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FACTORS AFFECTING CUSTOMER LOYALTY IN BEER INDUSTRY IN KENYA: A CASE OF EAST AFRICAN BREWERIES LIMITED

Stephen Karume Warui
Student, Jomo Kenyatta University of Agriculture and Technology
Karanja Ngugi
Lecturer, Jomo Kenyatta University of Agriculture and Technology


ABSTRACT

Customer satisfaction is an important issue for marketing managers, particularly those in services industries. In general, if the customers are satisfied with a provided goods or a particular service, the probability that they use the service again increases. Loyalty, as a concept, however, has its roots in the consumer behaviour literature whose primary focus is private sector organizations and businesses. The beer industry being very competitive and homogeneous, it may be very difficult to maintain a customer. This study adopted a descriptive approach. The researcher collected data from the customers as the primary respondents and from the company staff to enable comparison since staff opinions could be biased. The primary data was collected by use of a questionnaire which was used to record respondents’ responses. Piloting was carried to test the validity and reliability of the instruments. The research was both quantitative and qualitative in nature. The study found that customer service quality offered by the Company was great, respondents were satisfied with EABL Company to a great extent, they were most likely to continue working/relating with EABL Company, product mix influenced their loyalty to EABL Company to a great extent and perceived price fairness influenced customer loyalty at EABL Company to a moderate extent. The study concluded that customer service quality offered by the Company was great; the process for getting their concerns resolved was fantastic, the customer service representatives were knowledgeable, customers were satisfied with EABL Company to a great extent and they were most likely to continue relating with EABL Company, product mix influenced customer loyalty to EABL Company to a great extent, the product matched well to the changing environment, social status influenced customer loyalty at EABL Company to a moderate extent and perceived price fairness influenced customer loyalty at EABL Company to a moderate extent. The study recommends that for the organization to enhance its customer loyalty, it should enhance its customer service quality by making the process for getting customers’ concerns resolved more fantastic. The company should ensure that there is a proper product mix to influence their customer loyalty, the product should match well to the changing environment, and the company should also offer innovative and flexible products that are able to meet most of its customers’ needs, cheap and affordable products and more customized products than its competitors.


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