1. The Impact of Physical Evidences on Customer Store Loyalty with Special Reference to Supermarket Industry in Sri Lanka
Nomesha Liyanage, Thilina Dk,
INTERNATIONAL CONFERENCE ON
BUSINESS & INFORMATION 2015

2. Background Of The Study
Industry Overview
Contribution
Today, the supermarket industry is at the growing stage of its industry life cycle. In present context, there are more than 350 super market stores located in Sri Lanka. Out of those, Cargills Food City holds around 221 outlets all over the country.

3. Background Of The Study
Modern Trade Dispersion In Sri Lanka

4. Research Problem
“to what extent physical evidence will influence on customer store loyalty towards supermarket industry”
Customer Satisfaction
Store Location
Pricing
Customer Store Loyalty
Gap
Out of those three elements in service marketing mix physical evidence has a major importance. The physical evidence is the environment in which the service is delivered and where the firm and the customer interact and any tangible commodities that facilitate performance or communication of the service. The physical environment is highly important in setting loyal customer base. Physical evidence includes the service atmospherics, which creates purchase intention, positive word of mouth, revisit, customer satisfaction that would bring customer loyalty in a given industry. Those physical evidences can be categorized into two main areas such as interior facilities and exterior facilities. Interior facilities include interior design, layout, air quality, temperature, lighting, signs, architecture etc. Signage, parking, landscape, exterior designs are the exterior evidences in retail store environment.
Due to the intangibility of services, service quality is difficult for consumers to objectively evaluate. As a result, consumers rely on tangibles or physical evidence that surrounds the service to help them form their evaluations

5. Significance of The Study
Customer loyalty is about retaining customers,
Total value of retail business is Rs.400 billion
In super market industry there is a growth from past few years to now.
The changing nature of consumer psychographics specially their life style..
The customers can fulfill their all needs under one roof, as well as there is a high freedom on selecting their own liking branded products

6. Research Objectives Key objective
To examine the impact physical evidences on customer store loyalty towards supermarket outlets especially on revisit, positive word of mouth with special reference to supermarkets in Colombo district

7. Research Objectives Specific Objectives
To identify the current physical evidences used by the supermarket outlets in Sri Lanka
 To evaluate the effectiveness of the physical evidences in developing revisit intention and positive word of mouth recommendation
 To compare and contrast the significance of the physical evidences on behavioral intention and attitudinal behavior of customers
 To recommend appropriate strategy for developing physical evidences to create customer store loyalty

8. Research Questions
What are the main physical evidences adopted by supermarkets in Sri Lanka?
To what extent does the outlet layout impact on the customer revisit?
To what extent do the physical atmosphere (lighting, signboards and signage) make an impacts on customer revisit?
Are all physical evidences equally important in creating customer store loyalty?
What is the general condition of loyalty towards Sri Lankan supermarkets?

9. Literature Review Service Marketing Service Marketing Mix
Physical Evidence
Physical Evidence Of Service Encounters
Customer Loyalty
Association Between Physical Evidence & Customer Loyalty Dimensions

10. Conceptual Framework Independent Variables Dependent Variable Layout
Revisit Intention
Signage
Customer Store Loyalty
Lighting
Signboards
Word Of Mouth

11. Hypothesis Layout has a significant impact on customer store loyalty
Signage has a significant impact on customer store Loyalty
Lighting has a significant impact on customer store loyalty
Signboards has a significant impact on customer store loyalty

12. Methodology Research Approach – Scientific/Quantitative / Deductive
Method – Survey
Sample Size – 100 Respondents
Data Presentation – Pie Charts, Bar Charts, Tables
Data Analysis – SPSS Version 19.0

13. Analysis Respondents’ Demographic Information Gender Male 52 Female 48
Age
Years 42
26 – 35 years 29
36 – 45 Years 21
46 – 55 Years 8
Martial Status
Married 44
Unmarried 56

14. Analysis Respondents’ General Information Customer Base Cargills 45
Keells 28
Arpico 18
Laugfs 03
Sathosa 06
Reason
Convenience
Better Customer Service 22
Reasonable Prices 23
Availability Of Goods 31
Quality Of The Goods 12
Wide Range Of Selection 26
Close To Home 19

15. Analysis Respondents’ General Information Shopping Days Weekdays 39
Weekends 61
Shopping Time
8.30am am 09
10.30am pm
12.30pm pm 03
2.30pm - 5pm 17
5pm pm 43
7.00pm pm 19

16. Analysis Analysis Of Independent Variables Layout Mean SD Variance
I can find things easily what I want
4.1900
.52599
.277
The space between aisles is sufficient to move trolleys
3.8300
.89955
.809
Sufficient space available to accommodate large crowd at the busy hours
3.4800
.92638
.858
Allocation of each department is very attractive
.77921
.607
Can compare the same good from different brands very easily
3.9900
.73161
.535

17. Analysis Analysis Of Independent Variables Signage Mean SD Variance
Creative exterior signage attacks me to do shopping in this supermarket
3.2700
.91954
.846
I feel signage with slogan invites me to the supermarket
3.4600
.77094
.594
Lighting
Lights insight the store do not irritate my eyes
3.8100
.78746
.620
Lights provide glamour to the supermarket
3.8500
.78335
.614

18. Analysis Analysis Of Independent Variables Signboards Mean SD Variance
Promotions board & price boards are eye catching
3.8600
.92135
.849
Promotions board & price boards are informative
3.8300
.91071
.829
I can easily direct the locations inside the outlet
3.5800
.75452
.754

19. Analysis Analysis Of Dependent Variables Revisit Intention Mean SD
Variance
I can buy everything what I want from this supermarket
3.8900
.76403
.584
The shopping experience in this supermarket is really enjoyable
3.6900
.78746
.620
I strongly prefer to do shopping in this supermarket with my family members
3.5800
.93398
.872
I will not change to another supermarket
3.2300
.89730
.805
I do shopping in this supermarket as a habit
3.2000
.85108
.724
I will revisit this supermarket continuously
3.5200
.81004
.656

20. Analysis Analysis Of Dependent Variables Word Of Mouth Mean SD
Variance
I came to know about the benefits of this supermarket from one of my friends
2.9900
1.222
I would tell my friends and relatives to do their shopping from this supermarket
3.2400
.83024
.689
I have heard that people talk positively on this supermarket
3.7500
.75712
.573
I recommend this supermarket to the others as one of the best supermarkets
3.7200
.76647
.587

21. Hypothesis Testing Hypothesis Pearson Correlation Accept/ Reject
Layout has a significant impact on customer store loyalty
.645
Accept
Signage has a significant impact on customer store loyalty
.362
Lighting has a significant impact on customer store loyalty
.454
Signboards has a significant impact on customer store loyalty
.507

22. Key Findings Positive Relationship
Layout is the mostly impacted independent variable
Revisit Intention is more powerful than word of mouth in creating customer store loyalty

23. Recommendation Take further initiatives on managing their floor space
Consideration the seriousness of merchandise display and assortment
Improving traffic flow
Make attractive environment
Appropriate lighting system

24. Further Research Area
Focus on qualitative research approach on same research area
Consideration on other physical evidence such as music, parking etc

25. Thank You