THE INFLUENCE OF MODERN GROCERY RETAIL LOYALTY PROGRAM TOWARDS CONSUMER PREFERENCE AND REPURCHASE INTENTION

Abstract

Purpose The purpose of this research is to find the influence of modern grocery retail loyalty program towards consumer preference and repurchase intention. Design/Methodology/Approach Quantitative research using Google Form was applied to spread online questioner. There are 312 respondents with 309 valid response. The targeted respondent is people who have shop in a modern grocery retail store (Hypermart, Giant, Farmers Market, Ranch Market, Lotte Mart, Indomaret, & Alfamart) for the past 12 months. Statistical software used to find the validity and reliability of respondents data. All data was resulted as valid with KMO 0.902, communalities range from 0.871 to 0.913, total variance explained 81.473%, and rotated componentnt matrix ranging from 0.542 to 0.889. While the reliability result range from 0.723 to 0.903. Other than that, this research used Structural Equation Modeling (SEM) as a hypothesis testing tool Findings The result of statistical software analysis and Structural Equation Modeling (SEM) concludes that all variable used in this research is accepted. The first variable which is loyalty program significantly influence repurchase intention. Second, loyaltyprogram significantly influence consumer preference. Lastly, consumer preference significantly influence repurchase intention. Originality/Value Study regarding the influence of modern grocery retail loyalty program towards consumer preference and repurchase intention has not been done especially in Indonesia. Only few past researches conducted to found the effect of loyalty program to both of consumer preference and repurchase intention. Moreover, the past research about consumer preference has never been done in the context of grocery retail industry.