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Assessment of Consumers' Loyalty and Switching Behavior: a Study on Selected Tea Brands in Bangladesh.

Shahpar Shams
Lecturer
Department of Business Administration, East West University, Dhaka, Bangladesh.

Abstract/ Executive Summary:

Rivalry has become more drastic among diverse companies since it is the era of global marketing now. In order to grasp the best opportunity from the marketplace, marketers now-a-days adopt multifarious strategies to ensure their triumph in the long run. To do so, building and maintaining customer loyalty has become the best option for marketers. Tea marketers in Bangladesh, likewise marketers of other consumer goods, have been facing fierce competition as demand for this drink has been increased. As such, they have also been adopting this technique to ensure their sustainable growth and market holdings. Here, bringing down consumers’ expectation and perception in the single point is a great challenge for a marketer which is prerequisite to customer satisfaction. In this study, the researcher attempted to work out with attributes those consumers expect in a branded tea and presence of which might create consumers’ positive perception towards the brand and how this positive perception works for turning to be loyal. In addition to, when positive perception does not work, how consumers switch to other brand for meeting up their expectations. In this context, the researcher has collected direct data from the consumers to understand their views.

Keywords: Loyalty, Switching behavior, Tea Brand.

Location: Azimpur, Lalbagh, Dhaka University-R/A, Dhanmondi, Mohammadpur, and Mirpur.

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Tea

Objectives:

Some specific objectives of this study were:

Which factors (price, availability, taste, aroma, package, and image) of tea lead consumers to repurchase a branded tea.
Whether consumers have long term relationship with a particular brand.
Whether consumers can recall the name of a particular tea brand at first catch while purchasing tea.
Reasons for switching current brand of tea.

Methodology:

In this study, researchers conducted a qualitative research to properly identify the problem by using secondary data from different sources i.e. information from various publications, marketing related journals etc. After, getting an in-depth view of the problem, a descriptive research was conducted to find out factors that affect consumers’ loyalty and switching behavior. In this regard, several factors like need for drinking tea, expectations, perceived quality, perceived value, problem solving tendency of the companies as per consumers’ desire, image of a specific tea brand in consumers’ eyes and mind, were needed to measure consumers’ satisfaction/dissatisfaction toward a brand, and consequently which factors might drive consumers to be loyal to a brand or switch to other brands. In order to pursue consumers’ relationship with a specific brand (satisfaction level to measure loyalty; otherwise dissatisfaction level that might incite switching behavior), these aforementioned factors were also examined to look for whether they contribute in a positive manner. To measure customers’ loyalty base with a brand, customers bonding to a brand was also required to determine. For this purpose, primary data was collected from different target group of tea drinkers. Researchers of this study collected quantitative data from the customers of tea through a survey. As the study was attempted to identify the factors that drive consumers’ loyalty to a specific tea brand or switching behavior, the strength of relationship between the identified factors and consumers’ loyalty was needed to examine. In order to examine the associative relationship, multiple regression analysis has been used and thus one dependent variable and multiple independent variables were required. To conduct multiple regression analysis, metric scaled (interval or ratio scaled) data on dependent and independent variables was required. Therefore, a non-comparative scaling technique (see detail in scaling technique) was applied in this study. A questionnaire using 7 point likert scale was designed to collect data from 120 respondents. For the purpose of analysis, multiple regression analysis had been used to determine the strength of relationship between the dependent variable and one or more independent variables. Finally, cross tabulation was also used in order to understand male or female consumers’ switching possibilities over different tea brands. In this study, descriptive research design was adopted to describe salient factors and product features that influence consumers’ loyalty and switching behavior. Consumers’ opinion regarding their expectations, perception, perceived value, image of a brand, overall feelings and judgment regarding a brand was collected through a survey. In addition to this, researchers also collected data through several previous research works, web information, and several journals and magazines. In this study, convenience sampling, a nonprobability sampling technique had been used to select respondents where the selection of sampling units is left primarily to the interviewer. Survey was conducted with both male and female consumers from households who drink tea. The respondents were selected from Dhaka regions. To be more specific, the areas were Azimpur, Lalbagh, Dhaka University-R/A, Dhanmondi, Mohammadpur, and Mirpur. The researcher first used regression analysis to conclude effect of different factors on consumers’ loyalty level and then bivariate cross tabulation to find out consumption trend of female and male consumers. In this study, multiple regression was used to determine the strength of relationship between the dependent variable, consumers’ loyalty, and more than one independent variables.

Source of Information: Philosophy and Progress: Vols. LV-LVI, January-June, July-December, 2014; ISSN 1607-2278

Article Link (Online Journal): http://www.banglajol.info/index.php/PP/article/view/26397/17718

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

In Bangladesh, likewise worldwide, tea is considered as one of the most important drinks with which people are used to start their days. Hence, this industry becomes more competitive where companies are fighting together for survival in the market. In order to build a loyal customer base, researchers found that companies need to consider injecting product attributes that ensures superiority of the brand. Product attributes like color of final tea, aroma, and taste are important to satisfy consumers’ desire. However, consumers’ desire is not limited only to product quality. It was also found in this study that consumers also demand for reasonable price, availability on nearby shops, facility to return the product whenever necessary, and even, and proper concentration by companies in complaint management. All these factors work together in consumers’ mind to consider a brand as a superior one and only then they tend to recall a brand as a favorite one and suggest others to try for the specific brand. All these parameters are important for marketer to build a strong customer base. Furthermore, they also need to focus on male and female consumers differently to satisfy their desire. As, it was found that male consumers are more loyal in nature compared to female consumers, a marketer also needs to adopt different strategy to grasp male and female consumers in the spider net of his brand.

Knowledge Management: Journal