The key factors influencing customer satisfaction and loyalty in a South African industrial outlet

Abstract

ii ABSTRACT B2B organisations that are looking to evolve and grow the retail channel of their business need to understand the changing space of B2C marketing. The challenge exists for these organisations to understand changing customer demands in retail marketing within the B2B environment. Therefore, it is important for B2B marketing organisations with direct retail channels to consumers, understand customer satisfaction and loyalty to ensure long term survival of the organisation. A convenience sample of 224 responses was obtained by means of a survey questionnaire from cash customers who purchased products from pre-selected Afrox retail centres in the Johannesburg metropolis. The data was analysed by Exploratory Factor Analysis (EFA), utilising Principal Component Analysis, as well as the Rho Factor Analysis technique. The key findings from the analysis revealed that six key factors of customer satisfaction were identified. These factors were called “Customer Value retailing”, “Sales personnel courtesy and assistance”, “Customer Service retailing”, “Outlet pricing and image”, “Outlet purchase satisfaction” and “Loyalty programmes”. The key findings on customer loyalty revealed that two factors were identified. These factors were called “Purchasing behaviour and word of mouth communication loyalty” and “Propensity to switch and referrals loyalty“. The Rho Factor Analysis revealed two factors that were identified that described the association between customer satisfaction and loyalty, namely “Purchase behaviour consciousness versus Emotional bond” and “Outlet attributes experience vs Spurious Bond”. It was also identified that “no bond” existed among patrons. With the understanding of customer satisfaction, and its association with customer loyalty in the industrial retail environment, B2B organisations can strategise and devise marketing plans to manipulate the attributes to build iii attitudinal and emotional bonds with patrons. By ensuring customer satisfaction and long-term loyalty, industrial retailers can build profitability, manage customer share of wallet to ensure survival amidst rival competitors in the current depressed economic environment.