Exploring the Impact of Loyalty Programs on Customer Satisfaction in the Emerging Supermarkets of Bangladesh

Abstract

This study investigates the impact of loyalty programs on customer satisfaction in the
evolving supermarkets of Bangladesh, addressing the critical issue of customer
retention amid increasing competition. As the retail landscape in Bangladesh
undergoes a significant transformation, supermarkets play a pivotal role in
modernizing the shopping experience. Despite their development, these supermarkets
struggle to maintain sustained customer bases, stressing the need for effective loyalty
programs. Loyalty programs are indispensable to contemporary retail strategies,
especially in emerging markets like Bangladesh, where they aim to enhance customer
satisfaction and operational efficiency. Data were collected from 421 customers across
ten key supermarkets through an online survey, capturing their perceptions of loyalty
programs, customer satisfaction, and purchasing behaviors. Statistical analysis using
SPSS and AMOS was used to examine the relationships of the variables and validate
theoretical models. The findings reveal that loyalty programs significantly enhance
customer satisfaction, with factors such as product quality, service quality, store
attributes, and hedonic value playing crucial roles. The study underscores the
importance of tailored loyalty programs in driving customer retention, offering
strategic insights for supermarket entrepreneurs and managers. By leveraging these
insights, supermarkets can ameliorate customer engagement, foster long-term
relationships, and achieve continued growth in Bangladesh's competitive retail market