Consumer satisfaction and brand loyalty has been considered as important marketing goals for the organizations. Marketing professionals consider consumer loyalty to serve as a multidimensional process (Alavi et al. 2016). It has been gathered that consumer satisfaction is considered to have a considerable impact on brand loyalty along with a real re-purchase behavior of the brand results in long term business profits. Focused on such scenario, the current paper focuses on analyzing the ways in which brand loyalty and consumer satisfaction impacts their purchase decision within the retail industry. Consumer satisfaction as well as brand loyalty serves as an emerging process which is deemed to serve as a major concern for which most of the companies are highly profit sensitive (Bauer 2014). The major objective behind the improvement is to observe the consumer purchase behavior that is highly important in company’s performance along with maintaining sustainable growth within a competitive environment.
Blut, Beatty, Evanschitzky and Brock (2014) explained consumer satisfaction as the most important strategy for significant along with sustained marketing performance and it is important within the marketing concept. Within the academic literature, the brand loyalty and consumer satisfaction model has a long record for frequently purchasing retail products. Consumer satisfaction is deemed to impact their purchase intention within the retail industry. Moreover, the idea of satisfying consumers tends to have an effective appeal which makes it believe that consumer satisfaction might result in increased loyalty that results in increased profit gain. For the retail organizations, consumer satisfaction is turning out to be the guiding principle for maintaining marketing tactics along with developing marketing conducts (Bowen and Chen McCain 2015). Consumer satisfaction is explained as the al in its place and it is also deemed to be an aspect that enhances organizational performance through increasing their purchase intention within the retail industry. In the recent scenario, the retail organizations are focusing on enhancing consumer satisfaction strategy for the reason that consumers have increased chances to go for repurchase of the same product.
According to the views presented by Calvo Porral and Levy-Mangin (2016) it is gathered that consumer satisfaction is generally used as a predictor of the upcoming customer purchases. Satisfied consumers are considered to have an increased opportunity to go for repeat purchases at the time of recommending that other try the satisfaction source. Moreover, because of increased brand loyalty, the consumers tend to be associated to their desired brand in choosing their products. Choy (2014) explained consumer retail loyalty as an increased commitment of the consumers for repurchasing a desired retail establishment, despite certain situational impacts along with marketing efforts. This is also observed to have effective potential to result in consumers switching behavior to the alternative retail companies. With increasing competition in the global retail industry, the grocery retailers in Saudi Arabia realize the aspects those are the determinant value based attributes which is deemed vital by the consumers at the time of analyzing the retailers or grocery shopping stores. It is deemed to be imperative that grocery retailers realize that there are three factors affecting consumer purchase intention based on their brand satisfaction (Çifci et al. 2016). This encompasses physical factors that include functional aspects such as comfort, layout and privacy along with aesthetic factors like color, architecture, materials as well as style of the store.
The grocery retailers in Saudi Arabia need to enhance consumer satisfaction continuously so that it indicates a central strategic focus for the consumer focused companies (Zhang, van Doorn and Leeflang 2014). This is for the reason that the satisfied consumers tend to develop positive attitudes that light impact the consumer loyalty resulting in frequent purchases, increase in purchase volume along with purchase of other services or goods provided by the retail companies. Retail consumers in distinct nations might expect as well as perceive distinct level and types of service encounters. For this reason, there is an increased requirement to analyze the difference between consumers perceived value in distinct areas of the retail market (Söderlund and Colliander 2015).
Retention is considered to be important in maintaining consumer loyalty and the retail networks in Saudi Arabia are making attempts to attain increased competitive advantage through increasing value by means of loyalty and efficiency (So, King and Wang 2016). As sales promotions has turned out to be an integral aspect within the retail supply chain planning, consumer behavioral aspects based on loyalty and the service operations in retail companies are increasingly challenged. Consumer satisfaction as well as brand loyalty serves as an emerging process which is deemed to serve as a major concern for which most of the companies are highly profit sensitive. The major objective behind the improvement is to observe the consumer purchase behavior that is highly important in company’s performance along with maintaining sustainable growth within a competitive environment (Stathopoulou and Balabanis 2016). Brad loyalty facilitates the retail companies to differentiate its business from its business rivals. Retail brands focus on increasing consumer loyalty in order to attain positive consumer response that can further enhance their purchase intention towards the retail brands. The departmental stores of Saudi Arabia offer quality commodities because of which brand loyalty of the consumers get increased and hey generate a commitment to repurchase the brand (Ström, Vendel and Bredican 2014). Consumer satisfaction increases brand awareness that further enhances brand equity and in the retail industry corporate executives are considering it to be competitive in increasing communication and contact among the organization and the related consumers.
Brand name awareness has a vital role in consumer decision making for the reason that in case the consumers have heard about a brand name, they tend to feel highly comfortable in purchase decision making (Vendel and Bredican 2014). Consumers of the retail sector tend to purchase brands with those they are similar with and along with that brand awareness is accountable for generating strong emotional bonds with the retail brands.
Saudi Arabia retail industry is anticipated to grow with CAGR of around 7.5%, in terms of value over the years 2017 to the year 2022 (Vaioleti 2016). Increase in culturally diversified population existence of an increasingly stable market despite dependence on dropping oil economy along with increased number of construction projects are observed to increase the retail market in Saudi Arabia. There are certain factors within the industry that is anticipated to increase the demand for retail in the upcoming five years. A drastic shift in the Saudi Arabia trail industry is associated with providing importance to the modern trade. It is evident that, consumers seek out alternative means of attaining provisions that has resulted in permanent changes within the shopping behavior of consumers (Veloutsou 2015). Huge retail operations within several formats are dominating the industry along with that competition within the retail market is increasing steadily in the emerging nation.
Figure 1: Anticipated Growth of Saudi Arabia Retail Industry
(Source: Yoo and Park 2016)
There are certain major players those operate their business within the Saudi Arabia retail market and these include Amazon, Wall-mart, Lulu Group, Spinney’s, Carrefour, Al Raya, Fu-Com and Al Sadan and many more (Yoo and Park 2016). It is gathered from the graph indicated above that the market size of Saudi Arabia retail market employs a bottom-up approach. In such approach the retailers’ value sales data for distinct types of distribution channels within the retail market that was recorded and along with that forecast for the future years was recorded. From the data gathered from the industry experts it has been gathered that the historical sales data of the respective retailers to attain an overall market size. The major target audience within the retail industry includes the following members:
Saudi Arabia retail market has been categorized into the following categories long with the industry trend that is indicated below:
Saudi Arabia retail market includes the exclusive stores, supermarket, specialty retailers, and general merchandise stores along with the non-store retailers (Vendel and Bredican 2014). Market by geography for the Saudi Arabia retail sector includes Central, Western, Eastern, Northern and the Southern region. Saudi Arabia retail sector has a population of approximately 33 million individuals existing within the kingdom. The grocery retail market grew by 5% per year in value terms from the year 2012 to the year 2018 (Vendel and Bredican 2014). Traditional grocery retailers of Saudi Arabia continue to be a vital aspect of grocery retail within Saudi Arabia majorly because of strong networks local family departmental stores. This is anticipated for around 57% of the overall market and it is decreasing with modern retail expansion. The total number of supermarkets and hypermarkets is for around 1255 outlets or around 3% of the over the overall retail outlets. These account for 37% over of overall grocery sales within the nation (Vendel and Bredican 2014). In the retail market of Saudi Arabia, Lulu Hypermarket also expanded their chains by adding new outlets. Certain supermarkets chains like Farm Superstores along with Al Jazeers Supermarkets are developing effective expansion programmers that is considering to increasing the accessibility of imported brands.
The trend in the direction of efficient convenience observed Bin Dawood Group to turn out to be the first Saudi grocery retailer in launching a Smartphone application in the year 2016 that facilitates its consumers to place orders for its brand in online medium. From the retail industry report analysis of Saudi Arabia, it has been gathered that independent small grocers are anticipated to remain popular but decreasing choice for the Arabian consumers. Hypermarkets and supermarkets are also set for registering increasing growth rates within the grocery retailers over the forecasted period with respective value CAGRs of 5% as well as 6% considerably at constant 2017 prices (Ström, Vendel and Bredican 2014).
At the end of the year 2017, e-commerce emerged within the new channels within Saudi Arabian retailing. This is particularly correct within the grocery retailing with Bin Dawood, Al Raya and Panda Retail Co launching online grocery shopping within their websites or within their individual shopping within their websites or their individual applications. It is also observed within the Saudi Arabia, such shift is anticipated to offer 20000 employment chances for the nationals within the grocery retailers as an aspect of the nation’s enhancing marketing approach (Ström, Vendel and Bredican 2014).
Figure 2: Historic Retail Industry Growth in Saudi Arabia
(Source: Ström, Vendel and Bredican 2014)
Retail industry of Saudi Arabia is observed to boom for the reason that the nation offers the retail markets to provide the investors and developers with unique selling proposition. Driven by exceptional fundamentals encompass population growth along with increased percentage of young generation. This is related with increasing disposable income, listed entertainment options along with harsh climates because of which the retailers and developers with effective retail performance (Ström, Vendel and Bredican 2014). An evaluation of the major factors that increases the retail space demand particularly the malls, it facilitates in estimating the future growth trends. It is also observed that strong fundamental of Saudi Arabia are highly contributing towards positive viewpoint on the retail sector of the nation. From the analysis of speeding pattern of consumers within Saudi Arabia retail industry it has been gathered that the national brands are familiar and offer increased quality assurance in generating consumer loyalty. Moreover, 49% of the Saudi Arabian consumers are deemed to be loyal to the branded offerings (Ström, Vendel and Bredican 2014). Poor quality perceptions along with enhanced brand loyalty can impose several barriers to the growth of private label retail companies.
The aim set for the current research is to analyze the impact of brand loyalty and consumer satisfaction on consumer purchase decision in retail industry (Ström, Vendel and Bredican 2014). Considering the aim of the study, cretin researches questions are developed below those are to be addressed through completion of this research:
In this section, the researcher is focused on evaluating the techniques through which effective results can be obtained from consumers and can be analyzed. The objective of this section is to explain the research methodology that will be followed in analyzing the impact of consumer loyalty and satisfaction on their purchase decision making within the retail industry. Focused on the same, the research methodology will focus on explaining approach, philosophy, design, data collection process, data analysis, ethical considerations along with analyzing data validity and reliability methods that will be used for attaining useful study implications (So, King, Sparks and Wang 2016).
Selecting suitable philosophy will facilitate the researcher in recognizing the essence of study through employing better research paradigm. There are types of research philosophies such as positivism, interpretvism and realism (Ramanathan, Subramanian and Parrott 2017). The recent research intends to analyze the impact of consumer satisfaction and loyalty on the purchase decision making of Saudi Arabia retail industry. For this reason, in the current research, the researcher will make an increased attempt in evaluating the challenges faced by the retail companies of the nation in increasing consumer loyalty and satisfaction for attuning increased purchase intention of the consumers (Rubio, Villaseñor and Yagüe 2017). Considering the same, the researcher will implement the philosophy of positivism through associating the models and theories explained within the background and industry background in the recent scenario. The recent research centers on analyzing the consumer satisfaction and loyalty importance in improving the purchase intention decision of consumers towards the retail brands. Positivism research philosophy is considered to be most suitable to be used in the current research as it can facilitate in attaining suitable respondents responses (Sasmita and Mohd Suki 2015). Moreover, the researcher has not has not implemented any other research philosophy as they are not relied on theories and models those are scientifically proven.
Research approach is considered to be an important step in carrying out research in order to attain actual and preferable research results. Considering the same, the research approach facilitates researcher in recognizing all the steps in order to carry out desired research activities (Oke et al. 2016). Research approach that can be used in this research includes both the inductive and deductive research approach that facilitates in attaining suitable research findings. The recent research focuses on evacuating the consumer loyalty and satisfaction factors impacting purchase intention of the consumers in the Saudi Arabia retail industry. The researcher will implement deductive research approach to carry out the research and this is for the reason that the researcher has employed quantitative research analysis for attaining suitable study results (Nyadzayo and Khajehzadeh 2016). The quantitative analysis is carried out through analyzing the responses attained from the respondents. Moreover, positivism philosophy is also deemed to be directly associated with analysis of quantitative data within which relevant data collected has been analyzed with the help of previous easing models and trends along with proven facts. For this reason, deductive research approach is deemed to be highly important in attaining useful implications from the current study (Park, Kim and Kwon 2017).
Research design employed is focused on analyzing the consumer loyalty and satisfaction in enhancing consumer purchase intention within retail industry Saudi Arabia. The current research has focused on selecting the research design that contains a detailed description of the aspects impacting the findings of the research (Love, Staton and Rotman 2016). For this reason, exploratory research design will be employed in the study as it facilitates in effective explanation regarding the need for the retail companies in Saudi Arabia to improve its consumer service so that they consider re-purchase and develop loyalty towards retail brands. Research design selection facilitates the researcher in attaining an opportunity of guiding the research in the direction of attaining a particular objective in attaining predetermined research objectives. Exploratory research design will be used in the current research in recognizing the reasons regarding consumer satisfaction and loyalty factors prevailing within the retail sector of Saudi Arabia that results in enhance purchase intention of these consumers (Lewis 2015). In addition, this research design also facilitates in exploiting and explaining the problems that the current research intends to deal with. This research design is selected for the reason that it offers the researcher with a better opportunity in increasing understanding and knowledge base.
Primary as well as secondary data will be collected for instigating the impact of consumer loyalty and satisfaction on purchase intention in Saudi Arabia retail industry (King, Schilhavy, Chowa and Chin 2016). From this it can also be gathered that data collection in this study will be both qualitative and quantitative. Data will be collected through questionnaire survey method in which 50 managers from the selected retail companies of Saudi rabid will be selected to resend to the survey questions. The respondents will be selected through simple random sampling for the reason that it provides equal chances to all the respondents within a population to get selected within the research (King, Schilhavy, Chowa and Chin 2016). Secondary data will be gathered from the peer reviewed journals, government websites, annual reports of the retail companies along with business magazines published in retail industry growth in Saudi Arabia.
The data that will be gathered from employing suitable data collection methods will be analyzed through using several data analysis techniques. In consideration to same, it is gathered that proper selection of analytical techniques is important to attain suitable and pertinent research findings (King, Schilhavy, Chowa and Chin 2016). In addition, this also facilitates in maintaining transparency along with composed data interpretation. The quantitative data that will be analyzed will be represented in the form of graphs and tables that can simplify the interpretation technique of collected data. In addition, MS excel statistical analysis tool will be used in converting the survey respondents opinion within percentage in anticipating the respondents insights trend. Correlation and regression analysis will be carried out in analyzing the impact of consumer loyalty and satisfaction impact on purchase intention in retail industry of Saudi Arabia (King, Schilhavy, Chowa and Chin 2016).
In carrying out research on analyzing the impact of consumer loyalty and satisfaction for attaining better purchase intention in selecting their retail brand in Saudi Arabia. The secondary data was gathered from several valid along with authentic resources in order to make sure of the research outcomes trustworthiness (Kumar, Anand and Song 2017). The researcher in the current study has also considered avoiding asking certain delicate questions within the survey in order to persuade the participants taking participation within the process of survey with attaining their mutual permission. In addition, the identity of the respondents was not considered to be disclosed for certain sanctuary concerns within which no business use of the research statement is observed to be entertained from the part of the researcher (Lemon and Verhoef 2016). Moreover, the researcher will also make sure that this study is sole work of the researcher and proper credibility will be provided to the theories and facts gathered from past researches.
The research will make attempts to gather necessary valid data from most of the valid resources along with the human responses. The researcher will also make enough attempts to sustain the reliability of the data collected by means of employing excel applications in order to analyze the gathered data (Kim, Lee and Suh 2015). Moreover, the researcher will also consider use of highly important along with reliable websites in order to collect reliable information by means of employing excel applications in better data interpretation. Validity and reliability of the gathered data will also be ensured by the researcher through making use of highly reliable and authentic websites in order to collect data and selecting the retail organizations managers in dealing with the research problem (King, Schilhavy, Chowa and Chin 2016).
The primary data will be collected from the managers of the retail companies in Saudi Arabia. In such situation, the validity of the gathered information can serve as the major restraint which might generate an obstacle between the attainment of research outcomes and successful completion of the study. The research respondents can have the tendency to offering positive image of the companies through not disclosing the key concerns (He and Lai 2014). For this reason, the researcher might deal with issues in recognizing the concerns related with consumer loyalty and satisfaction and making enough recommendations to deal with such concerns in enhancing their purchase intention.
The objective of this section was to explain the research methodology that will be followed in analyzing the impact of consumer loyalty and satisfaction on their purchase decision making within the retail industry. It is gathered from the research methodology section that the researcher will implement the philosophy of positivism through associating the models and theories explained within the background and industry background in the recent scenario. Exploratory research design will be used in the current research in recognizing the reasons regarding consumer satisfaction and loyalty factors prevailing within the retail sector of Saudi Arabia that results in enhance purchase intention of these consumers. The researcher will also make enough attempts to sustain the reliability of the data collected by means of employing excel applications in order to analyze the gathered data. Moreover, in ethical considerations the researcher will also make sure that this study is sole work of the researcher and proper credibility will be provided to the theories and facts gathered from past researches.
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Task |
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Week 2 |
Week 3 |
Week 4 |
Week 5 |
Week 6 |
Week 7 |
Week 8 |
Week 9 |
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Selection of topic and search for justification |
Y |
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Constructing literature |
Y |
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Selecting appropriate methods |
Y |
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Data collection |
Y |
Y |
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Data analysis and representation |
Y |
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Reviewing the outcomes |
Y |
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Conclusions and recommendations |
Y |
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Submitting draft of the project |
Y |
Y |
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Printing and final submission |
Y |
Y |
Research resources those are to be used in this research are considered being primary or secondary resources. The primary resources that will be needed in analyzing the impact of consumer satisfaction and loyalty for enhancing purchase decision making within the retail industry (Das 2015). These resources might encompass official records, unevaluated statistical data along witty survey results of the retail industry consumers. Such resources contain raw data along with information like the original retail industry based responses or immediate impressions. Secondary resources will also be used in the current research that will facilitate in gathering relevant data on consumer loyalty and satisfaction trend in Saudi Arabia retail sector. Moreover, print media, journals, books, magazines, internet and newspapers will be employed in gathering data through observation and experiments (Han and Hyun 2015). Certain approvals or training needed for spaces are necessary resources for the recent research. The researcher needs to consider the space-specific needs that will encompass individuals assigned to the research project and their capability to use the equipment or facility.
References
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