Determinants Of Brand Loyalty In Cosmetic Products: A Case Of Selected Salons In Nyeri Town

Abstract

Cosmetic industry is a lucrative business that progressively attracts more attention from marketing research. The highly competitive environment in the cosmetic industry makes it a valuable area to study brand loyalty in cosmetic products. Brand loyalty is one of the important aspects which is significant for the management to sustain competitive advantages in the market. In this research, the relationship between brand loyalty and determinants of brand loyalty was unveiled, with special focus on brand trust, satisfaction, brand price and perceived value. The general objective was to examine the determinants of brand loyalty in cosmetic industry in Nyeri Town. The specific objectives were to determine the effects of brand price on brand loyalty, to assess the effects of brand trust on brand loyalty, to establish the effects of brand satisfaction on brand loyalty, to establish the effect of perceived value on brand loyalty. The researcher adopted a descriptive survey research design where questionnaires were used for data collection. Data was analyzed using descriptive statistics and has been presented using tables. The target population was 60 salon operators who are consumers of Cosmetic Products in Nyeri Town. A census study was conducted in the salons within Nyeri Town. The overall impression of the respondents is that brand trust, brand satisfaction, brand price and perceived value influence their cosmetic products buying decisions. From the research conducted, the salon owners considered brand perceived value as the most influential factor in determining brand loyalty at 100% level of agreement. Brand satisfaction as a factor determining brand loyalty to the cosmetic brand was rated the second highest at 95.3% agreement level. Brand trust was considered a distant third in determining brand loyalty at 67.4%, while brand price was rated the lowest factor at 53.5%.With all the factors scoring more than 50% level of agreement it is an indicator that all the factors have an influence on the brand loyalty of cosmetic products with the degree of influence varying amongst the different factors. This study supports the view that brand trust, brand perceived value, brand satisfaction and price should remain prime focus for the organization to maintain market share in today‟s competitive business environment. The business whose customers are not loyal with them cannot enjoy a respectable position in the market. From the data analysis we can conclude that today‟s customer have much awareness of whether a product is giving some sort of value to them or not. To retain the customer for longer period businesses should focus on how to increase the loyalty of their customers. A customer who is satisfied with the offerings and services would be the most loyal customer of the product. Companies should create an atmosphere where if customer shifts to the products of other company he/she should not feel satisfaction as before; thus returns back to the product which he/she used initially. Trustworthiness of the firm also plays important role in building loyalty towards products / services provided. A business which gives importance to relationships with customers always enjoys long term customer retention. Image of a particular firm‟s products in the market also plays significant role in promoting customer brand loyalty.