Satisfaction and Loyalty to Suppliers within the Grocery Trade

Abstract

Increased concentration within the retail trade may have great, negative consequences for a supplier if its relationship to a chain dissolves. The objective of this study is to develop an understanding of the way in which the supplier′s use of the marketing mix components (salesforce, product, profitability and marketing support) affects the satisfaction and loyalty of the retailers. Assesses this relationship by drawing on relationship formation within a channel of distribution theory, an empirical testing, using multiple regression analysis, on a sample of Norwegian supermarkets. The results indicate that satisfaction and loyalty are influenced differently by the marketing mix components. Satisfaction is found to be associated mainly with factors representing co‐operativeness and interpersonal contact, while loyalty is associated with elements expressing dependency, sources of power and stakes in the relationship.