Customer Loyalty in Fast Moving Consumer Goods Industries in Nairobi County

Abstract

This study examined the effect of Customer Relationship Management (CRM) on customer loyalty among Fast-Moving Consumer Goods (FMCG) companies in Nairobi County, Kenya. The study aimed to analyse how specific CRM dimensions trust, perceived value, switching cost, and empathy influence customer loyalty. The study was guided by null hypotheses and was anchored on Social Exchange Theory, Relationship Marketing Theory, and Customer Relationship Management Theory. A descriptive research design was employed. The target population consisted of 794 marketing and public relations professionals from 45 FMCG companies. A sample of 267 respondents was selected through stratified random sampling. Data was collected via self-administered structured questionnaires using a drop-and-pick method. A pilot study was conducted to ensure the reliability and validity of the research instrument. Cronbach’s Alpha was used to test internal consistency (reliability), while expert reviews confirmed content validity. Descriptive statistics (means, standard deviations, frequencies, and percentages) were used to summarize the data. Multiple linear regression analysis was conducted at a 95% confidence level to determine the influence of the independent variables on customer loyalty. Prior to regression analysis, key assumptions were tested including normality, linearity, multicollinearity, homoscedasticity, and independence of residuals. The findings showed positive and statistically significant relationships between customer loyalty and all CRM dimensions: Trust (β = 0.595, p = 0.001), Switching cost (β = 0.261, p = 0.001), Perceived value (β = 0.210, p = 0.001) and Empathy (β = 0.401, p = 0.001) The study concluded that enhancing these CRM components positively affects customer loyalty. It recommends that FMCG companies focus on maintaining product quality and transparency to build trust, use incentives to reduce switching, emphasize perceived value, and train staff in empathetic customer service to strengthen loyalty and retention