THE EFFECT OF MARKETING MIX ELEMETS ON CUSTOMER SATISFACTION IN THE CASE OF NATIONAL ALCOHOL AND LIQUOR FACTORY

Abstract

This study aimed to investigate the effect of marketing mix elements (product, price, place, and promotion) on customer satisfaction at the National Alcohol and Liquor Factory in Ethiopia. The general objective of this research was to assess how these marketing mix elements influence customer satisfaction and to provide actionable recommendations for enhancing customer contentment. A quantitative research approach was employed, utilizing a cross-sectional survey design to collect data. The target population consisted of customers of the National Alcohol and Liquor Factory, with a sample of 385 respondents selected using a stratified random sampling technique to ensure representative coverage. Data was gathered through a structured questionnaire and analyzed using both descriptive and inferential statistical tools, including correlation and regression analysis, to determine the relationships between the marketing mix elements and customer satisfaction. The study found that all four marketing mix elements had a significant positive correlation with customer satisfaction. Regression analysis revealed that these marketing mix elements collectively explained 58.4% of the variation in customer satisfaction. Specifically, the product element, which included factors like quality, features, and packaging, had the strongest effect on customer satisfaction. This was followed by the price element, as customers were highly sensitive to pricing and valued competitive and fair pricing. The promotion element, including advertising, personal selling, and sales promotions, also played a crucial role in driving customer satisfaction. Finally, the place element, which captured aspects of distribution and accessibility, showed the least but still significant effect on satisfaction levels. Based on these findings, the study recommends that the National Alcohol and Liquor Factory should prioritize improving product quality and packaging, adopt competitive pricing strategies, enhance promotional activities, and optimize distribution channels to boost customer satisfaction. These strategic adjustments can help the company gain a competitive edge and improve market performance.