DRIVING CUSTOMER LOYALTY THROUGH PREMIUMS: THE EXPERIENCE OF BOTTLING COMPANIES IN RIVERS STATE

OGONU, Gibson Chituru
Department of Marketing
Faculty of Management Sciences
Rivers State University
gibsono.gonu@ust.edu.ng
HAMILTON-IBAMA, Edith-Onajite Lolia
Department of Marketing
Faculty of Management Sciences
Rivers State University
edith-onajite.hamilton-ibama@ust.edu.ng
ABSTRACT
This study examined the relationship between premium and loyalty of customers of bottling
companies in Rivers State. The study adopted a correlational research design. The population of
study comprised 3 registered bottling companies in Rivers State. A sample size of 15 management
staff per bottling company was taken, giving a sample size of 45 respondents. Out of 45 copies of
questionnaire distributed, 39 copies were retrieved and used for the analysis. The hypotheses were
tested using the Spearman’s Rank Order Correlation, and was aided by SPSS version 22.0. The
study found that premium relates positively to customer loyalty in terms of repeat purchase and
advocacy. The study concluded that premiums significantly relates to loyalty of customers of
bottling companies in Rivers State; and recommends that management of bottling companies that
seek to achieve increased customer loyalty should ensure that the premiums offered to customer
are of interest and valuable to the customers.
Keywords: Advocacy, customer loyalty, premium pricing, repeat purchase