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