Factors that determine brand loyalty: the case of the petroleum marketing industry in Kenya
Abstract
This study was conducted with the objective of establishing the factors that determine
loyalty to a Petroleum Marketing Company in Kenya. A further objective was to
determine the most important of these factors. The study was conducted in Nairobi with
the focus being determination of factors affecting loyalty to Petrol Stations located in
Nairobi.
To achieve the above objective, a sample of 120 car owners and petroleum fuel
consumers was identified and questionnaires administered to these individuals. The
questionnaire consisted of Likert scale and semi structured questions. Respondents were
drawn from willing shoppers at the major shopping malls and from organizations. In the
various organizations, a contact person was established to assist in collecting responses in
order to improve the response rate. A respondent recruitment guide was used to ensure
that the questionnaire was administered to car owners who ultimately were in control of
their choice of fueling points.
Analysis of the data collected involved mainly descriptive statistics. Ranking was
conducted based on the data generated. In view of the large number of variables under
study, factor analysis was conducted to group the variables based on their ascertained
inter-relationship.
Data analysis revealed that there are many factors that contribute to a petroleum
consumer's choice of a fueling point. Factors such as product quality, expedient service,
petrol station attendants' appearance and product knowledge, additional service offered
by petrol station's attendants and low price offered emerged as being important.
Factor analysis established seven (7) inter-related groups of variables. It revealed the
inter-dependencies of two or more variables which require to be jointly addressed in
order to achieve the desired customer perception.
Upon ranking of the individual variables, product quality and guarantees was rated the
most important factor. Ranking of the 7 emergent factors comprising of the initial 20
variables, revealed that, willingness by petrol station attendants to offer additional
services such as under the bonnet checks, windscreen cleaning and tyre pressure checks
was considered the most important factor in determining loyalty to a Petroleum
Marketing Company's brand.
Citation
Masters Of Business Administration (MBA) Degree, University of NairobiPublisher
University of Nairobi School of Business
Description
A management research project submitted in
fulfillment of the requirements of the Degree of
Master of Business Administration, (MBA), School Of
Business, University Of Nairobi