Building customer loyalty has long been recognized as the key strategy for business growth. For many years, companies have used models to measure which drivers the companies should seek to improve in order to influence customer satisfaction and loyalty. However, the Fast Moving Consumer Goods (FMCG) market has become more competitive, and it has become more difficult for companies to differentiate their brands from the competition in a competitive market. In relation to the latter, this master thesis seeks to investigate whether brand loyalty is the most efficient strategy for business growth. On the basis of The EPSI rating model, the intention is to develop a significant growth model that includes the most relevant drivers for buying FMCG. Thus, it must be identified what today incentives FMCG purchases and customer satisfaction. It is also interesting to highlight whether the ultimate goals of the model should be brand loyalty as consumers may be characterized as being satisfied, but at the same time shifting in their buying behavior. A conceptual framework was developed based on theory, qualitative and quantitative analyses and hypotheses were developed for possible connections between the Variables of the framework. Data was collected through 4 in depth interviews and online surveys with 229 respondents. Subsequently, data was analyzed using interview coding, factor analysis, cluster analysis and partial least squares path modeling method (PLS). From the cluster analysis it was found that the segments in the FMCG industry do not differ from each other in terms of their loyalty and changing buying behavior. Through the PLS analysis it was found that Image, Price, Promotion, Presence, Transparency and Distinctiveness were significant drivers for buying FMCG. Furthermore, it could be concluded that brand satisfaction has a significant effect on both brand switching and loyalty. Based on the new growth model, opportunities were set for strategic initiatives that could improve companies’ sales of FMCG. Also, the Thesis has resulted in limitations and calls for further investigations.
|Educations||MSc in Economics and Marketing, (Graduate Programme) Final Thesis|
|Number of pages||123|