CONSUMER WELFARE AND FIRM PERFORMANCE: EVIDENCE FROM SUPERMARKETS IN NAIROBI CITY COUNTY

Abstract

The primary of this study was to investigate whether consumer welfare contributes to better
performance. To probe the hypothesized linkage, cross-sectional data collected using a
questionnaire from a sample of 289 supermarkets in Nairobi County was employed.
Consumer welfare was proxies by consumer surplus, consumer fulfillment, ability to save as
well as impulse buying. Firm performance was measured revenue scale, number of
customers, profitability and operating costs. The estimation method applied in this study was
logistic regression model. The findings indicate that consumer welfare negatively and
significantly influenced firm performance.
Keywords: consumer welfare, firm performance, Logistic model, Nairobi City County