Effect of relationship marketing concept of reciprocity on customer satisfaction among foreign owned supermarkets in Kenya: A case study of Carrefour Supermarket
Keywords:
customer satisfaction, equivalence, immediacy, reciprocity, relationship marketingAbstract
The study sought to examine the effect of reciprocity on customer satisfaction among foreign owned supermarkets in Kenya. A positivist paradigm research philosophy guided the study with deductive research approach employed in order to allow for the development of hypotheses by use of existing theories. Quantitative research techniques were employed to analyze data. Data for the study was collected from a sample size of 384 customers from Carrefour supermarket outlets. A response rate of 85.68% was attained translating to 329 valid questionnaires. Descriptive statistics was used to summarize data and show meaningful patterns while inferential statistics (correlation and regression analysis) were employed to test the study hypotheses. The models were deemed fit due to significant F statistics at 0.05 level of significance. From the attained R2, the results revealed that reciprocity variable was significant in affecting customer satisfaction among foreign owned supermarkets in Kenya if other factors are held constant. Based on the significant beta coefficient attained, the study rejected the null hypothesis H01 (reciprocity has no significant effect on customer satisfaction among foreign owned supermarket in Kenya. The correlation analysis at 0.01 level of significance revealed reciprocity had a moderate positive correlation with customer satisfaction. The study recommends that supermarket management should focus on enhancing relationship marketing practice of reciprocity through training of staff on the same as a means of sustaining customer satisfaction.
Downloads
References
Adikaram, C. N. K., & Khatibi, A. (2016). The relationship between customer relationship management and customer satisfaction: A study on private higher education institutions in Sri Lanka. International Journal of arts and Commerce, 5(2), 69-95.
Al-Ali, M., Bazin, N.-E. N., & Shamsuddin, S. (2015). Key Determinants of Customer Satisfaction: Evidence from MalaysiaGrocery Stores. Journal of Theoretical & Applied Information Technology, 74(3).
Alejandro, T. B., Kowalkowski, C., Ritter, J. G. d. S. F., Marchetti, R. Z., & Prado, P. H. (2011). Information search in complex industrial buying: Empirical evidence from Brazil. Industrial Marketing Management, 40(1), 17-27.
Aliyu, A. A., Bello, M. U., Kasim, R., & Martin, D. (2014). Positivist and non-positivist paradigm in social science research: Conflicting paradigms or perfect partners. J. Mgmt. & Sustainability, 4, 79.
Arndt, J. (1979). Toward a concept of domesticated markets. The journal of marketing, 69-75.
Atul, P., & Mona, S. (2015). The conceptual foundations of relationship marketing: Review and synthesis. Экономическая социология, 16(2).
Au, A. K. M., & Tse, A. C. B. (2019). Expectancy disconfirmation: effects of deviation from expected delay duration on service evaluation in the airline industry. Asia Pacific Journal of Marketing and Logistics, 31(1), 291-300.
Banwari, M. (2016). Retrospective: why do customers switch? The dynamics of satisfaction versus loyalty. Journal of Services Marketing, 30(6), 569-575.
Bordalo, P., Gennaioli, N., & Shleifer, A. (2016). Competition for attention. The Review of Economic Studies, 83(2), 481-513.
Brian, N. (2017). Kenya’s retail spending hits Sh1.8 trillion, says P&G report. Daily Nation Business. Retrieved from Daily Nation Business website: https://www.nation.co.ke/business/Kenya-retail-spending-hits-Sh1-8-trillion/996-3804314-djv0n9/index.html
Catherine, N. K., Kamau, S., & Mbithi, M. (2019). Effect of Consumer Factors on Store Brand Choice in the Retail Industry in Kenya: A Survey of Selected Supermarkets in Nairobi County. International Journal of Business Management and Finance, 1(1).
Cooper, D. R., & Schindler, P. S. (2014). Business research methods: McGraw-Hill/Irwin (New York).
Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An interdisciplinary review. Journal of management, 31(6), 874-900.
Daniel, W. W., & Cross, C. L. (2018). Biostatistics: a foundation for analysis in the health sciences (11th ed.). USA: John Wiley and Sons, Inc.
David, N. K. (2015). Supplier power and retail business in Kenya, Business Daily.
Dawson, C. (2019). Introduction to Research Methods 5th Edition: A Practical Guide for Anyone Undertaking a Research Project: Hachette UK.
Demmler, K. M., Klasen, S., Nzuma, J. M., & Qaim, M. (2017). Supermarket purchase contributes to nutrition-related non-communicable diseases in urban Kenya. PloS one, 12(9), e0185148.
Dutot, V., Bergeron, F., & Raymond, L. (2014). Aligning it capabilities with the information requirements of international smes: Information processing theory revisited. Paper presented at the 2014 47th Hawaii International Conference on System Sciences.
Fontenot, R., & Wilson, E. (1997). Relational exchange: a review of selected models for a prediction matrix of relationship activities. Journal of Business Research, 39(1), 5-12.
Friedman, H. H., & Rahman, A. (2011). Gifts-Upon-Entry and Appreciatory Comments: Reciprocity Effects in Retailing. Journal of International Marketing Studies, 3(3), 161-164.
Garg, G., & Kothari, C. (2014). Research Methodology. Methods and Techniques. New Age International Publishers. New Delhi-110002.
Gaur, A. S., Kumar, V., & Singh, D. (2014). Institutions, resources, and internationalization of emerging economy firms. Journal of World Business, 49(1), 12-20.
Geiger, A., & Germelmann, C. C. (2015). “Thank Me For Hosting:” the Role of Reciprocity in Sharing. ACR North American Advances.
George, D., & Mallery, P. (2016). IBM SPSS statistics 23 step by step: A simple guide and reference: Routledge.
Gillison, S. T., & Reynolds, K. E. (2018). Satisfaction While Shopping for Another Person: How Others' Product Evaluation Influence Shopper Satisfaction. Journal of marketing theory and practice, 26(3), 211-229.
Gouldner, A. W. (1960). The norm of reciprocity: A preliminary statement. American sociological review, 161-178.
Hennig‐Thurau, T., & Klee, A. (1997). The impact of customer satisfaction and relationship quality on customer retention: A critical reassessment and model development. Psychology & Marketing, 14(8), 737-764.
Herbling, D. (2013, July, 24th). Nakumatt starts talks on sale of 25pc stake, Business Daily.
Homans, G. C. (1958). Social behavior as exchange. American journal of sociology, 63(6), 597-606.
Hoppner, J., & Griffith, D. (2011). The role of reciprocity in clarifying the performance payoff of relational behavior. Journal of Marketing Research, 48(5), 920-928.
Hoppner, J. J., Griffith, D. A., & White, R. C. (2015). Reciprocity in relationship marketing: A cross-cultural examination of the effects of equivalence and immediacy on relationship quality and satisfaction with performance. Journal of International Marketing, 23(4), 64-83.
Hoque, A., Awang, Z., & Salam, S. (2017). The Effects of Relationship Marketing on Firm Performance: Small and Medium Enterprises (SMEs) in Bangladesh. Paper presented at the 1st International Conference on Business and Management (ICBM-2017), BRAC Business School (BBS), BRAC University, Dhaka, Bangladesh, September.
Hosseini, S., Fallon, G., Weerakkody, V., & Sivarajah, U. (2019). Cloud computing utilization and mitigation of informational and marketing barriers of the SMEs from the emerging markets: Evidence from Iran and Turkey. International Journal of Information Management, 46, 54-69.
Hunt, H. K. (1977). Conceptualization and measurement of consumer satisfaction and dissatisfaction: Marketing Science Institute.
Joan, G., & Joseph, C. (2000). Defining consumer satisfaction. Academy of marketing science review, 1(1), 1-22.
Kanoga, S., Njugana, R., & Bett, S. (2015). The Effect of Place on Performance of Shopping all in Nairobi Country Kenya. Journal of Social Sciences and Humanities, 1(4), 381-390.
Karimi, B. J. (2014). Impact of Relationship Marketing Practices on Customer Retention in the Insurance Industry in Kenya. MBA Thesis. University of Nairobi.
Kasemsap, K. (2018). The roles of corporate marketing strategies and brand management in the global retail industry Digital Marketing and Consumer Engagement: Concepts, Methodologies, Tools, and Applications (pp. 294-325): IGI Global.
Khandabi, A., rezaee Klidbari, H., & Fadayi, M. (2014). The Effect Of Relationship Marketing On Customer Satisfaction Of Melli Bank: Case Of Study Bandar Anzali Township. Indian Journal of Fundamental and Applied Life Sciences ISSN: 2231, 6345(2014), 1545-1552.
Koklic, M. K., Kukar-Kinney, M., & Vegelj, S. (2017). An investigation of customer satisfaction with low-cost and full-service airline companies. Journal of Business Research, 80, 188-196.
Kothari, C., & Garg, G. (2014). Research methodology Methods and Techniques. 2014-New Age International (P) Ltd.
Krosnick, J., & Presser, S. (2010). Question and Questionnaire Design. Handbook of survey research, 94305(886), 1432-1033.1976.
Kwan, R., & Carlson, J. L. (2017). The ties that bind us: Examining relationship marketing orientation and its impact on firm performance in the information systems outsourcing services sector. Journal of Strategic Marketing, 25(5-6), 495-510.
Kyei, D. A., & Narteh, B. (2016). Relationship Marketing Practices and Customer Satisfaction in the Ghanaian banking Sector. European Journal of Business and Management, 8(16).
Lee, J.-S., Kim, S., & Pan, S. (2014a). The role of relationship marketing investments in customer reciprocity. International Journal of Contemporary Hospitality Management.
Lee, J.-S., Kim, S., & Pan, S. (2014b). The role of relationship marketing investments in customer reciprocity. International Journal of Contemporary Hospitality Management, 26(8), 1200-1224.
Lee, R. P., Johnson, J. L., & Tang, X. (2012). An investigation into the role of IT integration, relationship predictability and routinization in interfirm relationships: from the structuration perspective. Industrial Marketing Management, 41(2), 368-377.
Linda, N., & Judith, W. (2015). Marketing Research Firm Performance and Antecedents to Client Satisfaction. Paper presented at the Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference.
Liu, Y.-H. S., Deligonul, S., Cavusgil, E., & Chiou, J.-S. (2018). Always trust in old friends? Effects of reciprocity in bilateral asset specificity on trust in international B2B partnerships. Journal of Business Research, 90, 171-185.
Lou, L., & Koh, J. (2018). Deterrence and Reciprocity Approaches for Enhancing User Participation in the Sharing Economy.
Luu, T. T. (2019). CSR and customer value co-creation behavior: The moderation mechanisms of servant leadership and relationship marketing orientation. Journal of Business Ethics, 155(2), 379-398.
Mack, L. (2010). The philosophical underpinnings of educational research: Polyglossia.
Mamusung, R. T., Kusumawati, A., Nimran, U., & Suharyono, S. (2019). Building Customer Loyalty through Service Quality and Customer Trust. WACANA, Jurnal Sosial dan Humaniora, 22(4).
Mbatia, C., & Wanjiku, A. (2020). The collapse of retail chain giants in Kenya: Evidence and lessons for retailers. Retrieved 25th December, 2020, from The Kenya Institute of Public Policy Research and Analysis https://kippra.or.ke/index.php/resource-centre/blogs/200-wholesale-and-retail-sector-growth-rate-in-kenya
Miriri, D. (2019). Carrefour Kenya targets number 2 retail ranking this year, franchisee says. Africatech Retrieved 21st May 2019, from https://af.reuters.com/article/kenyaNews/idAFL8N21R3KF
Moliner, M. Á., Monferrer, D., & Estrada, M. (2018). Consequences of customer engagement and customer self-brand connection. Journal of Services Marketing.
Moraru, A.-D., & Duhnea, C. (2018). E-banking and customer satisfaction with banking services. Strategic Management, 23(3), 3-9.
Muafi, M. (2016). Analyzing fit in CSR strategy research in state-owned entreprises: Indonesia context. Journal of Industrial Engineering and Management, 9(1), 179-206.
Mugenda, O. M., & Mugenda, A. G. (2003). Research methods: Quantitative and qualitative approaches: Acts press.
Mukaka, M. M. (2012). A guide to appropriate use of correlation coefficient in medical research. Malawi medical journal, 24(3), 69-71.
Muturi, F. M. (2018). Determinants of brand loyalty in leading supermarket chains in Kenya. JKUAT-COHRED.
Ndubisi, & Ali. (2015). Managing Service Consumer Behavior and Relationship Dynamics in Asia Handbook of Research on Managing and Influencing Consumer Behavior (pp. 493-505): IGI Global.
Ndubisi, & Kok. (2005). Factorial and discriminant analyses of the underpinnings of relationship marketing and customer satisfaction. International journal of bank marketing, 23(7), 542-557.
Ndubisi, N. (2007). Relationship marketing and customer loyalty. Marketing Intelligence & Planning, 25(1), 98-106.
Njoroge, G. W. (2015). Strategies Adopted by Major Shopping Malls to Enhance Customer Retention in Nairobi City County in Kenya. Unpublished MBA Project, School of Business University of Nairobi.
Njoroge, M. (2019). Carrefour gunning to surpass Naivas in Kenya’s retail market. Retrieved 25th December 2020, from Business Daily https://businesstoday.co.ke/carrefour-surpass-naivas-kenya-retail-market/#:~:text=Carrefour%20has%20a%20a%2022%25%20market,has%20seven%20stores%20in%20Nairobi.
Oliver, R. L. (1977). Effect of expectation and disconfirmation on postexposure product evaluations: An alternative interpretation. Journal of applied psychology, 62(4), 480.
Osborne, J. W., & Waters, E. (2002). Four assumptions of multiple regression that researchers should always test. Practical Assessment, Research, and Evaluation, 8(1), 2.
Parise, S., Guinan, P. J., & Kafka, R. (2016). Solving the crisis of immediacy: How digital technology can transform the customer experience. Business Horizons, 59(4), 411-420.
Pervan, S. J., Bove, L. L., & Johnson, L. W. (2004). Conceptualising the role of reciprocity in relationship marketing: An examination of its supporting virtues. Graduate College of Management Papers, 201.
Pervan, S. J., Bove, L. L., Johnson, L. W., & Lin, C.-H. (2011). Effect of reciprocity on well-being in interpersonal marketing relationships: An interview study. International Journal of Management, 28(1), 185.
Pervan, S. J., & Johnson, L. W. (2003). Understanding process in relationship marketing: a focus on reciprocity. Journal of Customer Behaviour, 2(2), 167-191.
Ranjan, D. P. (2017). Relationship Marketing and Customer Retention in Bangladesh’s Food Retailing Sector. Doctoral Dissertation, University of Hertfordshire, United Kingdom.
Richard, N. N., Felix, N., Innocent, E., & Sylvie, F. (2018). The role of service attributes in customer satisfaction: An analysis of classified hotels in Cameroon. African Journal of Business Management, 12(4), 66-77.
Roy, S. K., & Chakraborti, R. (2015). Incorporating customer advocacy in the customer satisfaction model The Sustainable Global Marketplace (pp. 449-449): Springer.
Ryu, K., & Lee, J.-S. (2017). Examination of restaurant quality, relationship benefits, and customer reciprocity from the perspective of relationship marketing investments. Journal of Hospitality & Tourism Research, 41(1), 66-92.
Samina, Q., Karim, K. A., Jonathan, C., Ali, A. G., & Imran, H. (2018). A study of employee affective organizational commitment and retention in Pakistan: the roles of psychological contract breach and norms of reciprocity. The International Journal of Human Resource Management, 29(17), 2552-2579.
Saunders, M. N., Lewis, P., Thornhill, A., & Bristow, A. (2015). Understanding research philosophy and approaches to theory development.
Shamsudin, M., Esa, S., & Ali, A. (2019). Determinants of customer loyalty towards the hotel industry in Malaysia. International Journal of Innovation, Creativity and Change, 6(9), 21-29.
Sharma, S., & Srivastava, S. (2018). Relationship between Service Quality and Customer Satisfaction in Hotel Industry. TRJ (Tourism Research Journal), 2(1), 42-49.
Solate, A. O. (2018). Customer satisfaction on supermarket retail shopping using web-based participatory GIS. The Business & Management Review, 9(3), 35-42.
Sugandini, D., & Wendry, B. (2017). Influence of quality relationship and satisfaction on loyalty: study on supplier in Indonesia. Journal of Business & Retail Management Research, 11(4).
Suhaniya, A., & Thusyanthy, V. (2016). A review on the relationship variables to customer satisfaction. Global Journal of Management and Business Research: E Marketing, 16(5), 87-91.
Tanui, C. (2018). CAK Gives Nod for Acquisition of Tumaini Supermarket. The Thinking Behind The Investor. Retrieved from https://kenyanwallstreet.com/ca-gives-nod-for-acquisition-of-tumaini-supermarket/# website:
Urban, G. L. (2015). Customer advocacy: A new paradigm for marketing? Does Marketing Need Reform?: Fresh Perspectives on the Future (pp. 127-133): Routledge.
Vesel, P., & Zabkar, V. (2010). Relationship quality evaluation in retailers' relationships with consumers. European Journal of Marketing, 44(9/10), 1334-1365.
Wainainah, D. (2019). Carrefour’s Kenya sales hit Sh14bn. Business Daily. Retrieved from Companies website: https://www.businessdailyafrica.com/corporate/companies/Carrefour-s-Kenya-sales-hit-Sh14bn/4003102-5057928-p3eh5iz/index.html
Westbrook, R. A., & Oliver, R. L. (1981). Developing better measures of consumer satisfaction: some preliminary results. ACR North American Advances.
Wright, G. (2015). An empirical examination of the relationship between nonresponse rate and nonresponse bias. Statistical Journal of the IAOS, 31(2), 305-315.
Zhiyong, Y., Narayan, J., Mehdi, H., & Douglas, G. (2018). Differential effects of pay-it-forward and direct-reciprocity on prosocial behavior. Journal of Business Research.
Downloads
Published
Issue
Section
License
Copyright (c) 2021 Osman Wechuli Chesula, Stephen Ntuara Kiriinya, Ann Rintari
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This open-access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.
You are free to: Share — copy and redistribute the material in any medium or format.
Adapt — remix, transform, and build upon the material for any purpose, even commercially. The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms: Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
No additional restrictions You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
