Factors Influencing on Customer Switching Behaviour: A Study on Soft Drink Market in Vauniya District

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Date
2013
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Uva Wellassa University of Sri Lanka
Abstract
The beverage industry in Sri Lanka is fully captured by both multinational and domestic companies with their major product lines within Sri Lanka in a soft-drink market. Moreover, the soft-drink market is a highly competitive market with frequent sales. The beverage is a liquid specifically prepared for human consumption, in addition to basic needs beverages form part of the culture of human society; or in other word, this is any liquid suitable for drinking; or a liquid to consume. The high level of competition, the high cost of acquisition in terms of new product innovation, promotion, distribution and the low rate of switching cost to create a market where customer retention is important. In order to find-out why customers switched from one brand to other brand, it is important to focus on the most basic factors that are acting behind their switching behaviour. Recognizing a most basic factor for customers’ switching behaviour can be most useful to draw most suitable strategies for future customer relationships by losing companies. This study intended to focus whether there is the customer switching behaviour in context of purchase of any product and to determine the most contributable factor in the aspect of customers’ switching process particularly in soft-drink market. Goods are mostly available with good qualities and prices are very competitive nowadays, so in a great cut thought competitive market place understanding customer’s needs become crucial. Switching intention is also influenced by several factors, this study is to examine whether there is the customer switching behaviour and how the factor (Marketing Mix) most contributed for exploring the switching tendency by the customers during the purchasing process of soft drink in Vavuniya district. Based on that the research question arises as follows; “To what extent the factor (market mix) influence on customers’ switching behaviour toward the choice of soft drink products in Vavuniya District?”. The primary aim of this is to evaluate that the customer switching behavior towards soft-drink market in Vavuniya District. Based on that the following objectives are developed for this study.
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Keywords
Customer Relationship, Beverage, Beverage Industry, Economics, Management, Marketing
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