CUSTOMER RELATIOSHIP CHARACTERISTICS AND CUSTOMER SWITCHING BEHAVIOR OF BEVERAGES

ABSTRACT

This study investigated customers’ relationship characteristics and customers’ switching behaviour of beverages in Benin City, Edo State. The dimensions explored were: switching costs, alternative attractiveness, interpersonal relationship and service quality; while customers’ switching behaviour was the study dependent variable. Data were primarily sourced through the online administration of three hundred and eighty-five (385) questionnaire out of which same number (385) were found usable for the empirical analysis. The descriptive (frequency, mean and percentage) and inferential statistics (regression) were adopted for the study’s analysis. Specifically, the regression analysis revealed that: there is a significant negative relationship between switching costs and consumer switching behaviour; there is an insignificant positive relationship between alternative attractiveness and consumer switching behaviour; interpersonal relationship negatively and significantly influences consumer switching behaviour; and that there is a significant negative relationship between service quality and consumer switching behaviour. Based on this it was recommended that: beverage companies should focus on increasing the costs associated with changing brands or products; it is crucial for beverage companies to prioritize and consistently improve their service quality; beverage companies should focus on building strong relationships with their customers through personalized communication, engagement, and active listening; and to retain customers, beverage companies should continuously innovate and improve their products, packaging, and branding to make their offerings more attractive compared to competitors.