Merchandizing Practices and Sales Performance of Supermarkets in Nakuru County, Kenya
Loading...
Date
2019
Authors
Mua, Lilian Ndinda
Anyieni, Abel
Journal Title
Journal ISSN
Volume Title
Publisher
IJCAB Publishing Group
Abstract
In Kenya, the challenges of sales performance are prevalent amongst the supermarkets. A
declining sales performance was noted for Uchumi supermarket in its 2016 financial year
leading to its poor financial performance. Nakumatt supermarket has also had poor sales
performance in the recent years leading to its struggling financial position. Merchandizing is
one of the aspects that can be utilized for the purposes of improving on sales performance.
The purpose of the study is to determine the effect of merchandizing practices and sales
performance of Supermarkets in Nakuru County, Kenya. The study seeks to examine the
diverse aspects of merchandizing on sales performance and try to establish why the
supermarkets are making losses and not profits on sales. The study specifically seek to
determine the effect of customer attraction, product differentiation, product access and staff
attributes on sales performance of Supermarkets in Nakuru town. This study used The
Product Marketing Mix Theory, Customer Behaviour Theory and Impulse Buying Behaviour
Theory. This study utilized descriptive research design to guide the study on data collection,
analysis and presentation of findings. To obtain its data, the study will target the eight main
supermarkets in Nakuru Town. The target population for the study was 590 staff comprising
of management and supermarket line attendants. Nassiuma formula was used to determine
the desired sample size for the study. A sample size of 86 respondents was selected. The study
then use stratified sampling to select the supermarket line attendants into the study sample.
This study used structured questionnaires to obtain its data from supermarket line attendants.
Validity and reliability of research questionnaire was tested by conducting a pilot study. This
study used Content validity to ascertain the validity of the research questionnaires. The study
used Cronbach’s Alpha test of internal consistency to test the reliability of the study
questionnaires. Statistical Package for Social Sciences (SPSS) version 22. This study used
both descriptive and inferential statistics. The entire study used tables to present the findings.
The study further concluded that there was a positive relationship between product
differentiation aspects and sales performance of fast moving consumer goods in Nakuru town
supermarkets. The item that had the highest mean score was that supermarket stocks
products based on customer specification. It was also concluded that there was a positive
relationship between product access and sales performance of fast moving consumer goods
in Nakuru town supermarkets. The metric that had the highest mean score was that
supermarket has presence of reliable product distribution channels throughout the year. In
the context of staff attributes, the study concluded that there was a positive relationship
between staff attributes and sales performance fast moving consumer goods in Nakuru town
supermarkets. The statement that supermarket sales staff had sufficient knowledge on product
specifications had the highest mean score. The study further concluded that merchandizing
strategies, namely, customer attraction, product access, product differentiation and staff
attributes significantly predicted the level of sales performance of fast moving consumer
goods in Nakuru town supermarkets. Staff attributes had the highest influence on sales
performance of fast moving consumer goods in Nakuru town supermarkets. The study will
enable the top management of supermarkets in making decisions of merchandising. This
study will also help academicians in this subject area as well future researcher for the study
will add to the limited literature on merchandizing strategies and sales performance.
Description
An Article Published in International Journal of Current Aspects
Keywords
Merchandizing Practices, Customer Attraction, Product Differentiation, Product Access, Staff Attributes, Sales Performance, Supermarkets in Nakuru County
Citation
Mua, L., & Anyieni, A. (2019). Merchandizing Practices and Sales Performance of Supermarkets in Nakuru County, Kenya. International Journal of Current Aspects, 3(VI), 16-32. https://doi.org/10.35942/ijcab.v3iVI.76