Factors Influencing Consumer Preference Among Beverage Product Brands in Namibia

Abstract

The primary purpose of conducting this study is to explore the factors that influence consumers’ preferences for beverage product brands in Namibia. The results of the study are useful in providing insights into the market characteristics of the Namibian beverage product brands and that of similar brands produced by other organizations for the Windhoek market. The scope of the study was delimited to the population domiciled in the Windhoek area; as such, the results may not be reflective of the general situation in Namibia because the factors that act in an urban setting may be fundamentally different from those that act in rural settings. This is because the sociology, economic, regional identity, and self-image dynamics of the rural settings are fundamentally different from those in the urban setting. As such, the interaction of the same factors in different sociological and economic environments and where individual perspectives for self-image and prestige are dissimilar can yield completely different results. Furthermore, the study recognizes that Namibia produces many different beverages, but in this study, the investigations were focused on alcoholic brands only. The study revealed that customers always stick to their beer brand. The study revealed there is a relationship between price, taste, packaging and quality, and promotion. The findings also revealed contradictory responses on factors that influence brand switching, where it was revealed that better quality and taste of one’s favorite brand have significant effects on brand choices. Also, the findings show that customers do not switch brands because of advertisements for other brands. Advertising induces brand switching but does not affect the repeat purchase rates of consumers who have just purchased the brand; but is inconsistent with respondents’ responses on advertisements as one of the influential factors on consumer preference where they responded that it is an important factor that influences brand choice. These inconsistent responses in price and advertisement can be interpreted that many customers are satisfied with their favorite brands, and therefore a change of price or advertisements of other brands cannot drive them to switch to other brands. Finally, introducing new brands in the market showed to have a significant impact on brand switching, but this switching does not last long because the switching is meant only for testing the quality of newly introduced brands. Price, flavour, special promotions, packaging and quality, and advertising are crucial factors in beer purchasers’ brand choice selections, according to a study. Breweries should pay adequate attention to these factors in their production processes and marketing plans and strategies to promote them well. Managers of brands should invest in frequent advertising to reduce brand switching and retain customers. Maintaining brand quality and advertising it frequently will keep customers buying the same brand.