2006 EABR & ETLC
Determinants Of Grocery Store Loyalty Of Consumers In Bangladesh Plato Ranjan Datta, London College of Management Studies, United Kingdom Bonya Rani Chakraborty, London College of Management Studies, United Kingdom
Abstract Due to the belief that customer retention is a much cost-effective strategy than attracting new customers, the customer loyalty subject has become of increased interest to most businesses over the last few years. Loyal customers always bring more profit for the organisation as they are more likely to recommend their friends and family, ready to pay premium prices and have increased repurchase intention. This study sets out to examine the degree of consumer’s loyalty in Bangladesh among consumers who shop from various superstores. The main objective is to empirically investigate the strength of loyalty of Bangladeshi food consumers on the basis of their shopping behaviour and store-level service provision, and thus provide evidence which demonstrates a model of consumer loyalty based on these factors. In order to understand consumer loyalty in Bangladesh Oliver’s four stage of loyalty model were adopted. A total sample of 150 food shopping consumers from three leading stores in Bangladesh were selected randomly and interviewed in March by trained interviewers. The survey results indicate that Bangladeshi food consumers are conscious of the cost and benefit (Cognitive loyalty), are conscious with satisfaction (Affective loyalty), satisfied consumers are likely to recommend their primary super store to their family and friends (Co-native Loyalty) and also they have frequencies of visit (Action Loyalty). The findings of research can be used to offer a sound basis for retailers to improve their operations in all the areas, so increasing their profits and to provide the first such survey in this particular (and extremely important) field in the Bangladeshi context and thus offer a foundation and direction for future research.
INTRODUCTION The retail industry is dynamic, huge and change is a constant phenomenon. Over the last few decades in both Europe and North America one has seen the emergence of supermarkets as the dominant retail form. This is due to the fact that consumers’ behaviour has changed and shifted towards convenience, high quality produce, provision for customer care, flexible payment methods and sophisticated channels of distribution. To cope with consumer demands retailers are constantly shaping their business strategies and striving to offer the right products and services. Determinants of store choice, customer loyalty and patronage behaviour have been widely studied across the globe. Therefore, a sheer volume of literature exists regarding food retailing. However, there is still vast scope for research in this field as the environment of retailing is in a constant phase of change and the emergence of new store formats in USA and Europe have led to dramatic changes in consumer behaviour. This is particularly true and has significant effect on middleclass consumers in Bangladesh with the newly introduced ‘so-called’ supermarkets which are providing a completely new experience for those consumers offering sophisticated customer service, a wide and assorted variety of goods, pleasant ambience, spacious layout, quality imported and branded products and provision for other western life style facilities. Although there is some research on retailing in other Asian counterparts, there has been very little research in Bangladesh. The retailing industry in Bangladesh is very fragmented and underdeveloped. The so called European 1
2006 EABR & ETLC Siena, Italy style new superstore format has emerged in this sector only in the last few years so this sector of retailing is in an early phase. Therefore, it is of paramount importance for retailers in Bangladesh to know the attributes that appeal to their customers in order to satisfy them. Thus, this study sets...
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