Mediating Effect of Brand Identity on Social Support and Customer Loyalty among Selected Supermarkets in Western Kenya

Abstract

Due to the complexity that has been experienced in customer retention organizations have been forced to craft strategies that can be employed to keep the customers longer. The purpose of the study was to examine the mediating effect of brand identity on the relationship between social support and customer loyalty among selected supermarkets in Western Kenya. The study was guided by social exchange theory and the study applied explanatory survey research design. The target population of the study was 30,200 respondents drawn from the four supermarkets namely, Choppies, Tuskys, Khetias, and Naivas operating in Western Kenya. The study adopted a stratified random Sampling method from which a sample of 395 customers was obtained using Yamane’s formula. Cronbach alpha method was used to test the reliability of the research instruments while factor analysis and expert judgment was used to test the validity of the research instruments. Further, the data collected was analyzed using descriptive and inferential statistics. To test the null hypotheses multiple regressions was used. Mediation test was conducted following Barron and Kenny four steps. Further, Sobel test was used to test the level of significance of the mediation. The results revealed that Social support had significant effect on Customer loyalty. Further, Brand identity had partial mediation effect on the relationship between Social support and Customer loyalty. The study recommends that supermarket management should put more emphasis on Social support strategies since they influence Brand identity and hence Customer loyalty. The study provides new theoretical insight into factors influencing customer loyalty by incorporating Brand identity as a mediator in the relationship between Social support and customer loyalty.