A consolidation of the retail market, an increased competition within the industry and the recent financial turmoil, has put pressure on Danish manufacturers of FMCG-products. Thus, knowledge is needed about means to improve the manufacturer’s competitiveness. A potential means to improve competitiveness is by increasing customer loyalty. In order to increase customer loyalty, insight is needed about what drivers will increase customer loyalty, and whether a possibility of exploiting the strategic opportunity exists. Therefore, in this Master’s thesis it is analyzed and discussed how customer loyalty can improve the competitiveness of manufacturers on the Danish FMCG-market. A conceptual model was developed, and hypotheses were set up for each connection in the model. Data was collected from 180 Danish consumers using a self-administered, online questionnaire. The survey contained questions regarding shopping habits, and questions measuring each latent variable in the model. Data was analyzed using cluster analysis and the hypotheses were tested using Partial Least Squares (PLS). The cluster analysis found four different clusters of consumers: Ambassadors, potential loyals, indifferent consumers and disloyals. Building customer loyalty was only possible for ambassadors and potential loyals. Furthermore, the PLS analysis found that the ambassadors were highly rational in their decision-making. The rational decision-making results in the latent variables Perceived quality and Perceived value as being important drivers of loyalty. Conversely, the analysis showed that the indifferent consumers (consumer inertia) were more emotionally based in their decision-making than the remaining clusters. The largest effects on repurchase for indifferent consumers was Perceived quality and Image. Subsequently, it was discussed how manufacturers in practice influence customer loyalty. Furthermore, it was concluded that loyalty has a higher potential of improving competitiveness on the FMCG-market than on many other markets. Finally, FMCG-manufacturers operate in a highly complex environment. Therefore, the impact of their relation with retailers where assessed. This resulted in four strategic options for the manufacturers of FMCG-products.
|Educations||MSc in Economics and Marketing, (Graduate Programme) Final Thesis|
|Number of pages||171|