Abstract:
Today increasing competition and rivals supply creates more confusion
for the selection of suitable product for the customers in Sri Lanka.
Currently, there are many industry competitors operate in this Market. It
has found an aggressive competition in terms of product attributes.
Product attributes usually comprise features, functions, benefits, and
uses. It creates a meaningful difference in a brand's performance.
Product attributes determines the bargaining power of customers, as a
result of that the switching behaviors of customers has been frequently
happening along with strong customer bargaining power. This study was
focused on the bargaining power of customers related with the product
attributes of Tooth paste on switching behavior of customers. 300
respondents were selected under stratified probability sampling method.
Data were collected through structured questionnaire along with Likert scale.
Five sets of independent variables were identified as per the
literature reviews namely quality, product variety (differentiation), price,
branding and packaging factors. An inferential statistical analysis was
used to analyze the collected data. The "Regression Model" was used to
test six hypotheses, these were developed to test the switching behavior
impacted by bargaining power of customers. Variables of product
attributes impacted on the bargaining power of customers. Data analysis
revealed that the bargaining power of customers have more impact on
switching behavior of customers. Quality and product variety factors
had more impact on bargaining power of customers than price, branding
and packaging factors. Reducing switching aspect of customers led to
long term retention of customer with adequate level of customer
satisfaction. Finally it led to business success through customer loyalty.
