Factors Influencing Brand Loyalty in the Oil Industry: the Case of the Matatus on Route 44 in Nairobi
Abstract
Marketing environment in the oil industry has gone through different phases in the last
four decades. The first phase was during the oil crisis of the 1970s where fuel prices shot
up consequently pushing up inflation pressure in the country. The objective of this study
was to generate solutions to the research problem as it sought to address two main
objectives which included identifying factors that influence brand loyalty in the oil
industry among the Matatus plying on route 44 in Nairobi and determining how these
factors rank in order of importance.
The research applied descriptive research design with the population comprising of 495
Matatus. Representative samples of 60 Matatus were selected. The study used primary
data which was collected using a questionnaire. A questionnaire was administered in
person to the respondents to ensure a high response rate where the respondents were the
Matatu crews who made purchase decisions. Due to many factors involved, the study
applied factor analysis in analyzing the data.
The research findings showed that honesty and trustworthiness of station staff, Station
cleanliness, Staff’s courteousy and helpfulness, Speed of service, good quality fuel,
Neatness of the staff and security of the Station are the most important factors that
influenced the choice of a petrol station by Matatus on route 44 in Nairobi. Availability
of fuel, Stations offering price discount and Availability of tyre pressure service were
other important factors that influenced the choice of a petrol station by Matatus operating
on route 44 in Nairobi.
The researcher therefore recommends that marketers in the oil industry should invest in
training the pump attendants and other station staff on how to improve on the above
mentioned factors. This kind of marketing strategy will help in attracting new Matatu
customers and also in maintaining those already patronizing the station.
Publisher
University of Nairobi University Of Nairobi School Of Business, University Of Nairobi