The relationship between customer loyalty and product development. a case study of Nile Breweries Limited Uganda

Abstract

The purpose of this paper was to explore the relationship between customer loyalty and product development and the objectives of the study were corporate image and product development, service quality and product development and customer satisfaction and product development through a case study design on Nile Breweries Limited. A structured questionnaire was developed. The relationship was simultaneously tested on a sample of 80 respondents out of 100 distributed, giving a response rate of 80 percent. An analytical technique was used to assess the relationships among the variables under investigation and Pearson correlation was used to test that relationship. It is imperative to explore that a company can effectively and efficiently develop products that gain their customers satisfaction and loyalty and this was revealed through a moderate positive significant relationship between customer loyalty and product development. Despite the significance of service quality, customer satisfaction and corporate image, this study contributes in adding to the body of knowledge. Authors suggest that customer loyalty is an important mediator between service delivery innovation and service quality which affects the developed products of a firm. The recommended framework and its relationships with customer loyalty present practical guidance for organization to take customer service seriously in order to gain loyalty and therefore they should handle customers in a distinctive manner that leads to enhances firm’s competitiveness.