| Abstract: | aving a devoted customer base is essential for profit-oriented businesses to remain competent
enough in today’s highly competitive market. In light of this, the purpose of this study was to
examine factors influencing customer loyalty in small and micro businesses that produce furniture
for homes and offices. This study used quantitative approach and explanatory research design.
Data were gathered from 384 customers using structured questionnaire. The researcher used
descriptive and inferential statistics (correlation and regression analyses) to analyze survey data.
The result of descriptive statistics revealed that customers are loyal to organization (x=4.22), have
good perception about product quality (x=4.34), satisfied with the products (x=3.39), positive
perception about the company image (x=3.83), trust the company (x=4.26), and remain committed
with the organization (x=4.04). Furthermore, the result of regression analysis showed that trust
has caused a significant positive effect on customer loyalty (B=0.590, P<0.05) followed by
perceived product quality (B=0.335, P<0.05) and customer commitment (B=0.205, P<0.05).
However, switching cost and customer satisfaction didn’t cause statistically significant effect on
customer loyalty. Therefore, in order to build customer loyalty, furniture manufacturing firms are
recommended to build trust, improve product quality, and foster commitment. It is also
recommended that businesses should invest in marketing research to determine the exact needs
and preferences of their customers and to offer products and/or services that will satisfactorily and
profitably satisfy those needs. Furniture manufacturing firms must differentiate their brands from
those of their competitors in the dynamic and competitive business climate. |
