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Customer Loyalty in FMCG Sector of Pakistan

Author

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  • Khansa Zaman
  • Asma Arshad
  • Aqeel Shahzad

Abstract

The purpose of this study is to find an empirical relationship of proposed variables and to find the impact of customer satisfaction, trust, and corporate reputation on customer loyalty. This study attempts to contribute to the knowledge how FMCG companies of Pakistan can retain their customers by making them loyal through satisfaction, trust, and corporate reputation. A theoretical framework is proposed to suggest links among variables. The sample size selected for research constitutes 200 respondents, and these respondents belong to the cities of Rawalpindi and Islamabad, Pakistan. Multiple regression and correlation coefficient was used to examine hypothesized relationship. Regression analysis reveals that customer satisfaction, trust, and corporate reputation bring 79.0% change in customer loyalty. There is a strong positive yet significant relationship of trust and customer loyalty. Customer satisfaction & corporate image also posit a positive and significant impact on customer loyalty. The results indicate that FMCG companies in Pakistan should pay more attention toward the reputation of their company, satisfaction of their customers, and trust in order to build loyalty of customers. Generalizability and time constraint are the limitations of the study.

Suggested Citation

  • Khansa Zaman & Asma Arshad & Aqeel Shahzad, 2012. "Customer Loyalty in FMCG Sector of Pakistan," Information Management and Business Review, AMH International, vol. 4(1), pages 41-48.
    • Handle: RePEc:rnd:arimbr:v:4:y:2012:i:1:p:41-48
    DOI: 10.22610/imbr.v4i1.962
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    References listed on IDEAS

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    1. Bartikowski, Boris & Walsh, Gianfranco, 2011. "Investigating mediators between corporate reputation and customer citizenship behaviors," Journal of Business Research, Elsevier, vol. 64(1), pages 39-44, January.
    2. P. Van Kenhove & K. De Wulf & S. Steenhaut, 2003. "The Relationship between Consumers’ Unethical Behavior and Customer Loyalty in a Retail Environment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/167, Ghent University, Faculty of Economics and Business Administration.
    3. Andres Kuusik, 2007. "Affecting Customer Loyalty: Do Different Factors Have Various Influences In Different Loyalty Levels?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 58, Faculty of Economics and Business Administration, University of Tartu (Estonia).
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