Customer loyalty and switching behavior of customer for Pepsi in Pakistan

Abstract

Intention to switch from one service provider to another, leads to switching behaviour, which results in the decrease of profits of the company. Switching behaviour helps in creating relationship between consumer and producer. In this research we study and investigate the effect of switching behaviour, customer satisfaction, habit, and utilitarian values on customer loyalty. The customer satisfaction, habit and utilitarian value were determined to be input variables, switching behaviour were determined to be intervening variables; and customer loyalty was determined to be the output variable. The model was designed to explain the factors affecting the customer loyalty. Our study based on a self-administered survey that was conducted in Bahawalpur setting. Data were collected from the randomly selected 150 Pepsi product consumers. Our study results provide a better understanding about the role played by each factor in the development customer loyalty and highlights the key role played by affective factors.