Impact of Value Chain Development on Customer Satisfaction in Fast-moving Consumer Goods Industry: Evidence from Sri Lanka

Abstract

The objective of this study is to identify the current situation, relationship, and the impact of value chain development on customer satisfaction in the fast-moving consumer goods industry in the Colombo District, Sri Lanka. Some studies have examined the impact of value chain development on various products and production processes, but not specifically on FMCG industry of Sri Lanka and in relation to customer satisfaction. This study attempts to fill the research gap by bringing together four main components of value chain development; channel management, production capacity, competitive pricing, financial benefit which affects customer satisfaction in FMCG products. A deductive research approach is carried out in the study using both primary and secondary data. The primary data has been collected through an online questionnaire which was distributed among 100 FMCG customers in the Colombo district. The data has been statistically analyzed using the SPSS statistical analysis tool to find the reliability, correlation, and linear regression as the output. The results of the study show that there is a significant positive relationship between the value chain and customer satisfaction. Value chain comprises of four sub independent variables such as channel management, production capacity, competitive pricing and financial benefit which have a positive relationship with the customer satisfaction on FMCG products which was derived through the correlation analysis.