A study of customer value and loyalty in the supermarket industry

by Wicker, Kenneth D., D.B.A., CAPELLA UNIVERSITY, 2016, 129 pages; 3739763

Abstract:

The value of customer loyalty to business sustainability should not be taken lightly. Research shows that loyal customers are more profitable than non-loyal customers. Indeed, this study found that loyal supermarket customers shop more often and spend more when shopping. Retaining customers makes good business sense and costs less than attracting new ones. Negligible switching costs and the quest for value strain the loyalty relationship between supermarkets and their primary shoppers. Therefore, the purpose of this study was to identify how the independent variables of value (price, quality, service, convenience, and assortment) contribute to customer loyalty among supermarket customers. The research design for this study was quantitative non-experimental. Data for the study was collected from an electronic email invite through Survey Monkey. With a confidence level of 95% and a margin of error of +/-5%, the targeted sample size was 384, with a final filtered total of 354 usable surveys. Multiple linear regression and Spearman rho correlation techniques were used to determine significance of data collected to customer loyalty. Results from this study indicate that quality has the greatest effect on customer loyalty. However, significant interaction and modifying effects were also detected, indicating that predictors of loyalty should not be examined in isolation. Collectively, data from this study indicated that as quality, service, assortment, loyalty programs, and high quality perishables increased, loyalty also tended to increase.

AdviserJames R. Morgan
SchoolCAPELLA UNIVERSITY
Source TypeDissertation
SubjectsBusiness administration; Marketing; Management
Publication Number3739763

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