Factors affecting customer loyalty toward Trung Nguyen coffee in Viet Nam
Abstract
In response to entrance of many new players in FMCG (Fast Moving Consumer
Good) sector,Trung Nguyen Coffee – market leader – is increasingly resorting to loyal
customers to retain its market share. Despite this, loyalty toward FMCG product issue
has not been addressed adequately. Therefore the objective of this research is to
understand factors affecting customer loyalty toward products.
Adapting antecedents of customer loyalty model by Bee Yin Yee (2003) and
Luarn & Lin ( 2003) for appropriateness of good sector together with analysis of data
extracted from 304 questionnaires collected from targeted respondents, the study
ascertained 5 main factor affecting customer loyalty which are perceived value, trust,
customer satisfaction, habit and reputation. Among those, Habit plays most crucial role
in deciding loyalty of customers while perceived value is the least important factor.
Under such a severely competitive market, product or price is not much important as
before but commitment should be the key tool to win over competitors