Impact of Corporate Reputation on Customer Patronizing Behavior: A Moderating Effect of CRM Practices in Supermarket Industry in Sri Lanka

Abstract

The competitiveness of the local supermarket industry is increasing unprecedentedly with the impact of various macro-environment factors. That Corporate Reputation is one strategic element available at companies to gain a competitive advantage and win more customers within the supermarket industry. However, sufficient empirical studies were not carried out in the local context to investigate those concepts' association. Therefore, this study aims to investigate the impact of Corporate Reputation on Customer Patronizing Behaviour with moderating effect of Customer Relationships Management (CRM) strategies within the supermarket industry, Sri Lanka. The present research was carried out based on the quantitative research strategy under the positivist research paradigm. The primary data was collected from the individuals who are frequently shopping at any supermarket in Sri Lanka. The non-probability convenience sampling method was used for the study, and data were collected by using a structured questionnaire with a sample size of 250. The finding revealed that Corporate Reputation towards customer patronizing behavior is positive, with the companies' CRM practices adopted by the companies in the present context. Further findings explore that all the independent variables have a significant positive relationship with the dependent variable. The study provides practical implications for developing marketing strategies and communication activities in supermarket chains in the domestic market. Further findings can build modern trade retailers' corporate reputation to enhance customer patronizing behavior by using effective CRM strategies