DOI: 10.36347/sjebm.2018.v05i04.002

Pages: 286-294

This study aimed at assessing factors that customers in Karatina consider when choosing a particular supermarket for purchase of goods and services. Supermarkets have been facing customer loyalty challenge. This make supermarket sub-sector a fundamental area of study with the aim of establishing the real drivers of supermarket choice. Focus was on product and service diversification, operational schedules, promotions and reward schemes and supermarket environment. Stratified random sampling technique was used to pick respondents in the population. The data collected was analyzed using descriptive and inferential statistics. Multinomial logistic regression was used to fit relational models. The study established that special discounts, security, cleanliness, product quality and fast customer service influenced the customers’ choice significantly. Free goods, loyalty cards, vouchers, background music, frontage and parking space do not significantly affect choice of the supermarkets. The study observes that supermarkets that have high levels of cleanliness, security, variety and quality products, fast customer service and convenient operational schedules attracts the big proportion of customers.