Abstract:
The purpose of the research is to examine the effectiveness of marketing strategies of modern trade and their level of impact on customer loyalty towards supermarket chains in Sri Lanka. For the selected sample, which is from Colombo, Gampaha and Kelaniya areas, 100 questionnaires were distributed both in online and offline and the results gathered from responses were analysed in order to get a meaningful conclusion. To accomplish this, a conceptual framework was designed and relationships among its’ constructs (Above the line advertising, sales promotions, service quality and visual merchandizing) were hypothesized. The hypotheses were tested based on the identified marketing strategies which are above the line advertising, sales promotions, service quality and visual merchandizing in relation to the customer loyalty in supermarkets. Some of the variables are having moderate relationships while some are having strong relationships with customer loyalty. Hypotheses were tested using structural equation modelling and subgroup correlation analysis in SPSS.