Assessment of advertising on customer loyalty in the petroleum industry: case study Total Uganda Limited.

Abstract

The study was conducted to assess advertising and customer loyalty in Total Uganda Limited for the period 2006-2010. The purpose of the study was to determine the relationship between advertising and customer loyalty in Total Uganda Limited. The study sought to identify the advertising techniques used, establish the loyalty needs of customers, find out the relationship between advertising and customer loyalty and ascertain other factors that affect customer loyalty in Total Uganda Limited The study took place at the head offices of Total Uganda Limited, longitudinal study design was used, questionnaire was set and sent to the respondents and face to face interview was also done with some respondents. Stratified probability random sampling technique was used and then purposive and simple random sampling was done to select respondents from each stratum. Both primary and secondary data was collected, verified, edited, checked, coded and analyzed both quantitatively using SPSS and qualitatively using narrations, opinions and attitudes. Frequency distribution was then run, cross tabulation done and graphs and pie charts drawn. The findings have revealed that Total Uganda Limited uses three types of advertising techniques namely digital, press and online advertising, customer loyal needs in Total Uganda are communication, understanding customer goals, being consistent with product supply, providing gifts to customers like discounts etc,there is weak positive relationship between advertising and customer loyalty and that there are other factors affecting customer loyalty e.g. price,satisfaction,image,relationship. It is recommended that management of Total Uganda should monitor prices to be competitive, develop relationship with customers and look at customer objectives as well and make plus card usage affordable to all categories of its customers. The conclusion of the study was that though in theory advertising makes customers loyal, in Total Uganda Limited it is not necessarily advertising that makes customers loyal but other factors, and that Total Uganda Limited does not meet most of the loyalty needs of her customers. There is weak positive relationship between advertising and customer loyalty and there are various other factors affecting customer loyalty in Total Uganda like satisfaction, corporate image, relationship, prices and trust worthiness.