IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v4y2012i1p41-48.html
   My bibliography  Save this article

Customer Loyalty in FMCG Sector of Pakistan

Author

Listed:
  • Khansa Zaman
  • Asma Arshad
  • Aqeel Shahzad

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.

Suggested Citation

  • Khansa Zaman & Asma Arshad & Aqeel Shahzad, 2012. "Customer Loyalty in FMCG Sector of Pakistan," Information Management and Business Review, AMH International, vol. 4(1), pages 41-48.
    • Handle: RePEc:rnd:arimbr:v:4:y:2012:i:1:p:41-48
    DOI: 10.22610/imbr.v4i1.962
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/962/962
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/962
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v4i1.962?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bartikowski, Boris & Walsh, Gianfranco, 2011. "Investigating mediators between corporate reputation and customer citizenship behaviors," Journal of Business Research, Elsevier, vol. 64(1), pages 39-44, January.
    2. P. Van Kenhove & K. De Wulf & S. Steenhaut, 2003. "The Relationship between Consumers’ Unethical Behavior and Customer Loyalty in a Retail Environment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/167, Ghent University, Faculty of Economics and Business Administration.
    3. Andres Kuusik, 2007. "Affecting Customer Loyalty: Do Different Factors Have Various Influences In Different Loyalty Levels?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 58, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claudia BOBALCA, 2015. "The Loyal Customers’ Perception Regarding The Online Buying Process," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 7(2), pages 241-255, August.
    2. D. Van den Poel, 2003. "Predicting Mail-Order Repeat Buying. Which Variables Matter?," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(3), pages 371-404.
    3. Kim, Yeonshin & Hur, Won-Moo & Lee, Luri, 2023. "Understanding customer participation in CSR activities: The impact of perceptions of CSR, affective commitment, brand equity, and corporate reputation," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    4. Sarstedt, Marko & Wilczynski, Petra & Melewar, T.C., 2013. "Measuring reputation in global markets—A comparison of reputation measures’ convergent and criterion validities," Journal of World Business, Elsevier, vol. 48(3), pages 329-339.
    5. María Dolores Aledo‐Ruiz & Eva Martínez‐Caro & José Manuel Santos‐Jaén, 2022. "The influence of corporate social responsibility on students' emotional appeal in the HEIs: The mediating effect of reputation and corporate image," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 578-592, May.
    6. Tine Bock & Iris Vermeir & Patrick Kenhove, 2013. "“What’s the Harm in Being Unethical? These Strangers are Rich Anyway!” Exploring Underlying Factors of Double Standards," Journal of Business Ethics, Springer, vol. 112(2), pages 225-240, January.
    7. Abdelmoety, Ziad Hassan & Aboul-Dahab, Sameh & Agag, Gomaa, 2022. "A cross cultural investigation of retailers commitment to CSR and customer citizenship behaviour: The role of ethical standard and value relevance," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    8. Mobin Fatma & Imran Khan, 2023. "How Do Bank Customers’ Perceptions of CSR Influence Marketing Outcomes: Their Trust, Identification, and Commitment?," Sustainability, MDPI, vol. 15(7), pages 1-10, March.
    9. Matej Kovač & Vesna Žabkar, 2020. "Do Social Media and E-Mail Engagement Impact Reputation and Trust-Driven Behavior?," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 32(1), pages 9-25.
    10. Colicev, Anatoli & Kumar, Ashish & O'Connor, Peter, 2019. "Modeling the relationship between firm and user generated content and the stages of the marketing funnel," International Journal of Research in Marketing, Elsevier, vol. 36(1), pages 100-116.
    11. Anish Yousaf & Makhmoor Bashir & Abhishek Mishra, 2020. "Revisiting Spectator-Based Sports Team Reputation: Strategic Implications for Team Managers," Corporate Reputation Review, Palgrave Macmillan, vol. 23(1), pages 1-12, February.
    12. Shuang Ma & Huimin Gu & Daniel P. Hampson & Yonggui Wang, 2020. "Enhancing Customer Civility in the Peer-to-Peer Economy: Empirical Evidence from the Hospitality Sector," Journal of Business Ethics, Springer, vol. 167(1), pages 77-95, November.
    13. Huifeng Pan & Hong-Youl Ha, 2022. "An Empirical Test of Educational Donors’ Satisfaction Levels in Donating for Education before and after the COVID-19 Era," Sustainability, MDPI, vol. 14(19), pages 1-11, October.
    14. Jung, Hyo Sun & Seo, Kyung Hwa & Lee, Soo Bum & Yoon, Hye Hyun, 2018. "Corporate association as antecedents of consumer behaviors: The dynamics of trust within and between industries," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 30-38.
    15. Heinberg, Martin & Ozkaya, H. Erkan & Taube, Markus, 2018. "Do corporate image and reputation drive brand equity in India and China? - Similarities and differences," Journal of Business Research, Elsevier, vol. 86(C), pages 259-268.
    16. Zhiqiang Liu & Fue Zeng & Chenting Su, 2009. "Does Relationship Quality Matter in Consumer Ethical Decision Making? Evidence from China," Journal of Business Ethics, Springer, vol. 88(3), pages 483-496, October.
    17. Liguo Lou & Lin Li & Sung-Byung Yang & Joon Koh, 2021. "Promoting User Participation of Shared Mobility in the Sharing Economy: Evidence from Chinese Bike Sharing Services," Sustainability, MDPI, vol. 13(3), pages 1-17, February.
    18. S. Steenhaut & P. Van Kenhove, 2003. "Consumers’ Reactions to “Receiving Too Much Change at the Checkout”," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/186, Ghent University, Faculty of Economics and Business Administration.
    19. Mbaye Fall Diallo & Christine Lambey-Checchin, 2017. "Consumers’ Perceptions of Retail Business Ethics and Loyalty to the Retailer: The Moderating Role of Social Discount Practices," Journal of Business Ethics, Springer, vol. 141(3), pages 435-449, March.
    20. Sana Noor & Abubakr Saeed & Muhammad Saad Baloch & Muhammad Awais, 2020. "CSR permanency, family ownership, and firm value: Evidence from emerging economies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2135-2149, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arimbr:v:4:y:2012:i:1:p:41-48. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.