Journal Press India®

MANTHAN: Journal of Commerce and Management
Vol 13 , Issue 1 , January - June 2026 | Pages: 102-121 | Research Paper

Customer Loyalty in Rural Retailing through Service Quality and Price: The Embedded Role of Satisfaction Instead of Mediation

 
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Author Details ( * ) denotes Corresponding author

1. * Monika ., Research Scholar, School of Commerce and Management , CUHP, Dharmshala, Himachal Pradesh, India (monikasuryawanshi13@gmail.com)
2. Chaman Lal, Associate Professor, School of Commerce & Management Studies, Central University of Himachal Pradesh, Dharmshala, Himachal Pradesh, India (chamankashyap1983@gmail.com)

Customer loyalty is essential for retail success, especially in rural markets where customers often have different expectations regarding pricing and service than those in metropolitan areas. This study examines the influence of service quality dimensions and price perception on rural retail customer loyalty through the satisfaction process. It highlights that satisfaction is strongly linked with service quality and should be viewed as an integrated component rather than an independent factor. A survey of 502 consumers purchasing food, groceries, and related retail services was conducted in rural areas using SERVQUAL-based questions. Structural Equation Modelling (SEM), supported by SPSS, was used to analyse the data. Findings reveal that rural customers possess a distinct perspective, with satisfaction embedded in service quality experiences. Results indicate that service quality significantly affects consumer loyalty, emphasizing the need for retailers to enhance service standards. The study contributes an empirically validated model and recommends further testing in other rural retail contexts.

Keywords

Customer loyalty; Service quality; Price; Satisfaction; Retailing and rural retailing

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