Key Determinants of Customer’s Satisfaction in Supermarkets

The Sri Lankan supermarket industry has grown significantly over the last few years through expansions. The penetration levels stand lower than regional peers and is expected to grow further across the nation in the coming years. The industry is led by few large-scale retailers such as Cargills, Keells, Arpico, Laughs, Spar, Glomark and other standalone supermarkets.
This study investigates the factors that affect the supermarket customer’s satisfaction level in Colombo district of Sri Lanka. Based on the past literature four main factors (independent variables) namely product quality, service quality, store atmosphere and loyalty programs were selected to measure impact towards customer’s satisfaction (dependent variable). The data was collected through a questionnaire. A total of 206 respondents were surveyed to identify the impact of the above factors and its dimensions. The research hypotheses were tested through simple regression analysis with SPSS software. Results of the study indicated that product quality, service quality and store atmosphere had moderate positive relationships with customer satisfaction. Loyalty programs scored the lowest values and had a positive weak association with satisfaction. Quality and freshness, product variety, personal attributes of staff, faster checkouts, cleaner, spacious stores with appealing decors were significant factors for customer’s satisfaction in supermarkets.
The findings of the study provide useful insights and recommendations on how supermarkets should improve the current instore shopping experience and standard of service which will enable to enhance the customer satisfaction.
Key words: Customer satisfaction, Product Quality, Service Quality, Store Atmosphere, Supermarkets