A Study on Assessing the Factors and Extent of Brand Loyalty in Sri Lankan Decorative Paint Industry

Abstract

The number of decorative paint companies in the Sri Lankan market is increasing and similar to that the customer demand is also increasing. Today this particular industry has become one of the profitable industries in Sri Lanka. According to the comprehensive literature review carried out, it was noted that 95% of market share has been captured by seven companies out of the 60 brands. This research study was a step towards understanding the factors affecting to brand loyalty and the extent of the loyalty in the decorative paint industry in Sri Lanka. Consistent with the objectives the research questions were set. The hypothesis were based on selected independent factors from literature review. The research approach was consist of quantitative data and the main data collection method was done through a structured questionnaire. 153 customers were selected using convenience sampling methodology for the study. Descriptive statistics was used to present the data and correlation and regression analysis were employed as inferential statistics. According to the results Brand Image, Price, Referral Marketing, Product Quality, Communication, Environmental Friendliness have a direct impact to the attitudinal brand loyalty in decorative paint industry. But the Availability does not have a direct impact to the brand loyalty in the industry. Companies can use research outcomes in order to increase their brand loyalty and reduce cost in retaining customers.