Product Quality, Brand Loyalty and Brand Performance in the Dairy Sector of Uganda.
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Date
2023
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Abstract
This study aimed at establishing the relationship between product quality, brand loyalty, and brand performance within the diary sector of Uganda. This was initiated as a result of continuous dairy brand performance failure on the market. In that regard four research objectives were set and these included i) to examine the relationship between product quality and brand performance; ii) to establish the relationship between product quality, and brand loyalty; iii) to examine the relationship between brand loyalty and brand performance and v) to establish the mediating effect of brand loyalty on the relationship between product quality and brand performance.
In order to achieve the above objectives a population 32 dairy firms were selected, and from each 5 managers were selected to participate in the study. Out of the 160 administered questionnaires 132 questionnaires were successfully filled and 6 successful interviews conducted. In total this made a response rate of 82.5%. The correlation coefficient was 0.826 indicating a strong positive relationship between product quality and brand performance. This was so because of poor quality milk that is key input within the dairy products in the market. Also quality of dairy products was greatly affected by the technology, used by local livestock farmers. There was a strongly positive relationship between product quality and brand loyalty, and that product quality predicts 83.7% variance in the brand loyalty within the daily sector of Uganda. There was a moderate positive relationship between brand loyalty and brand performance and that 48.1 % of the variance in brand performance was found to be explained by brand loyalty efforts within the dairy sector of Uganda. It was found out that, brand loyalty partially mediated the relationship between both product quality and brand performance in the dairy sector of Uganda. This was so because, quality in all these variables resulted into loyal customers that guaranteed the performance of dairy companies in terms sales and profitability. It has been recommended that management of dairy producing companies together with management of the dairy Development Authority of Uganda to strongly establish quality standards to regulate milk producers in Uganda.
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A Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of Degree of Master of Business Administration of Makerere University. (PLAN A).
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Ambrose, T (2023) Product Quality, Brand Loyalty and Brand Performance in the Dairy Sector of Uganda. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.