School of Education and Business Studies (SEBS)

Permanent URI for this communityhttp://10.1.6.121:4000/handle/123456789/10

Browse

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Influence of Competitive Advantage on Customer Satisfaction in Retail Supermarkets: A Case Study of Machakos Town Sub-County, Kenya
    (Scott Christian University, 2026-08) Okwemba, Belinda Nyangasi
    The retail supermarket has progressively become a critical component of Kenya’s commercial landscape, characterized by urbanization, rapid expansion, intensified competition, and ever-changing consumer preferences. As supermarkets endeavor to distinguish themselves and maintain market relevance, the concepts of competitive advantage and customer satisfaction have emerged as key determinants of a firm’s success. The purpose of this study was to examine the extent to which competitive strategies adopted by supermarkets in Machakos Town influence customer satisfaction. This study examines how key dimensions of competitive advantage—specifically pricing strategies, product variety, and service quality, and technological adoption— influence customer satisfaction outcomes. This inquiry is significant because customer satisfaction is integral to fostering loyalty, stimulating repeat patronage, and strengthening the long-term viability of retail enterprises. Understanding these relationships in smaller urban contexts is particularly important given the distinct socio-economic and infrastructural conditions that shape consumer behavior in such environments. The study was anchored in established theoretical frameworks, including Porter’s Generic Strategies Model, the Expectancy Disconfirmation Theory, and the SERVQUAL model, which collectively provided a robust conceptual basis for examining the variables of interest. A descriptive research design with a quantitative orientation was employed. The target population consisted of supermarket customers and managerial staff, from whom a stratified random sample of 376 respondents was drawn. Data were collected through structured questionnaires and analyzed using descriptive statistics and inferential techniques, including correlation and regression analysis. The study achieved an 87.8% response rate (330 respondents). The regression model was statistically significant (F (4,326)=83.94, p<0.001) and explained 50.7% of the variance in customer satisfaction. All four independent variables were significant predictors, with service quality emerging as the strongest (β=0.306), followed by pricing strategies (β=0.239), technology adoption (β=0.212), and product variety (β=0.195). Demographic characteristics moderated these relationships: technology adoption had stronger effects on younger customers, while pricing strategies mattered more for older and lower-income customers. The study concludes that service quality is the primary driver of customer satisfaction in Machakos Town supermarkets, and that a one-size-fits-all competitive strategy is insufficient given the diverse customer base. Key recommendations include prioritizing service quality improvements (cleanliness, reliability, checkout accuracy), maintaining competitive pricing on essentials, re-evaluating loyalty programs, investing in visible transaction technologies (e.g., M-Pesa), and adopting segment-specific strategies based on customer age and income levels. Policymakers are urged to support retail logistics infrastructure and digital literacy programs to enhance the supermarket sector’s competitiveness in semi-urban Kenya.