Scholars Bulletin (SB)
Volume-4 | Issue-11 | Scholars Bulletin, 2018; 4(11):860-873
Research Article
The Influence of Price on Customer Loyalty in the Retail Industry
Jewel Dela Novixoxo, Paul Fred Kumi, Lucy Anning, Samuel Darko
Published : Nov. 30, 2018
Abstract
This study examines the influence of price on Customer Loyalty in the Retail Industry, using Shoprite Accra mall as a case study. The specific objectives are set to identify factors contributing to the attraction of customers to supermarkets, in a bid to determining the factors contributing to repeat visits of customers to supermarkets and to ascertain the influence of price on repeat visits of customers to supermarkets. As methodology, a descriptive research design was adopted. The data was collected from a sample size of 60 respondents with the aid of structured questionnaires. The findings indicate that price is the most essential element that attracts customers to Shoprite. Also customers confirmed that they always buy from Shoprite as a result of lower prices and continue to make repeat purchase for this same reason. The findings further revealed TV advertisement as the major type of advertisement that most influences customer’s buying behavior and that the major element they look out for in advertisement is price. From the findings, majority strongly agreed that price influences their decision to make repeat purchase and made it clear that Shoprite offers comparatively cheaper prices than competitors because their prices are not higher than what customers expect to pay. However, the findings indicated that location, branding and product line of Shoprite need improvement. The study recommends among others that management of Shoprite should not set prices without knowledge of market changes and differences between market segments. Also management should consider the role of price in consumer perceptions of products/ service quality and image. Furthermore, pricing objectives must be consistent with overall communication objectives of the firm as they relate to products/ services and their prices.