The effect of branding on customer loyalty in cosmetics industries in Uganda

Abstract

Cosmetics Companies try to attract and gain customer loyalty through branding; the effect of branding on customer loyalty in the cosmetics industry is explored basing on Movit Products Limited a cosmetics manufacturing Company in Uganda as the case study. The study covered the following objectives; to assess the relationship between brand awareness and customer loyalty, to assess the relationship between brand association and customer loyalty and to assess the relationship between brand image and customer loyalty, in Movit Products Limited. A case study research design was adopted in the study where both qualitative and quantitative research approaches were employed during the process of data collection. The population of the study was 256 and a sample size of 148 based on Krejcie and Morgan’s table, though the actual participants were 109 respondents. The study used self-determined questionnaires as an instrument for data collection. Data was analyzed using SPSS version 20. The study established that brand awareness is significant in yielding customer loyalty as it guarantees recommendations of other customers, product repurchases and price insensitivity. The further established that there exists a positive effect and relationship between brand association and customer loyalty with Movit customers attaining loyalty having associated themselves with the brands’ all day confidence. Furthermore , the study found out that Movit brand image impacts on the customers mind positively due to the quality associated with the products and as such leading to customer loyalty. It is recommended that MPL should maintain its brand awareness through massive and constant advertisement, associate its brands with quality and all day confidence and develop an effective brand image as well through advertising campaigns with a consistent theme authenticated through the customer direct experience. The study concluded that effective and efficient practice of branding as a marketing tool is very crucial in the success of business organizations as it has a positive effect on customer loyalty which is based on as a yard stick to predict and determine the existence of any business entity as customers are the reason they exist