THE EFFECT OF POSITIONIG ON CUSTOMER LOYALTY: THE CASE OF AMBASSADOR GARMENT AND TRADING PLC

Abstract

Positioning has been an important part of marketing since companies began to recognize the relevance of having control over their image of the brand. It is a first element to address in strategic marketing, & everything else is aligned to it. The main objective of this research paper was to determine the effect of positioning on customer loyalty at Ambassador Garment and Trading PLC. Non probability sampling Method which is convenience sampling was used & the data collection methods were documents, questionnaire & interview. A total no of 384 questionnaires were distributed to all Addis Ababa retail shops individual customers, out of it 358 questionnaires returned & properly filled. The questionnaires were analyzed using descriptive statistics, ANOVA, correlation & regression. Positioning relevance, differentiation, delivery & communication have a significant relationship with customer loyalty & the variability of customers overall loyalty can be explained to the extent of 33.8% by Positioning Relevance, Differentiation & Communication. And there is a positive relationship between determinant of positioning (differentiation, delivery and communication) and customer loyalty and except relevance. It was recommended that, to keep the highest customer perceived positioning or image Ambassador Garment and Trading PLC should take into considerations the important determinants of positioning for their consumers is delivery, communication and relevance. As a result the company should have to at least keep it up.