Impact of Product Quality on Customer Satisfaction and Loyalty

Abstract

The main aim of this work is to evaluate the impact of product quality on customer satisfaction and loyalty. The study adopted a survey research design. The population of the study was 264 staff of Adama Beverages Ltd. The data collected were analysed using linear regression analysis. The entire population was used as sample size. Questionnaires were adapted to draw the information from the respondents. The finding of the study revealed that when it comes to customer satisfaction, product quality is a major determinant and that reduction in level of customer loyalty, might be due to variation in the firm’s product quality and the customers level of satisfaction as regard the product quality. It is recommended that since product quality happens to be one of the major determinants of customer satisfaction and customer loyalty and as such management of firms must establish an interactive metrics that will keep track of the level of their product quality based on the customer perceptions, as a fall or rise in product quality can either reduce or increase the level of customer satisfaction, which in turn can make the level of customer loyalty.