Impact Of Brand Loyalty

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

According to Veloutso & Moutinho (2009, p.315) Brand relationship is defined as the continual exchanges between a specified brand and an established customer, where relationship characteristics of love, association, interdependence and loyalty are developed with the brand. However, Keller (2014, p.365) revealed that consumer-brand relationships are the quality of relationship between brands and consumers. As a result, there are many influences that formulate consumer brand relationship. Basically, brand loyalty , brand equity and trust Escalas and Bettman, (2005, p. 379) are the underpinning factors that generates brand relationships. Furthermore, this developing customer brand relationship constitutes a sum of long term experiences with the brand where the brand is the entirety of the customers experiences with the brand. However, supplementing the long term customer brand relationship, brand communications is the major catalyst in relation to enticing both customer and seller in the long term relationship, hence attaining a brand emotional connection. This brand relationship does not only lodge an essential position in the mental period of a brand connection, rather it stimulates greater sales due to customer retention, less price Vulnerability, superior customer loyalty and advanced profit margin.

Simplified brand loyalty describes a status in which consumers determine their selves in; out of it they become committed to a brand. Thereby they continue purchasing products or services of a specific brand. At this point consumers rather spent more money on a product of a specific brand than buying from multiple suppliers within the same category. Mainly brand loyalty is a result of consumer’s behavior, which is enforced through a company’s measurements regarding branding. Branding is a process that a company runs through in order to establish a new brand. The ambition here is to strengthen a unique name and image for a product in

7. Consumer loyalty needs to be increased: - The main recommendation is to increase the good relationship with the consumer at all. The reason is that if there is a good relationship between the organisation and the consumer then the benefit will be to the organisation as good relationship sometimes helps to reduce expense on the other factors like huge expense that is done on the advertising of the brand of the organisation. In Asian markets, areas such as relationship building and a ‘benefit-the-country’ attitude are sometimes more important than investing enormous amounts on advertising (LaForet and Chen, 2012).

Brand loyalty is a measure of the attachment that a customer has to a brand. This loyalty reflects how likely a customer will become a brand switcher. Brand switching increases when the brand makes a change, planned or unplanned, such as price, product features or an unexpected crisis. According to Aacker, there is a brand loyalty pyramid.

National brands benefit from brand equity and image through their extensive advertising and brand image. Marketing activities can influence the brand image however through pricing and promotions, jingles, slogans and 14 much more. The lower prices of store brands can either be viewed as a competitive advantage or ultimately be associated with lower quality. Brand Loyalty and Store loyalty have an influence on brand purchase choice. Many consumers have loyalty towards certain brands or products and this can be down to their habits and therefore tend to make habitual purchases i.e. purchasing what they always have. Previous research also states that store image also has a major influence on the purchasing behavior of consumers stating that if a store has a nice image and atmosphere then consumers will purchase more of their store brands. Research has also indicated that packaging can be a major influence in purchasing decisions especially at point of purchase and that many store brands try to mimic the packaging of national

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.

The automotive industry is a highly competitive market where brand loyalty is only as strong as the latest gizmo and horsepower upgrade. The automotive assembly process, perfected by Henry Ford, was based on the simple principle that “customers can order a Model T in any color they wanted as long as it was black.” After the 1920’s the market witnessed new entrants with unheard of automobile features that ended Ford’s golden age. New automakers such as Buick, Chrysler, and Oldsmobile offered customers varying colors and styles that propelled sales. The automotive industry has grown in the United States from 4192 automobiles on the road in 1900 to 204 million in 2003. In an effort to regain brand loyalty Ford has embarked on an ambitious

The third chapter of the research presents the literature review. It explains the element of Brand equity (brand loyalty, brand awareness, perceived quality, brand

In general, brand loyalty is understood to describe the characteristics of those consumers who have a strong commitment to a brand, because they view that brand as being more satisfactory than the alternatives and this evaluation is reinforced through repeated use (Jonna, 2001). The literature is quite clear on what brand loyalty means; however, there are differences of opinion on its measurement. The instrumental conditioning perspective views behavioral measures such as actual purchase patterns as being the best indicators of brand loyalty. This line of research maintains that brand loyalty develops from the positive reinforcement received from trying a brand and being satisfied with it, which leads to repeat purchase (Jonna, 2001). The problem is that behavioral measures cannot distinguish between actual brand loyalty (i.e., affect for the brand) and “spurious” repeat purchase patterns that may result from convenience, availability, inertia, or other factors. The cognitive school proposes that only measures of a consumer’s mental processes and beliefs can make the distinction between actual brand loyalty and spurious behavior (Day, 1969; Lutz & Winn, 1974). From this perspective, brand loyalty is the result of the consumer’s search and attributes evaluation process, which leads to beliefs of brand appropriateness or superiority and repeat purchase. An example of this is the

One of the most desirable traits that marketers would like to see in the consumers they are positioning their product towards is loyalty to their brand. Brand loyalty can be defined as “the extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands.” (Business Dictionary, 2012) An expression of brand loyalty from consumers can help companies to experience significant growth not only through repeat purchases, but also word-of-mouth: brand-loyal consumers who talk among their peers about their purchasing behaviour may talk positively about the brand they like, which allows these consumers to try these

Following this perspective, Ballantyne et al (2006), define brand image as the consumers’ perception about the brand. As such, it will guide a future development of a possible bound between consumers and organisations that have its highest expression through consumer loyalty, and the willingness of the consumer in paying a premium price.

In this paper, we conceptualize brand equity in accordance with Aaker (1991) and Keller (1993), using a consumer (or marketing) perspective (as opposed to a financial one). Brand equity is therefore referred to as consumer-based brand equity and defined as “the value consumers associate with a brand, as reflected in the dimensions of brand awareness, brand associations, perceived quality and brand loyalty”. This definition was adapted from Aaker (1991, p. 15). Aaker defined brand equity as a set of assets (or liabilities), and found brand awareness, brand associations, perceived quality and brand loyalty to be its four most important dimensions from a consumer perspective. Some empirical evidence supports the notion that these four are distinct dimensions of consumer-based brand equity. As per Aaker, we define brand awareness as “the ability of a potential

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.

The purpose of this research is to study the relationship between customer satisfaction and consumer loyalty and apply its relationship into all the market industries including products and services, particularly in financial institutions. Preliminary sample data (N=80) will be collected from faculties and students at Johnson and Wales University of all ethnicities, national and international students. The hypothesis of the study is developed as H1: There is a significant positive relationship between customer loyalty and customer satisfaction. A t-test for independent samples is used to address the hypothesis. The discussion of the study indicated that there is a significant positive relationship between customer loyalty and customer satisfaction, however, it is important to fully understand that the loyalty which is the main goal of each industry is very hard to achieve and is not very easy to be reached by industries due to the customer satisfaction which is very hard to reach by itself, and the service quality as well. There are many other variables that can affect the consumer loyalty such as the high level of competition among today’s companies and the fast track of technological advancement. These reasons indicate that companies should work hard because loyalty is a fleeting issue, today’s loyal customer would not be tomorrow’s loyal customer.