Topics: Customer service, Pricing, Retailing Pages: 15 (4346 words) Published: March 15, 2015
Republic of the Philippines
Batangas State University
Batangas City

Master in Business Administration


Background: In recent years, retail business sector continue to boom in Batangas City. This challenges all entrepreneurs on how to retain within the circulation. Objective: The main purpose of this study is to identify factors affecting customer loyalty to Citimart Supermarket in Batangas City. Methodology: In this study, data has been collected by distributing self-administered questionnaire among 150 consumers involving customers shopping at three Citimart Supermarket stores in Batangas City through quota and random sampling method. Data analyses is carried out through SPSS version 16 program. Statistical techniques such as frequency distribution, reliability analysis, correlation analysis and one-way anova was used. The purpose is to test the relationship among independent and dependent variable. Results: The results revealed that service quality, product quality, price strategy and store attribute have positive and significant relationship with customer loyalty. Conclusion: The study concludes that to maintain market share in today’s competitive business environment and retain loyal customers, organization should focus on customers’ overall satisfaction. The study recommends different marketing that can be used to boost customer loyalty.

Key words:customer loyalty, price strategy, product quality, service quality, store attribute


Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit (http://en.wikipedia.org/).

Recent years, researchers observed that retail companies boom in Batangas City. This challenges all entrepreneurs on how to retain within the circulation. Competition among retailers became tougher. A retailer without a significant competitive advantage doesn’t stand a chance. Superstores are clashing each other on every major corner, while internet marketers are stealing customers from stores. Some consumers are using stores as showrooms where they can touch and feel the merchandise, and then making their purchases at lower cost online. It completely changed customers’ loyalty in a way that they have different varieties to choose from. The customer evaluates the activity of a given enterprise and this evaluation represents the level of their satisfaction. In terms of customers’ satisfaction, it is interesting to note that each company has a definite customer type which requires definite marketing strategy to gain customer loyalty. True, customer contentment builds customer loyalty. Every company needs to perform an advantage that will attract customer and establish healthy loyal customer-oriented business relation.

To be successful, organization must look into the needs and wants of their customers. That is the reason why many researchers and academicians have continuously emphasizes on the importance of customers loyalty. As retailers continue to search for new ways to better engage with shoppers, many have turned to customer loyalty programs. Although most of company owners and business executives believe they are providing a "superior customer service experience," industry research shows 80% of people who do not receive quality customer service will not complain but will take their business elsewhere (retailtouchpoints.com). This infographic highlights the importance of customer loyalty and the challenges it presents to retailers.

Citimart Supermarket is one of the oldest supermarket in Batangas City founded 28 years ago. It upholds position in retail...

References: Nikhashemi, S.R., Paim, L.H., Sidin, S.M., Khatibi, A. (2014). Driving Forces of Hypermarket’s Customer Loyalty: An Empirical Study in Malaysia. Australian Journal of Basic and Applied Sciences, 8(3) March 2014, Pages: 377-386
Rahman, M.K.,Haque, A.,Jalil
Rahman, M.K., Jalil, A. (2014). Exploring Factors Influencing Customer Loyalty: An Empirical Study on Malaysian Hypermarkets Perspective. British Journal of Applied Science & Technology 4(12): 1772-1790, 2014
Salim, L
http://en.wikipedia.org/wiki/Cronbach 's_alpha
Yeng LC, Mat NK (2013)
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