Antecedents of Brand Loyalty in Leading Supermarket Chains in Kenya: The Mediating Role of Customer Satisfaction

Abstract

The purpose of the study was to establish the extent to which customer satisfaction mediates the relationship between service quality, brand image, customer perceived value with brand loyalty in leading supermarket chains in Kenya. The population of interest comprised of customers of supermarkets in Kenya. A supermarket store sample of 30 stores from Nairobi and Nakuru counties was picked at random from the list of the stores of the four main supermarkets (Nakumatt, Uchumi, Naivas & Tusky’s). A sample of 384 customer respondents was interviewed. The study used multiple linear regression analysis in a four step process which established that customer satisfaction significantly affects brand loyalty. The study also shows that customer satisfaction fully mediates the relationship between service quality, brand image, customer perceived value with brand loyalty in leading supermarkets in Kenya. The dimensions of brand Image, service quality and customer perceived value dimensions are antecedent to brand loyalty and are a significant marketing tool for retail stores that wish to enhance the customers repurchase intention and the intention to recommend. A higher level of customer satisfaction leads to brand loyalty which is paramount to being competitive in the marketplace. The study recommends that supermarkets must strive towards increasing customer satisfaction with a view of enhancing brand loyalty and market share retention.