The Effects of Retail Supermarket Service Quality on Customer Loyalty in Dar es Salaam, Tanzania: Adapting the Retail Service Quality Scale

Abstract

In light of the business’ underperformance and the subsequent collapse of various locally owned and multinational retail supermarkets in Tanzania, this study used a retail service quality scale (RSQS) to investigate the influence of retail supermarket service quality on customer retention by fostering customer loyalty. The study adopted an explanatory design. And a self-administered questionnaire to collect data from 390 shoppers who visited Shoppers Supermarket–Mlimani, Shoppers Plaza–Mikocheni, Viva Supermarket and Village Supermarket in Dar es Salaam, Tanzania. Partial Least Squares-Structural Equation Modeling was used to evaluate the hypothesized structural and measurement relationships. The study found that reliability (β = 0.260, p = 0.000), policy (β = 0.186, p = 0.022), and problem-solving (β = 0.169, p = 0.010) are positive and significant service quality aspects predicting customer loyalty. Physical aspects (β = -0.012, p = 0.880) and personal interactions (β = 0.116, p = 0.107) were not significant predictors of customer loyalty. The study results suggest that retail supermarkets in Tanzania should improve reliability, policy, and problem-solving to retain customers and boost financial performance. Further, the study informs supermarkets that customers in Tanzania prioritise reliability, supportive policies, and problem-solving for customer retention over physical aspects and personal interactions

Issue Section: Business Education