Physical environment quality and member retention in fitness centres: a quantitative analysis using novel composite indicators in strategic management

The physical environment is evaluated for the impact of its quality on member loyalty (construed from satisfaction and retention) within Romanian fitness centres by drawing from a rigorously validated sample of 2,900 participants—refined from an initial pool of 3,314—the research encompasses diverse gym types and demographic segments to assess how factors such as facility cleanliness, equipment condition, and an array of primary ambiance factors that influence member experiences, and, we argue, member loyalty. By utilizing advanced analytical techniques, including Structural Equation Modelling (SEM) and Confirmatory Factor Analysis (CFA), the study confirms the structural adequacy of the measurement model with robust fit indices (CFI > 0.95, RMSEA < 0.05). Power analysis validates the sample size; this is necessary to reveal that cleanliness and modernity significantly enhance satisfaction; their effect on retention is markedly amplified when integrated with positive staff interactions and reliable services. Moreover, correlation analysis highlights the importance of cleanliness and modern equipment(r=0.64). Other factors such as facility modernity (r = 0.53) and equipment condition (r = 0.44) also show substantial correlations with retention rates, suggesting that enhancing the physical environment can boost member satisfaction; however, to effectively promote long-term retention, such enhancements must be combined with other service quality dimensions, particularly staff competence, and communication.