Factors Affecting to Brand Loyalty in Fast Food Industry With Special Reference to Colombo District

Abstract

Developing and managing Brand Equity for a brand is considered as a critical issue for most of the industries. Having too many brands around the customer and competitive marketing and promotion campaigns can be a cause to create a brand confusion in customers mind. Multinational companies like Pizza Hut, KFC and McDonalds’ coming in to the local market using franchise model may use innovative strategies to build up their brand loyalty in local context. On this research, researcher tries to identify the most important factors that affect brand loyalty in fast food restaurants. The researcher identified Atmosphere, Promotion, Value Addition, Food Provided, Price, Brand Image and Service Quality through a comprehensive literature review as factors leading to branding loyalty. The research was conducted in Colombo District with a sample of 140 respondents. Survey method was used as the research strategy and a self-administered, structured questionnaire was distributed among respondents to collect data for the study. Hypothesis were tested using regression analysis and results showed that atmosphere is the most prominent factor when it comes to customer brand loyalty of fast food restaurants while other variables indicated a moderate to weak influence on brand loyalty.