Service Quality and Customer Loyalty to Supermarkets in Kampala, Uganda

Abstract

The study examined the effect of service quality on customer loyalty to supermarkets in Kampala. The study objectives included to; establish the extent to which tangible aspects of a services offered by supermarkets influence customer loyalty to supermarkets as opposed to retail shops in Kampala Business capital and establish the extent to which intangible aspects of a services offered by supermarkets influence customer loyalty to supermarkets as opposed to retail shops in Kampala Business capital. The study adopted a case study design where both qualitative and quantitative methods of data collection and analysis were used. Data was collected using questionnaire and interview guide. Both descriptive and inferential statistical techniques of analyses were used in the study. Quantitative data was analyzed using frequencies, percentages, correlations, coefficient of determination and regression analysis while qualitative data was simply quoted in the report. The results showed a positive moderate effect of tangible aspects of services on customer loyalty. However, physical facilities and outlay had the most effect on customer loyalty. This was followed by products, personnel and technology, respectively. In addition, there was a weak positive effect of intangible aspects of services on customer loyalty. However, only responsiveness had a significant effect on customer loyalty. The rest of the dimensions of intangible aspects of services did not significantly affect customer loyalty. It was concluded that both tangible and intangible aspects of service quality in supermarkets had a significant effect on customer loyalty. Thus, it was recommended that all tangible aspects should be taken into consideration to enhance customer loyalty but priority given to physical facilities and outlay. On the other hand, the intangible aspects of service quality that should be considered in improving customer loyalty should be responsiveness.