An empirical study of customer satisfaction and loyalty in supermarket retail business in the national capital of India

ABSTRACT Customer satisfaction and loyalty are critical focus areas of Customer Relationship Management (CRM) strategy deployed by companies to increase profitability. Achieving customer loyalty by ensuring customer satisfaction requires identifying and managingan interplay of multiple drivers. In this study the association between customer satisfaction and loyalty was investigated on a sample of 500 loyal customers of a supermarket in the Indian national capital region. The study involved outlining the determinants of customer satisfaction and loyalty in supermarkets domain and the degree of mutual association. Using Multiple Regression technique, the study highlights the degree of relationship between customer satisfaction variables (overall experience at store, price competitiveness, staff service, fast checkout service and quality and range of products) and customer loyalty (number of bills, number of months of stay with stores and bill value). Key words: CRM, Customer Loyalty, Customer Satisfaction, Supermarket Retail