Abstract:
The purpose of the study was to establish the effect of customer loyalty schemes namely, customer loyalty cards
and coalition loyalty programs on competitiveness of supermarkets in Nakuru town, Kenya. The target
populations of the study were the managers and customers of Nakumatt, Tuskys and Naivas supermarkets in
Nakuru town Kenya. A sample of 384 consisting of 375 customers and 9 managers was selected purposively for
the study. Descriptive and regression statistics were used to analyze the data and the findings indicated that
customer loyalty schemes had a positive effect on supermarkets’ competitiveness. It is recommended that more
attention in terms of constant innovation should be paid on the use of customer loyalty cards and coalition
loyalty programs by supermarkets as a strategy for competitiveness
