Service Delivery and Customer Retention in Cosmetic Industry in Burundi: A Case Study of Movit Products Company Outlet Bujumbura City, Bujumbura Mairie Province
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Date
2024-09-21
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Uganda Christian University
Abstract
This study examined the effect of service delivery on customer retention in the cosmetic industry in Burundi, focusing on Movit Products Company Outlet in Bujumbura. The study aimed to assess the effects of service reliability, responsiveness, assurance, and the moderating effect of external environmental shifts on customer retention. Using a cross-sectional survey design with both quantitative and qualitative approaches, 216 out of 264 targeted participants responded.
The study findings revealed that service reliability had a significant and positive relationship with customer retention at (r = .765**, P < 0.01). However, much being a positive predictor, service reliability insignificantly predicted customer retention at (Beta = .026, p=.613 >0.05). Then, service responsiveness was positively and significantly related with customer retention at (r = .746**, P < 0.01) and it positively predicted customer retention at (Beta =.570, p=.000 <0.05). It was also revealed that service assurance and customer retention related at (r= .797**, P < 0.01) and it was also found to be positively and significantly predicting customer retention at (Beta =.449, p=.000 <0.05). The results indicated that the combined constructs of service delivery including service reliability, service responsiveness and service assurance, collectively accounted for 67.8% (Adjusted R Square = .67.8) of the variance in customer retention at Movit outlets. The findings further revealed that External Environmental Shifts when introduced in the model produced the significant results of Path C = 0.360, p-value = 0.000>0.05 which means that External Environmental Shifts have significant moderating effect in the relationship between service delivery and customer retention.
Recommendations include implementing a reliable online delivery system, reviewing pricing strategies for affordability, establishing a robust feedback management system, prioritizing customer-centric training, and conducting market analyses to understand external shifts.
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Postgraduate research