The Influence of Key Supply Chain Factors on Customer Retention Among Facebook-Based Homemade Food Businesses

Abstract

This study synthesizes the influences of key supply chain dynamics on customer retention among Facebook-based homemade food businesses. The research specifically analyses how macro factors, such as food inflation and operational aspects, including product quality, delivery timeliness, packaging standards, professional communication, and eco-friendly practices, impact on customer retention. Aligning with the hypotheses, a survey consisting of self-constructed questions has been conducted incorporating a 5-point Likert Scale. The survey results are based on cross-sectional data collected from 187 completed responses through social media and personal networks featuring diverse demographic profiles. However, a selective demographic profile has been disproportionately higher than the other groups representing a focused discussion in the study. Data analysis was performed using STATA and Microsoft Excel, using techniques like descriptive statistics, linear regression, variance inflation factor test, etc. The statistical findings reveal the positive correlation between the independent and dependent variables, "Customer Retention", although the magnitude of impact differs. As evidenced by hypothesis testing, product quality is the most substantial factor driving a business's ability to retain customers, followed by communication professionalism, packaging quality, and order convenience. While sustainability practices subtly influence customers' repurchase decisions, food inflation exerts a non-monotonic impact depending on customers' sensitivity to quantity and price changes. A prominent feature of this research paper is that the key takeaways will facilitate future research endeavors and contribute to a better understanding of the mechanism of homemade food businesses on social platforms. As per the discussion, specifically for entrepreneurs, this study will serve as a fusion of knowledge of both key economic and operational factors to comprehend their sway over customers' repetitive purchasing attitudes and future trends.