THE EFFECT OF MARKETING STRATEGY ON CUSTOMER LOYALTY: THE CASE OF BGI ETHIOPIA ADDIS ABABA

Abstract

The main objective of the study was to examine the effect of marketing strategy on customer Loyalty at BGI Ethiopia Brewery S.C. For achieving the study objectives, both qualitative and quantitative research methods are used. Primary data were collected through the use of questionnaire from 360 respondents. The data were processed using SPSS software (version 26.0) and analyzed via descriptive statistics, correlation and linear regression analyses. The results of this study indicate that, all the 4Ps marketing mix elements (product, price, promotion and place) have positive correlation with customer loyalty. The finding of regression analysis also indicates that product, price, place and promotion have a strong positive effect on customer loyalty with result of (β=0.161, p<0.05), (β=0.117, p<0.05), (β= 0.071, p<0.05) and (β= 0.239, p<0.05) respectively. In terms of degree of effect, product has the strong impact on customer loyalty followed by place Therefore, based on the findings of the study, it is recommended that BGI Ethiopia should retain its current marketing strategies because they have positive effect on customer loyalty. Also, that BGI Ethiopia should evolve other marketing strategies such as giving discounts to create and sustain customers’ loyalty and create customers friendly outlets to directly keep in touch with many small customers