Author(s) :

Yusman Yacob, Jati Kasuma Ali, Hiram Ting, Nelson Lajuni, Syed Muhammad Othman Syed Hussin.

Volume :

Abstract :

Although there are abundance of studies on consumer loyalty in the marketing literature, little has been done on the factors contributing to the members’ loyalty in the context of cooperative organization which is unique in terms of its business function and goals in the emerging economies. The present study serves as a groundwork to determine the factors that influence the loyalty of cooperative members who are also regarded as consumers with a focus on Sarawak cooperatives as a research site of the study. Satisfaction, perceived value, resistance to change, and trust are looked into so as to assess their impact on loyalty. Hence, a quantitative approach was adopted. Self-administered questionnaire was designed and pre-tested. Questionnaires were then distributed among members of the cooperatives in Sarawak. A total of 300 copies were distributed and 215 usable copies were subsequently collected. Multiple regression analysis was conducted to assess the effect of the variables studied on members’ loyalty. The results show that perceived value, resistance to change and trust have positive effects on members’ loyalty. Interestingly, satisfaction is found to have no significant relationship with members’ loyalty. The understanding of cooperative members through this study underscores the importance of retaining consumers in developing economies. The study also provides the managerial implications to cooperatives as service providers as well as cooperative members and future directions of the research .

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