DETERMINANTS OF CUSTOMER LOYALTY TOWARDS AQUA ADDIS BOTTLED WATER CONSUMERS IN ADDIS ABABA

Abstract

In today’s highly dynamic business environment, the ability of firms to retain their customers plays an important role in terms of ensuring sustained competitive advantage. The purpose of this study was to determine factors affecting customer loyalty on the case of Aqua Addis bottling water in Addis Ababa. The study used product quality, price, and customer satisfaction availability as independent variables and customer loyalty as a dependent variable. This research was conducted using survey through structured questionnaire with 5-point likert scale items. Explanatory and descriptive research design using cross-sectional survey was carried out at selected, super markets in Addis Ababa. Nonprobability sampling techniques were employed to select study area and participants. The data were processed by using Statistical Package for Social Sciences (SPSS) version 21.0 software and analyzed through descriptive and multiple linear regression analysis. The result of the study indicates that: product Price, customer satisfaction, and Product Availability have a positive and significant effect on customer loyalty of the aqua Addis bottled water (p<0.05). Product quality has no significant influence on customer loyalty of Aqua-Addis bottled water. However, this study couldn’t find a statistically significant effect of product quality. Therefore, the study concluded that all determinants except product quality on customer loyalty in the study area. Thus, aqua Addis bottled water marketers should work more on the determinants in order to be competent enough in stiff market in Ethiopia. Moreover the Organization is advised to broaden its distribution plan in order to make its product widely accessible to clients and foster customer loyalty.