Abstract

Hedonic value and utilitarian value are considered important aspects of business strategy and retail strategy. Further, customer satisfaction and brand loyalty are among crucial concerns in management and marketing. This study examines the direct and indirect effects of hedonic value and utilitarian value on brand loyalty mediated by customer satisfaction. The review of literature indicates that only few studies intended to examine this topic in Malaysian context. Therefore, the data were collected from 251 customers of department stores in northern Malaysia through survey questionnaire. The respondents comprised of university students. The analysis was done using AMOS which indicates that hedonic value positively affects customer satisfaction and brand loyalty, whereas, utilitarian value positively affects customer satisfaction. The direct effect of utilitarian value on brand loyalty is insignificant. The findings also reveal that customer satisfaction positively affects brand loyalty and it mediates the relationship between hedonic value, utilitarian value and brand loyalty.