Volume-03 ISSN: 2455-3085 (Online) Issue-08 RESEARCH REVIEW International Journal of Multidisciplinary August-2018 www.rrjournals.com [UGC Listed Journal] © RRIJM 2015, All Rights Reserved 552 | P age Determinants of Customers Loyalty towards Retail Outlets * Abdul Rub Khan Research Scholar, Integral University, Lucknow (India) ARTICLE DETAILS ABSTRACT Article History Published Online: 07 August 2018 India is recognized as the fifth largest retail market that provides about 8 % of total employment and contributes 7.4 % in national GDP. The enormous changes witnessed in the retailing scenario can primarily due to positive economic factors such as growing urbanization, changing demographic profiles, infrastructure, per capita income among individual and households, entry of foreign retailers and globalization leading to increased consumerism while usage of credit/debit cards, easy finance options such as e-wallets, e- tail etc emerging opportunities in this sector. Recently IBEF, 2016 report is predicted the Indian retail market will touch almost US$1 Trillion by 2020. However, yet the organized retail trade constitutes only about 8 % of the total retail market. Young generation consumers have been showing interest in shopping at organized retail outlets and giving top priority to quality and convenience, ready to pay a higher price in order to enjoy the benefits of home delivery, superior quality, premium design, accessible store location and good experience. The study analyzed the key determinants that affect the stores loyalty. The data were collected by using structured questionnaire from 191 respondents from Azamgarh city. The chronbach alpha, frequency analysis and standard deviation have been applied to check the reliability and analysis of data. The result indicated that there are six factors i.e. availability of product, product’s quality, location of outlet, convenient working hours, reasonable price and sales promotions of outlet which affects the customer loyalty towards organized retail store. Keywords Consumerism, E-tailing, Organized Retail Store. Purvanchal *Corresponding Author Email: abdul.aryakul[at]gmail.com 1. Introduction Retailing is oldest economic activity of business and trade as part of everyday lives has found their roots from Kautilya’s Arthsastra and Mnusmiriti dealing with customers, locating stores, selling specific products, the tax structure system in retail and wholesale transaction. However with the passage of time, the Indian retail market has been growing and accepted as a huge potential and one of the fastest growing at the rate of 12% per annum and have fifth in term of market size in the world valued at USD 672 billion in Indian economy. The retail market comprises of both the traditional or unorganized retail including kirana stores, neighborhood stores, wet markets, street vendors, etc. and Modern or organized retail outlet as those operating large scale formats like supermarkets, hypermarkets, specialty stores, department stores, chain of stores, factory outlets and malls. The organized retail is currently valued at USD 60 billion approximately 9% of the sector, while the unorganized retail holds the rest of the market share. Organized retail penetration in India is much lower compared with other countries such as the USA where the organized retail sector’s penetration is 85%. Food & Beverage around 70% of the retail sector, followed by Apparel and Personal Care. As per World Bank's report published in February 2017, India is the third largest economy in the world in terms of Purchasing Power Parity (PPP), only behind China and US. While IMF report predicted the Indian economy is likely to grow by 7.2% in Financial Year 2018 and 7.7% in Financial Year 2019. This shows India's has huge growth potential with respect to organized retail penetration. Healthy economic growth, increasing per capita income, improving standard of living, changing demographic profile, changing tastes and preferences, entry of foreign retailers, infrastructure, fashion, are the main growth drivers in development of organized retail market in India. Oliver (1997), defined loyalty as a “deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future, which causes repetitive same-brand or same-brand set purchasing, despite any situational influences and marketing efforts that might cause switching behavior” Every organization try to build healthy relationship with customers and focus on creating loyalty among them, it become necessary to investigate the important determinants which is dynamic and volatile in nature. The determinants which lead to loyalty among customers need to be understood before developing and implementing the loyalty programs. Literature proposes relationships between customer loyalty and organized retails’ determinants such as quality, sales promotions, popularity of outlets and so on based on pilot study. These relationships need to be judge and understand their effect on customer loyalty will surely provide an insight into customer loyalty formation and long term success of retail outlets. 2. Literature Review