Retail Channel Services and Customer Retention in Physical Chain Stores in Nigeria

Abstract:

Extant literature indicates that despite the growing importance of retailing to the development of nations, it is imperative to ask; to what extent does retail channel service relates to customer retention in chain stores in Nigeria. The main objective of the study is to examine the significant relationship between retail channel service and customer retention in chain stores in Nigeria. The study adopted a quantitative research design using a survey method. The study population comprised 65 retail chain stores registered with the Enugu Branch of Pillars Association of Nigeria as of July 2020. The questionnaires were pretested for comprehension, relevance and validity through ten operators of retail superstores and three scholars in the field of distribution channel management. The reliability of the instrument was tested using Cronbach’s alpha coefficient analysis in order to ensure the internal consistency and reliability of measures. The reliability coefficient obtained was 0.85. The findings of the study show that bulk breaking, spatial convenience, waiting time and product variety are positively related to customer retention. We conclude that retail channel service has a positive and significant influence on customer retention of retail chain stores in Nigeria. The retail chain stores, if effectively coordinated, and their marketing channel service properly managed, is capable of enhancing the tendencies of these retail stores in retaining their existing customers.