THE EFFECT OF MARKETING MIX ELEMENTS ON CUSTOMER SATISFACTION: THE CASE OF HABESHA BREWERY SHARE COMPANY

Abstract

It is evident that organizations use marketing as a tool not only to meet organizational objectives but also customer expectations. The purpose of this study was to examine effect of the marketing mix elements namely product, price, place and promotion on customer satisfaction in the case of Habesha Brewery. The study is motivated by the need to address the issue in Ethiopian context by providing recent and extensive evidence collected from beer consumers in Addis Ababa Ethiopia. The study applied a mixed research approach and pertinent qualitative and quantitative data were collected to meet the research objectives. Moreover, the study applied a combination of descriptive and explanatory research designs. 373 survey participants were selected to gather data for the study purpose. The study has used questionnaires, document analysis and observations for the purpose of collecting relevant information. The data obtained thorough questionnaires were processed via SPSS version 27 and analyzed using descriptive statistics (frequency, percentage, mean and standard deviation) and inferential statistics (correlation and regression analysis). Thus, in order to determine those factors which, influence customer’s satisfaction, four variables (price, product, promotion and placement) were taken in to consideration. The finding of the study indicated that the marketing mix elements have different degree of effect on customer satisfaction in Habesha brewery. Product, place, and promotion caused positive and significant effect on customer satisfaction; while, product price has positive and insignificant effect on customer satisfaction. Therefore, the researcher recommends that the company should take a close scrutiny in the three marketing mix elements namely product, promotion and distribution not only to satisfy but also retain its customers.