Analysis of factors influencing customer loyalty in selected supermarkets in Nairobi Central Business District Kenya

Abstract

Customer loyalty is one of the most important issues organizations face today. Creating loyal customers has become important due to significant increase in competition and concentrated markets. The purpose of this study was to examine the factors influencing customer loyalty in selected supermarkets within the Nairobi Central Business District, Kenya. The specific objectives were to examine the influence of customer service on customer loyalty of supermarkets, to determine the influence of service quality on customer loyalty of supermarkets, to determine the effect of price on customer loyalty of supermarkets, to determine the effect of product display on customer loyalty of supermarkets and to determine the combined effect of customer service, service quality, price and product display on customer loyalty in selected supermarkets in NCBD. The study used a descriptive research design. Descriptive research design is used to obtain information about the current phenomenon and describe associations among variables. The target population was customers aged l8 years and above visiting the five selected supermarkets in the NCBD, namely; Nakumatt, Uchumi, Tuskys, Naivas and Ukwala. The study targeted a sample size of 384 respondents and 331 respondents participated in this study. The researcher used stratified and systematic random sampling techniques. The data was collected using structured questionnaires and analyzed using linear regression with the aid of Statistical Package for Social Science (SPSS). The results were presented in tables, bar graphs and pie charts. The findings of this study indicate that there was influence of customer service, service quality, price and product display on the customer loyalty to supermarkets. The study revealed that customer service has a positive and the most influence on customer loyalty followed by service quality and then price. Further the study found that product display had the least influence on customer loyalty. The study therefore recommends that supermarkets owners should improve on mechanisms to make it easy for customers when reporting complaints. The management of supermarkets should continually expose their employees to customer service programs so as to enhance customer service‘ and care. Focus should be given to enhancing the quality of service by providing its services with accuracy. This will enhance customer service in terms of care and individualized attention. Supermarkets should ensure their prices are competitive and in the same range with their competitors. Finally, the management in supermarkets should be in a position to focus on enhancing the attributes (customer service, service quality and price) that have greater and more positive influence on customer loyalty.