The IUP Journal of Marketing Management
Customer Expectation, Satisfaction and Loyalty: A Study of Grocery Retail Sector in South Africa

Article Details
Pub. Date : May, 2020
Product Name : The IUP Journal of Marketing Management
Product Type : Article
Product Code : IJMM10820
Author Name : Mfundo Dlamini and Brian Barnard
Availability : YES
Subject/Domain : Marketing
Download Format : PDF Format
No. of Pages : 56

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Abstract

This study investigates the grocery retail sector in South Africa and what factors drive consumer behavior. The literature emphasizes the importance of understanding what shapes customer satisfaction and how this can then lead to customer loyalty. A quantitative approach was used for this study, and the data was collected using a questionnaire. The study looked at convenience, service, promotion, store atmosphere and expectation and how they impact customer satisfaction. Only expectation factor had an impact on customer satisfaction. Furthermore, the study also showed that customer satisfaction had an impact on customer loyalty which was in line with the literature and answered the overall research question. Future studies need to explore the impact of quality on customer satisfaction, as this is a key measurement that the expectation factor is tested against. An analysis of how technology impacts the process also needs to be done, as a large number of sales in the physical channel start online and there is an advent of price comparison mechanisms.


Description

Customer expectation and satisfaction are popular terms that have been used and studied extensively globally (Carpenter, 2006). It has been covered by academicians, practitioners and consultancies as a way of measuring the direct correlation to customer loyalty (Landsbergh, 2018). Palmer (2010) adds that it is cheaper for businesses to keep repeat customers than to try to attract new ones (Palmer, 2010). Satisfied customers are more engaged and the retailers are able to extract greater value from them (Landsbergh, 2018).

Hill (2003) highlights how there has been many advances in production due to improvements in production capabilities driven by the need for improved profits in a global economy. Alongside the improved production, we have seen an increase in quality, driven by technology and the introduction of control measures such as six sigma and ISO (Hill, 2003). In recent times, we have seen the introduction of net promoter score and customer expectation management which focus on classifying customers as either promoters of your business, neutral or detractors (Schneider, 2008).


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