Factors that affect customer loyalty in small enterprises

  • Received May 8, 2019;
    Accepted November 15, 2019;
    Published December 17, 2019
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/im.15(4).2019.07
  • Article Info
    Volume 15 2019, Issue #4, pp. 78-87
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The study was conducted by collecting the data from 608 customers of migrant retailers working in the retail industry of Pretoria West in South Africa in order to identify socioeconomic factors that affect customer loyalty. Data was collected from eligible respondents by using a pre-tested, validated and standardised questionnaire of study that was self-administered by respondents. The study found that about 69% of customers were loyal to their retailers. About 68% of customers had a favorable attitude towards their retailers. About 68% of retailers used appropriate promotional measures for marketing their goods to potential customers. About 69% of retailers provided their customers with satisfactory quality of services. About 67% of customers were loyal to their retailers’ brands. Factor analysis was used for extracting 3 influential predictors of customer loyalty. These factors were entrepreneurial skills, marketing skills, and selling price. The percentage of variance explained by the 3 extracted factors was equal to 92.58%.

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    • Table 1. Assessment of loyalty of customers to retailers (n = 608)
    • Table 2. Demographic characteristics of respondents (n = 608)
    • Table 3. Past experience of loan applications (n = 608)
    • Table 4. Assessment of managerial, entrepreneurial and marketing skills (n = 608)
    • Table 5. Assessment of customer loyalty (n = 608)
    • Table 6. Cronbach Alpha coefficients for indicators of customer loyalty (n = 608)
    • Table 7. Estimated eigenvalues of predictors of customer loyalty (n = 608)