Customer Satisfaction and Loyalty to British Supermarkets

Abstract

The UK food retailing structure is rapidly changing. Concentration is increasing both through ownership and supermarket size, and retailers are responding to slow growth in the UK by improving customer services. Supermarkets are increasingly being branded in order to increase differentiation, consequently increasing customer loyalty. The purpose of this study is to empirically analyse the customer loyalty of British supermarkets. We adopted and used Oliver's (1997) four-phase loyalty model (cognitive, affective, conative and action) to measure the loyalty of British consumers to the supermarkets they patronise. The findings show that different loyalty phases have different impacts on supermarket patronage. We recommend that supermarkets should focus on customer loyalty in order to generate positive net operating profits.

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