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