An appraisal of product promotion challenges during economic hardship on customer loyalty: Evidence from a supermarket chain in Kaduna, Nigeria
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Background of the study
Economic hardship intensifies the challenges faced by supermarket chains in maintaining customer loyalty. In Kaduna, supermarkets are experiencing significant strains in their promotional strategies due to limited budgets and heightened consumer price sensitivity. During periods of economic downturn, promotional efforts become critical for attracting and retaining customers, yet they often fall short due to inadequate messaging and resource constraints (Abdul, 2023). Product promotion challenges—such as ambiguous discount offers, inconsistent advertising channels, and misaligned promotional timing—can lead to consumer confusion and diminished loyalty. Research suggests that during economic hardship, consumers are particularly sensitive to promotional effectiveness, with even minor lapses potentially resulting in a loss of trust and repeat business (Musa, 2024). This study examines the specific impact of these promotion challenges on customer loyalty within a supermarket chain in Kaduna. By collecting consumer feedback and analyzing promotional strategies, the research aims to identify key areas for improvement, thereby enabling supermarkets to adjust their marketing efforts to better align with consumer needs during challenging economic times (Salihu, 2024).
Statement of the problem
Supermarket chains in Kaduna are challenged by product promotion issues that become more acute during economic hardship. Ineffective promotional strategies contribute to reduced customer loyalty as consumers become increasingly cautious with their spending. The failure to clearly communicate value propositions and inconsistent promotional tactics lead to consumer distrust, adversely affecting repeat patronage. With limited research addressing how economic hardship exacerbates these promotion challenges, supermarket chains struggle to develop strategies that sustain customer loyalty under financial pressure. This study seeks to explore the relationship between product promotion challenges during economic downturns and customer loyalty, aiming to provide data-driven recommendations to improve promotional effectiveness (Chukwu, 2023).
Objectives of the Study
To assess the impact of promotion challenges on customer loyalty during economic hardship.
To identify key factors in promotion that influence loyalty.
To propose strategies to enhance promotional effectiveness in challenging economic conditions.
Research questions
How do product promotion challenges during economic hardship affect customer loyalty?
What promotional factors most strongly influence loyalty under economic stress?
What strategies can mitigate the negative impact of these challenges?
Significance of the Study
This study is significant as it provides insights into how product promotion challenges during economic hardship affect customer loyalty in a supermarket chain in Kaduna. The findings will inform strategies that optimize promotional efforts, ensuring that value propositions are communicated clearly to maintain customer retention even during financial downturns. This research enriches the literature on retail marketing under economic stress and offers practical recommendations for enhancing promotional effectiveness (Bello, 2024).
Scope and Limitations of the Study
The study is limited to examining product promotion challenges and their impact on customer loyalty during economic hardship for a supermarket chain in Kaduna. It does not extend to other sectors, regions, or additional economic factors.
Definitions of Terms
Product Promotion Challenges: Difficulties in effectively marketing promotional offers.
Customer Loyalty: The commitment of customers to repeatedly patronize a brand.
Economic Hardship: Periods characterized by reduced consumer purchasing power and financial stress.
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