The Effects of Customer Perceived Value and Customer Engagement on Customer Loyalty: The Mediating Role of Customer Satisfaction

Abstract

Customer loyalty is a strategic priority for fashion retailers operating in highly competitive omnichannel environments. This study examines the effects of customer perceived value and customer engagement on customer loyalty, with customer satisfaction serving as a mediating variable in the Bangladeshi fashion industry. Drawing on Social Exchange Theory, the study argues that customers reciprocate perceived benefits, such as superior value and meaningful engagement, with positive attitudes and behaviors, including loyalty.  A quantitative, cross-sectional research design was used, and data were collected through a structured questionnaire survey. The sample consisted of 200 customers of leading omnichannel fashion brands in Bangladesh. Stratified sampling ensured representation across different demographic groups. The data were analyzed using Structural Equation Modeling (SEM) to test both direct and indirect relationships.  The findings show that customer perceived value and customer engagement have statistically significant positive effect on customer loyalty. Customer satisfaction also has a significant mediating effect on these relationships. This indicates that value and engagement influence loyalty both directly and indirectly through satisfaction. The results emphasize the important role of satisfaction in strengthening the relationship between customers’ evaluations, emotional connections, and long-term loyalty. The study extends existing theories to an emerging market context and offers practical guidance for retailers seeking to enhance customer loyalty.