The impact of green awareness and product perception on purchase intention: A study of green cosmetic product in Ho Chi Minh city

Abstract

Customer loyalty plays a very important role in business because it contributes greatly to the success of a company in the competitive market nowadays. In case of fresh milk market, TH true MILK is a new brand, which has just been introduced to customers in the few recent years. Besides attracting the adoption of new customers, the company is very keen on retaining its existing customers who have already been tried the brand. Therefore, understanding the key drivers of customer loyalty is of utmost importance for the company management as this information would provide a basis for strategic actions to keep existing customers. Given this context, this research is to investigate factors that affect customer loyalty of this company. Quantitative method was used to find the answers to research questions. Data were collected from 302 customers who used this fresh milk in Ho Chi Minh City. Descriptive statistics, reliability test, factor analysis (EFA and CFA), structural equation modeling and bootstrap test were applied to analyze data and test the research model proposed in the study. The findings revealed that customer satisfaction positively affected customer loyalty. In addition, product quality and price also affected customer loyalty through customer satisfaction and customer satisfaction affected trust. The findings can be used as a basis for developing a marketing plan to increase the customer loyalty of TH true MILK. Keywords: customer loyalty, brand image, customer satisfaction, trust, product quality, price