The Effect of Positioning on Customer Loylty: The Case of Anbessa Shoe Share Company
No Thumbnail Available
Date
2015-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Positioning has been an important part of marketing since companies began to recognize the
relevance of having control over their image of the brand. It is a first element to address in
strategic marketing, & everything else is aligned to it. The fact that how foundational most
organization recognize brand positioning to be, but just how little companies are willing to
spend to get it done right. Which indicate, there is lack of knowledge of understanding of the
vital role of positioning in one’s business success with the relationship between positioning
&customer loyalty. Therefore, the objective of this research paper is to determine the effect of
positioning Relevance, Differentiation, Delivery & Communication on customer loyalty at
Anbesa Shoe S.C. Stratified Sampling Method was used & the data collection methods were
documents, questionnaire & interview. A total no of 308 questionnaires were distributed to all
Addis Ababa retail shops individual customers, out of it 257 questionnaires returned & properly
filled. The questionnaires were analyzed using Cronbach Alpha, descriptive statistics, ANOVA,
correlation & regression. Positioning relevance, differentiation, delivery & communication have
a strong relationship with customer loyalty & the variability of customers overall loyalty can be
explained to the extent of 71.2% by Positioning’s Relevance, Differentiation & Communication
but Delivery has almost negligible effect on the variability of overall customer loyalty. Finally, it
was recommended that, to keep the highest customer perceived positioning or image i.e.
“Durability” in its current positioning statement &; to communicate effectively on few major
strength of the company through assuring the actual delivery of the claimed positioning with
continuous customers feedback. The negligible effect of delivery on customer loyalty doesn’t
necessary to mean it has no influence since there is strong correlation between delivery &
loyalty. However, it could have been better to work more on the delivery of the articulated value
in order to increase the customer’s credibility, image &loyalty level & to do further study to
identify the reason behind this result.
Description
Keywords
Positioning, Relevance, Differentiation