Effect of Customer Loyalty Schemes on Competitiveness of Supermarkets in Kenya

Abstract

The purpose of the study was to establish the effect of customer loyalty schemes namely, customer loyalty cards and coalition loyalty programs on competitiveness of supermarkets in Nakuru town, Kenya. The target populations of the study were the managers and customers of Nakumatt, Tuskys and Naivas supermarkets in Nakuru town Kenya. A sample of 384 consisting of 375 customers and 9 managers was selected purposively for the study. Descriptive and regression statistics were used to analyze the data and the findings indicated that customer loyalty schemes had a positive effect on supermarkets’ competitiveness. It is recommended that more attention in terms of constant innovation should be paid on the use of customer loyalty cards and coalition loyalty programs by supermarkets as a strategy for competitiveness.

Key Words; Customer loyalty Schemes, Coalition loyalty programs, Customer loyalty cards, Competiveness, Kenya.