| dc.description.abstract | Relationship marketing has been used by many firms to attain competitive advantage, more so customer retention. Research has shown that it is five times more expensive to acquire a new customer than to retain the existing ones. A survey by RETRAK has rated customer retention as the third challenge facing supermarkets in Kenya at 23.53% ,below 63% minimum retention rate recommended for retail sector by Harvard business review. 32.25% of supermarkets in Kisumu city have indicated plans to open new branches suggesting that the challenge could increase due to increased competition. It is therefore important that supermarkets come up with strategies that can promote customer retention. Studies done in this area have concentrated in other components of relationship marketing like customer satisfaction and customer service and none has looked at a combination of customer trust, commitment, communication, loyalty and their effects on customer retention among supermarkets in Kisumu city. Consequently the effects of relationship marketing practices on customer retention is unknown. Kisumu city is strategically located in East African region and considered the best city to invest in especially in the retail sector. The recent establishment of Lake Region Economic Block (LREB) and revival of the Kisumu port has intensified business activities in the retail sector in Kisumu city. The main objective was to determine the effects of relationship marketing practices on customer retention among supermarkets in Kisumu city, Other objectives were to determine the effects of customer trust on customer retention , to examine the effects of customer commitment on customer retention, to establish the effects of customer loyalty on customer retention and to examine the effects of customer communication on customer retention. It was guided by three theories namely commitment trust theory, social exchange theory and relationship marketing theory. The study used correlational research design and targeted all the customers from targeted supermarkets. A sample size of 245 respondents was arrived at using stratified sampling, systemic sampling methods and Cochran’s formula for unknown population .Data was collected using questionnaire. Reliability test yielded a Cronbach’s Alpha coefficient of between 0.772 and 0.820. while validity was achieved by literature survey and expert judgment. Data was analyzed using descriptive statistics and inferential statistics. Findings revealed that relationship marketing practices considered explained 54% (R2 =0.54) variation in customer retention. Further findings were that all the elements of relationship marketing had a significant positive influence on customer retention. customer trust (B =0.275, p = 0.000), customer commitment (B =0.098, p = 0.032),customer loyalty (B =0.189, p = 0.000) and customer communication (B =0.082, p = 0.021). The study concluded that all the elements of relationship marketing are significant determinants of customer retention. Recommendations was that supermarkets enhance relationship marketing practices to increase customer retention. Results may be useful to supermarket managements and employees for increasing customer retention and profitability | en_US |
