An Empirical Study of Customer Satisfaction and Loyalty in Supermarket Retail Business in The National Capital of India

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Volume 6, Issue 7, July 2018 ISSN 2321-5976
An empirical study of customer satisfaction

and loyalty in supermarket retail business in
the national capital of India
VijaylaxmiGupta1, RajendraMaheshwari2
1
Ph.D Scholar, New Delhi, India
2
Professor, Delhi University, New Delhi, India
ABSTRACT
Customer satisfaction and loyalty are critical focus areas of Customer Relationship Management (CRM) strategy
deployed by companies to increase profitability. Achieving customer loyalty by ensuring customer satisfaction
requires identifying and managingan interplay of multiple drivers. In this study the association between customer
satisfaction and loyalty was investigated on a sample of 500 loyal customers of a supermarket in the Indian national
capital region. The study involved outlining the determinants of customer satisfaction and loyalty in supermarkets
domain and the degree of mutual association. Using Multiple Regression technique, the study highlights the degree
of relationship between customer satisfaction variables (overall experience at store, price competitiveness, staff
service, fast checkout service and quality and range of products) and customer loyalty (number of bills, number of
months of stay with stores and bill value).
Key words: CRM, Customer Loyalty, Customer Satisfaction, Supermarket Retail
1. INTRODUCTION
CRM is a strategy used by companies to manage interactions with its customers and increase customer satisfaction,
loyalty, and productivity. Companies focus on achieving high levels of customer satisfaction to create aloyal customer
base. It is costly to attract new customers and even more difficult to retain them, which makes loyal customer base a
highly valuable assets for businesses. To engage and retain profitable customers, it is important to understand the key
factors that drive satisfaction and loyalty both in offline and online markets. Studies have attempted to investigate the
complex intra relationship between customer loyalty and customer satisfaction, given the importance of such
relationships in creating satisfied and loyal customer base, contributing to productive business.
This study investigates the relationship between customer satisfaction and customer loyalty for supermarket retail
business, identifying the core determinants of customer loyalty in the supermarket domain. Multiple regression was
applied to provide an evidence that there exists a positive relationship between customer satisfaction and customer
loyalty. The variables of customer satisfaction considered are: overall experience at store, quality of staff service, speed
of checkout, and quality and range of products. And the variables of customer loyalty considered are: number of bills
(NOBs), number of months, and bill value. The study also states that customer satisfaction has a positive impact on
customer loyalty. The results of study support the degree of relationship between the objective parameters. The study
underscores an opportunity for retailing giants to introduce an effective CRM strategy by paying attention to loyalty
programs and customer satisfaction to maximize their market share and profitability, eventually building a high loyalty
base.
2. REVIEW OF LITERATURE and DEVELOPMENT OF OBJECTIVES

CRM as an enabler of CustomerSatisfaction and Loyalty
CRM is widely prescribed solution for customer satisfaction and loyalty. It is a marketing tool for the establishment,
development, maintenance and optimization of long term, mutually valuable relationship between customers and
organizations. As competition intensifies, there is a perceived importance of improving the customer experience by
spending tens of billions of dollars on CRM as an annual global spending.
CRM signifies need to understand individual customer needs, focusing on the process of building strong, long term and
profitable relationships with customers. It is based on elementary marketing thought of knowing its customers as
Volume 6, Issue 7, July 2018 Page 75

individuals. It is a philosophy technique that places the customer at the heart of the business processes and includes
activities and cultures to improve customer satisfaction and maximize profits (Zablah et al., 2004).
CRM is the ability of a company to anticipate and respond to customer needs by taking actions such as adopting
customer-centric strategies, identifying potential customers, and initiating relationships with customers to turn those
into profitable relationships. CRM capabilities include business knowledge and skills required to maintain, develop and
regain attractive customers and to develop a measurement model (Boulding et al., 2005; Wang and Feng, 2012).
The elements of knowing these individual customers are characterized by a warehouse of data that stores diversified
information of the company, the sales system, call center, systems of customer service, operational system and e-
commerce. In practice, CRM engages the automated form of customer contacting system along with the wider details
on the customer (Kotorov, 2003).
CRM is an important business concern, wherein the entire process has been framed with a linkage of high quality base
data on the customers and supported by IT (Bose and Sugumaran, 2003). CRM technology emphasizes on the use of IT
for an effective management of customer relationship (Reinartz et al., 2004; Chang, Park, Chaiy, 2010). CRM is the IT
face of the business process that aims to establish enduring and mutual beneficial relationships with customers in order
to drive customer retention.
CRM encourages use of data and information to understand customers and create value for them. Loyalty customer base
can be built by tracking and evaluating company’s interactions with customers during the course of relations. CRM is
about creating a deeper understanding of customers to maximize customer value to the organization in the long term.
This involves cross functional integration of people, processes, operations and marketing capabilities enabled through
information, technology and applications (Ngai et al., 2009; Payne and Frow, 2005). As proposed by Mauri (2003),
customer database is very crucial for any firm or business organization. Business industries can get privileged
information of customer needs and expectations by using customer relationship database management, which helps
them to improve customer satisfaction and loyalty.
Customer Satisfaction And Customer Loyalty
Companies focus on achieving high levels of customer satisfaction to develop loyal customers. The relationship
between satisfaction and loyalty seems intuitive and several researchers have affirmed their positive association
(Kandampully and Suhartanto, 2000; Szymanski and Henard, 2001; Abdullah et al., 2012).
Customer loyalty is a direct outcome of the customer satisfaction. Customer loyalty improves company’s market share
and profit (Siddiqi, 2011). Customer satisfaction is the direct result of service quality (Naeem, Akram, Jinnah, and Saif,
2009). Customer satisfaction is actually the response of customers for determining repetitive buying of goods or services
(Sivadas and Baker-Prewitt, 2000). Satisfied customers become loyal customers (Rowley, 2005).
It is very important for retailers to understand customer needs and wants in order to increase the level of satisfaction
and loyalty. Effective satisfaction increases loyalty through repeat purchase behavior, creating a long term relationship
between sellers and buyers, which helps retailers to increase their market share and profit. Customer’s decision on
shopping behavior as well as a customer’s needs and wants are crucial to the effect that retailers make a stable and
long-term relationship with customers. Therefore, retailers can improve customer satisfaction that turns into customer
loyalty and customer retention. Existing satisfied and loyal customers are more valuable than attracting new customers.
Therefore, business organizations should concentrate on existing customers, because they lead to satisfaction, thereby
making firm to achieve market share and make profit through customer satisfaction and loyalty (Yuen and Chan,
2010).
There are many studies investigating customer attitudes and behavior patterns (Dimitriades, 2006; Olorunniwo et al.,
2006; Chi and Qu, 2006; Faullant, Matzler, and Fuller, 2008). Results and findings confirm that customer satisfaction
leads to customer loyalty,encouraging customers to come back for repeat purchase. Decision by customers to visit a
store are often attributable to a set of factors. There are five factors: shopping convenience, pricing, product
convenience, employee service and physical features, which lead to customer satisfactionin organized retail stores
(Patel and Desai, 2013). People prefer to purchase from nearby outlets - they also feel delighted with cleanliness and
freshness of food products and always put this feature on the top, followed by price, quality, variety and packaging of
the products (Ali, Kumar and Moorthy, 2010). Customers prioritize stores by availability and variety of products,
reasonable price and convenience of visiting the store location. The factors such as insufficient parking, less schemes,
or poor discounts lead to customer dissatisfaction (Madan and Kumari, 2012).
Customer Loyalty and Profitability

What makes Customer Loyalty so important? Loyal customers are very valuable for businesses as there is a huge cost
involved in attracting and retaining new customers. Bowen and Chen (2001) stated about a positive relationship
between customer loyalty and customer profitability. It costs less to serve loyal customers, as they already know the
product and require less of the information. Loyal customers spread positive word of mouth to other customers -

therefore they serve as information source to others. It’s not enough to have satisfied customers, it’s important to have
extremely satisfied customers, as customer satisfaction leads to customer loyalty.Building customer loyalty is the only
way of building sustainable competitive advantage. Customer satisfaction has a positive association with repurchase
intentions, recommending a product or service, customer loyalty and profitability. There are more chances for satisfied
customers to become repeat customers (Bansal and Gupta 2001).
What customers want? Customers always look for value for their money, efforts and time. They maintain long term
relationship with sellers they trust and form their individualized estimate value of product or service, considering total
relative benefits over total relative costs. For a given set of loyalty measures, there are always some unique benefits, that
customers value the most. For example, some companies conducted a research to find out what value proposition their
target customers are looking for and found out that ease of transaction is what their target customers are looking for.
Thus companies create a preferred service for repeat customers to nurture them and reduce customer stress. To generate
maximum loyalty, every company or industry needs to tailor its customer loyalty measures, by conducting in-depth
research for all of the customer categories. After conducting such researches, some companies have discovered that
what they assumed what customer wants is far different from reality. Along with in-depth research of customer
categories, companies need to conduct research for measuring, bench-marking and comparing their current
performances, past performances, managerial goals and performances of key competitors. This allows companies of
their performance with regard to critical customer loyalty measures, seeking insights and early warnings, allowing
them to adjust their CRM strategies and tactics with regard to retention of profitable loyal customers. Companies
achieving high loyalty levels should grow and prosper (Anderson, Swaminathan and Mehta, 2014).
Supermarket Retail business: a case for Customer Loyalty and Customer Satisfaction as a core of CRM
As per Goldman, 2001, retail format does identify retailers’ capabilities and serves as competitive advantage, thereby
influencing consumer’s choice and behavior. Since 1990, India had experienced a retail format transition. In India,
Supermarkets andorganized retail sector accounts for about 5 % of the total retail market. The Indian retail sector is
dominated by traditional retail format such as bazaar, corner shop and grocery stores. In India, customer choice
behavior is erratic, asgrocery purchases are primarily done either in bulk or in small fill-up purchases (Anand and
Sinha, 2009). While the fill-up purchases are more frequent, these are largely unplanned and done on a need basis
primarily from the nearest traditional market (bazaar) and is considered as a compulsive shopping. Bulk grocery
purchase is periodic and can be considered as a planned behavior, which is utilitarian shopping value (Block and
Morwitz 1999). There has been a limited understanding on how the consumer’s perceived importance on functional
attributes changes over retail format and what shopping value the consumer receive from the retail formats.
There are a lot of factors that attract customers to shop again and again at a particular supermarket. Generally it’s
believed that bigger supermarkets have a wide range of products, which have all necessary goods are available under
one roof. At the same time, supermarkets have to ensure that they offer ensured quality of product and charge a fair
price. Most of the customers believe that if quality of products is not good then it does not make any sense to shop again
even if pricing is competitive.
This paper, furthers the study on CRM, customer loyalty, customer satisfaction and retail in context of supermarkets
located in Delhi and national capital region in India. The key objective of the study is toidentify the determinants of
customer loyalty in supermarket domain and to examine the nuances of customer satisfaction and customer loyalty as
well as their mutual association.
3. CONCEPTUAL FRAMEWORK
Conceptual framework of the study is based on relationship and association between customer satisfaction and customer
loyalty in supermarket retail business. To study the association between customer loyalty and customer satisfaction and
to identify the mutual association, a sample size of 500 loyal customers was collected from three different supermarket
stores across Delhi and NCR. A customer was considered as loyal if he or she held a loyalty card.Customers were
requested to fill-up the questionnaire while they were shopping or while they were waiting in the checkout queue. As
the study was based on loyalty base, customers were requested to present their loyalty card for eligibility to fill the
questionnaire. A total of 500 questionnaires were filled-up under a disclaimer of maintaining confidentiality. The
questions were based on key variables of customer satisfaction and customer loyalty, keeping key objectives in mind
and deriving at results, thereby accepting or rejecting proposed hypothesis. Null hypothesis (Ho) states that there is no
significant association between customer satisfaction and customer loyalty while the alternate hypothesis (H1) states
that customer satisfaction has a significant impact on customer loyalty. Data was collected for customer loyalty
variables as well ascustomer satisfaction variables: number of bills (NOBs), number of months, and bill value being the
loyalty variables; and overall experience at store, price competitiveness, staff service, fast checkoutservice, and quality

and range of products being customer satisfaction variables. The variables were identified basis a holistic review of the
studies referred to in the literature review section of this paper.
Customer loyalty variables were taken as dependent variables and customer satisfaction variables as predicator
variables. Questionnaire was designed based on Likert scale for Customer satisfaction variables and other parameters
for customer loyalty along with demographic profiling of loyal customers. Data was analyzed using Multiple
Regression model. Analysis showed that overall experience at store, staff service, fast checkout service and quality and
range of products are the key variables of customer satisfaction,while customer loyalty depends upon customer
satisfaction variables taken as predicator variables in the model. The association between the customer loyalty and
customer satisfaction was found to be significant (p<0.05). Figure1 exhibits conceptual framework and relationship
among the variables:
Figure1: Conceptual framework.
4. RESULTS AND OBSERVATIONS

Data of 500 customers from three stores was analyzed. The reliability of the satisfaction data is seen by Cronbach
Alpha Coefficient which is 0.83,p=0.000 indicates that the data is reliable.It has been observed that 82% customers,
who visited the stores were married while 18% customers were single. Of these 67% customers were males while 33%
were females. The data for the satisfaction variables are shown by Figure 2.Data reveals that the number of months
visited by customers vary from 1 to 10 months with an average of 4.9 months. The average number of bills were about
30 (Table1).

Figure 2: Pie charts of satisfaction variables and demographics

Table 1
N Minimum Maximum Mean Std. Deviation
Number Of Bills (NOB) 500 1 427 29.61 41.014
Number Of Months Of Visit 500 1 10 4.95 2.475
Bill Value (in Rs.) 500 2203.00 367816.00 10689.918800 20139.6095841
Points 500 220.2900 36781.6110 1068.989018 2013.9606764
Valid N (list wise) 500
Data was analyzed using the Multiple Regression technique to study the association between customer Loyalty and
customer satisfaction. The variables, number of bills, number of months of stay with stores and bill value were used to
define loyalty, taken as the dependent variables for the analysis. The predicator or independent considered were overall
experience at store, price competitiveness, staff service, fast checkout service and quality and range of products.The
forward method of inclusion for significant variables in the multiple regression analysis was considered. When
Number of Bills, was taken as dependent variable with all the predicators variable in forward method, two variables
staff service and overall experience at store, were included in the model (R2=0.134) .
The coefficient of regression for Staff service and overall experience at store, were 10.55 and 8.04 respectively with p=
0,000. Both the variables were significant at 0.05 level of significance.
When number of months, was taken as dependent variable, the forward stepwise regression analysis included two
variables: staff service and fast checkout service (R2= 0.131). The regression coefficient for staff service and fast
checkout service were 1.05(p=0.000) and -1.18 (p=0.000) respectively.
Similarly when bill value was taken as dependent variable for the stepwise regression analysis, overall experience at
store and quality and range of products were coming out to be significant variable for the association between loyalty
and customer satisfaction (R2 = 0.150). The regression coefficients for overall experience at store and quality and
range of products were 3403.10 (p=0.001) and 7711.76 (p=0.000) respectively. Variables were statistically significant
at 5% level of significance.
The loyalty variable as number of bills was modeled with satisfaction variable. It was observed from the ANOVA
tablethat the variation explained by regression is significant (F= 38.41,p=0.000). Staff service and overall experience
at store (satisfaction variables), were found significant in this model, at p<0.05 and hence these satisfaction variables
also reflect a statistically significant relationship with Number of bills (loyalty).
Model Summary for Number of Bills
Model R R Adjusted R Std. Error Change Statistics

Square Square of the R Square F Change df1 df2 Sig. F
Estimate Change Change
1 .333a .111 .109 38.718 .111 61.935 1 498 .000
2 .366b .134 .130 38.247 .023 13.345 1 497 .000
a
Predictors: (Constant), Staff service
b
Predictors: (Constant), Staff service, Overall Experience at store
ANOVAa
Model Sum of Df Mean F Sig.
Squares Square
1 Regression 92844.403 1 92844.403 61.935 .000b
Residual 746536.547 498 1499.069
Total 839380.950 499
2 Regression 112364.875 2 56182.438 38.407 .000c
Residual 727016.075 497 1462.809
Total 839380.950 499
a
Dependent Variable: NOB
b
c
Predictors: (Constant), Staff service, Overall Experience at store
Coefficientsa
Model Unstandardized Standardized T Sig. 95.0% Confidence
Coefficients Coefficients Interval for B
B Std. Error Beta Lower Upper
Bound Bound
1 (Constant) -12.622 5.639 -2.238 .026 -23.700 -1.543
Staff service 14.583 1.853 .333 7.870 .000 10.942 18.223
2 (Constant) -29.722 7.276 -4.085 .000 -44.018 -15.427
Staff service 10.546 2.138 .241 4.932 .000 6.345 14.747
Overall 8.043 2.202 .178 3.653 .000 3.717 12.368
Experience
at store
a
Excluded Variablesa
Model Beta In T Sig. Partial Collinearity Statistics
Correlation Tolerance
1 Overall .178b 3.653 .000 .162 .733
Experience at
store
Price -.065b -1.254 .210 -.056 .673
Competitiveness
Quality and .172b 2.284 .023 .102 .314
range of
products
Fast checkout -.058b -1.178 .239 -.053 .729
service
2 Price -.086c -1.676 .094 -.075 .665
Competitiveness
Quality and .129c 1.715 .087 .077 .305
range of
products
Fast checkout -.059c -1.200 .231 -.054 .729

service
a
b
Predictors in the Model: (Constant), Staff service
c
Predictors in the Model: (Constant), Staff service, Overall Experience at store
Our model states that up to 13.0 percent (adjusted R2 is 0.130) of variance in Number of bills (loyalty parameter) is due
to Staff service and overall experience at store (satisfaction parameters).
The model is as follows:
Number of Bills (loyalty) = -29.72 + 10.55 (Staff service) + 8.04 (Overall
Experience at store)
This indicates if there is a change in the category of predicator variable from disagree to somewhat disagree, the
number of bills were increased by 24. Similarly for the category strongly agree of the predicator variables, the change in
the number of bills were increased to 64.
Therefore, the result of multiple regressions for number of bills provides an evidence to predict that there exists a
positive relationship between customer satisfaction and customer loyalty (with staff service and overall experience at
store, as customer satisfaction parameters and number of bills as customer loyalty parameter). It also states that
customer satisfaction has a positive impact on customer loyalty.
It has been observed that number of months stay at store depends upon the staff service and fast checkout service. The
model is a good fit at F= 37.41, p< 0.001.
Model Summary for Number of MonthsOf Visit

Model R R Adjusted Std. Error Change Statistics
Square R Square of the R Square F Change df1 df2 Sig. F
Estimate Change Change
1 .220a .048 .046 2.417 .048 25.223 1 498 .000
2 .362b .131 .127 2.312 .083 47.248 1 497 .000
a
b
Predictors: (Constant), Staff service, Fast checkout service
ANOVAa
Model Sum of Df Mean Square F Sig.
Squares
1 Regression 147.316 1 147.316 25.223 .000b
Residual 2908.626 498 5.841
Total 3055.942 499
2 Regression 399.821 2 199.911 37.406 .000c
Residual 2656.121 497 5.344
Total 3055.942 499
a
Dependent Variable: No_of_Months_Visit
b
c
Predictors: (Constant), Staff service, Fast checkout service
Coefficientsa
Model Unstandardized Standardize T Sig. 95.0% Confidence
Coefficients d Interval for B
Coefficients
B Std. Beta Lower Upper
Error Bound Bound
1 (Constant) 3.272 .352 9.296 .000 2.580 3.963
Staff service .581 .116 .220 5.022 .000 .354 .808
2 (Constant) 4.714 .397 11.883 .000 3.934 5.493
Staff service 1.045 .130 .395 8.061 .000 .790 1.299
Fast checkout -1.177 .171 -.337 -6.874 .000 -1.514 -.841
service
a
Excluded Variablesa
Model Beta In T Sig. Partial Collinearity
Correlation Statistics
Tolerance
Overall Experience at store .040b .787 .432 .035 .733
Price Competitiveness -.173b -3.285 .001 -.146 .673
Quality and range of products -.141 b -1.816 .070 -.081 .314
Fast checkout service -.337 b -6.874 .000 -.295 .729
c
Overall Experience at store .041 .837 .403 .038 .733
c
Price Competitiveness -.049 -.889 .375 -.040 .578
Quality and range of products .063 c .779 .436 .035 .269
a
b
Predictors in the Model: (Constant), Staff service
c
Predictors in the Model: (Constant), Staff service, Fast checkout service
The regression for number of month of visit is given below

Number of Months of visitto store = 4.71 + 1.05 (Staff service) -1.18 (fast checkout service)
The regression coefficients for staff service and fast checkout service were statistically significant in the model at 5%
level of significance. However the regression coefficient for fast checkout service had a negative coefficient. It indicates
the joint effect of fast cheeked out bill with staff service had a positive impact on the number of months stay at
store.Hence these satisfaction variables also reflect a statistically significant relationship with Number of months of stay
with the supermarket (loyalty). Our model states that up to 12.7 percent (adjusted R2 is 0.127) of variance in Number of
months of stay (loyalty parameter) is due to Staff service and fast checkout service (satisfaction parameters).
Therefore, the result of multiple regression provides an evidence to reject null hypothesis and states that there exists a
positive relationship between customer satisfaction and customer loyalty (with staff service and fast checkout service, as
customer satisfaction parameters and number of months of stay as customer loyalty parameter). It also states that
customer satisfaction has a positive impact on customer loyalty.
Model Summary for Bill Value

Model R R Adjusted Std. Error of Change Statistics
Square R Square the Estimate R F df1 df2 Sig. F
Square Change Change
Change
1 .364a .133 .131 18774.3002627 .133 76.216 1 498 .000
2 .388b .150 .147 18603.0516055 .017 10.211 1 497 .001
a
Predictors: (Constant), Quality and range of products
b
Predictors: (Constant), Quality and range of products, Overall Experience at store
ANOVAa
Model Sum of Squares Df Mean Square F Sig.
1 Regression 26864106748.815 1 26864106748.815 76.216 .000b

Residual 175532226476.03 498 352474350.353
3
Total 202396333224.84 499
9
2 Regression 30397789294.384 2 15198894647.192 43.918 .000c
Residual 171998543930.46 497 346073529.035
5
Total 202396333224.84 499
9
a
Dependent Variable: Bill Value
b
Predictors: (Constant), Quality and range of products

c
Predictors: (Constant), Quality and range of products, Overall Experience at store
Coefficientsa
Model Unstandardized Standardize t Sig. 95.0% Confidence
Coefficients d Interval for B
Coefficients
B Std. Beta Lower Upper
Error Bound Bound
1 (Constant) -17425.877 3328.18 -5.236 .000 -23964.882 -10886.871
0
Quality and range 9816.964 1124.48 .364 8.730 .000 7607.639 12026.289
of products 8
2 (Constant) -23579.654 3818.94 -6.174 .000 -31082.924 -16076.383
7
Quality and range 7711.761 1294.43 .286 5.958 .000 5168.531 10254.991
of products 0
Overall Experience 3403.095 1064.98 .154 3.195 .001 1310.662 5495.528
at store 7
a
Dependent Variable: Bill_Value
Excluded Variablesa
Model Beta In T Sig. Partial Collinearity
Correlation Statistics
Tolerance
1 Overall Experience at store .154b 3.195 .001 .142 .741
Price Competitiveness -.010b -.208 .835 -.009 .726
Staff service .052b .705 .481 .032 .314
Fast checkout service -.096b -1.827 .068 -.082 .624
2 Price Competitiveness -.033c -.674 .500 -.030 .711
Staff service .006c .081 .935 .004 .302
c
Fast checkout service -.086 -1.651 .099 -.074 .622
a
Dependent Variable: Bill_Value
b
Predictors in the Model: (Constant), Quality and range of products
c
Predictors in the Model: (Constant), Quality and range of products, Overall Experience at store
The regression equation when bill value taken as dependent variable is

Bill Value = -23579.65+ 7711.76 (Quality and range of products) + 3403.10 (Overall Experience at store)
It is also observed from the above tables that that regression model is a good fit at F= 43.92, p< 0.001. Quality and
range of productsand overall experience at store (satisfaction variables), are found significant in this model, at p<0.05
and hence these satisfaction variables also reflect a statistically significant relationship with Bill Value (loyalty). Our
model states that up to 14.7 percent (adjusted R2 is 0.147) of variance in Bill Value (loyalty parameter) is due to
Quality and range of products and overall experience at store (satisfaction parameters).
The regression coefficients in the model shows the change from strongly disagree to strongly agree, the number of bill
value were about of Rs. 32000.
Therefore, the result of multiple regression provides an evidence to reject null hypothesis and states that there exists a
positive relationship between customer satisfaction and customer loyalty (with Quality and range of products and
overall experience at store, as customer satisfaction’s parameters and Bill Value as customer loyalty’s parameter). It
also states that customer’s satisfaction has a positive impact on customer’s loyalty.
Price competitiveness: It has been observed from the study that price competitiveness, as a satisfaction variable, does
not show any significant association with customer loyalty.
5. CONCLUSION
The study states that customer satisfaction has a positive impact on customer loyalty. The association between the
customer loyalty and customer satisfaction, found to be significant (p<0.05). The result of multiple regressions for
number of bills, provides an evidence to predict that there exists a positive relationship between customer satisfaction
and customer loyalty (with staff service and overall experience at store, as customer satisfaction parameters and number

of bills as customer loyalty parameter). There exists a positive relationship between customer satisfaction and customer
loyalty (with staff service and fast checkout service, as customer satisfaction parameters and number of months of stay
as customer loyalty parameter). Also there exists a positive relationship between customer satisfaction and customer
loyalty (with Quality and range of products and overall experience at store, as customer satisfaction’s parameters and
Bill Value as customer loyalty’s parameter). However, in the study, price competitiveness, as a satisfaction variable,
does not show any significant association with customer loyalty. Hereby the degree of association between key variables
of customer satisfaction (Fig.1 & Fig.2) and customer loyalty (Table 1), should drive Customer Relationship
Management strategies adopted by companies.
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AUTHOR
Vijay Laxmi Gupta had rich 7 years of Retail and Marketing experience with reputed retail and telecom companies
including Aditya Birla Retail Limited “more”, Idea, Aircel, Reliance and Satyam Infoways.

An Empirical Study of Customer Satisfaction and Loyalty in Supermarket Retail Business in The National Capital of India

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IPASJ International Journal of Information Technology (IIJIT)

Web Site: http://www.ipasj.org/IIJIT/IIJIT.htm

An empirical study of customer satisfaction

2. REVIEW OF LITERATURE and DEVELOPMENT OF OBJECTIVES

Volume 6, Issue 7, July 2018 Page 75

Customer Loyalty and Profitability

Volume 6, Issue 7, July 2018 Page 76

Volume 6, Issue 7, July 2018 Page 77

Figure1: Conceptual framework.

4. RESULTS AND OBSERVATIONS

Volume 6, Issue 7, July 2018 Page 78

Figure 2: Pie charts of satisfaction variables and demographics

Model R R Adjusted R Std. Error Change Statistics

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Model Summary for Number of MonthsOf Visit

The regression for number of month of visit is given below

Model Summary for Bill Value

1 Regression 26864106748.815 1 26864106748.815 76.216 .000b

Volume 6, Issue 7, July 2018 Page 82

The regression equation when bill value taken as dependent variable is

Volume 6, Issue 7, July 2018 Page 83

Volume 6, Issue 7, July 2018 Page 84

Volume 6, Issue 7, July 2018 Page 85

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