Investigating the Factors Underlying Consumers’ Loyalty of Beer Brands in Addis Ababa

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Date

2016-05

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Addis Ababa University

Abstract

Currently breweries are spending a large sum of money to attract consumers in using their brand. Customers consider certain attributes before loyal to certain beer brand. The objective of this study was to investigate underlying factors of consumers beer brand loyalty in Addis Ababa, Ethiopia. Two sub-cites was selected from the target population of ten sub cites by using simple random sampling method .A questionnaire survey was administered to conveniently selected 366 samples of respondents. The data were analysed using descriptive statistics, one way ANOVA, independent sample t- test and multiple regressions. The findings of the study showed that brand name, availability, promotional mixes, price, quality, Social & situational influence and packaging were identified as critical to brand loyalty decision and are major determinants of brand loyalty for brewery sector. Brand name is most important factor that directly influence brand loyalty. Particularly St. George beer is a top- of- mind brand for most consumers in Addis Ababa. Furthermore, the study found out that St. George beer brand is the most loyal brand followed by Habesha beer and Walia beer by majority of beer consumers in Addis Ababa. Furthermore, in one way ANOVA result the finding of the study shows that consumers of beer who belongs to different income groups, age groups and educational levels perceive the underlying factors of beer loyalty differently. Regarding the brand loyalty level, most of consumers of beer are loyal to different brands available in Ethiopia. It is good if breweries wisely choose the proper brand name that is memorable & meaningful and form associations between the brand, the product and its attributes for emerging brands. Breweries can use process of manufacturing or the quality of ingredients used in the process of brewing, test and alcohol content of beer to position their beer as having quality.

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Keywords

brand loyalty, Brand name, Customers

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