A PROPOSED MODEL FOR SUPERMARKET BRANCH NETWORK EXPANSION IN KENYA DENIS OUMA DOCTOR OF PHILOSOPHY (Supply Chain Management) JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY 2018 A Proposed Model for Supermarket Branch Network Expansion in Kenya Denis Ouma A Thesis Submitted in Partial Fulfillment for the Degree of Doctor of Philosophy in Supply Chain Management in the Jomo Kenyatta University of Agriculture and Technology 2018 DECLARATION This thesis is my original work and has not been presented for a degree in any other University. Signature_______________________________Date__________________________ Denis Ouma This thesis has been submitted for Examination with our approval as University Supervisors Signature_______________________________Date___________________________ Prof. Iravo Amuhaya, PhD. JKUAT, Kenya Signature_______________________________Date___________________________ Dr. Agnes Njeru, PhD JKUAT, Kenya Signature_______________________________Date___________________________ Dr. Ismail Noor, PhD JKUAT, Kenya ii DEDICATION I dedicate this thesis to my family, especially to Rigi Atondi and Georgina for opening my eyes to the world. Kaindi Jelagat for the shared hard times. Hagai Omete and Leon Ogolla for instilling the importance of hard work and higher education. The late Sylvester Ogolla, Otieno Nyamrey and Immaculate for they are books that were never read. Ken, Nelson, Caro, Judy, Ochieng, Florence, Rahila, Rowena, Rehema (Lollipop) Pau, Babu, Namu ,Ogola Wuod Rongo, Baba, Riana and Wilfred Omete, the grand who praised Atondi Calling him Agola—figures never lie. Above all my Almighty GOD for giving me life and Dreams. iii ACKNOWLEDGEMENT There are many people who are making this humble effort to be a success. Thus I owe them debts of gratitude. I am particularly grateful to my supervisors, Dr Agnes Njeru, Professor. Iravo Amuhaya and Dr Noor and for their constant guidance and contribution to this thesis. They remained committed towards encouraging me throughout the entire process. Sincere acknowledgements go to the General Service Unit (GSU) of the Kenya Police Service, all members of staff in the Department of Entrepreneurship in the school of Human Resource particularly the lecturers who taught me and Professor Waititu whose critic kept me on the statistical path. Similarly gratitude goes to all my colleagues for their ideas and constructive comments. My special appreciation goes to Raphael Arackal, Ms Varma, Majumdar, Martin Barasa, Concepta Juma, Meera Shah, Rushab Shah and Jenipher for their moral support as I settled in life. iv TABLE OF CONTENTS DECLARATION ............................................................................................................... ii DEDICATION .................................................................................................................. iii ACKNOWLEDGEMENT ............................................................................................... iv TABLE OF CONTENTS .................................................................................................. v LIST OF TABLES .......................................................................................................... xv LIST OF FIGURES ........................................................................................................ xx LIST OF APPENDICES ............................................................................................... xxi ACRONYMS AND ABBREVIATIONS ..................................................................... xxii DEFINITION OF TERMS .......................................................................................... xxiii ABSTRACT ................................................................................................................... xxv CHAPTER ONE ............................................................................................................... 1 INTRODUCTION ............................................................................................................. 1 1.1 Background to the Study .......................................................................................... 1 1.2 Statement of the Problem ......................................................................................... 5 1.3 Objectives of the Study ............................................................................................ 6 1.3.1 General Objective.............................................................................................. 6 v 1.3.2 Specific Objectives of the Study ....................................................................... 6 1.4 Hypotheses ............................................................................................................... 6 1.5 Significance of the Study ......................................................................................... 7 1.6 Scope of the Study ................................................................................................... 8 1.7 Limitation of the Study ............................................................................................ 8 CHAPTER TWO .............................................................................................................. 9 LITERATURE REVIEW ................................................................................................. 9 2.1 Introduction .............................................................................................................. 9 2.2 Theoretical Framework ............................................................................................ 9 2.2.1 The Wheel of Retailing Theory......................................................................... 9 2.2.2 Hotelling Theory of Business Location .......................................................... 11 2.2.3 The Retail Location Theory ............................................................................ 13 2.2.4 Queuing Theory .............................................................................................. 15 2.2.5 The Game Theory ........................................................................................... 17 2.3 Conceptual Framework .......................................................................................... 19 2.3.1 Store Layout Design ........................................................................................ 21 2.3.2 Store Image ..................................................................................................... 24 vi 2.3.3 Retail Assortments .......................................................................................... 28 2.3.4 Branch Location .............................................................................................. 32 2.3.5 Store Brands .................................................................................................... 36 2.3.6 Branch network expansion .............................................................................. 40 2.4 Empirical Review ................................................................................................... 42 2.5 Critique of Existing Literature ............................................................................... 45 2.6 Research Gaps ........................................................................................................ 46 2.7 Summary ................................................................................................................ 47 CHAPTER THREE ........................................................................................................ 48 RESEARCH METHODOLOGY .................................................................................. 48 3.1 Introduction ............................................................................................................ 48 3.2 Research Design ..................................................................................................... 48 3.2.1 Research Philosophy ....................................................................................... 49 3.3 Target Population ................................................................................................... 49 3.4 Sampling Frame ..................................................................................................... 49 3.5 Sample and Sampling Techniques ......................................................................... 50 3.6 Data Collection Instruments ................................................................................... 52 vii 3.7 Data Collection Procedures .................................................................................... 52 3.8 Pilot Testing ........................................................................................................... 52 3.9 Data Analysis and Presentation .............................................................................. 54 CHAPTER FOUR ........................................................................................................... 56 RESEARCH FINDINGS AND DISCUSSIONS ........................................................... 56 4.1 Introduction ............................................................................................................ 56 4.2 ResponseRate ......................................................................................................... 56 4.3 Demographic Characteristics ................................................................................