Factors Influencing Brand Loyalty in the Oil Industry: the Case of the Matatus on Route 44 in Nairobi

Abstract

Marketing environment in the oil industry has gone through different phases in the last four decades. The first phase was during the oil crisis of the 1970s where fuel prices shot up consequently pushing up inflation pressure in the country. The objective of this study was to generate solutions to the research problem as it sought to address two main objectives which included identifying factors that influence brand loyalty in the oil industry among the Matatus plying on route 44 in Nairobi and determining how these factors rank in order of importance. The research applied descriptive research design with the population comprising of 495 Matatus. Representative samples of 60 Matatus were selected. The study used primary data which was collected using a questionnaire. A questionnaire was administered in person to the respondents to ensure a high response rate where the respondents were the Matatu crews who made purchase decisions. Due to many factors involved, the study applied factor analysis in analyzing the data. The research findings showed that honesty and trustworthiness of station staff, Station cleanliness, Staff’s courteousy and helpfulness, Speed of service, good quality fuel, Neatness of the staff and security of the Station are the most important factors that influenced the choice of a petrol station by Matatus on route 44 in Nairobi. Availability of fuel, Stations offering price discount and Availability of tyre pressure service were other important factors that influenced the choice of a petrol station by Matatus operating on route 44 in Nairobi. The researcher therefore recommends that marketers in the oil industry should invest in training the pump attendants and other station staff on how to improve on the above mentioned factors. This kind of marketing strategy will help in attracting new Matatu customers and also in maintaining those already patronizing the station.