Abstract

This study the Effect of strategic Management Practices on Customer Satisfaction in retailed Industries. To examine the Effect of strategic Management Practices on Customer Satisfaction in retailed Industries. Data used for the study were collected through questionnaires from 30 employees in Santa Lucia in Douala. The study used both descriptive and inferential statistics through simple regression analysis. The findings of the study showed that strategic Management Practices has a positive effect on customer satisfaction in Santa Lucia. Based on the findings, the study recommends that management in Douala should implement the different types of strategic management practices but should focus on strategic planning, market orientation and adaptability and innovation because they have a high positive and significant effect on customer satisfaction.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In today’s highly competitive business landscape, the retail industry plays a vital role in the socio economic development of nations by providing goods and services, creating employment opportunities, and contributing to GDP. The sector is particularly dynamic due to increasing consumer expectations, technological advancements, and rapid urbanization.

These trends have intensified the need for retail firms to adopt strategic management practices to improve operational efficiency and customer satisfaction. The relationship between strategic management and customer satisfaction has attracted growing scholarly interest, especially in developed economies. However, its application and impact in developing countries, particularly in sub Saharan Africa and Cameroon in particular, remains underexplored and under documented.

Strategic management, as defined by Pearce and Robinson (2013), refers to the formulation, implementation, and evaluation of cross-functional decisions that enable an organization to achieve its objectives. In the context of the retail sector, strategic management practices such as strategic planning, market orientation, innovation, and adaptability are critical for maintaining customer loyalty and responding effectively to market volatility. Strategic planning involves the systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Market orientation emphasizes the continuous assessment of customer needs and competitor strategies to align organizational offerings with market demands (Narver & Slater, 1990). Innovation enables retailers to introduce new or improved products and services, while adaptability reflects a firm’s agility in responding to environmental changes and customer feedback.

Across Africa, the application of these strategic tools is increasingly being recognized. In Nigeria, Aremu and Lawal (2012) found that strategic planning significantly influenced customer retention and loyalty in the retail industry. Similarly, Nwokah and Maclayton (2006) argued that market orientation has a positive effect on service delivery and customer satisfaction in Nigerian retail firms. In South Africa, a study by Erasmus and Coetzee (2018) emphasized that innovation and adaptability were among the top drivers of customer satisfaction in the grocery retail segment. In Kenya, Njoroge and Mungai (2017) found that market-oriented firms that constantly innovated had better customer feedback scores and stronger market performance.

In the Cameroonian context, however, the retail sector continues to struggle with poor strategic alignment and operational inefficiencies. According to Njomo (2019), many retail businesses in Douala operate without formalized strategic plans, resulting in inconsistent service delivery and low customer satisfaction levels. The increasing presence of both local and foreign competitors in the retail market—such as Mahima, Dovv, Casino, and the prominent local chain Santa Lucia—has raised the stakes for performance and customer experience. Retailers are forced to rethink their strategies and adopt more responsive and proactive management approaches to retain customer loyalty.

Santa Lucia, in particular, has grown to become a recognizable brand in Douala’s retail space due to its large customer base and variety of products. However, despite its popularity, many customers have voiced concerns about long checkout times, inconsistent product quality, and limited customer service engagement. These challenges raise questions about how effectively strategic management practices are being employed within the organization to enhance customer satisfaction. The company represents a useful case study for understanding the broader dynamics of strategic management practices in Cameroon’s retail sector.

Moreover, the rising influence of global supply chains, digital commerce, and changing consumer behavior in Cameroon mirrors broader regional trends. This creates a compelling need to investigate how strategic practices contribute to the satisfaction of increasingly sophisticated and value-driven customers in urban centers like Douala. As competition intensifies, customer satisfaction becomes not only a marker of performance but also a strategic imperative. Retail firms that fail to align with market expectations risk losing their customer base and market relevance.

Thus, this study seeks to contribute to the body of knowledge by examining the effect of strategic planning, market orientation, innovation, and adaptability on customer satisfaction in the retail sector in Douala, with a specific focus on Santa Lucia. This research is especially timely and relevant in the current era of transformation and competition in the Cameroonian retail industry.

1.2 Problem Statement

Customer satisfaction has become a strategic priority for businesses operating in highly competitive sectors, particularly the retail industry. As the primary indicator of service quality and customer retention, it directly influences a company’s market share, profitability, and long-term sustainability (Kotler & Keller, 2016). In modern retail environments, where consumer choices are abundant and switching costs are low, failure to satisfy customers often results in rapid loss of loyalty and diminished brand equity. This reality is especially pressing in urban commercial hubs such as Douala, Cameroon, where customers are exposed to multiple retail outlets and are increasingly demanding in terms of service delivery, product quality, and innovation.

Despite the increasing awareness of the importance of customer satisfaction in retail, many retail firms in Cameroon, particularly indigenous chains like Santa Lucia, continue to grapple with challenges such as inefficient service systems, limited market responsiveness, and poor product differentiation. These shortcomings often translate into long queues, inconsistent inventory levels, low staff engagement, and minimal feedback mechanisms—factors that reduce customer satisfaction and threaten customer retention. Njomo (2019) highlighted that in Douala, customer complaints about poor service experiences in local retail shops are prevalent and often linked to the absence of structured strategic planning and inadequate responsiveness to market signals.

Comparatively, evidence from other African countries reveals that retail firms that embrace strategic management practices—notably strategic planning, market orientation, innovation, and adaptability—achieve significantly higher levels of customer satisfaction. For instance, in Nigeria, Aremu and Lawal (2012) found that retail firms that employed long-term strategic planning and incorporated market feedback into their decision-making processes reported higher customer loyalty and repeat patronage. In Kenya, Njoroge and Mungai (2017) discovered that adaptability and innovation were key drivers of customer satisfaction, particularly in supermarkets responding to dynamic urban consumer preferences. Likewise, in South Africa, Erasmus and Coetzee (2018) concluded that market-oriented firms that embraced innovation saw measurable improvements in service delivery and customer retention.

In contrast, Cameroon’s retail sector remains underdeveloped in terms of strategic capabilities. According to Tchouassi and Njikam (2012), many small and medium-sized Cameroonian retailers still operate using informal business models, with limited use of strategic planning tools, minimal understanding of market orientation, and little investment in innovation. These limitations not only affect operational efficiency but also hinder the firms’ ability to meet and exceed customer expectations in a highly competitive retail environment. Although retail businesses like Santa Lucia have succeeded in expanding their physical presence, they face mounting criticism over their ability to deliver consistent and satisfactory customer experiences largely due to the absence of robust, adaptable, and customer-centric strategic frameworks.

This situation highlights a significant gap in knowledge and practice regarding the effect of strategic management practices on customer satisfaction in the Cameroonian retail context. While studies in other African settings have demonstrated clear links between strategic practices and customer outcomes, similar empirical evidence from Cameroon remains sparse. The limited research in this area presents a critical challenge for both academic understanding and managerial action in the retail sector.

This study, therefore, seeks to fill this gap by evaluating the effect of strategic management practices namely strategic planning, market orientation, innovation, and adaptability on customer satisfaction in Douala’s retail sector, using Santa Lucia as a case example. By contextualizing the investigation within Douala’s evolving retail landscape, the study will offer practical insights that can help local retail firms enhance customer satisfaction and compete more effectively in an increasingly demanding market environment.

1.3 Research Questions

Research questions are essential in guiding the direction and focus of any academic investigation. In this study, the research questions are crafted to explore the relationship between strategic management practices and customer satisfaction within the retail industry in Douala, Cameroon.

These questions are derived directly from the research problem and are aligned with the variables identified strategic planning, market orientation, innovation, and adaptability as the independent variables, and customer satisfaction as the dependent variable.

1.3.1 Main Research Question

What is the effect of strategic management practices on customer satisfaction in the retail industry in Douala, Cameroon?

1.3.2 Specific Research Questions

1. How does strategic planning affect customer satisfaction in the retail industry in Douala?
2. To what extent does market orientation contribute to improved customer satisfaction among retail businesses in Douala?
3. What is the impact of innovation on customer satisfaction in the retail sector in Douala?
4. How does organizational adaptability influence customer satisfaction in the Douala retail market?

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