Brand Architecture, Customer Loyalty and Performance of Water Bottling Firms in Nairobi City County, Kenya
DOI:
https://doi.org/10.53819/81018102t2096Abstract
The objective of the study was to determine the role of customer loyalty on the relationship between brand architecture and firm performance. Two testable hypothesis were derived from extant literature and tested through regression analysis and path analysis. The study adopted a descriptive cross-sectional survey with primary data gathered from 209 major water bottling firms in Nairobi, using a semi-structured questionnaire. The study achieved a response rate of 67.9%. The data was analyzed using descriptive and inferential statistics. The research results revealed a statistically significant relationship between brand architecture and non-financial firm performance (R2 =0.704, F= 333.64, p-value<0.05); financial firm performance (R2 = 0.692, F= 314.904, p-value <0.05). These results are consistent with those of previous study findings on the relationship between brand architecture and firm performance. The results of the study revealed that customer loyalty partially mediated the relationship between brand architecture and financial firm performance (R2 =0.756, F=215.15, β =-.336, p-value>0.05); and non-financial firm performance (R2 =0.801, F= 184.656, β= 0.626, β =.346, p-value =0.05). The results of the study have contributed to theory, policy, and practice. The study outcomes enhance the existing brand architecture and firm performance body of knowledge, by empirically testing the hypotheses in the Kenyan context. The study results will facilitate policy makers in the enactment of policies that will facilitate access to resources that promote investment in the brand development process linked to brand architecture. In practice, the findings will support managers in obtaining approval for additional resources required for brand architecture. The study underscores the significance of brand architecture in enhancing performance while incorporating customer loyalty. The current study had used cross-sectional survey design which collected data at a single point in time. Future studies should therefore use longitudinal research designs to unearth any dynamic relationships among the variables covered in this study. Similar studies should also be conducted in other sectors to determine whether the same results can be generalized. These limitations do not compromise the overall quality of the study.
Key Words: Brand Architecture, Customer Loyalty, Firm Performance, Water Bottling Industry, Nairobi City County, Kenya
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