Abstract

This study highlights the optimal operation model for retailers to use in exploring the effect of customer loyalty and service quality on customer shopping preference. It offers a more profound understanding of the value of customer service and innovation in generic operation skills in international retailers (IR). This research uses the Likert and Semantic differential scale methods through the MTMM (multitrait-multimethod) to measure reliability, validity, and take two competing models to analyze the model fitness. The two competing model strongly shows the impact on channel retailers when they develop an optimal operation to probe the customer preference. The finding of Host Country Retailer (HCR) should reinforce their service quality by canvassing more customers shopping in the stores, and improve their service feedback speed. In a competition between the semantic scale of SEM and the Likert scale, measurements make it obvious that the Likert scale of SEM is more powerful. It’s good for the retailers and business manager to have furthering understand the operation skill and service improvement. The leader of channel retailers should from mind to start targeting their goal and incremental market value to service more customers shopping preferences.

Key words: Operation, service quality, international retailer, host country retailer, shopping preferences.