The retail environment is one of the keys in retail to attract consumers to shop. Thus, the retail environment can also be one of the ways used by the retail industry to satisfy the consumer so that it can generate a sense of loyalty to the retail market. This fits in well with Sutisna's (2001) view that the shopping environment also determines the image of the store itself.
One of the factors that stores must possess to attract the attention of consumers is the retail store environment. The retail store environment has several elements that can influence the store environment they want to create. Factors influencing the emergence of customer loyalty are retail store environment and customer satisfaction.
The shopping environment should be a factor that can determine customer satisfaction while shopping (Naderian, 2012). H1: There is a significant influence of the shopping environment on the customer satisfaction of the Indomaret and Alfamart consumers. According to Wijayanto et.al (2013), a better shopping environment will increase customer loyalty.
H2: There is a significant influence between retail store environment on Indomaret and Alfamart customer loyalty.
RESEARCH METHODOLOGY Research Design
In addition to descriptive analysis to answer the research objectives, quantitative analysis was also conducted to answer the research objectives using the Structural equation Model Test (SEM). SEM is used to analyze the relationship between indicator variables, latent variables and measurement error (Joreskog and Sorbom, 1996). SEM is used to analyze the relationship between one latent variable and another latent variable, known as a structural equation, which together includes measurement error.
Testing of the research model for measuring the identified factors was carried out using the confirmatory factor analysis approach. At this stage, the theoretical model was developed according to the model to be observed, already reflected in the framework. SEM describes the relationships between variables in a flowchart, which can be particularly useful in describing the set of causal relationships between the constructs of the theoretical models that were built in the first phase.
Exogenous constructs, known as independent variables, are not predicted by other variables in the model. Identification problems are primarily a problem of the inability of developed models to produce good estimates. In accordance with the research paradigm described in the research framework, the design analysis uses structural equation modeling (SEM) to show the impact of the retail store environment on customer satisfaction and its implications for customer loyalty.
According to Jorescog and Sorborn (1993), confirmatory factor analysis is used to test the one-dimensional construct. Chi Square Tests The purpose of this analysis is to develop and test whether a model fits the data. GFI is an index that describes the level of the overall fitness model and they were calculated from the squared residuals of the model predicted and compared to the actual data.
The NNFI index is used to measure the suitability of the model with a basis similar to the baseline or null models. The use of this index is highly recommended because it is relatively insensitive to sample size and has less influence on the complexity of the models. RMSEA is a measurement that attempts to improve the statistical tendency of the chi-squared rejection model with a large number of samples.
RESEARCH RESULT AND DISCUSSION SEM Analysis Result
Retail store environment (X1) has a positive and significant effect on customer satisfaction (X2) with standardized coefficient of 0.77. Positive coefficient indicates that the higher value of Retail Store Environment (X1) will produce higher value of the Customer Satisfaction (X2). Retail store environment (X1) has no significant effect on customer loyalty (X3) with standardized coefficient of 0.10.
This means that there is no significant impact of Retail Store Environment (X1) on Customer Loyalty (X3). It means that the intensity of the retail store environment (X1) will not affect the level of customer loyalty (X3). Table 4.12 shows the indirect effect of Retail Store Environment (X1) on Customer Loyalty (X3) through Customer Satisfaction (X2).
The direct effect of retail store environment (X1) on customer satisfaction is significant, and the direct effect of customer satisfaction (X2) on customer loyalty (X3) is also significant. We can conclude that there is an indirect significant effect of retail store environment (X1) on customer loyalty (X3) through customer satisfaction (X2). The coefficient is positive, which means that the higher the retail store environment (X1), the higher the customer loyalty (X3) through customer satisfaction (X2).
This research aims to know the relationship between store environment, customer satisfaction and customer loyalty who shopped at Indomaret and Alfamart in Malang. The better store environment will remain positive feeling of satisfaction that comes to shop in Indomaret and Alfamart. Based on the research result of this study, "The Relationship between Retail Store Environment, Customer Satisfaction and Customer Loyalty in Convenience Store (Case Study of Indomaret and Alfamart Customer in Malang City, Indonesia)" the retail store environment has no direct significant influence towards customer loyalty, this result cannot support the theory that already is said by Wijayanto et.al (2013) that a better store environment will increase customer loyalty.
It means that the intensity of the retail store environment will not affect the level of customer loyalty. Based on the research result in this study, "Relationship between Retail Store Environment, Customer Satisfaction and Customer Loyalty in Convenience Store (Indomaret and Alfamart Customer Case Study in Malang City, Indonesia)" has significant indirect influence of retail store environment towards Customer loyalty through customer satisfaction. In other words, Customer Satisfaction has been able to mediate the retail store environment to customer loyalty.
Therefore, Indomaret and Alfamart should continue to maintain and improve the relationship between retail store environment towards customer satisfaction and customer satisfaction towards customer loyalty. Then, the indirect effect of retail store environment on customer loyalty through satisfaction will still hold.
CONCLUSIONS AND RECOMMENDATIONS Conclusion
There is an indirect significant influence between store environment and customer loyalty through customer satisfaction. In this case, a good store environment is able to attract customers to shop at Indomaret and Alfamart in Malang. Then respondents or customers who come to shop at Indomaret and Alfamart in Malang will feel satisfied when they shop at Indomaret and Alfamart in Malang.
In other words, customers feel comfortable with the store environment shown by a neat and clean layout of goods, so that customers will easily find the goods they need and the completeness of the goods to buy. To conclude, a good store environment can make customers feel satisfied and they will have a sense of customer loyalty towards the stores. Based on the above conclusions, there are some suggested suggestions which are expected to be beneficial for the company to expand the market.
Indomaret and Alfamart should pay more attention to retail store environment which is becoming an important aspect of the retail business. In addition, Indomaret and Alfamart should maintain the bright store lighting, the existence of wall color, cleanliness, fragrant fragrance and music to make consumers feel. In order to improve the customer satisfaction, Indomaret and Alfamart should add the type of daily need products, for example by renewing the product types and increasing the variety of products.
Therefore, the use of other independent variables is suggested, in order to provide more complete and accurate information. For example: Service Quality, Marketing Mix (Price, Place, Product and Promotion) and After Sales Service.
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