Customer loyalty in Nigerian retail stores
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Abstract
This study examined how service quality and operational challenges influence customer
loyalty in the Nigerian retail sector, using Phil Hallmark, Benin City, as a case study. In
an increasingly competitive retail environment, the research aimed to determine if core
service delivery alone is sufficient to guarantee long-term customer patronage. The study adopted a survey research design, using a structured questionnaire
administered to a sample of 100 respondents. The reliability of the research instrument
was confirmed with an overall Cronbach’s Alpha coefficient of 0.825. Data was analysed
using descriptive statistics to assess customer perception and inferential T-tests to test the
formulated hypotheses at a 0.05 level of significance. The findings revealed that service quality has a highly significant positive influence on
customer loyalty (t=8.440, p<0.05). The store performed exceptionally well in reliability
and cleanliness (92% agreement). However, a significant gap was observed between high
satisfaction and actual loyalty behaviours, such as advocacy. The study further identified
that specific challenges, such as the lack of loyalty rewards and product unavailability
significantly affect the ability to retain customers (t=9.442, p<0.05). The study concludes
that while excellent service quality is a necessary foundation for satisfaction, it is
insufficient for retention when value-based incentives are absent
loyalty in the Nigerian retail sector, using Phil Hallmark, Benin City, as a case study. In
an increasingly competitive retail environment, the research aimed to determine if core
service delivery alone is sufficient to guarantee long-term customer patronage. The study adopted a survey research design, using a structured questionnaire
administered to a sample of 100 respondents. The reliability of the research instrument
was confirmed with an overall Cronbach’s Alpha coefficient of 0.825. Data was analysed
using descriptive statistics to assess customer perception and inferential T-tests to test the
formulated hypotheses at a 0.05 level of significance. The findings revealed that service quality has a highly significant positive influence on
customer loyalty (t=8.440, p<0.05). The store performed exceptionally well in reliability
and cleanliness (92% agreement). However, a significant gap was observed between high
satisfaction and actual loyalty behaviours, such as advocacy. The study further identified
that specific challenges, such as the lack of loyalty rewards and product unavailability
significantly affect the ability to retain customers (t=9.442, p<0.05). The study concludes
that while excellent service quality is a necessary foundation for satisfaction, it is
insufficient for retention when value-based incentives are absent
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