Background of the Study
Sales promotions are short-term incentives used by retailers to encourage consumers to purchase products or services by offering discounts, coupons, or other forms of special deals. These promotions are widely employed by supermarkets, especially in highly competitive retail environments like Kano State, where retailers must differentiate themselves to capture market share and retain customers. While sales promotions are successful in boosting immediate sales, the longer-term effects on customer loyalty remain unclear (Nwachukwu & Asuquo, 2024). The effectiveness of sales promotions in cultivating long-term customer loyalty is a topic of ongoing debate in retail management literature.
In Kano State, supermarkets frequently rely on promotions to boost sales during peak seasons or to clear out stock. However, the impact of these sales promotions on fostering customer loyalty over time, particularly in an environment marked by competitive pricing and constant promotional offers, has not been sufficiently explored. Customer loyalty, defined as a customer’s commitment to repeatedly purchase from a retailer, is a key driver of business sustainability. While promotions may attract customers, their potential to build long-term loyalty is contingent upon several factors, including the perceived value of the promotion, the customer experience, and the consistency of promotional offerings (Adetunji & Johnson, 2023). This study will examine how sales promotions influence long-term loyalty in the context of supermarkets in Kano State.
Statement of the Problem
While sales promotions are frequently used by supermarkets in Kano State to boost short-term sales, there is limited research on their long-term effects on customer loyalty. Retailers often assume that promotions will create lasting customer relationships, but there is little understanding of whether these promotions result in sustained loyalty or merely foster temporary price-sensitive behavior. The effectiveness of sales promotions in establishing brand loyalty is crucial for supermarkets to ensure customer retention and profitability in the long term. This study seeks to investigate how sales promotions impact customer loyalty over time and provide insights on how supermarkets can design promotions that foster long-term relationships with customers.
Objectives of the Study
Research Questions
Research Hypotheses
Scope and Limitations of the Study
The study will focus on supermarkets in Kano State that regularly employ sales promotions. Limitations include the potential for differing promotional strategies across supermarkets, which may affect the findings. Additionally, measuring long-term loyalty is difficult as it requires tracking customer behavior over an extended period.
Definitions of Terms