Product differentiation strategies and customer loyalty: A study of children’s textile materials in Enugu state, Nigeria

Today, due to economic recession and high inflation affecting various countries, especially developing economies like Nigeria, product managers are strategically concerned with achieving effective differentiation by improving the features of their products to create a substantive difference between their products and those of competitors. This strategy is mostly employed in monopolistic competitive markets characterized by homogeneous and highly substitutable products, similar to Nigeria’s children’s textile market. In such an industry, where products have a homogeneous nature, differentiation plays a crucial role in generating profits through repeat purchases and customer loyalty. The mission of this research is to examine the influence of product differentiation strategies (quality and design) on customers’ loyalty with reference to children’s textile materials in Enugu State, Nigeria. To accomplish this mission, specific objectives were defined, research questions were designed, hypotheses were formulated, and relevant existing literature in the area was reviewed and analyzed. Data was collected through questionnaires from a sample size of 300 respondents, and it was subsequently analyzed using IBM SPSS version 26. The results revealed a positive and significant relationship between the strategies - quality and design - and customers’ loyalty to children’s textile materials in Enugu State, Nigeria. Based on the findings, manufacturers and sellers of children’s textile materials are advised to give serious attention to differentiation strategies to attract more customers, foster brand loyalty, and enhance their market share and profits.