The Study of Customer Switching Behaviour Toward Carbonated Soft Drink Market

Abstract

With the continuous growth of competition in the market place, understanding customers has become more and more important in marketing. Moreover, customers are more mobile and knowledgeable than ever before, searching for a best alternative in their purchasing process, and finally switch to best brand. This process can be known as customer switching behaviour. The switching behaviour in products and services are not the same for all categories.The main purpose of this study was to examine whether there is customer switching behaviour in the carbonated soft drink market; and if so, what are the factors that contributed for customers’ switching behaviour. This research was limited to Manmunai -North Divisional secretariat area in Batticaloa district. Customer switching behaviour is operataionalized in terms of four variables; Marketers’ Product Mix, Pricing Strategies, Distributional Strategies, and Promotional Strategies. A quantitative method was applied where for data collection structure questionnaires were used. 200 questionnaires were issued and collected data were analyzed using SPSS v.11.0 and evaluated as low, moderate, and high level influence of research variables on switching behaviour in carbonated soft drink repurchase. Family unit was considered as a unit of analysis. Descriptive analysis was used for data analysis. This study found that most of the customers are switching their brands (85%). Research found that Marketers’ promotional, distributional and product mix are heavily motivating customers’ switching tendency while pricing strategies has moderate influence on customers’ switching tendency. However, most of the respondents agree that marketers’ promotional strategies are attracting them to switch toward their brand. According to the analyzed data, the Coca-Cola Company holds 43.7%, PepsiCo holds 25.1%, and Ceylon Cold Stores Limited holds 21% of Market share.It is advisable for carbonated soft-drink marketers to concentrate more on their pricing and product strategies while maintaining present placing and promotional strategies. Finally recommendations have been given as to how carbonated soft-drink marketers can enhance their markshare further by protecting their customers from competitors’ moves.