Investigating the Components Assessing Customer Loyalty in the context of Retail Using Confirmatory Factor Analysis

The multidimensionality of the CustLoy theoretical framework is tested in this study using “confirmatory factor analysis”.  The study considers the latent costructs for first order components as indications to the single factor from the second order, first attempting to establish a “first-order CFA model” and then developing a “second-order CFA model”. It was found that, retailers need to stress on diverse need of customers while designing loyalty program.