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International Journal of Civil Engineering and Technology (IJCIET)

Volume 9, Issue 13, December 2018, pp.1330–1354, Article ID: IJCIET_09_13_136

Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=9&IType=13

ISSN Print: 0976-6308 and ISSN Online: 0976-6316

©IAEME Publication Scopus Indexed

THE DETERMINANT ANALYSIS THAT

AFFECTS THE MODERN RETAIL IMAGE AND

ITS IMPLICATIONS FOR CONSUMERS

REPURCHASE INTENTION IN MEDAN,

INDONESIA

Sugito

Student of Doctoral Program in Management Science,

Universitas Sumatera Utara, Medan, Indonesia

Arlina Nurbaity Lubis, Endang Sulistya Rini and Yeni Absah

Lecturer of Doctoral Program in Management Science,

Universitas Sumatera Utara, Medan, Indonesia

ABSTRACT

Repurchase intention is a recurring frequency of purchases made by consumers

who have committed to the product, brand image or store image, which is often used

to measure the impact of the company's applied strategy concerning marketing. The

present study aims at analyzing the determinants that affect the modern retail image

and its implications for the retail consumer repurchase intention in Medan. This study

used Structural Equation Modeling (SEM) analysis tool. Population in this research is

the modern retail consumer in Medan city.

Several empirical findings of this study are reference groups that have significant

effects on the modern retail image. The perceived value does not have a significant

effect on the modern retail image. Organized retail has a significant influence on the

modern retail image. Store atmosphere has a significant effect on the modern retail

image. Consumers psychographic has a significant influence on the modern retail

image. The reference groups have a significant effect on consumer repurchase

intention. The perceived value does not have a significant effect on the consumer's

repurchase intention. Organized retail has a significant effect on repurchase intention.

Store atmosphere has a significant effect on consumer's repurchase intention.

Consumers' psychographic have a significant influence on consumer repurchase

intention. The modern retail image has a significant effect on consumer repurchase

intention. The reference groups through modern retail image do not have a significant

effect on consumer repurchase intention. The perceived value through modern retail

image does not have a significant effect on consumer repurchase intention. Organized

retail through modern retail image has a significant effect on consumer repurchase

Sugito, Arlina Nurbaity Lubis, Endang Sulistya Rini and Yeni Absah


intention. Store atmosphere through modern retail image has a significant effect on

consumer repurchase intention. Consumers' psychographics through modern retail

image does not have a significant effect on consumer repurchase intention.

Keywords: Reference Group, Perceived Value, Organized Retail, Store Atmosphere,

Consumer Psychographics, Modern Retail Image, Repurchase Intention.

Cite this Article: Sugito, Arlina Nurbaity Lubis, Endang Sulistya Rini and Yeni

Absah, The Determinant Analysis That Affects The Modern Retail Image and Its

Implications For Consumers Repurchase Intention In Medan, Indonesia, International

Journal of Civil Engineering and Technology (IJCIET) 9(13), 2018, pp. 1330–1354.

http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=9&IType=13

1. INTRODUCTION

Nowadays, the retail market is a marketing alternative amongst the people. Organizing

marketing in the form of modern retail has become attractive. Retail business is a business

activity related to the sale and delivery of services to consumers for the use of the nature of

the individual or the group. The success of a competitive retail market always offers suitable

and appropriate products, with the price, time and atmosphere of a pleasant place. Therefore,

understanding the retailers and target market characteristics or serving consumers has become

substantive. Retail marketing tends to perceive changes in consumer behavior in the shopping,

consumer needs, technological change, and business development. Until now, modern

retailing is proliferating and competing with modern retailers, even online retailing. Given the

rapid growth in the population of Medan, then daily necessities are a fundamental factor. The

fact has attracted investors to develop modern minimarkets and even hypermarkets. As the

advancement of information and production technology has led the lifestyle of the community

to move towards modernization in the fulfillment of daily needs. Citizens' expectation for the

concept of excellent service and modern organized retail business has led to the rise of

modern retail with the idea of a franchise

Modern retail business in Indonesia has generally proven reliability and its growing

presence, spreading in strategic places. In addition to increasing public income, demographic

bonuses are the reason why retail business develops up to now. Table 1. below presents retail

market in Indonesia in various formats.

Table 1 Retail Growth in Indonesia in Various Formats (In Rupiah Trillions)

RETAIL

BUSINESS 2010 2011 2012 2013 2014 2015

MINIMARKET 28 37 46 55 78,1 92,3

SUPERMARKET 38 44 50 56 73,0 89,2

HYPERMARKET 24 27 31 36 38,8 51,0

TOTAL 90 108 127 146 181 232,5

The phenomenon of consumer behavior that has begun to shift shopping from traditional

retail to the modern retail market. As a result of the capability of business owners to provide a

pleasant concept to consumers and a comfortable shopping environment. Psychologically, it

has changed the habits and interests of consumers in shopping. Another noteworthy fact is

that managing more modern professional retailer, which emphasizes the principles of

excellent service and complete product availability has made traditional retail markets tended

to abandon by consumers. Modern retail stores that have a comfortable store atmosphere are

supposed to generate consumer repurchase intention. Current retail management with a

trusted store brand and a delightful store atmosphere may stimulate consumers to enjoy their

The Determinant Analysis That Affects The Modern Retail Image and Its Implications For Consumers

Repurchase Intention In Medan, Indonesia


shopping. Shopping is not just a place to put things away, but more than that. In addition to

the comfort and atmosphere, some other things concern the lifestyle and consumer

psychological satisfaction that ultimately raises their interest to revisits and re-shopping

enthusiasm.

indicators will form repurchase intention among others shopping frequency, customer

commitment, and positive recommendations, (Hawkins et al., 2015). The motivational level

of consumers in repurchasing behavior towards a product and service is characterized by the

use of a brand of goods or services that sustainability. The consumer's tendency to repurchase

goods and services, in the indirect way consumers have had brand loyalty behavior of certain

goods and services. Reference groups can also influence the perceived brand value of the

modern retail business for a variety of positive information on specific recent retail

recommendations. The assumption has been proved by some scholars such as Dawson (2010)

who have found that reference groups have a positive and significant effect on the

organization's image. Also by Frouzan Far, Meimar, and Tagipour (2012) have found the

influence of reference groups on the organization's image.

On the other hand, prospective customers are likely to give a positive perception when the

value offered by modern retail through brand stores, layout, music, aroma, texture, building

design, and equipment. Consumer perceived value that is formed will impact the brand image

of a business entity (Adriza, 2014; Taleghani & Almasi, 2011) There are three fundamental

arguments for why retailers need to market sustainable products, among others, to build

customer value, make brand image and increase request for sustainable products (Elizondo,

2010). Organized retail with sustainable marketing patterns is still a significant issue of

scholars who focus on retail marketing studies. For example, El-Adly, (2007) has identified

six factors that affect consumers in shopping centers or organized retail include comfort,

diversity, entertainment, essence, and luxury. Shopping activity becomes a regular consumer

activity. Therefore, the retailer should provide a pleasant atmosphere and bring a sense of fun

and pleasure to consumers (Howard, 2007). Convenient store atmosphere allows a positive

attitude toward consumers and ultimately benefits the company. Berman (2002) has

highlighted four determinant factors that became consumers' assessment including Exterior,

General interior, store layout, interior display. Store atmosphere tends to affect the consumer

psychographic side. There are two concepts in psychographics, which first illustrates the

psychological characteristics of consumers that further lead to the identification of consumer

personality (self-concept). Second, the psychographic aspect as a study of activities, interests,

opinions. However, psychographic practice is used to measure the lifestyle of consumers by

analyzing activities, interests, and opinions (Prasetijo, 2004).

Several prior studies have highlighted the role of reference groups (William, 2001),

perceived value towards purchase intention (Hsinkuang, 2009). Apart from that Piyali Ghosh

(2010) who has been researching on organized retail, store attributes, purchasing patterns,

store atmosphere with endogenous variables is a store selection. Primadhany (2011) has used

psychographic factors, social factors, information processes as independent variables and

student decisions as dependent variables. In this case, the author elaborates several studies of

William (2001), Hsinkuang Chi (2010), Primadhany (2011), whose exogenous variables are

reference groups, perceived value, Organized Retail, Store Atmosphere and Consumer

Psychography, to Retail Image Modern as a direct influence on endogenous consumer

repurchase intention variables in Medan as a direct influence. While the indirect influence

was mediated by the intervening variable of Modern Retail Image.



1.1. Problem Identification

1. Convenience shopping has become a basic need for consumers.

2. Consumer trends have switched from shopping in traditional to modern retail which

supposed due to shopping convenience factors.

3. Traditional store image is relatively less concerned with consumer psychologic

factors such as those who prefer to Exterior, General interior, store layout, attractive

interior display.

4. The emergence of a massively organized retail offering a comfortable environment

and atmosphere.

The appropriate problem statement is to explain the relationship between two or more

variables expressed in the form of an answer or an alternative sentence, but implicitly contains

a question (Sekaran, 2017). Based on the problem identification and elaboration of previous

research, the authors compiled some research questions as follows:

RQ1: Does the reference group have a positive and significant influence on modern retail

image?

RQ2: Does perceived value have a positive and significant influence on modern retail image?

RQ3: Does organized retail have a positive and significant influence on the modern retail

image?

RQ4: Does the store atmosphere have a positive and significant influence on modern retail

image?

RQ5: Does customer psychographics have a positive and significant influence on modern

retail image?

RQ6: Does the reference group have a positive and significant influence on repurchase

intention in Medan?

RQ7: Does perceived value have a positive and significant influence on repurchase intention

in Medan?

RQ8: Does organized retail have a positive and significant influence on repurchase intention

in Medan?

RQ9: Does the store atmosphere have a positive and significant influence on consumer

repurchase intention in Medan?

RQ10: Does consumer psychographics have a positive and significant effect on consumer


RQ11: Does the modern retail image have a positive and significant influence on consumer


RQ12: Does the reference group have a positive and significant influence on consumer

repurchase intention through the modern retail image?

RQ13: Does perceived value have a positive and significant influence on consumer


RQ14: Does organized retail have a positive and significant influence on consumer


RQ15: Does the store atmosphere have a positive and significant influence on consumer


RQ16: Does consumer psychographics have a positive and significant effect on consumer





2. LITERATURE REVIEW

2.1. Reference Group

Reference groups as a group of people who have a direct or indirect effect on individual

attitudes and behaviors (Kotler, 2012; Herbet, 2013). Indirect reference groups consist of

individuals or groups who do not have direct contacts, such as film stars, sports heroes,

political leaders, or people who look interesting at street corners (Schiffman et al., 2012). The

reference group is considered as a comparison (reference) to a person in shaping general or

specific values. The marketing perspective explains that the reference group is the basis of a

person's recommendation in determining choices and decisions. Reference groups are

considered capable of influencing, representing one's aspiration and behavior in forming

values and attitudes. Reference groups can be decisive about how individuals think or behave.

They always give feedback and even influence someone to do something in a purchase.

Hawkins et al. (2013) have divided three influences from reference groups, among others:

Informational influence, normative influence, the latter is the influence of Identification, also

known as Value -Expressive influence. The reference group was measured using indicators of

normative and informational influences (Makgosa et al., 2007). The intellectuals measure

with indicators of normative influence and a value expression (Jiaqin Yang et al., 2007).

Furthermore, other scholars such as Frouzan (2012) have presented several attributes of

reference groups among others: a) Socially, individuals are influenced by groups they believe

are important. b) Individual use certain groups as a guide as to how they should behave or

normative reference group. c) Individuals use groups as a basis for comparing themselves to

other individuals or other groups. d) Individuals can and do use more than one group as a

reference guide or multiple reference group. e) Certain groups that individuals use as a point

of reference process the power to influence attitudes and behavior of individuals who may or

may not be members of the group.

2.2. Perceived Value

Mohammad (2011) has stated that perceived value is defined as the judgment or evaluation

made by the customer of the comparison between the utility obtained from, a product, service

or relationship and the perceived sacrifices or costs. Meng et al. (2011) have defined

perceived value is a subjective evaluation of consumers feeling and the balance of payment

and obtainment. Khoddami, Moradi, and Ahmadi (2011) have stated that the overall perceived

value of mass customization has been explained as the willingness to pay a premium for the

customized product as opposed to a standard product. Alves (2010) has stated that value is the

overall evaluation that the consumer makes of a product based on perceptions of that given in

exchange for that which is received value delivery. Khan and Kadir (2011) have stated that

the multidimensional measure of perceived value must be functional and relational aspects.

Consumers perceived value according to the difference between the 'utility' or the benefits

provided by the attribute of a product and the disutility of the unprofitable represented by the

price paid (Tellis, 2009) or as a trade-off or exchange between price and quality (Sinha,

2008).

Other scholars such as (Alves, 2010) have argued that Customer value is a customer's

perceived preference for an evaluation of those product attributes, attributing performances,

and consequences arising from use that facilitate (or block), achieving the customer's goals

and purposes in usage situations. Evans (2002) has stated that Dimension customer value

management (CVM) aims to improve the productivity of marketing activity, and the

profitability of the business by identifying the value of different customer segments and

aligning strategic marketing, plans, and resourcing accordingly. Customer value management



(CVM) aims to increase the productivity of marketing activities, and business profitability by

identifying different customer segments and strategic marketing, plans, and resources.

The effect of customer value is as an enabling factor of a firm to create customer loyalty.

Other statements submitted by Khan and Kadir (2011), the first approach holds that

consumers derive value according to the difference between 'utility' provided by attributes of

a product and 'disutility' represented by the price paid (Tellis and Gaeth, 1990). This approach

is supported by Sinha and DeSarbo (1998) and stressed that customer perceived value is

considered a trade-off between price and quality. Heinonen (2004) states that it has been

suggested that customer perceived value is formed of the trade-off between benefit and

sacrifice.

Regarding the value of perception, in fact, there is debatable among scholars, and there is

no consensus on the exact dimensions to measure it. It has also been revealed by Nasreen

Khan (2010) in his research reveals that most scholars are more focused on the value of

physical products, while other scholars focus on the value of the relationship. From this side,

it can be asserted that the dimensions of perceived value can be measured from the perceived

functional value and the perceived relational value.

2.3. Organized Retail

Cheng (2002) has explored an organized retailer where consumer perceptions have an

influence on shopping behavior such as how the shop selection is based on demographic and

psychographic factors. Organized retailing will have an impact on sustainable marketing that

ultimately leads to the success of a sustainable retail strategy. The simple logic is that retailers

who market products and have ongoing initiatives will shape customer value, build favorable

brand image, and increase demand for sustainable products.

According to Wilhelm (2005), teens prefer to go to a friendly shopping center and make

them feel welcome that is a feature of organized retail. They want the stalls provided are cool,

entertainment options, attractive designs and a great place to spend time with friends from an

enjoyable shopping experience. Keng et al. (2007) have found that personal interaction is

really optimistic influenced by the perception of efficiency and excellent value. Encounters in

physical environments affect aesthetic perceptions and playfulness and all dimensions of

customer's experimental values.

El-Adly, (2007) has identified six factors that affect retail or organized retail customers:

comfort, diversity, entertainment, essence, and luxury. Howard (2007) has believed that

shopping is a free throw and with the rapid development of shopping centers, both retailers

and developers seek to make it more than fun activities. Kalhan (2007) has mentioned the

factors that cause a decline in sales. The decline in sales is due to the superior shopping

environment, convenience, variety availability, store atmosphere, availability of parking

spaces and the perception of the quality of the products being sold. Kushwaha (2011) has

found that factors such as cleanliness, distance, price, quality, security and room for shopping

are a deciding factor for organized retail.

Accelerating connotation becomes sensitive to customer time and line checkout length,

and being proactive in speeding up the shopping process. Terblanche (2006) has suggested

that retailers should accept that it is not just what they are marketing but also how it is done.

Face-to-face interaction between retail staff and buyers affects shopping time. According to

Molina (2009), sales personnel are required to offer instant services to consumers, full

attention and to make customers feel willing to help. According to Ghosh, et al. (2010), that

salespeople have sufficient knowledge of the products offered at the store and they can handle

complaints, highly skilled, motivated and help sales personnel in courtesy, causing customers

to revisit the store and be wrong a success factor in retail. Perceptions that benefit shopping




quality, checkout speed, shopping efficiencies and quality of time spent shopping lead to

satisfaction; further satisfaction leads to repurchasing intentions.

Molina et al. (2009) have found that more positive customer expectations if there are more

salespeople seen in the store. Positive expectations, as customers, believe that personnel will

assist them in the purchase and checkout process. While when the store is crowded, customers

have more negative expectations. In organized retail stores consumers are experiencing fast,

error-free, with cash memos, free home delivery, and on-time delivery. According to Zia et al.

(2012) shopping convenience, helping employees, quickly and free of sales errors is a

significant factor that attracts consumers to organized retail outlets. Organized retailers

always provide convenience in shopping; employees are easy to interact with consumers

because the applied system holds the principle of quick and error free. Organized retail outlets

run on the principle of cash without the occurrence of debt-claims that can disrupt organized

retail outlets.

2.4. Store Atmosphere

Kotler et al. (2015) have explained, when a consumer enters a store, they do not only give a

product and price rating offered by the retailer, but respond to the environment created by the

retailer through store layout, creative display arrangement, attractive building design, distance

among shelves, symbols, temperatures, and music being sung. According to J. Paul Peter

(2016), Store atmosphere is defined as primarily involves affecting in the form of in-store

emotional states that consumers may not be fully conscious of when shopping. Store

atmosphere has significant effects on behavior because the emotional states are difficult for

consumers to verbalize, are rather transient and affect in-store behaviors in ways consumers

may not be aware.

Also, there are four determining factors used to assess store atmosphere according to

Berman, et al. (2012) are Exterior, General interior, store layout, interior display. Exterior,

which is the outside of the store that can describe the characteristics of the store. Designs of

the exterior that have a distinctive feature make consumers interested in entering the store.

General Interior, various consumer motives enter the store. Starting from arrangements that

can attract visitors and help them make it easy to observe, check and select those items and

finally make a purchase.

According to J. Paul Peter (2016) that store atmosphere relates to how managers can

manipulate building design, interior space, hallway layout, carpet and wall texture, color,

shape, arrangement of goods, exhibits/shows and the voices experienced by customers all aim

to achieve specific influences and can influence consumer perceptions of the store

atmosphere. According to Jasniko (2013), store atmosphere is a combination of physical

characteristics such as arithmetic, layout, lighting, color, temperature, music, and aromas that

aim to design emotional responses and customer perceptions and to influence customers in

purchasing goods

2.5. Consumer psychographics

James F. Enggel (2012) has stated that psychographic is another term for lifestyle - those

patterns by which people live and spend time and money. Much greater use is made of AIO

(Activities, Interest, and Opinion). It can be explained that psychographic as a study of

activities, interests, opinions. In practice, however, psychographics are used to measure the

lifestyle of consumers by analyzing activities, interests, and opinions (AIOs) Psychographic

consumers will influence shopping behavior. David Loudon and Della Bitta (2013) have

noted that shopping behavior is about to store selection, research has shown that many

Spanish-speaking housewives feel lost in supermarkets where they are surrounded by many



unfamiliar products and are inhibited about asking questions because such uneasiness exists

about large stores, Hispanics do a large amount of their shopping in bodegas, which are a

small neighborhood store.

Mowen (2010) has explained that psychographics are the main techniques used for

research on consumer behavior as a measure of lifestyle, psychographic terms have an idea

depicting (graphs) psychological factors that make up the consumer. Furthermore, Mowen in

Prasetijo (2012) has defined that psychographic as a study of what constitutes a consumer

psychologically. There are two concepts in psychographically, first, describing the

psychological characteristics of consumers that more towards the identification of consumer

personality or self-concept. .Demby in Engel, et al. (2012) has explained that psychographic is

the use of psychological, sociological, and anthropological factors, such as the desired

benefits, self-concept, and lifestyle to determine how the market is predestined by the group's

tendency in the relevant marketplace and their reason for making accurate decisions about the

product, people, ideologies, or otherwise, adopt an attitude or use a medium.

Kotler and Armstrong (2015) point out that psychographic segmentation divides buyers

into different groups based on the characteristics of the social class, lifestyle, and personality.

Social Classes refer to grouping the same people in their behavior based on their economic

position in the marketplace. The status group reflects a community expectation of lifestyles

within each class as well as positive or negative social estimates of respect given to each

class.

2.6. Organizational image

Gray (2014) has stated that corporate image is the combination of consumers' perception and

attitude towards a business entity. Alves (2010) has stated that the image as the sum of

beliefs, ideas, and impressions that a person has of an object. The above statement is also

reinforced by Belanger (2013) who has stated that image is defined as the sum of beliefs,

attitudes, stereotypes, ideas, relevant behaviors or impressions that a person holds for an

object, person, or organization. Taleghani et al. (2011) have explained that brand or

organizational image can be defined as the perception about a brand as reflected by the cluster

of associations that consumers connect to the brand or organizational name in memory.

Meanwhile, Nguyen et al. (2016) have explained that organizational image is described

as the overall impression made on the minds of the public about an organization. Joanna et al.

(2016) have defined Corporate image, as a critical component of the corporate brand, has an

external focus and considers how external stakeholders view the organization. PR Smith

(2014) has described Corporate image is a perception and embraces everything from the

visual impression of a corporate logo to observation and experiences of product, services and

corporate behavior in general. Corporate image is a result of everything a company does. This

image is formed by a history of success, financial stability, product quality, export success,

good industrial relations, reputation as job creation, willingness to take on social

responsibility, and commitment to organizing research.

Hsiung (2011) has stated that, brand image as the material property associated with the

brand, such as the product name and the packing, which could make profits or sense for

customers and help or increase describing the characteristics. Organization images are

measured in three dimensions, namely (1) brand value with functional benefits, as well as the

basic conditions required by a brand. (2) Brand characteristics, which relate to customer

perceptions on differences. (3) Brand associations, associations that are presented by

customers on a brand, where customers will compare with other brand products and services.

The definition of an organization's image submitted by PR Smith (2015), has shown some

dimensions of the organization's image, which include, visual logos, product quality, and




service quality. The logo characteristic will affect the psychiatric factor that can inspire the

hearts of consumers.

The organization's image has an essential role in the development of consumer

psychology in memory that consumers perceive of retail organizations. The influence of retail

image will be the attraction for consumers in shopping. The organizational image presented

by Nguyen, et al (2016), PR Smith (2015) and Kotler (2015), therefore the definition of an

organization's image is described as a whole as the impression or perception of the company's

overall attributes ranging from visual impression to product quality or the service and

reputation of the company. This research also uses the definition of organizational adopts

submitted by Alves (2015), Belanger (2014), Long-Yi Lin (2010), Joanna (2016), as the

meanings of these scholars focus on brand image and organization image that is too intended

for affects the company's external environment in order to maximize profit.

2.7. Modern Retail

Retail trade or now even abbreviated to retail business. Ma'ruf (2012) has explained that retail

business is a business activity to sell goods or services to individuals for their needs, families,

and households. Kotler (2015) has defined that retail sales include the entire activity involved

in all sales of goods and services directly to end consumers for personal use and not for

business. Retail is a chain of distribution channels that connect the entire business and people

who include physical displacement and transfer of ownership of goods or services from

producers to consumers. William M. Pride (2014) has explained that retailing focus on the

activities required to facilitate exchanges with ultimate consumers, retailers are entered into

for personal, family or household purposes. Retail activities usually take place in a store or a

service establishment. Retail sales are more focused on serving home-based consumers who

always spend in meeting their needs. Ma'ruf (2012) has explained that the retail mix is a

combination of retail factors used to satisfy customer needs and influence their decision to

buy. These factors are location, merchandise, price, promotion, service, and store atmosphere.

Kotler (2015) has pointed out that retailing is a retail sale of goods that includes all sales

activities of goods or services at a personal end-user that is personal. Collecting items by

retail stores as a place to provide consumer goods or to meet the needs of end-consumer life.

Utami (2010) has reiterated that Retailing is a device of a business activity that sells goods or

services to end consumers for the use of individual and family consumption to meet their

daily needs.

2.8. Repurchase Intention

Hellier et al. (2016) have stated that repurchase intention is a person's planned decision to

repurchase certain services in consideration of the situation and the level of favor. Re-

purchase intentions occur after the consumer has made a purchase or may have consumed

them which result in their intention to re-purchase the same product or service. Philip et al.

(2015) have defined that repurchase intention is the individual's judgment about buying a

designated service again from the same company, taking into account his or her current

situation and likely circumstance. It can be explained that repurchase intention is a desire that

comes within the consumer to purchase his or her favorite product or service and has

previously purchased it based on the evaluation of the suitability of the product or service

performance in the expectation of the consumer.

Kotler (2015) has outlined several factors that may affect consumers in purchasing

intentions both internal and external factors. Internal factors from within the consumer are the

beliefs and attitudes of consumers towards the product or service, whereas the aggravating

external factor is the attitude of others and the situation of the purchase. Consumers will be

more willing to repurchase a product or service if the value offered by a product or service has



more value than their expectations. That value has a positive and interesting impression.

Consumers often intend to purchase because it is based on a desire that comes with emotions

making the purchase intentions higher. Backman et al. (2014) have explained the purpose of

repurchase is a motivational level of a consumer to repeat the buying behavior of a product,

one of which is indicated by the brand's use of a sustainable product.

At the moment the consumer has a repurchase goal of a product with a particular brand,

then at the same time indirectly the consumer also has a loyal and satisfied attitude towards

the brand. Well therefore at the time the consumer repurchases the same branded product, the

brand is actually from the consumer side already has brand value, or in other words, there is a

perceived value that the consumer receives.

Hawkins et al. (2015) has pointed out that people who have been motivated by intentions

will have the desire to repurchase to meet their needs or increase their purchases, and generate

a commitment to re-use the brand where that desire relates to consumer psychology, therefore

variable of repurchase intentions are formed from three indicators: purchase frequency,

customer commitment, and positive recommendation. Based on theoretical and previous

research, the authors developed the research hypotheses as follows:

H1: The reference group has a positive and significant influence on the modern retail image.

H2: The perceived value has a positive and significant influence on the modern retail image.

H3: Organized retail has a positive and significant influence on the modern retail image.

H4: The store atmosphere has a positive and significant influence on the modern retail image.

H5: Consumers psychographics have a positive and significant influence on modern retail

image.

H6: The reference group has a positive and significant influence on the repurchase intention

of modern retail consumers in Medan.

H7: The perceived value has a positive and significant influence on repurchase intention of

the modern retail consumer in Medan.

H8: Organized retail has a positive and significant influence on repurchase intention of

the modern retail consumer in Medan.

H9: Store atmosphere has a positive and significant influence on the repurchase intention of

the modern retail consumers in Medan.

H10: Consumer psychographics has a positive and significant influence on the repurchase

intention of modern retail consumers in Medan.

H11: Modern retail image has a positive and significant influence on repurchase intention of

modern retail consumers in Medan.

H12: The reference group through modern retail image has a positive and significant

influence on repurchase intention of the modern retail consumer in Medan.

H13: The perceived value through modern retail image has a positive and significant


H14: Organized retail through modern retail image has a positive and significant influence on

consumer repurchase intention in Medan.

H15: Store atmosphere through modern retail image has a positive and significant influence

on repurchase intention of the modern retail consumer in Medan.

H16: Consumer psychography through modern retail image has a positive and significant


3. RESEARCH METHODS

The present study is descriptive and verifiable research which is done through field data

collection. Therefore the research method used is a descriptive and explanatory survey. The

type of investigation used is causal research. The analysis unit of the study is modern retailers

chosen limited to Alfa Mart, Alfa Midi, and Indomaret located in Medan. Some of the reasons




for choosing these three retail businesses are that the three retailers have a modern concept,

the three retailers spread across the area in Medan. Furthermore, the products offered

represent recent and sustainable retail sales. Meanwhile, observation units in the study are

consumers who often shop and employees in these three modern retailers — modeling and

technique used as an analytical tool using SEM-AMOS.

The research method used a survey. The survey was conducted on selected populations

and samples. The survey also collected information about respondents by distributing

questionnaires (Arikunto, 2012). Using survey methods because of data for descriptive

research through several means, surveys, primary data, and observations. (Zikmund et al.,

2009).The first reason is to use a goal-related survey. The purpose of this study is to

investigate the phenomenon of reference groups, perceived value, organized retail, store

atmosphere, consumer psychographics, and consumer repurchase intention in Medan. The

researcher adopted the theory of marketing and the theory of consumer behavior as Grand

Theory. The second reason is using surveys regarding more accurate and scientific results

(Zikmund et al., 2009). The third reason is the data required in conducting surveys of modern

retail consumers and employees at modern retail stores (Alfa Mart, Alfa Midi, and

Indomaret). Therefore, the purpose of the research is to obtain research results related to the

determinants that affect the modern retail image and the implication of the modern retail

consumer repurchase intention in Medan.

The research population is consumers who shop in modern retail (focus on Alfa Midi

Consumer, Alfa Mart, and Indomaret) spread over twenty-one sub-district in Medan which is

divided into several clusters based on grouping in each sub-district. Thus, the population in

this study is 1,642,410 people, ranging from age 17 to 65 years. The age level was selected

because that age could be accountable logically about what was decided.

Determination of sample using a proportional technique of stratified random sampling

(Sugiyono, 2015). Furthermore, as a basis for calculating the size of the sample is based on

personal considerations. If the selection of sample size as a respondent is based on personal

considerations, then the sample is declared judgment sample (Nazir, 2014). While the amount

of sample by sample fraction. The authors use sample fraction of 0.0124% from 1,642,410

people, thus the number of samples becomes as follows:

n

f = ------------- x 100% = 0,0124% = 204.

1,642,410

Data collection tool by proposing several questions related to the variables to be

investigated using the questionnaire. The questionnaire used for the research sample was

measured using Likert Scale Summated Rating, with interval measure scale (Cooper, 2014).



4. RESULTS& DISCUSSIONS

4.1. Testing of Model Structure Equation Modeling After Modification

Table 2. Goodness of Fit Index Test

No Goodness of Fit

Index Cut of Value Test results Conclusion

1 Chi-Square

≤ Chi-Square-table

sig. 5% (0.05)

(565,748)

551,147 fit

2 Probability >0,05 0,112 fit

3 IFI >0.95 0,983 fit

4 TLI >0.90 0,980 fit

5 CFI >0.90 0,982 fit

6 NFI >0.90 0,805 Marginal

7 RMSEA <0,08 0,019 fit

Source: processed data, 2018

Table 2 presents the Chi Square-count value of 551,147 compared with the Chi Square-table

with a degree of freedom (df) 512 of 565,748, hence it is concluded that Chi Square-calculate

<Chi Square-table (551,147 <565,748). Thus, Goodness of fit Index Test on the side of the

Chi-Square value is stated that the model is fit.

If the Goodness of fit Index test using probability level shows that the probability value is

equal to 0.112 which is higher than 0.05 (p> 0,05), it is concluded that the Goodness of fit

Index test on the probability value side is stated that the model is fit.

The goodness of fit Index test using IFI level shows that IFI value is 0,983 which is higher

than 0.95 (p <0.95). It was concluded that the Goodness of fit Index test on the IFI value side

stated that the model is fit.

The goodness of fit Index test using TLI level shows that TLI value is 0.980 which is

higher than 0.90 (p <0.90). It was concluded that the Goodness of fit Index test on TLI value

was stated that the model was fit.

The goodness of fit Index test using CFI level indicates that CFI value is 0.998 which is

smaller than 0.90 (p <0.90). It is concluded that the Goodness of fit Index test on the side of

the CFI value is stated that the model is fit.

The goodness of fit Index test using NFI level indicates that NFI value is 0.805 which is

smaller than 0.90 (p <0.90). It is concluded that the Goodness of fit Index test on the NST

value side is stated that the model is marginal. It explains that NFIs can be ignored because

testing of Chi-Square and Probability is fit.

If the Goodness of fit Index test using the RMSEA value indicates that the RMSEA value

is 0.019 if compared to the RMSEA Cut of Value (0,08) it is known that the RMSEA value is

lower than the RMSEA Cut of Value value (0,019 <0,080). It is concluded that Goodness of

fit Index testing on the side of the RMSEA value is stated that the model is fit.

4.2. Analysis of Direct Effects and Hypotheses Testing

After all the assumptions have been fulfilled, then the hypotheses testing is proposed earlier.

The results of the hypotheses test are presented in Table 2 below:




Table 3 Hypotheses Test

Estimate S.E. C.R. P Label

Modern Retail Image <--- Consumer psychographics .322 .041 2.336 .019 par_34

Modern Retail Image <--- StoreAtmosphere .344 .080 3.432 *** par_35

Modern Retail Image <--- Organized Retail .183 .049 2.314 .021 par_36

Modern Retail Image <--- Perceived Value .031 .088 .353 .724 par_37

Modern Retail Image <--- Reference Group .263 .105 2.512 .012 par_38

Repurchase Intention <--- Reference Group -.199 .089 -2.248 .025 par_44

Repurchase Intention <--- Perceived Value .109 .073 1.479 .139 par_45

Repurchase Intention <--- Organized Retail .141 .069 2.056 .040 par_46

Repurchase Intention <--- StoreAtmosphere .171 .084 2.039 .041 par_47

Repurchase Intention <--- Consumer psychographics .141 .111 1.277 .201 par_48

Repurchase Intention <--- Modern Retail Image .169 .081 2.075 .038 par_49


In order to know how much the influence of the reference group, perceived value,

organized retail, store atmosphere and consumer psychographics affect the modern retail

image and consumer repurchase intention is indicated by the Standardized Estimates value

(Siswoyo Haryono, 2012). Table 4 below presents the Standardized Value Estimates as

follows:

Table 4 Standardized Estimates (Standardized Regression Weights)

Estimate

Modern Retail Image <--- Consumer psychographics .209

Modern Retail Image <--- Store_Atmosphere .270

Modern Retail Image <--- Organized Retail .157

Modern Retail Image <--- Perceived Value .030

Modern Retail Image <--- Reference Group .210

Repurchase_Intention <--- Reference Group -.185

Repurchase_Intention <--- Perceived Value .078

Repurchase_Intention <--- Organized Retail .195

Repurchase_Intention <--- Store_Atmosphere .179

Repurchase_Intention <--- Consumer psychographics .100

Repurchase_Intention <--- Modern Retail Image .268

RG1 <--- Reference Group .629

RG 2 <--- Reference Group .670




PV1 <--- Perceived Value .650

PV 2 <--- Perceived Value .804




OR1 <--- Organized Retail .716

OR 2 <--- Organized Retail .627






Estimate

SA1 <--- Store_Atmosphere .663





CP1 <--- Consumer psychographics .564

CP 2 <--- Consumer psychographics .755




MRI1 <--- Modern Retail Image .737

MRI 2 <--- Modern Retail Image .573




RI1 <--- Repurchase_Intention .700






5. DISCUSSION

Based on table 3 and table 4, hypotheses testing can be done as follows:

The influence of the reference group (X1) on the modern retail image (Z)

Table 3 shows that the probability value of the reference group affects the modern retail

image is 0.012. The probability value is lower than 0.05 (0.012 <0.05). It is concluded that the

reference group has a significant effect on the modern retail image. The magnitude of the

influence of the reference group affects the modern retail image represented by the

Standardized Estimates value is 0.210.Thus, the hypothesis proposed by the authors have

been proven and accepted

The results of this research support the findings of Dawson et al. (2010), in which

reference groups have a positive and significant effect on the image of the institution. It may

be understood that the reference group can provide encouragement and influence to the

customer to purchase a specific product that is recommended, specifically that the person or

group of people who can recommend to potential customers in selecting and determining

modern shopping or retail spots where they meet daily needs. Refer to previous exposure

above; this study uses multiple reference groups as the dimensions of the reference group,

namely the use of several reference groups in determining shopping options, among others the

reference group of normative and reference groups of comparative. Normatively, references

can be obtained from a group of friends or family that will be measured by an indicator of

how far the prospective consumer is trying to be able to follow and abide by the norms in the

intended group, and how far that prospective customers can behave as they do reference

group. The study also aligns and supports the findings of White, K & Dahl. DW(2006).

Consumers form relationships with brands like how to form relationships with others.




The influence of perceived value (X2) on the modern retail image (Z)

Table 3 shows that the probability value of the perceived value affects the modern retail

image is 0.724. the probability value is higher than 0.05 (0.724> 0.05). The conclusion is that

the perceived value has an insignificant effect on the modern retail image. The magnitude of

influence perceived value affects the modern retail image shown with the Standardized

Estimates value is 0.026.Thus, the hypothesis proposed by the authors are unproven and

rejected.

This study is in line with the findings from Suharyono (2013) that the perceived value

quality variables have a positive effect but are not significant to the purchase intention

variables. As with the findings of Taleghani et al. (2011), this study is contrary to the results

of the study of Taleghani et al. (2011) which has found that one of the factors that may

enhance the brand image of an institution (modern retail) is perceived value.

The influence of organized retail (X3) on the modern retail image (Z)

Table 3 shows that the probability value of the organized retail affects the modern retail image

is 0.021. The probability value is lower than 0.05 (0.021<0.05).The conclusion is that

organized retail has a significant effect on the modern retail image. The magnitude of

influence organized retail affects the modern retail image shown with the Standardized

Estimates value is0,195.Thus, the hypothesis proposed by the authors have been proven and

accepted.

This study is in line with and supports the study findings by Piyali Ghosh & Ani Kumar

(2010).The appeal of the consumers shopping experience is the positive image of modern

retail. Organized retail can provide a superior shopping experience with services and items,

attributes from organized retail, and other psychologists to buyers to create different

organized retail logo images.

The influence of store atmosphere (X4) on the modern retail image (Z)

Table 3 shows that the probability value of the store atmosphere affects the modern retail

image is 0.000. The probability value is lower than 0.05 (0.000<0.05).The conclusion is that

the store atmosphere has a significant effect on the modern retail image. The magnitude of

influence store atmosphere affects the modern retail image represented by the Standardized

Estimates value is0,303. Thus, the hypothesis proposed by the authors have been proven and

accepted.

The research is in line with and supports the findings of Vibhuti Tripathi (2010). Store

atmosphere involves the appearance of color, lighting, interior decoration, or music forming

the overall context in which the buyer makes a decision on the selection of retail stores and is

likely to have a significant impact on the store image.

The influence of consumer psychographics (X5) on the modern retail image (Z)

Table 3 shows that the probability value of consumer psychographics affects the modern retail

image is 0.019. The probability value is lower than 0.05 (0.019<0.05).The conclusion is that

consumer psychographics has a significant effect on the modern retail image. The magnitude

of influence consumer psychographics affects the modern retail image represented by the

Standardized Estimates value is0,206.Thus, the hypothesis proposed by the authors have been

proven and accepted.

The results of this study are in line with the statement from Engel (1995) that some stores

have customers with a specific profile, the decision process on this store choice is influenced

by demographics and psychographics and retail images.



The influence of the reference group (X1) on consumer repurchase intention (Y)

Table 3 shows that the probability value of the reference group affects repurchase intention is

0.025. The probability value is lower than 0.05 (0.025<0.05).The conclusion is that the

reference group has a significant effect on repurchase intention. The magnitude of influence

reference group affects repurchase intention represented by the Standardized Estimates value

is-0,188.Thus, the hypothesis proposed by the authors have been proven and accepted.

The results of this study are in line with Destiadhi and Fariz (2014) research. Purchase

decisions will be related to marketing performance. Reference groups that are supported by

customer's perceived value or in other words the references provided by others will form an

influence on other consumers to shop in modern retail. It will encourage the desire to shop in

modern retail from the group's shopping experience referring to other consumer groups.

The influence of perceived value (X2) on consumer repurchase intention (Y)

Table 3 shows that the probability value of perceived value affects repurchase intention is

0.139. The probability value is higher than 0.05 (0.139>0.05).The conclusion is that the

perceived value has an insignificant effect on repurchase intention. The magnitude of

influence perceived value affects repurchase intention represented by the Standardized

Estimates value is0,106. Thus, the hypothesis proposed by the authors are unproven and

rejected.

This study is in line with the results of the research by Suharyono (2013), which has

found the perceived value quality variable to have a positive effect but not significant in the

intention of purchase. In this research, the perceived value variable does not have a significant

effect on the consumer repurchase intention variable in Medan.

The influence of organized retail (X3) on consumer repurchase intention (Y)

Table 3 shows that the probability value of organized retail affects repurchase intention is

0.040. The probability value is lower than 0.05 (0.040<0.05).The conclusion is that organized

retail has a significant effect on repurchase intention. The magnitude of influence organized

retail affects repurchase intention represented by the Standardized Estimates value

is0,178.Thus, the hypothesis proposed by the authors have been proven and accepted.

This study is in line with the study of Endi Sarwoko (2008), which has found that the

existence of modern retailers in this regard including the designation for organized retails

impact on competition in reaching consumers, it means affecting consumer's repurchase

intention.

The influence of store atmosphere (X4) on consumer repurchase intention (Y)

Table 3 shows that the probability value of store atmosphere affects repurchase intention is

0.041. The probability value is lower than 0.05 (0.041<0.05).The conclusion is that the store

atmosphere has a significant effect on repurchase intention. The magnitude of influence store

atmosphere affects repurchase intention represented by the Standardized Estimates value is0,

179.Thus, the hypothesis proposed by the authors have been proven and accepted.

This study is in line with and supports the research of Lili Harlina Putri (2014) and

findings by Rossiter, Percy, and Donovan (1993) in Robert J.Donovan (1994). This study

confirms that the pleasure experienced due to store atmosphere in the environment of modern

retail or retail stores has a significant effect on purchases, while purchases are closely linked

to repurchase intention.




The influence of consumer psychographics (X5) on consumer repurchase

intention (Y)

Table 3 shows that the probability value of consumer psychographics affects repurchase

intention is 0.201. The probability value is higher than 0.05 (0.201>0.05).The conclusion is

that consumer psychographics has an insignificant effect on repurchase intention. The

magnitude of influence consumer psychographics affects repurchase intention represented by

the Standardized Estimates value is0,107.Thus, the hypothesis proposed by the authors are

unproven and rejected.

This study supports Engel's statement (1995). Which has explained that some stores have

customers with a specific profile, demographics, and psychographics, retail images influence

the decision process regarding the store selected. Demographic and psychographic differences

will distinguish the choice within the convenience store that describes the shoppers' profile.

The characteristics of shoppers also affect the image of a store that is consumer perception of

store attributes.

The influence of modern retail image (Z) on consumer repurchase intention (Y)

Table 3 shows that the probability value of the modern retail image affects repurchase

intention is 0.038. The probability value is lower than 0.05 (0.038>0.05).The conclusion is

that modern retail image has a significant effect on repurchase intention. The magnitude of

influence modern retail image affects repurchase intention represented by the Standardized

Estimates value is0,199. Thus, the hypothesis proposed by the authors have been proven and

accepted.

This study supports the findings of Blomer, J & Ruyter, K (1998). Store image has an

indirect effect on customer loyalty through store image satisfaction. While research by Hu

(2011) has stated that store image significantly influences the frequency of consumer

spending at a store, also the study conducted by Darley and Lim (1999) has suggested that

store image significantly affects the frequency of customer visits, regarding functional or

psychological attributes.

Indirect Influence Analysis

Further analysis is to examine the indirect effects of an exogenous variable on endogenous

variables through mediator variables. The purpose of this analysis is to know the role of the

exogenous variable indirectly to the endogenous variables due to the existence of mediator

variables. The following table provides information on the indirect effects of exogenous

variables on endogenous variables through mediator variables.

Table 5 The Indirect effect of Exogenous variables to Endogenous variables

Store

Atmospher

e

organized

retail

perceived

value

reference

group

consumer

psychographic

s

modern

retail image

Repurchase

Intention

modern retail

image 0,000 0,000 0,000 0,000 0,000 0,000 0,000

Repurchase

Intention 0,060 0,039 0,005 0,042 0,041 0,000 0,000



The indirect effect of the reference group on repurchase intention through

modern retail image

Sobel test results confirm that indirect effects of reference groups on repurchase intention

through the modern retail image. P-value is 0.120 which is higher than 0.05 (0.120> 0.05).

The conclusion is that reference groups through modern retail image does not have a

significant effect on repurchase intention. Table 5 presents the indirect effect of the reference

group is 0.042 to the consumer repurchase intention that has insignificant. Thus, the

hypothesis proposed by the authors are unproven and rejected.

This empirical finding is consistent with the study of Galina Septian Darmawan (2018)

which has proven the image of the company was not mediating the effect of service quality on

customer loyalty.

The indirect effect of perceived value on repurchase intention through modern

retail image

Sobel test results confirm that indirect effects of perceived value on repurchase intention

through the modern retail image.P-value is 0,769 which is higher than 0.05 (0,769> 0.05). The

conclusion is that perceived value through modern retail image does not have a significant

effect on repurchase intention. Table 5 presents the indirect effect of the perceived value is

0.042 to the consumer repurchase intention that has insignificant. Thus, the hypothesis

proposed by the authors are unproven and rejected.

Along with the research of Rena Feri Wijayanti (2013) that perceived quality has a

positive effect, but it is not significant to purchase intentions. The purchase intentions will

relate to marketing performance. If the intention of purchasing a product or service is high,

then it will significantly affect marketing performance.

The indirect effect of organized retail on repurchase intention through modern

retail image

Sobel test results confirm that indirect effects of organized retail on repurchase intention

through the modern retail image.P-value is 0,036 which is lower than 0.05 (0,036 < 0.05). The

conclusion is that organized retail through modern retail image has a significant effect on

repurchase intention. Table 5 presents the indirect effect of the organized retail is 0.039 to the

consumer repurchase intention that has a significant. Thus, the hypothesis proposed by the

authors have been proven and accepted

The findings of this study support the study of Ahmad Virdaus (2010). Store image is a

positive intervening variable for service quality variables on purchasing decision variables.

The indirect effect of store atmosphere on repurchase intention through modern

retail image

Sobel test results confirm that indirect effects of store atmosphere on repurchase intention

through the modern retail image.P-value is 0,039 which is lower than 0.05 (0,039 < 0.05). The

conclusion is that the store atmosphere through modern retail image has a significant effect on

repurchase intention. Table 5 presents the indirect effect of store atmosphere is 0.060 to the

consumer repurchase intention that has a significant. Thus, the hypothesis proposed by the

authors have been proven and accepted

The empirical findings support the results of the research from I Kadek Dicki Darma

Putra (2018). Store image has significant influence in mediating the quality of service to

repurchase intention. The results prove that the more positive the image of the store is in

consumers' memory, it will increase consumer repurchase intentions. Consumer intentions




will relate to consumer repurchase intention. Store atmosphere is a combination of emotional

descriptions.

The indirect effect of consumer psychographics on repurchase intention through

modern retail image

Sobel test results confirm that indirect effects of consumer psychographics on repurchase

intention through the modern retail image. P-value is 0,027 which is lower than 0.05 (0,027 <

0.05). The conclusion is that consumer psychographics through modern retail image has a

significant effect on repurchase intention. Table 5 presents the indirect effect of consumer

psychographics is 0.041 to the consumer repurchase intention that has a significant. Thus, the

hypothesis proposed by the authors have been proven and accepted.

The empirical findings support research which has suggested that psychographic segments

of the social, lifestyle and personality class have significant effects on purchasing decisions

such as (Ahmad Husaini, 2011, Putri Kartana, 2011; Nurul Husna, 2017).

6. CONCLUSIONS & SUGGESTIONS

6.1. Conclusions

Based on the results of the discussion and analysis that has been done it can be concluded

that:

• The reference group has a significant effect on the modern retail image.

• The perceived value does not have a significant effect on the modern retail image.

• Organized retails have a significant effect on the modern retail image.

• Store atmosphere has a significant effect on the modern retail image.

• Consumer psychographics has a significant effect on modern retail image.

• Reference groups have a significant effect on consumers repurchase intention.

• The perceived value does not have a significant effect on consumers repurchase intention.

• Organized retails have a significant effect on consumers repurchase intention.

• Store atmosphere has a significant effect on consumers repurchase intention.

• Consumers’ psychographic consumer has a significant effect on consumers repurchase

intention.

• The modern retail image has a significant effect on repurchase intention.

• The reference group through modern retail image does not have a significant effect on

repurchase intention.

• The value perceived by modern retail image does not have a significant effect on repurchase

intention.

• Organized retail by modern retail image has a significant effect on repurchase intention.

• Store atmosphere through modern retail image has a significant effect on repurchase intention.

• Consumers’ psychographic by modern retail image has a significant effect on repurchase

intention.



6.2. Suggestions

Based on empirical findings and conclusions, the authors suggest the following:

The reference group research has a significant effect on the modern retail image and also

has a significant effect on repurchase intention. Therefore, the modern retail manager should

offer a marketing program that can come directly with reference groups such as groups or

individuals who invite customers to buy a particular product or to shop in modern retail.

Likewise with a normative reference group that includes friends and family and a comparative

reference group that includes community leaders, educational leaders. Also included are

multiple groups of people who have experienced themselves with the experience of using

their products and their experiences of shopping in modern retail.

Organized retails have a significant effect on the modern retail image and also have a

significant effect on repurchase intention. Therefore, modern retail managers should pay

attention to matters or elements that have a close relationship with organized retail. By

creating marketing programs that relate directly to the comfort, diversity, entertainment,

essence of the mall, luxury.

Store atmosphere has a significant effect on the modern retail image and also has a

significant effect on repurchase intention. Therefore, modern retail managers should pay close

attention to the subject, by creating marketing programs that directly relate to the store

atmospheres such as the exterior store, general interior store, store layout, and interior display.

Consumer psychography has a significant effect on the modern retail image and also has a

significant effect on repurchase intention. Therefore, modern retail managers should pay

attention to elements that are firmly related to consumer psychographics, by creating

marketing programs directly related to social class, lifestyle characteristics and personality

characteristics.

Organized retail, store atmosphere, and consumer psychography through modern retail

image have a significant effect on repurchase intention. Therefore, modern retail managers

should always create marketing programs that can enhance the modern retail image that has a

positive impact on repurchase intention such as integrated entertainment, factory outlets, cafe

outlets and others in the same place and integrated to complement store atmosphere to

influence consumer psychography. With the impression, it will be more attractive to

consumers who shop and give a real influence on consumer repurchase intention.

The authors suggested that future research could add a shopping behavior factor to the

perceived value to provide a powerful influence on the modern retail image. The future

research can add market environment factors to organized retailers to provide the power of an

indirectly organized retail influence through the modern retail image of consumer repurchase

intention. The future researchers can include shop environment factors in store atmosphere to

provide the power of indirectly organized retail influence through the modern retail image of

consumer repurchase intention.

This research is still in the modern retail environment in Medan. Further researchers

should be able to proceed to a larger area, such as provinces and countries for more useful

research findings.




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