Customer satisfaction and loyalty: an application on FMCG Wholesalers.
Date
2016
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Abstract
ABSTRACT
Retaining customers in the Fast Moving Consumer Goods (FMCG) wholesale environment
is becoming increasingly difficult. While wholesalers have an understanding that superior
customer service is important in any business; there is no proof that they actively engage in
activities that measure satisfaction and loyalty levels. The presence of national chain stores
in traditional townships has changed the competitive environment within this sector;
increasing the importance of using service quality as a differentiating strategy. The aim of
the study was to help wholesalers find sustainable ways of retaining their customers who are
traders, by determining factors that influence customer satisfaction and loyalty, determining
whether a relationship exists between the two constructs in a wholesale environment. This was
a cross-sectional study which used loyalty and SERVQUAL questionnaire to determine the
levels of loyalty. A sample of 159 traders from a population of 300 registered traders that buy
from Favors Cash & Carry was selected using simple random sampling technique. More than
two thirds (69%) of the sample were male respondents. Most (77%) of the respondents were
spaza shop owners. The study found that the expectations were significantly higher than the
perceptions for all the SERVQUAL constructs. No significant association was found between
loyalty and satisfaction among the participants (p> 0.05). The recommendations included
express checkout procedures, training, reward and recognition programs for personnel, and
loyalty programme for customers in order meet customer expectations.
Description
Master’s Degree. University of KwaZulu-Natal, Durban.