The effect of brand positioning on customer loyalty in the retail sector: A study of supermarkets in Sokoto State
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Background of the Study
Brand positioning refers to how a brand is perceived in the minds of consumers relative to its competitors. In the retail sector, particularly in supermarkets, effective brand positioning can play a significant role in fostering customer loyalty. Supermarkets in Sokoto State, like others across Nigeria, are competing for customer attention and loyalty in an increasingly crowded market. Brand positioning strategies, such as pricing, product variety, store ambiance, and advertising, help supermarkets differentiate themselves from their competitors and create a unique image that resonates with customers (Musa et al., 2024).
Customer loyalty, defined as the willingness of customers to repeatedly purchase from the same supermarket, is a critical factor in long-term profitability. Effective brand positioning can enhance customer satisfaction and influence repeat buying behavior. However, despite the growing importance of brand positioning in the retail sector, there is limited research specifically examining its effect on customer loyalty in Sokoto State supermarkets. This study aims to investigate the relationship between brand positioning and customer loyalty in the retail sector, with a particular focus on supermarkets in Sokoto State.
Statement of the Problem
Despite the potential for brand positioning strategies to influence customer loyalty, there is a lack of empirical evidence on how these strategies impact consumer behavior in Sokoto State's supermarket sector. Supermarkets in Sokoto State face challenges in maintaining customer loyalty, with many customers opting for competitors that offer similar products at competitive prices. This study seeks to explore how brand positioning strategies affect customer loyalty and what factors contribute to successful brand positioning in the supermarket industry in Sokoto State.
Objectives of the Study
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To examine the effect of brand positioning on customer loyalty in supermarkets in Sokoto State.
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To identify key brand positioning strategies that contribute to customer loyalty in supermarkets in Sokoto State.
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To assess the relationship between customer perceptions of brand positioning and their loyalty to supermarkets in Sokoto State.
Research Questions
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How does brand positioning affect customer loyalty in supermarkets in Sokoto State?
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What brand positioning strategies are most effective in fostering customer loyalty in supermarkets in Sokoto State?
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How do customer perceptions of brand positioning influence their loyalty to supermarkets in Sokoto State?
Research Hypotheses
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Brand positioning has a significant positive effect on customer loyalty in supermarkets in Sokoto State.
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Supermarkets in Sokoto State that use differentiation strategies in brand positioning have higher customer loyalty than those using cost-leadership strategies.
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Positive customer perceptions of brand positioning are significantly associated with higher levels of customer loyalty in supermarkets in Sokoto State.
Scope and Limitations of the Study
The study will focus on supermarkets in Sokoto State and will investigate how their brand positioning strategies affect customer loyalty. The limitations of the study may include potential biases in customer responses and the subjective nature of brand perceptions.
Definitions of Terms
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Brand Positioning: The process of establishing a unique image and identity for a brand in the minds of consumers relative to its competitors.
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Customer Loyalty: The likelihood that customers will continue to purchase from the same supermarket, demonstrating repeat buying behavior and long-term commitment.
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Differentiation Strategy: A strategy where a supermarket focuses on offering unique products or services that are perceived as distinct from competitors.
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Cost-Leadership Strategy: A strategy focused on offering products at lower prices compared to competitors, often through operational efficiencies.
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