Factors Impact on Brand Loyalty with Special Reference to the FMCG Sector in Sri Lanka

Abstract

FMCG (Fast Moving Consumer Goods) industry currently has become one most emerging markets around the world. Over the past two decades FMCG industry has gradually developed from small scale business to multinational business increasing the awareness of the sector globally. FMCG products are generally perceived as faster, and safer increasing the attraction of many consumers over the world. However, Sri Lanka being one of the largest consumer in FMCG, understanding the potential and behavior of the consumers with regard to FMCG products is vital in order to enhance the industry. Current literature examines about consumer behavior towards FMCG Brand loyalty special reference to American, European and Asian (specifically China and India) contexts. Hence the aim of this study is to analyze and discuss the FMCG market and the brand loyalty in Sri Lankan context. This study was focused on recognizing the factors influencing brand loyalty reference to FMCG brands in Sri Lanka. Data were collected through a consumer survey conducted in western province deeming two major districts; Colombo and Gampaha using a stratified sampling method of 100 respondents. The findings firstly reveal that the focused on product safeness and the product trustworthiness should highly considered in developing brand trust. Secondly, setting the customer expectations correctly is more important in developing customer satisfaction. Thirdly, brand relationship shows a moderate impact due to the nature of the product. Finally the study highlights a positive impact of functionality and emotional benefits in brand evaluation.