The Effect of Discounts on Customer Loyalty through Consumer Purchase Interest at Panakkukang Mall, Makassar

Abstract

This study aims to examine the effect of discount provision on customer loyalty through purchase intention in a shopping mall context. The research is designed to test the hypothesis that purchase intention mediates the relationship between discount strategies and customer loyalty. A quantitative causal research design was employed, using a survey method to collect primary data from 100 respondents who had made purchases during discount periods at Mall Panakkukang Makassar, Indonesia. Data were collected using structured questionnaires and analyzed through regression-based mediation analysis. The findings reveal that discount provision positively influences purchase intention, while customer loyalty is shaped indirectly through purchase intention rather than directly by discounts. These results indicate that discounts primarily function as short-term stimuli that enhance consumers’ intention to purchase, which subsequently contributes to the development of customer loyalty. The study highlights the importance of understanding the behavioral mechanism underlying loyalty formation, particularly in physical retail environments. Practically, the findings suggest that retailers and mall managers should design discount strategies that strengthen consumers’ purchase intention to foster sustainable customer loyalty rather than relying solely on price reductions. This study also provides a foundation for future research to explore additional behavioral and contextual factors influencing customer loyalty across different retail settings.