Investigating the Effective Factors on Enhancing Loyalty Level of Edible Oil Consumer: Case Study Tehran City

Document Type : Research Paper

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Tehran University of Agriculture and Natural Resources

Abstract

The food market has become a competitive market with less distinct products, so identifying the effective factors on increasing consumer’s brand loyalty is vital to the survival of firms. Therefore, this study aims to investigate the factors affecting the development of consumer’s brand loyalty in Tehran city. For this aim, 250 questionnaires were completed and multinomial logit model were used. The dependent variable consists of three categories of "consumption of one specific brand", "consumption of two or three specific brands" and "consumption of various brands". The results indicated that brand is important for 91% of consumers, which 62% of consumers purchase their own edible oil from two or three specific brands. Based on the multinomial logit results, the variables of quality and brand importance for consumers have positive and significant effect on the loyalty of the "Consuming only one specific brand" category, while this effect for price, number of well-known brands and price benefits variables is negative and significant. Therefore, it is recommended that the producers of edible oil pay attention to factors promoting consumer loyalty levels, especially quality and branding.

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