A Model of Customer Loyalty for Gold Shops in the Bangkok Metropolitan Region

Abstract

Gold has long been recognized as a valuable asset across various societies. In the past, Thai people primarily purchased gold jewelry as adornment. However, in recent years, some consumers have viewed gold as an investment asset, often as gold bars. Due to economic volatility, especially in oil prices and geopolitical conflicts, gold prices have fluctuated with a general upward trend. This study aims to 1) assess the levels of corporate image, service quality, market orientation, customer satisfaction, customer trust, and customer loyalty for gold shops in the Bangkok Metropolitan Region. 2) Examine the influence of corporate image, service quality, market orientation, customer satisfaction, and customer trust on customer loyalty toward gold shops in this region.  3) Develop a model of customer loyalty for gold shops in the Bangkok Metropolitan Region. This research employs a mixed-methods approach, combining quantitative and qualitative research. The quantitative component involves a sample of 440 gold shop customers from Bangkok, Nonthaburi, Samut Prakan, and Pathum Thani, who are registered with the Gold Traders Association (2024). The sample size was determined using a criterion of 20 times the number of observed variables, and multistage sampling was applied. Data were collected using questionnaires and analyzed through structural equation modeling. For the qualitative component, in-depth interviews were conducted with 15 key informants, including gold shop business owners, customers, and academic experts on customer loyalty in the Bangkok Metropolitan Region.  The findings revealed that 1) corporate image, service quality, market orientation, customer satisfaction, and customer trust, as well as customer loyalty for gold shops in this region, were at high levels. 2) Corporate image, service quality, market orientation, customer satisfaction, and customer trust had a statistically significant effect on customer loyalty at the .05 level. 3) The developed model, named the "Pyramid Model of Gold Shop Customer Loyalty," effectively represents customer loyalty for gold shops in this region. Additionally, qualitative findings suggest that, to foster customer loyalty, gold shop operators should adopt new service technologies to improve service processes and customer convenience, establish an accessible online brand presence to create a memorable image, maintain service and product quality standards, and ensure transparency in fair transactions. These practices build trust and better meet customer needs, offering a sustainable approach to enhance customer loyalty in Bangkok's gold shop sector.