Aims: The purpose of this paper is to identify the factors influencing on consumers' purchasing decisions for branded tea in Sri Lanka. This study investigated the relationship between the factors influencing a consumer's purchase decision on branded tea and the consumer's loyalty behavior. The study concentrated primarily on the socioeconomic factors that influence consumer brand loyalty for tea.
Study Design: Multi-stage quota sampling.
Place and Duration of Study: The study was carried out in the Western province, the most densely populated province, and the main administrative and commercial center of Sri Lanka in 2016 - 2017.
Methodology: Both primary and secondary data were used in the study. Primary data were mainly collected from a survey using a pre-tested, structured questionnaire. Descriptive analytical techniques, factor analysis, and binary logistic regression analysis were used for data analysis. Statistical analysis was performed using both SPSS and SAS software.
Results: According to the factor analysis, three main factors were recognized, such as product, marketing, and lifestyle. The product factor contributes 31 percent to the total variation that implies the prominence of product-oriented variables over the other variables considered. Among the related variables of the product, the highest factor loading (0,963) was received by the taste of the product, while the price (0,946) was the next. The results of the binary logistic regression revealed that both the level of education (ED) and the level of income (IL) had a significant impact on tea brand loyalty.
Conclusion: The study concludes that both income and education have a significant impact on brand loyalty for tea, while product, marketing, and life-style attributes are the main factors influencing the purchase decision of the branded tea by the consumer. As product-related attributes contribute more to the purchase decision of branded tea, firms can increase their market share by planning their marketing strategies, focusing mainly on product-related aspects.
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