ijcrb.webs.com
MAY 2012
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
VOL 4, NO 1
THE RELATIONSHIP BETWEEN BRAND TRUST, CUSTOMER SATISFACTION AND CUSTOMER LOYALTY. (EVIDENCE FROM AUTOMOBILE SECTOR OF PAKISTAN)
Talat Mahmood Kiyani (Corresponding Author) Assistant Professor Department of Management Sciences, COMSATS Institute of Information Technology Islamabad, Pakistan Mohammad Raza Ullah Khan Niazi Assistant Professor Department of Management Sciences, COMSATS Institute of Information Technology Islamabad, Pakistan Riffat Abbas Rizvi Lecturer Department of Management Sciences, COMSATS Institute of Information Technology Islamabad, Pakistan Imran khan Lecturer Department of Management Sciences, COMSATS
…show more content…
Brand trust is basically the emotional commitment of the customers with brand. Marketers are now days very much interested in trust because mostly it is observed that higher trust ratings are positively related to loyalty (Reast, 2005). Studies elaborated that trust plays an important role in customer repeated purchase decision and long term customer satisfaction (Ballester and Aleman, 2001). Brand trust development is a long term process, a trustworthy brand cares the customer expectations, fulfill promises and value its customers that eventually leads to brand trust and reliability (Ballester and Aleman, 2005). Present study is carried out to gauge the strength of relationship between brand trust and customer loyalty. Customer Satisfaction: Satisfaction is traditionally considered as an overall affective response resulting from the use of a product or service (Oliver 1981). It is believed to have a direct influence on customer loyalty (Mittal and Lassar, 1998; Oliver, 1997) and repurchase behaviors (Kumar, 2002; Mittal and Kamakura, 2001). Many agree on a direct affect of satisfaction on loyalty but some other researchers have focused more on identifying moderators and/or mediators of the effect
The research results showed that product quality was not the strongest factor that led to brand loyalty but market inertia and that product quality was more likely to lead
As today we live in a competitive world, high competition exists in every industry. The companies must have their competitive advantages so that they can gain more shares, profits and a strong market position among the consumers. The brand trust might be a competitive advantage for the company. A recent research of brand trust by LinkedIn (2009) found that, when the consumers start to trust a brand and become to loyalty customers, 83% of them will highly recommend the brand to their family members and friend, 78% of them will try the brand’s new product or service and 50% of them will more for the brand’s product or service even there are some more cheaper products by other brands in the market. From the research we can see that the trust to a brand will highly influence the company’s operation and product development. The company who want to success
Customers will remain loyal based on the innovation and quality of the product. The distribution and advertising of the brand was also further investigated as well as consumer confidence.
Similarly, Molinari, Abratt, and Dion (2008) assert that there is a direct and strong link between customer satisfaction and customer loyalty behavior. If the customers enjoy the product or service, they will not be bothered to become loyal to the company. In other words, high levels of satisfaction commonly occur when the customer is delighted or happy with either the products or services provided by a business supplier. As Caceres and Paparoidamis (2005) state, customer satisfaction levels are determined and influenced by many elements. For example, it is commonly admitted that the customers will naturally repeatedly return to the company when things are done right, or in other words, business service companies successfully meet the customer’s expectation (Gil-Saura, et. al., 2009). Furthermore, increases in satisfaction could result to increase customer loyalty. A business enterprise, which could address the elements moderating the level of satisfaction of customers, probably would reach the higher level of loyalty. In other words, customer satisfaction is likely to improve customer loyalty in general.
Brand loyalty, long a central construct in marketing, is a measure of the attachment that a customer has to a brand. It reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or in product features. As brand loyalty increases, the vulnerability of the customer base to competitive action is reduced. It is one indicator of brand equity which is demonstrably linked to future profits, since brand loyalty directly translates into future sales.
There are no studies which touched on the topic of “loyalty” to hotel brand in Riyadh City in the Kingdom of Saudi Arabia but there are some studies which had discussed the “loyalty” to a brand in other production sectors. For example, the study of (Salh, 2010 ) as it aimed to study the psychological and social factors and its effect on loyalty of mobiles’ buyers to the brand as the study concluded that there is relation between the psychological and social factors of user and mobile brand. The study of (Hasen, 2017) aimed to know the factors which lead to prefer a specific brand and concluded that there are several factors of preference of a specific brand such as quality, price, specifications and mental image of the brand. The study of (Al-Zabi, 2013 ) strived to examine the effect of concepts relevant to the nature of purchasing decisions, mechanism to make these decisions, methods of its evaluation, explain the types reference groups which affect purchasing decision of consumer of automotive goods and identify the types of effect (informative and standard) and degree of their effect on purchasing decision of consumer of automotive goods. The study of (Al-Khusroom, 2011 ) aimed to know the effect of perceived difference and perceived quality of on consumer’s loyalty to a brand. The study concluded that there is big effect of perceived difference which is created by brand in consumer’s mind in his loyalty towards this brand. Also, the perception of
The research results showed that product quality was not the strongest factor that led to brand loyalty but market inertia and that product quality was more likely to lead
By this research we will find the brand loyalty about different aspects in developed and developing country and also examine the nature and thinking of cross border peoples and also finds where the Cosmo politics are more effect the people behavior about the purchasing decisions. And which country peoples are more loyal with global
Different authors have given many ideas, perceptions about those factors according to their experiences. Henceforth, an explanation about each factor and the relationship of each factor with the brand loyalty based on prior studies can be shown as
This research investigates the impact of Brand Loyalty on consumer preference. Independent Variables selected for this research were Brand Image, Brand quality, Brand perception to explore the impact of these independent variables on Consumer preference (Dependent variable). For this purpose, Primary research has been conducted. The questionnaire survey for this research study was administered among the population mainly at the different Universities. For this research study, a sample size of 250 respondents has been taken into consideration. University students constitute the sample for this research study using random sampling (non-probabilistic) used as a sampling
23. Jawahar Babu K.V.S.N and B.Muniraja Selkhar, IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 2, Issue 5 (July-Aug. 2012), PP 01-05 www.iosrjournals.org
At the end analyzing data to analysinh the impact of brand equity on customer loyalty in Bank Pasargad as a private bank in Iranian banking industry.
Senthil K. Nathan & Dr. Sw. Rajamanoharane Department of Management Studies J.J. College of Engineering and Technology Tiruchirappalli 620 001, Tamil Nadu, India senknat@yahoo.com, swrksr@gmail.com
The term “Brand Loyalty” also called as “Customer Loyalty” has been in the business industry since a very long time as a model to be used in conducting business. But it wasn’t until the mid to late 1900’s that the term was actually given its due importance by making it a vital part of advertising and marketing. The concept of marketing evolved substantially from being focused on sales of a product to having Customer satisfaction to be its focal point. Studies further revealed that there was a positive correlation between customer satisfaction and Brand Loyalty.
Faiza Anwar, Sahaab Akbar, Uroosa Akhtar Khan Department of Management Sciences, The Islamia University of Bahawalpur, Pakistan.