Customer Loyalty Orientation and Business Performance: Empirical Evidence for Retail Business in Thailand
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Abstract
This study investigated the multidimensional influence of Customer Loyalty Orientation (CLO) on business performance within the Thai retail context. Grounded in relationship marketing theory, the objectives of this study were 1) to examine the differential effects of four CLO dimensions cognitive focus, affective focus, behavioral focus, and attitudinal focused on customer engagement, customer satisfaction, customer trust, and overall business performance; and 2) to study the mediating influence of customer engagement, satisfaction, and trust on business performance outcomes. Using a cross-sectional research design, primary data were collected from 229 retail enterprises across Thailand via structured questionnaires. Multiple regression analysis was utilized in the hypothesized relationships. The findings revealed that the behavioral focus dimension of CLO exerts a significant positive influence on business performance, whereas the cognitive and attitudinal focus dimensions demonstrate positive associations with customer trust, satisfaction, and engagement. These results contributed to both theoretical advancement and managerial practice by elucidating the specific mechanisms through which CLO dimensions operate. The study provided actionable insights for retail management, suggesting that strategically cultivating customer engagement, trust, and satisfaction through targeted loyalty orientation initiatives could enhance sustainable competitive advantage and long-term organizational performance.
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