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.
Highlights
Customer loyalty is more critical in Fast Moving Consumer Goods (FMCG) companies because consumers shift rapidly from one product to another
The driving purpose behind pursuing this research study was to determine the relationship of customer satisfaction, trust, and corporate reputation with customer loyalty
Customer loyalty was chosen as the dependent variable and the impact of above-mentioned independent variables was checked by questionnaires
Summary
Customer loyalty is more critical in Fast Moving Consumer Goods (FMCG) companies because consumers shift rapidly from one product to another. The challenging task in the current arena is to make customers loyal to ensure the long-term survival and profitability of the firm. Managers of these companies look for the ways to attract the potential customers and to retain the existing customers. The purpose of writing this paper is to talk about the most critical factors or variables, which contribute more in developing customer loyalty in FMCG sector. Islam (2008) predicts the relationship of trust, switching cost and corporate image with customer loyalty. Chiou and Droge (2006), declared relationship between customer satisfaction and trust as a milestone of behavior loyalty
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