Factors Affecting Customer Loyalty of Supermarkets in Nyeri Town, Kenya

Abstract

This study sought to examine the factors affecting customer loyalty of supermarkets in Nyeri town, Kenya. The study was guided by the following specific objectives: to explore the extent to which price differences in supermarkets affect customer loyalty; to examine the extent to which competition affects supermarkets in maintain customer loyalty; to assess the extent to which changing customer preferences has affected customer loyalty of supermarkets in Nyeri town; and to investigate the extent to which the supermarkets’ image affect customer loyalty. The study was conducted on the supermarkets within Nyeri town and the results have been generalized for all other supermarkets in the entire county. Data was collected by use of questionnaires distributed and collected by the researcher. The completed questionnaires were screened for accuracy and completeness and edited and coded where necessary. Thereafter, they were sorted in accordance with similarity of response given to the different questions. Microsoft Excel was used for data analysis and generation of code for data simulation for effective analysis and for effective use of the descriptive statistics research design.The study revealed that there supermarkets have factors that affect the loyalty of their customers who shop at their stores. Price is one of the factors that the supermarkets in Nyeri face as different supermarkets had different pricing strategies. Secondly, the changing customer preferences also do influence the loyalty of customers since the supermarket owners are uncertain of the customers frequent change of preferences. Moreover, the study did establish that the image of the supermarket does influence the customers loyalty and finally the study revealed that the customer loyalty of supermarkets in Nyeri town is affected by the stiff competition among the supermarkets as each supermarket store strives to develop a market share of the available customers and develop patronage.

Keywords: Customer loyalty, Supermarkets, Price differences, Competition, Changing customer preferences, Supermarkets’ image