Has Grocery Store Loyalty Changed? An Analysis of Determinant Characteristics and Strategy

Abstract

This study was designed to investigate the characteristics of those grocery store customers who tend to be store loyal versus those who are not store loyal. The study examines the relative importance of characteristics such as service, physical facilities, promotions, pricing structure, and various demographic factors that may impact store loyalty. Findings indicate that customer service and physical characteristics of a store (i.e., convenient store hours and parking) are of fundamental importance to the store-loyal shopper. Interestingly, it was found that loyal shoppers are more concerned with pricing issues than nonloyal shoppers. Additionally, based upon the loyalty literature, it would seem logical to assume that the findings presented in this study may well be applicable to other food-related industries, including the foodservice industry. Managerial strategies are discussed.

KEYWORDS:

• store loyalty
• grocery store
• customer loyalty