Antecedents and Consequences of Customer Satisfaction in Food & Grocery Retailing: An Empirical Analysis

Abstract

Customer satisfaction is a measure of how a store meets the customer expectations. The purpose of this paper is to explore the antecedents of customer satisfaction and examine the consequences of customer satisfaction on customer behavioural outcomes. Shopper intercept survey technique was applied to collect the data from 580 actual shoppers from 35 supermarkets in twin cities of Hyderabad and Secunderabad in Andhra Pradesh. Results indicate that value for money, value for time, service quality, store reputation, and situational factors are the significant predictors (antecedents) of customer satisfaction in a typical food and grocery retail setting. Furthermore, results find that customer satisfaction significantly affects the store loyalty (behavioural and attitudinal), repurchase intention, positive word-of-mouth, price insensitivity, and complaint behaviour. Various managerial and marketing implications are elaborately discussed.