Can Supply Chain Management Practices Influence Customer Satisfaction and Loyalty
Published: 2020
Author(s) Name: Srividya Prathiba |
Author(s) Affiliation: Associate Professor, M.O.P. Vaishnav College for Women (Autonomous), Chennai
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Abstract
Supply chain management (SCM) practices and responsiveness have gained importance in recent years, as they have a great
impact on customer satisfaction and loyalty. This study aims to determine the effects of SCM practices and responsiveness on
customer satisfaction and loyalty in specific business units in Chennai. 300 purchase managers at supermarkets were selected
on convenience basis and assessed using the structured questionnaire. Reliability and validity tests were conducted. Factor
analysis involving EFA, CFA, and structural equation modeling has been used to identify the impact of SCM practices and supply
chain responsiveness (SCR) on customer satisfaction and loyalty. Second-order structural equation modeling was used to test
the hypotheses. The results indicated that SCM practices and SCR are said to be positively related to customer satisfaction and
loyalty. The study concludes that SCM practices enhance customer satisfaction and loyalty in supermarkets. The study endorses
that customer satisfaction and customer loyalty can be enhanced by the joint efforts of suppliers and procurement managers.
Keywords: Supply Chain Responsiveness, Customer Loyalty, SCM Practices, Customer Satisfaction
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