This research takes a cautionary stance to a study of customer satisfaction and customer loyalty of leading supermarkets in the Jaffna district. Customers now demand better customer services from retail supermarkets of KFC (Jaffna), TCT (Nallur), CO-OPCITY, SATHOSA and GARGILS (Jaffna, Manipay) have been better to upgrade their service-oriented propositions. This study attempts to find out the impact of customer satisfaction on customer loyalty. Data was composed over a period of one month using survey questionnaire from 50 walk-in customers who met during the survey time at each entity. The data collected were then analyzed using SPSS 20. Pearson correlation and multiple regression analysis were used to examine the correlation between independent variables and dependent variable. The results of the study indicated that there is a positive correlation between customer satisfaction and customer loyalty at the level of 0.1 and more customer satisfaction significantly impacts on customer loyalty. Thus, this study will bring some interesting outcomes and also will be helpful to marketers, policy makers, and future researchers on the same area. Further, the successful completion of this study would hopefully add to the new dimensions of literature with regards to the important aspects of entrepreneurship in the Jaffna District.
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