Factors Affecting Customer Loyalty Small and Micro Enterprises Engaged in the Production of Home and Office Furniture Case of Kolfe Keraniyo Sub City Werda 08 Small and Micro Enterprises

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Addis Ababa University


Currently the furniture in Ethiopia is operating in a higher competition. Many new furniture companies have entered the furniture industry. The choice of furniture by customer is increased within this competitive furniture industry. Customer loyalty has become a key factor for long-term success of the companies. In order to make customers loyal toward the enterprises ,owner of the enterprises need to understand factors affecting customer loyalty. This study aimed at examining factors affecting customer loyalty within kolfe keraniyo sub city werda 08 small and micro enterprises engaged on the production of home and office furniture. In order to achieve the objective, data for this study were obtained by distributing questionnaires 384 customers of engaged on the production of home and office of which 369 have been collected. To gather information from respondents the study used a Purposive/ judgment sampling techniques. Thus, 369 returned questionnaires were analysed using statistical package for social science (SPSS version 20).The study made use of primary and secondary data sources in order to gather relevant information for the study. The study employed mainly questionnaire in collecting the primary data and the analysis was substantially based on primary data. The secondary data was collected by reviewing books, previous research works, articles and journals, brochures and internet sources. Both descriptive and inferential statistics have been used for data analysis. Finding of the study shows that commitment, switching cost, trust and satisfaction have a significant positive influence on customer loyalty. In addition, the analysis found that commitment is most essential factor in affecting customer loyalty followed by trust, switching cost, the least important factors in affecting customer loyalty is satisfaction and. The study recommends that enterprises should have to exercise a high level of commitment to deliver quality service, satisfy their customers and increase the satisfaction of custoemrs by giving and keeping promise, by showing concern for customers, providing consistent quality services, showing respect for customers and fulfilling obligations to custoemrs.



customer loyalty, Trust, Commitment