FACTORS AFFECTING CUSTOMER LOYALTY WITHIN BEER INDUSTRY IN CASE OF ADDIS ABABA CITY

Abstract

The purpose of this study was to examine factors that affecting customer loyalty within beer industry in case of Addis Ababa City. The study focused on four determinants namely; advertising influence, consumer’s situational variation, product quality and reference group’s influence which affect customer loyalty in beer industries. The study used quantitative research approach to have a better insight and gain a richer understanding about the effect of those factors on customer loyalty in beer industry and the researcher has employed explanatory research design to objectively answer the research questions. Both probability and non-probability sampling were used in the sampling technique. Purposive sampling, which are of non-probability sampling, were used to select out lets among the total number of out lets legally registered in Addis Ababa city. Simple random sampling technique, which is of probability sampling, was used to select the respondents among the total number consumers found from the selected out lets. For achieving the study objective, 384 sample respondents were selected and out of these 313 respondents were properly respond the questioner data and collected in 5-point Likert scale questionnaire with closer assistance of the researcher. The data, then, analyzed through descriptive and inferential statistics using linear regression. By the findings, out of the proposed four factors in affecting customer loyalty in beer industry in case of Addis Ababa city, the four factors namely; advertising influence, consumer’s situational variation, product quality and reference group’s influence were found to be statistically significant. Furthermore, on the basis of the research findings, appropriate recommendations along with implications for further studies have been forwarded.