Customer satisfaction and loyalty: an application on FMCG Wholesalers.

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.