Do Store and Brand Attachments Influence Customer Loyalty? Evidence From Migrant Workers in Taiwan

The number of migrant workers in Taiwan has been increasing annually. Over the past decade, migrant workers have contributed to the nation's economic growth, particularly in the construction, fishing, nursing, and public service sectors. Although many practitioners and scholars have articulated the significance of managing and understanding the migrant workers' work and living conditions, research on the complex influences targeting their shopping behavior, attachment, and customer loyalty has not been steady. This study aimed to develop and empirically test a framework to examine the effects of store image, service quality, product attributes, and sales promotion on store and brand attachments, affecting customers' loyalty to stores among migrant workers. The study employed the Mehrabian-Russell Model and attachment theory as theoretical bases. Empirical data was collected from 504 migrant workers in Taiwan through the purposive sampling technique using a questionnaire survey. Data analysis, hypotheses testing, and model validation were performed through SmartPLS 3.2.8 statistical software. The findings showed that store image and service quality were positively related to store attachment. Product attributes and sales promotion were positively related to brand attachment. Additionally, store and brand attachments are positively related to customer loyalty. Therefore, store and brand attachment were mediators linking store image, service quality, product attributes, and sales promotion to customer loyalty. According to the findings, the study offers implications and suggestions for researchers and practitioners in the retail sector, especially for retail stores related to migrant workers. This study focuses on the perceptions of customers of migrant workers in the context of the retail market of migrant stores in Taiwan, a developing country, and investigates the effects of store image, service quality, product attributes and sales promotion on store attachment and brand attachment, and further on customer loyalty, and explores the mediating effects of store attachment and brand attachment. With the slowdown of the covid-19 epidemic and the increase in labour demand due to declining birthrate and aging population, the number of migrant workers will increase year on year. There are currently 660,000 Southeast Asian migrant workers and about 160,000 Southeast Asian spouses in Taiwan. With each person spending NT$5,000 per month, there is a NT$49.2 billion business opportunity in a year. Faced with the consuming power and market opportunities created by migrant workers and spouses from Southeast Asian countries, Taiwan's migrant stores need to better understand the consumption behaviour of their customers of migrant workers and raise the attention of store operators to identify the influencing factors to ensure and enhance their strong base of customers. The findings of this study show that store image and service quality of migrant stores have a positive and significant impact on store attachment of migrant workers. Furthermore, product attributes and sales promotions offered by the migrant stores positively and significantly affect brand attachment of migrant workers. Finally, migrant store operators should focus on developing and building positive, holistic store and brand attachments in the minds of migrant workers.