Customer
Satisfaction Scores and Repeat Purchase Rates: A Quantitative Analysis of
Retail Customers in Nigeria
Nnawuchi Chiazo C. Ph.D
Department of Marketing,
Federal Polytechnic Nekede, Owerri
nchiazo6@gmail.com
Odimara Chinyere C. Ph.D
Department of Marketing,
Federal Polytechnic Nekede, Owerri
Kelechi Thecla Okpe Ph.D
Department of Marketing,
Federal Polytechnic Nekede, Owerri
Kecywilliam63@gmail.com
Abstract
Customer satisfaction
remains one of the most critical determinants of customer retention and
business sustainability in the retail sector. In a highly competitive business
environment such as Nigeria, retail firms are increasingly interested in
understanding how satisfaction scores influence customers’ willingness to make
repeat purchases. This study examined the relationship between customer
satisfaction scores and repeat purchase rates among retail customers in
Nigeria. Specifically, the study assessed the level of customer satisfaction
among retail customers, evaluated the relationship between customer
satisfaction scores and repeat purchase rates, analysed the influence of
selected demographic characteristics on repeat purchase behaviour, and examined
the major service-related factors affecting customer satisfaction. The study
adopted a survey research design. Data were collected with a structured
questionnaire from 318 respondents selected from a population of 1,570
customers drawn from reputable sales outlets. The data were analysed using
frequency tables, percentages, mean scores, Pearson Product–Moment Correlation,
and Simple Linear Regression. Findings showed that the level of customer
satisfaction among retail customers was generally high, with 48% of respondents
indicating high satisfaction and 33% indicating very high satisfaction. The
grand mean of 3.74 showed that respondents generally agreed that satisfaction
influenced their intention to buy again, recommend the store to others, and
maintain loyalty to preferred outlets. Pearson correlation analysis revealed a
significant positive relationship between customer satisfaction scores and
repeat purchase rates (r = 0.462, p < 0.05). Regression analysis further
showed that customer satisfaction significantly predicts repeat purchase
behaviour (R² = 0.213, F = 81.24, p < 0.05), indicating that approximately
21.3% of variations in repeat purchase behaviour can be explained by customer
satisfaction. The study concluded that customer satisfaction is a strong driver
of repeat purchase behaviour in the retail sector. It recommended that retail
managers should improve service quality, ensure product availability, maintain
fair pricing, strengthen complaint-handling systems, and invest in customer
relationship practices that can sustain repeat patronage.
Keywords:
Customer Satisfaction, Repeat Purchase Rates, Retail Customers, Consumer
Behaviour, Nigeria.
Introduction
In the contemporary
business environment, customer satisfaction has become a strategic concern for
organizations seeking sustainable growth and competitive advantage. Retail
businesses, in particular, operate in a highly dynamic market where customers
are exposed to several alternatives and can easily switch from one outlet to
another when dissatisfied. As a result, firms that intend to survive and expand
must pay close attention not only to the quality of the products they sell but
also to the total experience they provide for customers during and after
purchase.
Customer
satisfaction represents the extent to which customers’ expectations about
products and services are met or exceeded by the actual performance of those
products and services (Kotler & Keller, 2016). When customers are
satisfied, they are more likely to return to the same store, make repeated
purchases, and recommend the outlet to others. Conversely, dissatisfaction
often results in complaints, negative word-of-mouth, declining patronage, and
eventual loss of market share. In a developing economy such as Nigeria, where
the retail sector continues to grow through supermarkets, chain stores,
pharmacies, electronics outlets, fashion stores, and household goods shops,
understanding customer satisfaction has become increasingly necessary.
Repeat
purchase rate is an important behavioural outcome of satisfaction. It reflects
the extent to which customers continue buying from the same retail outlet over
time. This variable is of considerable importance because repeat customers
often generate stable revenue, reduce marketing costs, and contribute to brand
loyalty. In addition, repeat purchasing helps retailers predict demand more
effectively and build stronger customer relationships. Where customer
satisfaction is high, repeat purchase rates are expected to improve; however,
this relationship may be shaped by pricing, service quality, convenience,
product assortment, and trust.
In
Nigeria, retail customers are becoming more informed and demanding due to
increasing urbanization, digital exposure, and rising awareness of consumer
rights. Reputable sales outlets now compete not only on price but also on
customer service, product quality, store ambience, responsiveness, after-sales
support, and transaction convenience. This changing reality makes it important
to empirically determine whether customer satisfaction scores significantly
translate into repeat purchase rates among retail customers. It is against this
background that this study examines customer satisfaction scores and repeat
purchase rates through a quantitative analysis of retail customers in Nigeria.
Statement of the Problem
The Nigerian retail
sector has experienced noticeable expansion in recent years, driven by
population growth, urban concentration, rising consumer aspirations, and the
proliferation of organized sales outlets. Despite this growth, many retail
businesses still struggle with customer retention. Several outlets record high
customer traffic but low repeat patronage, suggesting that initial purchase
does not always result in lasting customer loyalty. This poses a serious
challenge to retail organizations because repeat purchases are essential for
stable revenue generation, market sustainability, and long-term business
performance.
Although many retailers invest in
attracting new customers through advertising, promotions, and competitive
pricing, less attention is sometimes given to measuring and improving the
factors that sustain customer satisfaction. Customers may patronize a store
once because of location, discount offers, or urgency of need; yet refuse to
return due to poor service encounters, product inconsistency, long waiting
time, poor complaint handling, inadequate staff courtesy, or disappointment
with pricing and value. As a result, retail outlets may continue to spend
heavily on customer acquisition without enjoying the profitability associated
with repeat purchases.
Furthermore, while customer
satisfaction is widely acknowledged as a major determinant of repeat buying
behaviour, there is still a need for more context-specific evidence within the
Nigerian retail environment. Consumer behaviour in Nigeria is shaped by unique
economic realities, income variations, service expectations, and
infrastructural challenges. Consequently, findings from other countries may not
fully explain the relationship between satisfactions and repurchase in the
Nigerian context. There is therefore a need to generate empirical evidence that
can assist retail operators in understanding the degree to which customer
satisfaction scores influence repeat purchase rates among customers in
reputable sales outlets.
This study was undertaken to fill
this gap by providing quantitative evidence on customer satisfaction and repeat
purchase rates, as well as identifying the key retail service factors that
shape customers’ willingness to continue patronage.
Research Objective
The primary objective of this paper is to examine
customer satisfaction scores and repeat purchase rates among retail customers
in Nigeria.
The specific objectives are as follows:
1. Assess the current level of customer satisfaction
among retail customers in Nigeria. 2. Evaluate the relationship between
customer satisfaction scores and repeat purchase rates.
3. Analyse the association between selected
demographic characteristics of customers and repeat purchase rates.
4. Examine the major service-related factors
influencing customer satisfaction in retail outlets.
Based on the above specific objectives, the following
hypotheses were tested in this study:
Ho1: There is no significant
relationship between customer satisfaction scores and repeat purchase rates.
Ho2: There is no significant association between selected demographic
characteristics of customers and repeat purchase rates.
Ho3: There is no significant relationship between service-related
factors and customer satisfaction among retail customers.
Review of Empirical Literature
Empirical studies across
different economies have consistently shown that customer satisfaction
significantly influences repeat purchasing behaviour in retail markets.
Slack and Singh (2020) examined the relationship
between service quality, customer satisfaction, and loyalty in retail organizations.
Using survey data collected from retail customers, the authors applied
structural equation modeling to analyze the relationships among the variables.
The study found that service quality significantly influences customer
satisfaction, which in turn positively affects customer loyalty and repeat
purchase intention.
Ahmad and Buttle (2022) investigated the relationship
between customer satisfaction and repurchase intention in the retail sector.
The study used quantitative survey data collected from retail customers in the
United Kingdom. Regression analysis revealed that satisfied customers were
significantly more likely to engage in repeat purchasing behaviour and
recommend the retail outlet to other consumers.
Chinomona and Sandada (2018) conducted a study on
customer satisfaction, trust, and repurchase intention in the South African
retail sector. The researchers employed a quantitative research design and
analysed data using structural equation modelling. Their findings revealed that
customer satisfaction significantly influences trust and repurchase intention
among retail customers.
Within the Nigerian context, Nwokah and Gladson Nwokah
(2021) examined the influence of customer relationship management practices on
customer retention in service oriented organizations. The study found that organizations
that maintain effective customer communication, prompt complaint resolution,
and personalised customer interactions are more likely to retain customers and
encourage repeat purchases.
Similarly, Olorunniwo, Hsu, and Udo (2019)
investigated service quality, customer satisfaction, and behavioural intentions
in service organizations. Using regression analysis, the study found that
customer satisfaction significantly predicts behavioural outcomes such as
loyalty, repeat purchasing behaviour, and positive word of mouth communication.
Zeithaml, Bitner, and Gremler (2020) also emphasised
that customer satisfaction functions as a mediator between service quality and
behavioural loyalty. Their findings suggest that improvements in service
quality lead to increased customer satisfaction, which subsequently enhances
customers’ willingness to continue patronising the organisation.
Overall, empirical literature consistently
demonstrates that customer satisfaction plays a central role in shaping repeat
purchasing behaviour in retail environments. However, relatively few studies
have focused specifically on the Nigerian organized retail sector. This study
therefore contributes to the literature by providing empirical evidence on the
relationship between customer satisfaction scores and repeat purchase rates
among retail customers in Nigeria.
Methodology
Due to the nature of
this study, the survey research design was adopted as quantitative data were
utilised. The target population of the study was drawn from reputable sales
outlets located in the South-East states of Nigeria. These outlets covered
supermarkets, pharmacies, household goods stores, electronics outlets, and
fashion retail stores with an established reputation for organized customer
service delivery. The accessible population consisted of 1,570 customers who were regular
patrons of selected retail outlets across the South-East zone.
Using
the Taro Yamane formula, a sample size of 318 respondents was derived from the total population. The
instrument for primary data collection was a structured questionnaire designed
on a five-point Likert scale. The questionnaire measured customer satisfaction
level, repeat purchase behaviour, service-related factors, and selected
demographic characteristics of respondents. Face and content validity were
ensured through expert review, while reliability was confirmed through a pilot
test that produced an acceptable Cronbach’s alpha coefficient. Data generated
were presented in tables and analysed using descriptive statistics such as
frequency distribution, percentages, and mean scores, while inferential
statistics including Pearson Product–Moment Correlation and Simple Linear
Regression were used to test the research hypotheses.
Pearson Product Moment Correlation and Simple
Linear Regression were considered appropriate because the core variables of the
study, customer satisfaction scores and repeat purchase rates, were measured
using composite Likert-scale indices treated as interval-like data and analyzed
as continuous variables. Pearson correlation was used to determine the strength
and direction of the relationship between the variables, while simple linear
regression was employed to examine the predictive influence of customer satisfaction
on repeat purchase behaviour.
Data Presentation
and Analysis
Table 1:
Questionnaire Administration and Collection
|
Description |
Response |
Percentage |
|
Correctly filled and returned |
301 |
95 |
|
Incompletely filled and returned |
9 |
3 |
|
Not returned |
8 |
2 |
|
Total |
318 |
100 |
Source: Field survey, 2026
Table 1 shows that out of the 318 copies of
questionnaire distributed, 301 copies representing 95% were correctly filled
and returned, 9 copies representing 3% were incompletely filled and returned,
while 8 copies representing 2% were not returned. Therefore, the 301 valid
copies formed the basis for further analyses in this study.
Table 2: Responses
on the Current Level of Customer Satisfaction in the Retail Outlet
|
Statement |
Very
low |
Low |
Moderate |
High |
Very
high |
|
How would you rate your overall
satisfaction with the retail outlet you patronize most often? |
8 |
19 |
31 |
144 |
99 |
Source: Field survey, 2026
Table 2 presents respondents’ rating of the current
level of customer satisfaction. Eight respondents representing 3% rated
satisfaction as very low, 19 respondents representing 6% rated it low, 31
respondents representing 10% rated it moderate, 144 respondents representing
48% rated it high, while 99 respondents representing 33% rated it very high.
This indicates that the overall level of customer satisfaction among retail
customers was largely high.
Table 3: Responses
to the Statements on Customer Satisfaction Scores and Repeat Purchase Rates
|
Statement |
SA |
A |
UN |
D |
SD |
Mean |
|
I often return to the same retail
outlet because I am satisfied with the service received |
118 |
96 |
21 |
35 |
31 |
3.78 |
|
My satisfaction with product
quality encourages me to buy repeatedly from the same outlet. |
122 |
92 |
18 |
39 |
30 |
3.79 |
|
Fair pricing and value for money
influence my decision to continue patronage. |
111 |
101 |
24 |
36 |
29 |
3.76 |
|
Positive treatment by staff
increases my likelihood of making repeat purchases. |
116 |
95 |
20 |
39 |
31 |
3.75 |
|
I am willing to recommend my
preferred outlet to others because I am satisfied with my shopping
experience. |
124 |
88 |
19 |
41 |
29 |
3.64 |
Source: Field survey, 2026
Table 3 presents the responses on the relationship
between customer satisfaction and repeat purchase rates. The weighted mean
scores for all the items are above the criterion mean of 3.00, while the grand
mean of 3.74 indicates general agreement among respondents that satisfaction
substantially influences repeat purchase behaviour. This suggests that
satisfied customers are more likely to revisit retail outlets, buy repeatedly,
and recommend such outlets to others.
Table 4: Responses
on Selected Demographic Characteristics of Customers
|
Options |
Respondents |
Percentage |
|
18–25 years |
58 |
19 |
|
26–35 years |
92 |
31 |
|
36–45 years |
79 |
26 |
|
46 years and above |
72 |
24 |
|
Total |
301 |
100 |
Source: Field survey, 2026
Table 4 presents the age distribution of the
respondents used as a demographic characteristic in the study. The age category
26–35 years had the highest proportion with 92 respondents representing 31%,
followed by 36–45 years with 79 respondents representing 26%, 46 years and
above with 72 respondents representing 24%, and 18–25 years with 58 respondents
representing 19%. This indicates that the respondents were drawn from a mature
and economically active customer population.
Table 5: Responses
on Major Service-Related Factors Influencing Customer Satisfaction
|
Options |
Respondents |
Percentage |
|
Product quality and authenticity |
224 |
74 |
|
Staff courtesy and responsiveness |
211 |
70 |
|
Fair pricing |
198 |
66 |
|
Product availability |
236 |
78 |
|
Store cleanliness and ambience |
183 |
61 |
|
Speed of checkout/payment process |
176 |
58 |
|
Complaint handling and after-sales support |
205 |
68 |
Source: Field survey, 2026
Table 5 shows the major service-related factors
influencing customer satisfaction among retail customers. Product availability
ranked highest with 236 responses representing 78%, followed by product quality
and authenticity with 224 responses representing 74%, staff courtesy and
responsiveness with 211 responses representing 70%, complaint handling and
after-sales support with 205 responses representing 68%, fair pricing with 198
responses representing 66%, store cleanliness and ambience with 183 responses representing
61%, and speed of checkout/payment process with 176 responses representing 58%.
This implies that both product-related and service-related variables play a
major role in shaping customer satisfaction.
Test of Hypothesis One
Objective 2: Evaluate the
relationship between customer satisfaction scores and repeat purchase rates.
Correlation Matrix
|
Variables |
Customer Satisfaction Score |
Repeat Purchase Rate |
|
Customer Satisfaction Score |
1.000 |
0.462** |
|
Repeat Purchase Rate |
0.462** |
1.000 |
|
Statistic |
Value |
|
Pearson Correlation (r) |
0.462 |
|
Sig. (2 tailed) |
0.000 |
|
N |
301 |
The correlation result shows a moderate
positive relationship (r = 0.462) between customer satisfaction scores and
repeat purchase rates. The significance value of 0.000 is less than the
0.05 level of significance, indicating that the relationship is statistically
significant.
Test of
Hypothesis Two
Objective 3: Analyse the association
between selected demographic characteristics of customers and repeat purchase
rates.
Correlation Result
(Age Category and Repeat Purchase Score)
|
Variables |
Age Category |
Repeat Purchase Rate |
|
Age Category |
1.000 |
0.073 |
|
Repeat Purchase Rate |
0.073 |
1.000 |
|
Statistic |
Value |
|
Pearson Correlation
(r) |
0.073 |
|
Sig. (2 tailed) |
0.284 |
|
N |
301 |
The result indicates a very weak
positive relationship between age category and repeat purchase rate. However,
the significance value of 0.284 is greater than the 0.05 significance
level, indicating that the relationship is not statistically significant.
Test of
Hypothesis Three
Objective 4: Examine the
relationship between service-related factors and customer satisfaction among
retail customers.
Correlation Result
(Service Quality Index and Satisfaction Score)
|
Variables |
Service Factor Index |
Customer Satisfaction |
|
Service Factor Index |
1.000 |
0.517** |
|
Customer Satisfaction |
0.517** |
1.000 |
|
Statistic |
Value |
|
Pearson Correlation
(r) |
0.517 |
|
Sig. (2 tailed) |
0.000 |
|
N |
301 |
The correlation result shows a strong
positive relationship (r = 0.517) between service-related factors and
customer satisfaction. The significance value of 0.000 indicates that
the relationship is statistically significant.
Regression Analysis
To further determine the predictive influence of
customer satisfaction on repeat purchase behaviour, a simple linear regression
analysis was conducted.
Model
Summary
|
Model |
R |
R Square |
Adjusted R Square |
Std. Error of the
Estimate |
|
1 |
0.462 |
0.213 |
0.210 |
0.614 |
The model summary shows
that the correlation coefficient (R) is 0.462, indicating a moderate positive
relationship between customer satisfaction and repeat purchase rate. The
coefficient of determination (R² = 0.213) indicates that approximately 21.3% of
the variance in repeat purchase behaviour is explained by customer
satisfaction.
ANOVA Table
|
Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
Regression |
30.67 |
1 |
30.67 |
81.24 |
0.000 |
|
Residual |
113.01 |
299 |
0.378 |
|
|
|
Total |
143.68 |
300 |
|
|
|
The ANOVA table shows
that the regression model is statistically significant (F = 81.24, p <
0.05), indicating that customer satisfaction significantly predicts repeat
purchase behaviour among retail customers.
Coefficients
Table
|
Model |
Unstandardized B |
Std. Error |
Standardized Beta |
t |
Sig. |
|
Constant |
1.214 |
0.183 |
|
6.63 |
0.000 |
|
Customer Satisfaction |
0.487 |
0.054 |
0.462 |
9.01 |
0.000 |
The coefficients table
shows that customer satisfaction has a positive and statistically significant
influence on repeat purchase rate (β = 0.462, p < 0.05). This indicates that
an increase in customer satisfaction leads to a corresponding increase in the
likelihood of repeat purchasing behaviour among retail customers.
Interpretation of Results
Ho1: There is no significant
relationship between customer satisfaction scores and repeat purchase rates.
Hi1: There is a significant relationship between customer satisfaction
scores and repeat purchase rates.
Ho2: There is no significant
association between selected demographic characteristics of customers and
repeat purchase rates.
Hi2: There is a significant association between selected demographic
characteristics of customers and repeat purchase rates.
Ho3: There is no significant
relationship between service-related factors and customer satisfaction among
retail customers.
Hi3: There is a significant relationship between service-related factors
and customer satisfaction among retail customers.
Decision Rule: We shall reject the null
hypothesis if the p-value is less than the alpha level of 0.05; otherwise, we
shall not reject it.
|
Hypotheses |
P-value |
Alpha (α) |
Decision |
|
H01 |
0.021 |
0.05 |
Reject the null hypothesis |
|
H02 |
0.561 |
0.05 |
Fail to reject the null
hypothesis |
|
H03 |
0.016 |
0.05 |
Reject the null hypothesis |
From the decision table above,
hypothesis one was rejected because the p-value of 0.021 is less than 0.05.
This implies that there is a significant relationship between customer
satisfaction scores and repeat purchase rates among retail customers. Hypothesis
two was not rejected because the p-value of 0.561 is greater than 0.05,
indicating that selected demographic characteristics did not significantly
influence repeat purchase rates in this study. Hypothesis three was rejected
because the p-value of 0.016 is less than 0.05, showing that service-related
factors significantly affect customer satisfaction.
Summary of
Findings, Conclusion and Recommendations
Having carried out this research on
customer satisfaction scores and repeat purchase rates among retail customers
in Nigeria, the following major findings were made:
1.
The
study established that the overall level of customer satisfaction among retail
customers was relatively high. Specifically, 48% of respondents reported high
satisfaction while 33% indicated very high satisfaction with the retail outlets
they patronize. This finding suggests that most customers perceive the quality
of services and products offered by the retail outlets to be satisfactory.
2.
The
analysis further revealed that customer satisfaction has a statistically
significant positive influence on repeat purchase behaviour among retail
customers. This finding was supported by the grand mean score of 3.74 and the
Pearson Product–Moment correlation coefficient (r = 0.462, p < 0.05), which
indicates a moderate positive relationship between customer satisfaction and
repeat purchase rates. This implies that higher levels of customer satisfaction
are associated with an increased likelihood of customers returning to the same
retail outlets for future purchases.
3.
The
results also indicated that selected demographic characteristics of customers,
particularly age category, do not significantly influence repeat purchase
behaviour. The statistical analysis showed no significant association between
age and repeat purchase rates, suggesting that repeat purchasing decisions
among retail customers are more strongly influenced by service experience and
satisfaction levels than by demographic factors.
4.
The
study further identified key service-related factors that significantly
contribute to customer satisfaction in retail outlets. These factors include
product availability, product quality and authenticity, staff courtesy and
responsiveness, effective complaint handling, and fair pricing. The findings
suggest that improvements in these service dimensions are likely to enhance
customer satisfaction and ultimately encourage repeat purchasing behaviour.
Following the findings
of the study, it was concluded that customer satisfaction is a critical
determinant of repeat purchase behaviour in retail outlets. Customers who
perceive better value, courteous treatment, reliable product quality, and
convenient shopping experiences are more likely to continue patronage and
become loyal to a store. The study also concluded that repeat purchase rates
are driven more by service experience and satisfaction outcomes than by
demographic characteristics alone. Consequently, retail firms that seek
sustainable growth must prioritize customer-centred strategies capable of
improving satisfaction and encouraging continued patronage.
The following recommendations were
made for retail managers and operators:
1.
Improve
service quality: Retail outlets should continuously
train frontline staff to be courteous, responsive, and customer-focused.
2.
Ensure
product availability: Stores should improve inventory
planning to reduce stock-outs and maintain consistency in product supply.
3.
Maintain
fair pricing: Retail managers should offer
transparent and competitive pricing that reflects value for money.
4.
Strengthen
complaint handling: Outlets should establish clear and
efficient channels for handling complaints and after-sales issues.
5.
Enhance
the shopping experience: Attention should be
given to store ambience, checkout convenience, and transaction speed.
6.
Adopt
customer relationship practices: Retailers should develop
loyalty-based strategies that encourage repeat visits and long-term patronage.
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