Explain the difference between an open economy and a closed economy Essay

Explain the difference between an open economy and a closed economy - Essay Example However, opponents believe that more openness leads to loss of jobs, dumping, interdependence among nations, and economic sanctions among others.2 A closed economy on the other hand, is accused of hindering technology transfer and foreign investments although it is appropriate in ensuring protection of local industries. The paper will discuss the numerous differences between a closed and open economy as well as the advantages and disadvantages a country would have by using either of the economic models. Differences between Closed and Open Economies There are numerous distinctions between a closed and open economy. A closed economy is one in which trade is carried out within the borders of a nation or domestically hence the gross domestic product (GDP) is the same as gross national product (GNP). An open economy on the other hand, is one in which trade is carried out within and outside the borders hence the GDP and GNP are not equal but depend on volume of imports and exports.3 An ope n economy is achieved by eliminating the barriers to trade such as tariffs and import quotas. However, most open economies have put some trade barriers so as to protect crucial industries from competition in the world market or to protect consumers against harmful products and also to protect the environment from pollution.4 It can be noted therefore that there is no perfectly closed or perfectly open economy as each has an element of closeness and openness. A closed economy does not allow movement of labour across borders unlike open economy where workers are free to work anywhere in the world. Another distinction is that a closed economy does not allow movement of capital across borders hence investments are domestic in nature and foreign exchange rates do not impact on the economy unlike in an open economy where there is movement of capital across borders. Businessmen can therefore invest in foreign stocks and money markets thus the economy is affected by exchange rates.5 Accordi ng to Jane, sometimes open economies can act as closed economies.6 This is especially so if few members with open economies act as a tightly integrated economic bloc and only trade with each other thus becoming a collectively closed economy. On the other hand, a country cannot produce all the goods and services it requires hence it is forced to import some products. Open economies are characterized with large multinational corporations like starbucks with braches all over the world and this is not the case in closed economies. Advantages and Disadvantages of Closed Economy A closed economy does not have any dealings in the global market therefore is not affected by factors outside the country. For example, the global financial crisis that started in the US spread to all parts of the world due to interrelatedness of product and financial markets. The developed countries are known to impose economic sanctions on developing countries as a condition for giving them funds for development . These sanctions impact negatively on the economy but a closed economy cannot be under such sanctions since it is self reliant.7 Another advantage is the effectiveness of fiscal and monetary policy in the economy. An expansionary fiscal policy is meant to stimulate the economy during recession by raising aggregate demand. This is

Financial Performance of Abu Dhabi Commercial Bank in UAE Case Study

Financial Performance of Abu Dhabi Commercial Bank in UAE - Case Study Example Abu Dhabi Commercial Bank acquired RBS’ UAE retail, wealth management and SME banking business. Abu Dhabi Commercial Bank is currently the third largest bank in the UAE in terms of operations and second largest in the Emirates of Abu Dhabi in terms of total assets. The bank has a substantial customer base and holds around 12% market share by loans and 10% market share by deposits. The bank currently has approximately 500,000 retail customers and 33,000 wholesale customers in the UAE. Abu Dhabi Commercial Bank has divided its operations into four main domains as follows. Abu Dhabi, the second largest city of UAE, is one of the emerging economies of the world. During the financial year 2009, amid the global economic crisis, the growth trend of Abu Dhabi took a downward plunge when the real GDP growth remained only 0.2% and its GDP per capita was 90,538 USD, which was still considered among the highest at the global level. With the implementation of prudent policies, the government of UAE has now able to restore its previous economic prosperity and it is portraying inclining trend once again. The banking sector in UAE can be regarded as the biggest beneficiary of the economic growth. This is due to the fact that the prevailing interest rate in the UAE economy is lower as compared to the other countries depicting similar economic trends. Central Bank of UAE is the regulatory authority which issues guidelines and pronouncement regulating the functioning of these banks. As of March 31, 2011, UAE economy had 23 local banks with 736 branches and 28 licensed foreign banks with 83 branches. The following graphical representation presents the growth in the banking sector in UAE over the years [presentation] Technical Analysis The share price of Abu Dhabi Commercial Bank remained fluctuated over the past few years. If we consider the financial year 2006, the share price of the bank depicts a rising trend. In the beginning of the financial year 2006, the share price of the bank was crossing 5.66, but by the end of the financial year 2006, the share price took a downward plunge and the December closing of the financial year recorded a share price of 4.16. Despite the declining trend in the previous year, Abu Dhabi Commercial Bank was able to restore its previous market capitalization and by the end of the financial year 2007, the share price represents an increase of 19%. Financial year 2008 and 2009 are

Hardships And Struggles In Sonnys Blues

Hardships And Struggles In Sonnys Blues Hardships and struggles come along as a part of being human. It is how one deals with these struggles and hardships that can either make or break a person. James Baldwins Sonnys Blues is a story that shows how people can react to the blues and how they can handle their own inner turmoil. It is a story that tells of the suffering the characters shared, the ideas that separate them and the music that finally brings them together. Yet the inner story is one of the narrators evolution from a man living in fear to a man who is finally able to embrace his pain and in this way rise above it. In James Baldwins Sonnys Blues, all of the main conflicts and struggles of the story sum up and are given resolutions in a matter of one paragraph (located on page 168 paragraph 3) creating a stylistic centre, summary and solution for the story. These main conflicts include: the internal conflict Sonnys brother goes through to keep his promise to his mother of watching out for Sonny, Sonnys struggles ( both internal and with substance abuse), and the race-related problems occurring in Harlem at the time the story takes place. In this essay, the importance of this one paragraphs impact to the entire story will be proven. It contains the resolutions to the main conflicts that accumulate throughout the story and creates a sense of overall hope when the majority of the story is about losing hope and the characters downfalls. In this paragraph, Sonnys problems are surely not solved, however it is obvious that he comes to an understanding with himself and is heading to the better place in his life. Sonny, the central character in this story, struggles not only with a deadly addiction with substance abuse, but also an inner struggle self doubt not only due to a likely case of clinical depression, but his brothers criticism over his career choice certainly doesnt aid matters. Statements like Sometimes, you know, and it was actually when I was most out of the world. (165) when Sonny was talking to his brother about his mental state is just one example which proves that Sonny was in and out of reality from time to time due to the depression. The heroine addiction is a positive for Sonny and is a tool that he uses to get out of the trap of the streets. Sonnys heroine problem only seems to be a conflict that his brother has todeal with as to how to help Sonny. The concern that his brother has about it seems to f ade away once he starts to understand Sonnys perspective on life. This sense of understanding is established in the designated paragraph. By the end of the story, Sonny is finally taken seriously as an artist by his brother and is applauded by all after his performance. Seeing Sonnys internal struggle and defiance to take his life seriously and become something of himself, his brother, through a series of events, starts to become detached from Sonny. The narrator, Sonnys brother whose name is never mentioned, has promised his mother to always look out for Sonny and let him know [hes] there (156). The significance of the chosen paragraph shows the rekindling aspects and a sense of understanding of his relationship with Sonny as he watches him perform. After years of criticizing his brothers ambition of become a famous jazz artist, the narrator appreciates and recognizes his brothers talent as an artist by calling his playing beautiful because it wasnt hurried and it was no long a lament (168). He feels as though he is fulfilling his promise to his mother to watch over Sonny by understanding the struggles and hardships hes been through better. Sonnys brother says I had heard what he had gone through, and would continue to go through until he came to r est in earth (168). The everlasting conflicts between these two brothers are obviously not resolved, nevertheless, the narrator has just begun to understand Sonny and sympathize with his struggles in this paragraph indicating an improvement their relationship. Another problem that both Sonny and his brother grew up with was the racial segregation in Harlem. The segregation is first introduced in the story when the narrators mother speaks to the narrator about the hardships their family has seen because of this segregation. She speaks of how the narrators uncle had passed away when killed by a Caucasian man, and how this had affected his father deeply. Till the day he died he werent sure but that every white man he saw was the man that killed his brother (156). This specific paragraph gives hope to this situation and the narrator believes that change is occurring and that [Sonny] could help [them] to be free if [they] would listen (168). In this paragraph the struggle for African Americans in Harlem and all around America at that time is not nearly resolved, however theres a resolution. It is the music that brought them together and the music that liberates the African Americans at this time. James Baldwins Sonnys Blues is a story that deals with many complications and struggles concerning family-related disputes, addiction, obligations, and segregation. In the end, none of these problems are completely resolved but are on the track of resolving themselves. In the case of the relationship between Sonny and his brother, it is clear that the relationships has had its ups and downs, however an effort is being in patching up their relationship and the brothers beginning to understand and appreciate each other more. As for Sonny, he himself admits that the struggle of addiction continues until the very end. However, Sunny finds a sense of self by the end of the story; he is an applauded jazz artist. The issue of the racial segregation in Harlem continues, but the narrator decides that the freedom of the African Americans lies in their music. This one paragraph doesnt reflect all of the struggles the characters have encountered throughout the story, but it shows the change that has occurred and also shows signs of hope. This one paragraph mirrors the moral of the story. The world wait[s] outside, as hungry as a tiger, and that trouble stretch[es] above us, longer than the sky (168). Troubles will meet us wherever we go, it is how we deal with these problems that can make or break us.

Creation Versus Evolution - Both Arguments Can be Right Essay -- Creat

Creation Versus Evolution â€Å"Creation Versus Evolution.† What’s wrong with this title? Read it to yourself a few times, and then answer that question. We’ve all heard of the argument. Creationism, the idea that God created all the species as they appear today, versus Evolutionism, the idea that all life evolved from simple bacteria to all the species that appear today, is a familiar controversy. Ever since Darwin first published the Theory of Evolution in his controversial 1859 book The Origin of Species, the debate has raged between religion and science. But this debate is something that has always puzzled me. From the time I first understood what the Theory of Evolution was really saying, I found it difficult to reject. Scientifically, every shred of evidence in biology and genetics I have ever seen points to it, directly or indirectly. And religiously – Evolutionism does not contradict Creationism. Evolution is based on two underlying principles that themselves are not at all controversial: heredity and natural selection. Heredity is the principle that organisms pass on different combinations of their traits to their offspring. If an organism has strong traits that help it to survive, then its offspring are likely to possess some of those same strong traits and themselves be more likely to survive. The second principle is natural selection, better known as â€Å"survival of the fittest.† According to natural selection, the organisms with strong, â€Å"fit† traits are more likely to survive long enough to reproduce than are the organisms with weak, â€Å"unfit† traits; thus over time, the strong organisms (as a species, or subspecies) will survive and the weak ones will die out. In this way, only the strong traits that help organisms to survive will be preserved over long periods of time. For instance, all the long-necked giraffes that were able to reach foo d in tall trees were able to survive, while all the short-necked ones weren’t able to compete and died out. These two principles, taken alone, are not controversial. Most people seem to intuitively accept them as being true, because they make so much sense and because there is so much scientific evidence to back them up. However, when they are combined together in the Theory of Evolution, something happens. The assertion is made that, over time, species engaging in natural selection and passing on thei... ...y displaces or precludes that same faith. To react with such fear and narrow-mindedness to this â€Å"new-fangled† idea of Evolution, then, belies a fundamental problem with the Anti-Evolution Creationist viewpoint. These Creationists react with fear to this different way of thinking about the origin of life not because this different way is wrong, but because these Creationists are afraid that they are wrong in their beliefs. Secure Creationists who are confident in their faith have no reason to feel at all threatened by the Theory of Evolution; they are free to embrace it as just another argument for their faith. I believe that it is only the insecure Creationists who are Anti-Evolutionists, because on some level they realize that their faith is weak – that maybe their narrow view of things isn’t the only â€Å"right way† to look at the world. But, as Comedian Dennis Miller (and any scientist concerned with the truth) would say, â€Å"That’s just my opinion. I could be wrong.† Works Cited Kimball’s (1983) Biology, 5th edition Green, Joel B., & Longman, Tremper (Eds.). (1996). Holy Bible -- The Everday Study Edition. Dallas: Word Publishing. IUK Correspondent, April 29, 1996

The Short Second Life of Bree Tanner Chapters 4

He frowned a little. â€Å"What's real y going on. What Riley's up to. Why he keeps bringing the most random kids to her. Why it doesn't seem to matter to Riley if it's someone like you or if it's someone like that idiot Kevin.† It sounded like he didn't know Riley any better than I did. â€Å"What do you mean, someone like me?† I asked. â€Å"You're the kind that Riley should be looking for – the smart ones – not just these stupid gang-bangers that Raoul keeps bringing in. I bet you weren't some junkie ho when you were human.† I shifted uneasily at the last word. Diego kept waiting for my answer, like he hadn't said anything weird. I took a deep breath and thought back. â€Å"I was close enough,† I admitted after a few seconds of his patient watching. â€Å"Not there yet, but in a few more weeks†¦Ã¢â‚¬  I shrugged. â€Å"You know, I don't remember much, but I do remember thinking there was nothing more powerful on this planet than just plain old hunger. Turns out, thirst is worst.† He laughed. â€Å"Sing it, sister.† â€Å"What about you? You weren't a troubled teen runaway like the rest of us?† â€Å"Oh, I was troubled, al right.† He stopped talking. But I could sit around and wait for the answers to inappropriate questions, too. I just stared at him. He sighed. The scent of his breath was nice. Everybody smel ed sweet, but Diego had a little something extra – some spice like cinnamon or cloves. â€Å"I tried to stay away from al that junk. Studied hard. I was gonna get out of the ghetto, you know. Go to col ege. Make something of myself. But there was a guy – not much different than Raoul. Join or die, that was his motto. I wasn't having any, so I stayed away from his group. I was careful. Stayed alive.† He stopped, closing his eyes. I wasn't done being pushy. â€Å"And?† â€Å"My kid brother wasn't as careful.† I was about to ask if his brother had joined or died, but the expression on his face made asking unnecessary. I looked away, not sure how to respond. I couldn't real y understand his loss, the pain it stil clearly caused him to feel. I hadn't left anything behind that I stil missed. Was that the difference? Was that why he dwel ed on memories that the rest of us shunned? I stil didn't see how Riley came into this. Riley and the cheeseburger of pain. I wanted that part of the story, but now I felt bad for pushing him to answer. Lucky for my curiosity, Diego kept going after a minute. â€Å"I kind of lost it. Stole a gun from a friend and went hunting.† He chuckled darkly. â€Å"Wasn't as good at it then. But I got the guy that got my brother before they got me. The rest of his crew had me cornered in an al ey. Then, suddenly, Riley was there, between me and them. I remember thinking he was the whitest guy I'd ever seen. He didn't even look at the others when they shot him. Like the bul ets were flies. You know what he said to me? He said, Want a new life, kid?'† â€Å"Hah!† I laughed. â€Å"That's way better than mine. Al I got was, Want a burger, kid?'† I stil remembered how Riley'd looked that night, though the image was al blurry because my eyes'd sucked back then. He was the hottest boy I'd ever seen, tal and blond and perfect, every feature. I knew his eyes must be just as beautiful behind the dark sunglasses he never took off. And his voice was so gentle, so kind. I figured I knew what he would want in exchange for the meal, and I would have given it to him, too. Not because he was so pretty to look at, but because I hadn't eaten anything but trash for two weeks. It turned out he wanted something else, though. Diego laughed at the burger line. â€Å"You must have been pretty hungry.† â€Å"Damn straight.† â€Å"So why were you so hungry?† â€Å"Because I was stupid and ran away before I had a driver's license. I couldn't get a real job, and I was a bad thief.† â€Å"What were you running from?† I hesitated. The memories were a little more clear as I focused on them, and I wasn't sure I wanted that. â€Å"Oh, c'mon,† he coaxed. â€Å"I told you mine.† â€Å"Yeah, you did. Okay. I was running from my dad. He used to knock me around a lot. Probably did the same to my mom before she took off. I was pretty little then – I didn't know much. It got worse. I figured if I waited too long I'd end up dead. He told me if I ever ran away I'd starve. He was right about that – only thing he was ever right about as far as I'm concerned. I don't think about it much.† Diego nodded in agreement. â€Å"Hard to remember that stuff, isn't it? Everything's so fuzzy and dark.† â€Å"Like trying to see with mud in your eyes.† â€Å"Good way to put it,† he complimented me. He squinted at me like he was trying to see, and rubbed his eyes. We laughed together again. Weird. â€Å"I don't think I've laughed with anybody since I met Riley,† he said, echoing my thoughts. â€Å"This is nice. You're nice. Not like the others. You ever try to have a conversation with one of them?† â€Å"Nope, I haven't.† â€Å"You're not missing anything. Which is my point. Wouldn't Riley's standard of living be a little higher if he surrounded himself with decent vampires? If we're supposed to protect her, shouldn't he be looking for the smart ones?† â€Å"So Riley doesn't need brains,† I reasoned. â€Å"He needs numbers.† Diego pursed his lips, considering. â€Å"Like chess. He's not making knights and bishops.† â€Å"We're just pawns,† I realized. We stared at each other again for a long minute. â€Å"I don't want to think that,† Diego said. â€Å"So what do we do?† I asked, using the plural automatical y. Like we were already a team. He thought about my question for a second, seeming uneasy, and I regretted the â€Å"we.† But then he said, â€Å"What can we do when we don't know what's happening?† So he didn't mind the team thing, which made me feel real y good in a way I didn't remember ever feeling before. â€Å"I guess we keep our eyes open, pay attention, try to figure it out.† He nodded. â€Å"We need to think about everything Riley's told us, everything he's done.† He paused thoughtful y. â€Å"You know, I tried to hash some of this out with Riley once, but he couldn't have cared less. Told me to keep my mind on more important things – like thirst. Which was al I could think about then, of course. He sent me out hunting, and I stopped worrying†¦.† I watched him thinking about Riley, his eyes unfocused as he relived the memory, and I wondered. Diego was my first friend in this life, but I wasn't his. Suddenly his focus snapped back to me. â€Å"So what have we learned from Riley?† I concentrated, running through the last three months in my head. â€Å"He real y doesn't tel us much, you know. Just the vampire basics.† â€Å"We'l have to listen more careful y.† We sat in silence, pondering this. I mostly thought about how much I didn't know. And why hadn't I worried about everything I didn't know before now? It was like talking to Diego had cleared my head. For the first time in three months, blood was not the main thing in there. The silence lasted for a while. The black hole I'd felt funneling fresh air into the cave wasn't black anymore. It was dark gray now and getting infinitesimal y lighter with each second. Diego noticed me eyeing it nervously. â€Å"Don't worry,† he said. â€Å"Some dim light gets in here on sunny days. It doesn't hurt.† He shrugged. I scooted closer to the hole in the floor, where the water was disappearing as the tide went out. â€Å"Seriously, Bree. I've been down here before during the day. I told Riley about this cave – and how it was mostly fil ed with water, and he said it was cool when I needed to get out of the madhouse. Anyway, do I look like I got singed?† I hesitated, thinking about how different his relationship with Riley was than mine. His eyebrows rose, waiting for an answer. â€Å"No,† I final y said. â€Å"But†¦Ã¢â‚¬  â€Å"Look,† he said impatiently. He crawled swiftly to the tunnel and stuck his arm in up to the shoulder. â€Å"Nothing.† I nodded once. â€Å"Relax! Do you want me to see how high I can go?† As he spoke, he stuck his head into the hole and started climbing. â€Å"Don't, Diego.† He was already out of sight. â€Å"I'm relaxed, I swear.† He was laughing – it sounded like he was already several yards up the tunnel. I wanted to go after him, to grab his foot and yank him back, but I was frozen with stress. It would be stupid to risk my life to save some total stranger. But I hadn't had anything close to a friend in forever. Already it would be hard to go back to having no one to talk to, after only one night. â€Å"No estoy quemando,† he cal ed down, his tone teasing. â€Å"Wait†¦ is that†¦? Ow! â€Å" â€Å"Diego?† I leaped across the cave and stuck my head into the tunnel. His face was right there, inches from mine. â€Å"Boo!† I flinched back from his proximity – just a reflex, old habit. â€Å"Funny,† I said dryly, moving away as he slid back into the cave. â€Å"You need to unwind, girl. I've looked into this, okay? Indirect sunlight doesn't hurt.† â€Å"So you're saying that I could just stand under a nice shady tree and be fine?† He hesitated for a minute, as if debating whether or not to tel me something, and then said quietly, â€Å"I did once.† I stared at him, waiting for the grin. Because this was a joke. It didn't come. â€Å"Riley said†¦,† I started, and then my voice trailed off. â€Å"Yeah, I know what Riley said,† he agreed. â€Å"Maybe Riley doesn't know as much as he says he does.† â€Å"But Shel y and Steve. Doug and Adam. That kid with the bright red hair. Al of them. They're gone because they didn't get back in time. Riley saw the ashes.† Diego's brows pul ed together unhappily.

Shopping Behaviour: Bangladesh

2006 EABR & ETLC Siena, Italy Determinants Of Grocery Store Loyalty Of Consumers In Bangladesh Plato Ranjan Datta, London College of Management Studies, United Kingdom Bonya Rani Chakraborty, London College of Management Studies, United Kingdom Abstract Due to the belief that customer retention is a much cost-effective strategy than attracting new customers, the customer loyalty subject has become of increased interest to most businesses over the last few years. Loyal customers always bring more profit for the organisation as they are more likely to recommend their friends and family, ready to pay premium prices and have increased repurchase intention. This study sets out to examine the degree of consumer’s loyalty in Bangladesh among consumers who shop from various superstores. The main objective is to empirically investigate the strength of loyalty of Bangladeshi food consumers on the basis of their shopping behaviour and store-level service provision, and thus provide evidence which demonstrates a model of consumer loyalty based on these factors. In order to understand consumer loyalty in Bangladesh Oliver’s four stage of loyalty model were adopted. A total sample of 150 food shopping consumers from three leading stores in Bangladesh were selected randomly and interviewed in March by trained interviewers. The survey results indicate that Bangladeshi food consumers are conscious of the cost and benefit (Cognitive loyalty), are conscious with satisfaction (Affective loyalty), satisfied consumers are likely to recommend their primary super store to their family and friends (Co-native Loyalty) and also they have frequencies of visit (Action Loyalty). The findings of research can be used to offer a sound basis for retailers to improve their operations in all the areas, so increasing their profits and to provide the first such survey in this particular (and extremely important) field in the Bangladeshi context and thus offer a foundation and direction for future research. INTRODUCTION The retail industry is dynamic, huge and change is a constant phenomenon. Over the last few decades in both Europe and North America one as seen the emergence of supermarkets as the dominant retail form. This is due to the fact that consumers’ behaviour has changed and shifted towards convenience, high quality produce, provision for customer care, flexible payment methods and sophisticated channels of distribution. To cope with consumer demands retailers are constantly shaping their business strategies and striving to offer the right products and services. Determinants of store choice, customer loyalty and patronage behaviour have been widely studied across the globe. Therefore, a sheer volume of literature exists regarding food retailing. However, there is still vast scope for research in this field as the environment of retailing is in a constant phase of change and the emergence of new store formats in USA and Europe have led to dramatic changes in consumer behaviour. This is particularly true and has significant effect on middleclass consumers in Bangladesh with the newly introduced ‘so-called’ supermarkets which are providing a completely new experience for those consumers offering sophisticated customer service, a wide and assorted variety of goods, pleasant ambience, spacious layout, quality imported and branded products and provision for other western life style facilities. Although there is some research on retailing in other Asian counterparts, there has been very little research in Bangladesh. The retailing industry in Bangladesh is very fragmented and underdeveloped. The so called European 1 2006 EABR & ETLC Siena, Italy style new superstore format has emerged in this sector only in the last few years so this sector of retailing is in an early phase. Therefore, it is of paramount importance for retailers in Bangladesh to know the attributes that appeal to their customers in order to satisfy them. Thus, this study sets out to examine the degree of consumer’s loyalty in Bangladesh among consumers. RETAILING IN BANGLADESH Bangladesh is predominantly a traditional, poor society, where about 90% of the population is Muslim; other groups represented are Hindu, Christian, Buddhist, and other minorities. Per-capita income is about US$ 380 (Gain Report, 2004). The population has grown from 42 million in 1941 to133 million in 2002 (Bangladesh Bureau of Statistics, 2003) making it the 9th most populous country in the world (Bangladesh Bureau of Statistics, Dec. 2002). Retailing industry in Bangladesh is fragmented and undeveloped. Even compared to its South Asian counterparts, Bangladesh is behind in terms of development, structure and organisation. However, the last several years has witnessed dramatic changes, especially in food retailing industry. This is due to the effects of globalisation, economic and trade liberalisation, changing patterns of consumers’ shopping behaviour, substantial increase of middle class consumers and the government’s liberal attitude towards foreign imported food products and growth of organised superstores. Bangladeshi food retail sector is dominated by traditional shops, and this traditional food distribution system is through so called `wet markets` which sell fruits, vegetables, meat and fish together with small food stores which sell dry foods. The traditional retailing has been established for some centuries. But its expansion is keeping pace with rapid growth of economy, intense competition, population growth and changing consumption patterns. All these changes led to dramatic changes in the structure of the food retailing sector. Thus modern superstores, supermarkets, convenient stores, one stop stores and multi-store complexes developed to service the growing middle class with their demand for more sophisticated food stores and greater varieties of products, many of which were imported, especially in major cities. Thus organised retail sectors are facing competition from traditional unorganised huge retail outlets. This is due to their distinctive characteristics which are not quality related but rather price related. Most of the traditional shops are unorganised, do not have proper employee structure (normally â€Å"mom and popâ€Å" shops run by family members), have negligible real estate, no external or underpaid labour costs and no or little taxes to pay. Consumer’s familiarities run from generation to generation and thus they have a strong relationship with most of the customers who are normally local. Therefore customers may have the opportunity to buy any products on credit and pay every month or every week. Thus prices are always less, although quality is not guaranteed and no or few imported products are available. This is again due to the socio-economic group of the middle and lower class which is more sensitive to price rather than quality. On the other hand the organised retail sector is incurring higher costs due to various cost pressures. A substantial proportion of their products are imported and good quality, they employ high calibre employees with consequently high labour costs, have bigger premises and so offer more comfort and value for the customer. However, this growth and expansion was not structurally organised due to lack of attention from government and public. The retail industry in Bangladesh was never before perceived positively as a sector until recently. Therefore there is no or very limited market data available on this sector, but various secondary sources indicate that the turnover of the food retail sector in Bangladesh could be US $ 12-14 billion and the number of retail grocery shops could be around 1 million (Gain Report, 2004). According to the same report, Retail is one of the biggest sources of employment (12%) and it contributed 13% to Bangladesh’s GDP in 2001 / 2002. The organised retail sector (i. e. arge supermarkets) is new in Bangladesh and started to appear less than 5 years ago. Within this short time period it has attracted investors, developed positive perceptions among the public and created government attention. Now it is growing dramatically. The share in terms of volume and value in the organised retail sector of Bangladesh is 49. 60% and 18. 5% in 2003 (post market survey, 2003). To date there are 2 2006 EABR & ETLC Siena, Italy about 30 stores of this kind operating in the country, the majority of which are located in Dhaka and this sector makes up 1% of the total retail sector in Bangladesh. Ownership of all major superstores is private and limited, owned by local retailers except one which is a joint venture and another in Australian ownership. However, the concept of international retailing is at a very early stage in Bangladesh. According to Alexander (1997) â€Å"international retailing is commonly assumed to concern retail operations, owned by a single company in more than one countryâ€Å". There is no evidence of the physical presence of international large retailers in Bangladesh except one or two of medium size. Traditional shops like small roadside shops accounted for 75% of the retail sector and these shops are visible throughout the country (Gain Report, 2004). They are very small and no foreign or imported products are available except in some shops located in urban or suburban areas where consumers can buy relatively high quality products from neighbouring countries (i. e. India and Burma). These products are imported through mainly unauthorised channels. As these types of small shops are mainly family owned and run, they do not incur huge costs and also are not high quality. Shop sizes are normally 30-100 sq. feet. They open for long hours and consumers can bargain with the sellers in order to lower the price. Other types are typified as Municipal Corporation Mini-Market and mainly found in semi-urban or urban areas and these are under Municipal Corporation ownership. Shops are generally arranged by product or service categories such as fish market, meat market, vegetable market, groceries etc. This category represents 20% of the retail market (Gain Report, 2004). Most of the shops sell imported and quality products although their appeal is limited to only the middle-class or high class consumer market due to the cost factor. Products are acquired by wholesalers and importers. The third category of shops is convenience or departmental stores. These stores are relatively large and offer good quality domestic and imported products. Normally visible in urban areas they represent 5% of the retail sector (Gain report, 2004). Due to their quality and brand name these stores are always expensive and a large proportion of the population cannot afford their products. They are therefore strictly limited to upper-middle or upper class Bangladeshis and foreigners residing in major cities, especially Dhaka. Their products are acquired from importers and distributors with adequate storage facilities and sometimes topped-up by local suppliers. Finally, over the last few years another sophisticated retail format has appeared in the retail sector in Bangladesh; these are organised, developed and more structured which are supermarkets or the organised retail sector which at the moment represent less than 1% (Gain report, 2004). This sector is very young and is in its early stage of development, mainly visible in major cities (i. e. Dhaka, Chittogong). These are large retailers and sell very high quality products, mainly imported goods. Less than 5% of total food consumption comes from this outlet. There are at the moment around 30 superstores and most of them have only 1 outlet except AGORA and PQS with 2 outlets. GROCERY STORE LOYALTY: A LITERATURE REVIEW In today’s competitive environment to compete with competitors and sustain in business all organisations are investing resources to create loyal customers by offering superior products, superior services to increase customers repurchase intentions, their commitment towards the organisations and satisfy customers needs and wants. A satisfied customer has positive post-purchase behaviour which leads to him/her positive attitude and commitment towards the organisation. A committed customer is always remaining with the company for longer term. An unsatisfied, non-committed customer defect from the company. This is more paramount case in retailing scenario where organisations are making paper thin profit. As Huddleston et al (2003) pointed out that â€Å"to survive in today’s competitive markets food retailers must create and maintain a loyal customer base. Omar (1999) has emphasised that store loyalty is the single most important factor in retail marketing success and store longevity. A review of literature by Jacoby & Chestnut (1978) indicates that much of the initial research emphasizes the behavioural aspect of loyalty, after a period when the majority of researchers measured loyalty as a pattern of repeat purchasing (Oliver, 1997). However, Cunningham (1956) in early stage of behavioural aspect of loyalty stated that store loyalty concept derived from brand loyalty with respect to tangible 3 006 EABR & ETLC Siena, Italy goods. Current loyalty literature indicates that there are two dimension of store loyalty: Attitudinal and behavioural dimension. Behavioural dimension is measured by proportion of purchase of a specific brand, while attitudinal loyalty dimension is measured by psychological commitment to the target object (Caruana, 2002). There are various advantages for retailers to have loyal customers. As stated by Huddleston et al (2003) customers loyalty can yield favourable operating cost advantage for retailers. Further they have stressed that obtaining new customer costs five to six times as much as retaining current customers. Loyal customer can increase their purchase spending, low costs for retailers for obtaining new customers, price premiums and customer longevity. Dick and Basu (1994) proposed that brand plays a special role in generating repeat purchase. Food Business News defined customer loyalty more concisely as `creating the strongest possible relationship between the retailer and customer, so that people feel they will miss something if they go to another store. However, Sivadas and Baker-Prwewitt defined loyalty as â€Å"to get customers to recommend a store to othersâ€Å". Odekerken-Schroder et el (2001) defined store loyalty as â€Å" the conscious buying behaviour of a consumer expressed over time with respect to one store out of a set of stores and which is driven by commitment to this store. Huddleston et el (2003) have conducted a study in mid-western US city with six focus group in order to define store loyalty by respondents and also they have investigated respondents likes and dislikes of a preferred food store. Respondent’s likes and dislikes relate to identify factors associated with repeat and loyal purchase behaviour. The conceptual framework of this study was based on Dick and Basu (1994) which conceptualises loyalty as the relationship between relative attitude towards a brand and patronage behaviour. The study identified preferred convenience attributes such as store location, familiarity with store layout, one-stop shopping and being able to get in and out in a hurry. Product related attributes are: product variety, good store brand, fresh produce and meats, making bulk item available and carrying general merchandise. The study also identified environmental attributes such as cleanliness, aisle width, layout and friendly clientele. Noise from announcements and music, small or narrow aisles, too hot or too cold temperatures, bad odours from bottle returns, big size of store, too busy and crowded and layout changes been selected by respondents as negative attributes. Huddleston et al (2003) pointed out that store commitment as a necessary condition for a store loyalty. Without commitment customers are spuriously loyal. Another study conducted by Koo (2003) among Korea Discount retail patrons to examine the interrelationships among store Images, Satisfaction and Store loyalty. How store images can influence consumers satisfaction and how consumers satisfaction can influence store loyalty. The conceptual model developed by Koo (2003) indicates that various discount retail characteristics have positive influences on attitude towards a discount retail store which leads to store satisfaction and this leads to store loyalty. Also it stresses that Discount retail store (DRS) attributes have a positive impact on store satisfaction. Thus create store loyalty. He developed six hypothesis based on his conceptual model. The research identified four store images such as Store atmosphere, employee service, merchandising and after sales service have significant impact on attitude, while location, convenient facilities and value have no impact on attitude. The research findings support Bloemer & Ruyter (1998), but it is contradictory to You et al (1998) who in their study showed that only location has a significant effect on attitude. Findings also partially support that store images (i. e. tore atmosphere and value) have a positive impact on store satisfaction, while location, convenient, after sales service and merchandising have not significant impact on store satisfaction. This support Bloemer & Ruyeter (1998), Kumar & Karande (2000), Thang & Tan (2003). Study further have identified Location, after sales service and merchandising have significant impact on store loyalty which contradict Bloemer & Ruyeter (1998) wh o identified that there is no direct relationship between store image and store loyalty, but an indirect impact on store loyalty through satisfaction. Koo 92003) concluded that the overall attitude towards discount retail has the greatest impact on store loyalty, followed by location, after sales service and merchandising. In Korean discount retail store environment his study indicates that store image and location are important factors in attracting patrons to the store. Furthermore, it indicates that satisfaction has an insignificant positive effect on store loyalty. 4 2006 EABR & ETLC Siena, Italy Jacoby and Chestnut (1978) defined store loyalty as â€Å"the biased (I. e. non random) behavioural response (I. . revisit) expressed overtime, by some decision making unit with respect to one store out of a set of store, which is a function of psychological (decision making and evaluation) processes resulting in brand commitment. However critical part of store loyalty is seen by Bloemer et al (1998) is store commitment which is a necessary condition for store loyalty to occur. They further stresses that a loyal customer is committed and that commitment arises from sharing explicit and extensive decision making as well as evaluative processes. Limited and non explicit decision making and evaluation process can leads to consumers not become committed to the store. Therefore they are not loyal. Based on store commitment they have defined a degree of store loyalty as true store loyalty and spurious store loyalty. CUSTOMER SATISFACTION TO CUSTOMER LOYALTY Customer satisfaction can be defined in many ways, one of which is â€Å" a person’s feeling of pleasure or disappointment from comparing a product’s perceived performance (or outcome) in relation to his or her expectations (Kotler, 2000). Bloemer et al (1998) also support this definition which states that satisfaction is occur through a matching pf expectation and perceived performance. Bloemer et al (1998) have identified two different types of satisfaction: manifest and latent satisfaction. Manifest satisfaction is the result of an evaluation which is well elaborated on where as latent satisfaction is the result of an implicit evaluation which is not elaborated on (Bloemer et al, 1998). Customer satisfaction positively influences customer retention, and increasing repeat sales (Anderson, Claes & Lehman, 1958). Moreover, `satisfaction level is a function of the difference between perceived performance and expectations` (Kotler, 1994). If the performance falls short of expectations the customer is dissatisfied. If the performance is exceeds expectations, the customer is highly satisfied. `High satisfaction may create an emotional affinity with the brand, not just a rational preference and this creates high brand loyalty (Kotler, 1994). Even if the customer is not highly satisfied, still from behavioural aspect of brand loyalty, the customer can be brand loyal. This can occur if no other alternative is available or may be alternatives are of a higher price which the consumers can not afford or if the customer’s purchase power is limited. Bloemer et al (1998) were conducted an empirical study in major Swiss city in the German-speaking part of Switzerland to establish relationship between Image, satisfaction and loyalty by developing three hypothesis. Hypothesis 1 examine whether positive relationship between manifest satisfaction and store loyalty is stronger than the positive relationship between latent satisfaction and store loyalty. Hypothesis 2: store image has a direct positive effect on store loyalty and hypothesis 3 examines the indirect positive effect of store image on store loyalty through store satisfaction. Their findings indicated that the relationship between store satisfaction and store loyalty depend on the type of satisfaction and tested all three hypotheses positively. However, the study conducted by Huddleston et al (2003) indicates that satisfaction does not imply commitment to a store either; many respondents stated that they could be persuaded to shop elsewhere. However, Heskett (2002) suggests that customer satisfaction is the lowest level from the five levelhierarchies of customer behaviours. Others customer behaviours are: mere loyalty (repeat purchase), commitment (willingness to refer others to a product or service), apostle-like behaviour (willingness to convince others to use a product or service) and ownership. Nevertheless, Sivdas and Baker-Prewitt (2000) pointed out that satisfaction influences relative attitude, repurchase and recommendation but has no direct effect on store loyalty. According to Sivdas and Baker-Prewitt (2000), service quality directly affects both relative attitude and satisfaction and that satisfaction affects relative attitude. Both relative attitude and satisfaction influence the likelihood of recommending but only satisfaction plays a part in influencing repurchase. Study further indicates that there is no direct relationship between relative attitude and repurchase and both relative attitude and satisfaction have no direct impact on royalty. Thus, it appears that relative attitude and satisfaction which is influenced by service quality can influence customer recommendation which leads to both customers repurchase and loyalty. Sivadas and baker-Prewitt (2000) study support Oliver’s model of loyalty in a store loyalty context. 5 2006 EABR & ETLC STORE IMAGE AND CUSTOMER LOYALTY Siena, Italy Existing literature indicates that store images have critical impact on store loyalty (Bloemer & Ruyter, 1998). Theoretical foundations of store images are found in theories of brand images (Koo, 2003). Store image or store attributes have significant influence on satisfaction. Store image is defined as the complex of a consumer’s perceptions of a store on different (salient) attributes (Bloemer and Ruyter, 1998), or a given consumer’s or target market’s perception of all of the attributes associated with a retail outlet to create and maintain a level of storeservice provision or quality for the store loyalty (Keaveny and Hunt, 1992; Lascu and Giese, 1995). The competition and increasing customer expectations have created a climate where â€Å"quality is concerned to be a major strategic variable for improving customer satisfaction (Smith, 1990). Lucas, Bush and Gresham (1994) said that decision to visit a particular store can be influenced by many factors, understanding such factors and building them into store operations can increase the profitability of gaining customer loyalty. They had identified the nine basic motives for the store selection includes: general store characteristics, physical characteristics of the store, convenience, merchandise, prices, store personnel, in-store effects, customer service and advertising. They had also identified the five motives for patronising ervices which include: quality of service provided, appointments, reasonable fees, waiting areas, attitude of service provider. Early studies of store images are closely related to the multiattribute model. Lindquist (1974) defines store images as a â€Å"structure of some sort that is tying together the dimensions that are at workâ€Å" and conceptualises store images as nine key attribute categories: merchandise, service, clientele, physical facilities, transaction satisfaction, promotion, store ambience, institutional factors and post transaction satisfaction. By combining retail marketing mix elements Ghosh (1990) identified eight elements of store image. These are location, merchandise, store atmosphere, customer service, price, advertising, personal selling and sales incentives programs. Customers may have different perception for different stores and different store may apply different attributes to attract different types of customers in different times and in different locations. Store images may differ between smaller and larger stores. A study conducted by Mitchell and Kiral (1998) found that there are differences between primary store loyal customers perception of their store and secondary store loyal customer perception of that store. This view is support to Hansen and Deutscher (1978) proposition that store attributes vary by store types. Mitchell and Kiral (1998) in their study they have asked 30 shoppers to identify which store attributes they use in Manchester at two grocery stores (e. g. Tesco and Kwick-save). They have identified three factors associated with customer perception and these are: Quality, Time and convenience, value. Tesco customer perceived quality, convenience and value factors in that order of importance while kwick-save customer perceived quality, value and convenience when considering Tesco. Theoretical base for modelling the grocery store loyalty After behavioural perspective on loyalty majority researchers measured loyalty as a pattern of repeat purchasing. The most relevant of the models for measurement the grocery store loyalty is Oliver’s four-stage loyalty model (Oliver, 1997). Oliver’s four-stag loyalty model produced in 1997 in a simplified form and suggests that customer loyalty progresses in four phases, with each phase representing a greater degree of loyalty. Four stages are: cognitive loyalty, affective loyalty, conative loyalty and action loyalty. Figure: The Oliver’s four stages of loyalty model COGNITIVE Cost and benefits AFFECTIVE CONATIVE ACTION *Frequency of shopping Relative attitude *Recommendation *satisfaction *Repurchase intentions Cognitive Loyalty: At this stage consumers are more concerned about quality and prices of the products and services and this is why they patronise the store rather than other stores. However, at this stage loyalty may not be that strong because consumers can defect from that store and move to another store if they perceive it as a better 6 2006 EABR & ETLC Siena, Ita ly option. So, service quality evaluation can be taken as a good indicator of their cognitive loyalty. To understand Bangladeshi consumers’ cognitive loyalty three questions were selected to measure this category of loyalty. Affective Loyalty: At this stage consumers’ loyalty is based on relative attitude towards the store and satisfaction gained. The relative attitude is the result of their previous loyalty based on cognitive loyalty. Therefore relative attitude and satisfaction were used as independent variables to measures consumers’ affective loyalty towards the store. There are 26 question in nine categories selected to measure affective loyalty. Categories are: convenience of store location, convenience of service provisions, congestion, cleanliness and store atmosphere, variety of ranges, shopping difficulties, travel difficulties, unfamiliarity and degree of customer service from sales personnel. Co-native Loyalty: Having a relative attitude towards the store and being satisfied with the store a consumer will hold a commitment to buy there, so repurchase intentions will be increased and consumers are willing to recommend to others. Two questions were selected to measure a consumer’s co-native loyalty towards the store. Action loyalty: This is the final stage of a consumer’s loyalty. With this loyalty a consumer will be retained with the store thus leading to frequency of shopping there. Therefore, one simple question was asked to consumer to measure this loyalty. RESEARCH METHODOLOGY The research was based on selecting three (3) leading grocery retailers from Bangladesh. Stores were selected based on market share and length of operation. In order to understand consumer loyalty in Bangladesh Oliver’s four stage of loyalty model (Cognitive loyalty: consumers consciousness with cost and benefits; Affective loyalty: Consumer conscious with satisfaction; Co-native loyalty: consumers recommendation to other people and repurchase behaviour and Action loyalty: consumers’ frequencies of store visits) were adopted. Data were colleted using a random sample of consumers. The data and information were collected from selected grocery stores in Bangladesh. Consumers who have significant knowledge of the topic were identified and selected at random for questioning. Interviews were conducted face to face on exit from three selected superstores to capture the attitude and experience of consumers who had just purchased grocery items. The choice of face to face interview was in order to get high response rate and reduce the response bias. A low response rate is a common problem with self-completion questionnaires and can be subject to response bias, especially in that people with reading and writing difficulties are less likely to respond (Robson, 2002). Furthermore, the refusal rate for face to face interviews is very lower than the non-response rate for postal questionnaires. A sample of 50 consumers in each store (3*50) making a total of 150 food shopping consumers from the three (3) selected stores in Bangladesh were selected. However, 10 subjects were not included due to incomplete answers. It is logical that the larger the size of the sample, the greater is the precision or reliability when research is replicated (Saunders et al, 1997). But constraints on time, manpower and costs influenced decisions on sample size in this study. The sample size was found to be representative for the store population. A study conducted by Bloemer and Ruyter (1998) in a major Swiss city in the German-speaking part of Switzerland used only 153. The current market leaders in grocery retailing in Bangladesh include-Agora, Nandan, and Value Plus were selected as samples for investigation. DATA COLLECTION AND ANALYSIS Data were collected in early March 2005 by trained interviewers throughout the week. In order to reduce possible shopping patterns biases all interviewers used stratifying interviews across the time of the day (morning, early afternoon, and late afternoon) (Odekerken-Schroder et al, 2001) and weekend (Thursday and Friday). As a Muslim populated country Friday is the official holiday and Thursday normally half-day off. But special consideration were placed on weekend and evening when most of the people are going for shopping and this time always busy. All interviews were last for maximum of 12 minutes. 7 2006 EABR & ETLC Siena, Italy After collecting data from the field data were coded and analysed by using SPSS version 11 software programmes. Quantitative analysis was used to understand the degree of store loyalty. RESULTS The main findings were: Cognitive Loyalty Cognitive loyalty factors are associated with cost and benefits and three statements were asked to consumers concerning cost and benefits. The mean average of consumers was 3. 94 and SD was 0. 929. These refer to the grocery consumers in Bangladesh conscious with cost and benefit when they were shopping (on a scale rating from one to five). In this category, the first question was ‘If a store provides a better price, I am going to buy from the store’, the mean averages and SD of the consumers replies was 3. 77 and 0. 876. The second question was `If any store provides better quality, I am going to buy from that store`. The mean average and SD was 3. 92 and . 953. The third question to understand the degree of consciousness towards cost and benefits was `I am always concerned about price and quality`, the mean and SD for this was: 4. 13 and 0. 958. Table: Cognitive loyalty Cognitive loyalty factors If a store provides a better price, I am going to buy If any store provides better quality, I am going to buy I am always concerned about price and quality Total Mean 3. 77 3. 92 4. 13 3. 94 Std. Deviation . 876 . 953 . 958 0. 929 Affective loyalty The mean average was 3. 98 and SD was 0. 892 . These results indicate that consumers in Bangladesh conscious with satisfaction when they did shopping. In this category total 25 statements were asked to consumers with nine specific factors. These factors were: convenience of store location, convenience of service provisions, congestion, cleanness and store atmosphere, variety of ranges, shopping difficulty, travel difficulty, unfamiliarity and customer service by sales personnel. These factors were chosen to understand consumer’s relative attitudes the store and satisfaction 8 2006 EABR & ETLC Table: Affective loyalty Affective loyalty factors Parking facilities Convenient location Inside the store temperature Good place for shopping with children Credit card payment Opening and closing times Visually appealing interior Good customer service Duration of checking out time Convenient to move around Atmosphere of the store is good Cleanliness of the store Pleasantness of the place Variety of items Variety of branded items Quality & variety of imported products Overcrowded in the store Long waiting time at the checkout Transportation is inconvenient Much time & effort for parking a car I am familiar with store layout Familiar with the store since I used to shop here Has presentable sales personnel Has sales personnel who show a sincere interest Has sales personnel who are willing to help Total Mean 3. 89 4. 06 4. 21 3. 86 3. 66 3. 86 4. 02 4. 46 3. 46 3. 89 4. 46 4. 60 4. 59 4. 51 4. 49 4. 37 3. 12 3. 8 3. 21 3. 29 3. 32 3. 49 4. 37 4. 37 4. 37 3. 98 Std. Deviation . 874 1. 09 8 . 747 . 878 . 845 . 878 . 809 . 723 . 932 . 972 . 661 . 644 . 710 . 735 . 791 . 924 1. 042 . 916 . 956 . 834 . 984 1. 083 . 733 . 743 . 752 0. 892 Siena, Italy Co-native loyalty Two questions were selected to measure consumers’ co-native loyalty towards the store. At this stage consumers must have a positive attitude and commitment towards the store and thus create repurchase intention. Based on customer’s satisfaction they tend to recommend their friends and relatives. Findings indicate that satisfied consumers are likely to recommend their friends and repurchase. The first question was `how likely would you be to recommend`, where the mean average and SD were: 4. 35 and 0. 709. The second question was `how likely would you be to purchase at this store`, giving a mean average and SD of: 4. 17 and . 831 respectively. Table: Co-native loyalty Co native Loyalty factors How likely would you be to recommend How likely would you be to purchase at this store Total Mean 4. 35 4. 17 4. 26 Std. Deviation . 709 . 831 . 776 Action loyalty This is the final criteria of Oliver’s loyalty model which indicates that having fulfilled all previous stages at this stage consumers tend to retain their connection with the store so leading to continued frequencies of shopping. Only one simple question was asked to measure consumers retention and that was `how often do you purchase at this store`. The mean average and SD were 3. 47 and 1. 305 9 2006 EABR & ETLC Table: Action loyalty Action Loyalty factor How often do you purchase at this store Total Mean 3. 47 Std. Deviation 1. 305 Siena, Italy DISCUSSIONS The survey results indicate that Bangladeshi food consumers are conscious of the cost and benefit (Cognitive loyalty), are conscious with satisfaction (Affective loyalty), satisfied consumers are likely to recommend their primary super store to their family and friends (Co-native Loyalty) and also they have frequencies of visit (Action Loyalty). Table: Level of food consumer loyalty in Bangladesh Stages of loyalty Cognitive Affective Co-native Action Store loyalty Conscious with cost and benefits Conscious with satisfaction Likely to recommend to their family and friends Have frequencies of visit Consumers respond differently in every country (Child, Heywood and Kliger, 2002), as international retailing has become an important feature of global distribution systems. This has been brought about through changing socio economic patterns, favourable political and cultural environments and a shift from manufacturing to service based economies (Quinn and Alexander, 2002). Although in Bangladesh the retailing environment is totally different from its counterparts the results indicate that Oliver’s four stages of consumer store loyalty model is still applicable. Consumers’ loyalty can be measured through cognitive, affective, co-native and action behavioural patterns. From the findings it is clear that consumers are very conscious with cost and benefits (cognitive loyalty). This is the basis to create a favourable attitude towards the store and through the process of providing store and service attributes consumers will be satisfied, thus indicating that consumers are conscious with satisfaction (affective loyalty). A satisfied consumer will tend to recommend to their friends and family the product and service they tend to buy from (Co-native loyalty) and at the same time their repurchase intention tends to increase (Action loyalty). CONCLUSIONS Store loyalty is a very important phenomenon for retailers to understand the underlying principles and antecedents in order to retain and acquire more customers. Loyal customers spend more money and at the same time recommend the store to their family and friends, thus bringing more customers and profit for the retailers. It is of paramount important for managers to identify the specific characteristics which can influence consumers to shop from their store. As characteristics of retailing environments are changing, along with consumer’s behaviour, patterns of choice and mode of shopping, retailers must respond quickly to those changes in order to sustain and achieve competitive advantage. The study looked at the degree of store loyalty by applying Oliver’s four stages of store loyalty model. The implications for management and retailers are that they must look closely at the kind of price and quality they are offering, as customers are more conscious with cost and benefits. Although this cognitive stage of consumers’ loyalty will not create a strong association with their commitment or favourable attitude, it does have positive impact on their next stage of loyalty behaviour which is the affective stage. To create a favourable attitude amongst consumers’ towards the store retailers must use specific service or product attributes. The research indicates that convenient location, good customer service, atmosphere of the store, 10 2006 EABR & ETLC Siena, Italy cleanliness, quality and variety of imported products and good sales personnel are the major attributes to satisfy customers. 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