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What Really Drives Loyalty in the Fast-Moving Consumer Goods Market?

Author

Listed:
  • Mangirdas MorkÅ«nas
  • Marija Kotryna GriÅ¡manauskaiteË™

Abstract

This article seeks to determine the real drivers of customer loyalty in the fast-moving consumer goods (FMCG) market. The study uses beer consumers in Lithuania as an empirical base for the research. A combination of qualitative (experiment) and quantitative (cross-sectional study and partial least squares structural equation modelling) research techniques are applied. The results reveal that loyalty in the FMCG market is driven by purchase frequency, promotion, price and perceived quality via moderating variables such as brand trust and brand satisfaction. Moreover, they demonstrate that consumers mostly do not recognize their favourite product among similar products; therefore, taste properties or other physical attributes of some FMCG products do not significantly contribute to the formation of brand loyalty. JEL classification: M31, M39

Suggested Citation

  • Mangirdas MorkÅ«nas & Marija Kotryna GriÅ¡manauskaiteË™, 2023. "What Really Drives Loyalty in the Fast-Moving Consumer Goods Market?," IIM Kozhikode Society & Management Review, , vol. 12(2), pages 197-212, July.
    • Handle: RePEc:sae:iimkoz:v:12:y:2023:i:2:p:197-212
    DOI: 10.1177/22779752231154645
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    References listed on IDEAS

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    More about this item

    Keywords

    Brand loyalty; FMCG; structural equation modelling; beer;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M39 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Other

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