Relationship Marketing and Customer Loyalty in the Fast-Moving Consumer Goods (FMCG) Industry in Nairobi County

Abstract

Customer loyalty remains a major challenge for Fast-Moving Consumer Goods (FMCG) companies in Kenya. This study examined the influence of relationship marketing dimensions— trust, perceived value, switching cost, and empathy—on customer loyalty among FMCG firms in Nairobi County. Grounded on Social Exchange Theory, Relationship Marketing Theory, and Customer Relationship Management Theory, the study employed a descriptive research design. The target population comprised 794 marketing and public relations employees in 45 FMCG companies, with a stratified random sample of 267 respondents. Data were collected through self-administered questionnaires and analyzed using SPSS 24, applying both descriptive and inferential statistics at a 95% confidence level. Results revealed that trust (β = 0.595, p = 0.001), switching cost (β = 0.261, p = 0.001), perceived value (β = 0.210, p = 0.001), and empathy (β = 0.401, p = 0.001) had a positive and significant influence on customer loyalty. The study concludes that relationship marketing significantly enhances loyalty in FMCG companies. It recommends that firms uphold high product and service quality to maintain trust, leverage financial incentives to reduce switching tendencies, and train employees in empathy and communication to improve customer experiences. Regulators should also periodically review policies to strengthen FMCG competitiveness and customer retention in Nairobi County