings indicate that satisfaction has the strongest relationship with utilitarian value, which, in turn, has a strong relationship with customer loyalty. More loyalty will not result from an increase in the hedonic value that a supermarket customer experiences, regardless of an enhanced shopping experi- ence. Keywords: value, loyalty, retailing, South Africa, marketing JEL classification index: M31 1. INTRODUCTION The primary objective of this study was to ascertain whether selected constructs impact on value and whether value, in turn, impacts on loyalty among the custom- ers of a firm operating in the South African supermarket industry. The particular constructs selected for their relationship with value are store image, pleasure, and arousal and satisfaction. Earlier studies have found all of these constructs to have a positive relationship with value (Babin – Attaway 2000; Jones et al. 2006; Malthouse – Mulhern 2007). 0001-6373/$20.00 © 2013 Akadémiai Kiadó, Budapest Acta Oeconomica, Vol. 63 (2) pp. 185–200 (2013) DOI: 10.1556/AOecon.63.2013.2.3 Corresponding address: N. S. Terblanche, Department of Business Management, University of Stellenbosch, Private Bag X1, MATIELAND 7602, South Africa. E-mail: nst@sun.ac.za