Determinants of Brand Loyalty in Jewellery Retailing: An Empirical Study of Consumer Perceptions in Tamil Nadu Using SEM

Abstract

The jewellery retail market in Tamil Nadu, India, is undergoing significant change, especially in the gold jewellery segment. Unorganized retailers face rising competition from organized players offering certified products, better retail experiences, and technology-driven services. Limited resources, evolving customer expectations, and weak brand positioning make it challenging for unorganized retailers to maintain market share, making brand loyalty crucial. This research explores the impact of service attributes such as retail environment, perceived service quality, customer perception of value, brand trust, and customer commitment on brand loyalty among jewellery consumers in Tamil Nadu. The survey was conducted on 835 consumers using a structured questionnaire with a five-point Likert scale, and structural equation modelling (SEM) with SPSS AMOS 20. The results show that brand loyalty is a significant predictor of perceived service quality (β = 0.922) and brand trust (β = 0.894) (p < 0.001). Positive retail atmosphere and customer loyalty (β = 0.19) also play a role in loyalty, which indicates the significance of a good shopping experience and attachment. Additionally, customer perceived value (β = 0.293, p < 0.005) influences value-for-money perceptions. The research highlights that high-quality service, trust, and favourable retail setting are the factors that lead to brand loyalty. These lessons can guide small and medium-sized jewellery retailers to achieve customer loyalty through better service delivery, ethical conduct, product certification, and the adoption of technological changes, and thus compete favourably against the well-organized jewellery retailers in the jewellery market of Tamil Nadu.