Abstract
This paper takes a first step towards verifying a loyalty building model in the Indian retail sector. The results show that the intensity of some core loyalty model paths in developed countries, are confirmed within the Indian retail sector. One such path refers to the relationship between store loyalty and its main driver, customer satisfaction. Satisfaction comes mainly from the store environment and the perceived value according to customers, which is influenced by the retailers’ product assortment decisions. Surprisingly, promotions don’t have an impact on the perceived value, while the perceived value has only a small and negative impact on store loyalty.