Understanding the Repatronage Intentions of Supermarket Customers: A Cluster Analysis
The IUP Journal of Marketing Management, Vol. XV, No. 2, May 2016, pp. 46-64
Posted: 7 Dec 2016
Date Written: December 7, 2016
In the competitive retail scenario in India, supermarkets need to develop strategies for sustaining customer relationships. Retail literature has highlighted different attributes for store choice, which are determinants of store patronage. The attributes of supermarkets have been broadly categorized into product-related (variety, store brands, product quality), and market-related (shopping experience, fast checkout, reliability, helpful salespeople, and service). This study uses 18 attributes and derives three cluster solution of enthralled, casual, and apathetic supermarket customers using hierarchical and non-hierarchical cluster analysis. A chi-square test of independence reveals that the three clusters differ significantly with respect to age, working status, education, income, and distance traveled to the store. The enthralled customers comprise younger, working consumers with higher educational qualifications and higher incomes and traveling shorter distances to the supermarket. One-way ANOVA test shows that the three clusters vary significantly with respect to repatronage intentions. Enthralled customers show higher repatronage intentions than the casual customers, who in turn show higher repatronage intentions than apathetic customers. The findings offer crucial managerial implications for designing and developing differentiated marketing strategies to enhance better ratings of attributes from customers and hence repatronage intentions.
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