A Structural equation model of customer retention in the supermarket industry in Uganda

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dc.contributor.authorAmandu, Yassin Is’haq
dc.contributor.authorLubaale, Rashid
dc.contributor.authorNdagire, Salmah
dc.contributor.authorEton, Marus
dc.contributor.authorOlema, Hamza
dc.date.accessioned2026-01-06T12:33:47Z
dc.date.available2026-01-06T12:33:47Z
dc.date.issued2025-12-31
dc.descriptionThe study identifies key determinants of customer retention in Uganda’s supermarket sector, revealing how service quality, customer satisfaction, trust, and relational norms influence loyalty. Its insights support Uganda’s NDP IV goals of enhancing competitiveness, expanding the private sector, and improving business performance by informing strategies that increase firm stability, consumer confidence, and economic resilience. The research also contributes to SDG 8 (Decent Work and Economic Growth) by promoting sustainable business practices, SDG 9 (Industry, Innovation and Infrastructure) through evidence-based operational improvement, and SDG 12 (Responsible Consumption and Production) by improving consumer-oriented services in the retail industry.
dc.description.abstractThis study examined the challenge of customer retention in Uganda’s supermarket sector, where firms face low customer loyalty, high costs of acquiring new customers, slow growth, and persistent complaints about service quality. Many small supermarkets either relocate or close, highlighting the need for sustainable solutions. The research aimed to identify critical determinants of supermarket operations and propose a Supermarket Customer Retention (SCR) model suited for Uganda’s turbulent business environment. A cross-sectional quantitative survey of 395 shoppers was conducted using a five-point Likert scale questionnaire distributed physically in major supermarkets and online via Google Forms. Structural equation modelling (SEM) was applied, and five of the eight goodness-of-fit indices were achieved, confirming the model’s validity. Results revealed that service quality, relational norms, switching costs, customer satisfaction, and customer trust are key factors in determining retention. The study provides actionable insights for supermarket management and extends supermarket retention research to the sub-Saharan African context.
dc.identifier.citationAmandu, Y.I., Lubaale, R., Ndagire, S., Eton, M., & Olema, H. (2025). A Structural equation model of customer retention in the supermarket industry in Uganda. Open Journal of Business and Management, 14, 183-200
dc.identifier.issn2329-3292
dc.identifier.urihttps://dir.muni.ac.ug/handle/20.500.12260/856
dc.language.isoen
dc.publisherScientific Research Publishing
dc.subjectSupermarket
dc.subjectCustomer Retention
dc.subjectCustomer Satisfaction
dc.subjectCustomer Trust
dc.subjectService Quality
dc.subjectSwitching Barrier
dc.subjectStructural Equation Modelling
dc.subjectUganda
dc.titleA Structural equation model of customer retention in the supermarket industry in Uganda
dc.typeArticle

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