Dissertation

IMPACT OF BRAND LOYALTY ON CUSTOMER SATISFACTION Levis and Pepe Jeans based in the U.K.
Dissertation submitted in partial fulfilment
for degree of MSc in International Business
TITLE:
IMPACT OF BRAND LOYALTY ON CUSTOMER SATISFACTION

Levis and Pepe Jeans based in the U.K.
Name:
(Foujia Mannan Keya)
Student ID Number:
(B00702025)
25th November 2016
Supervisor:
(Mike Lloyd-Williams)
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Abstract
The current research was conducted to understand the impact of brand loyalty on customer
satisfaction, by considering the fashion industry as the case study. The companies chosen to
conduct the empirical research were Levis and Pepe Jeans. Although extensive research in
the academic domain exists in terms of explaining the relationship between the two
variables, key literature suggests that satisfied customers are more likely to be brand loyal.
A major gap existed in explaining the impact that brand loyalty has on customer satisfaction.
In order to fulfill this gap, the current research was conducted using a descriptive study. The
objectives of the research to revisit the relationship between these two concepts, and
investigate the strategies formulated by Levis and Pepe Jeans to foster brand loyalty. The
objectives also intended to analyse whether the strategies led to customer satisfaction.
Using a positivist mindset, deductive approach and mixed method to data collection the
current research was conducted. Quantitative data collection involved distributing
questionnaires distributed to 100 customers (50 from each company) in a survey. Qualitative
data was obtained by interviewing one manager from each company in a telephonic
interview.
The key findings from the survey helped to understand that satisfied customers were more
likely to make repeat purchase from the same brand, and recommend the brand to others.
Brand loyal customers, several of them, were also likely to choose the brand even if the price
was increased. On the other side, customers loyal to the brand were likely to be more
satisfied. Hence, the relationship between the two variables was found to be interchangeable.
Survey indicated that the companies maintained good quality products at fair price, matched
the brand personality with the customers’ self image, and even offered loyalty
points/discount on selected range. However, the companies made little attempt to build trust
based relationship, and low brand engagement was the main reason for customer
dissatisfaction. Findings from the managerial interview disclosed the strategies followed to
enhance customer satisfied and the challenges they faced in keeping customers satisfied.
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Acknowledgment
The entire journey while conducting this dissertation has been a challenging, yet an
interesting aspect. The contribution of this research to enhance my knowledge base has been
dominant. It also gave me the opportunity to face challenges in the process and overcome
them. This would not have been possible without the valuable guidance of my supervisor
professor Mike Lloyd-Williams, who believes on me, supports to me and guides this study
with wisdom and knowledge peers and all the people who have contributed to this enriching
experience. I would like to take this opportunity to thank my supervisor professor Mike
Lloyd-Williams for the constant guidance and support provided to me during the process of
this research. Also I would like to thank my parent and friends, librarians as well.
It would not be justified if I did not thank my academic guides for their important and
valuable assistance and encouragement throughout the research process.
I also thank the customers and the managers of Levis and Pepe Jeans who participated in the
survey and the interview respectively, and shared their perceptions.
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Table of Contents
Chapter 1...................................................................................................................................7
Introduction................................................................................................................................7
1.1 Introduction..........................................................................................................................7
1.2 Background and context.......................................................................................................7
1.3 Rationale of the study...........................................................................................................8
1.4 Research aim........................................................................................................................8
1.4.1 Objectives..........................................................................................................................9
1.4.2 Research question..............................................................................................................9
1.5 Research Methodology.........................................................................................................9
1.6 Research structure of the work...........................................................................................10
Chapter 2.................................................................................................................................12
Literature Review.....................................................................................................................12
2.1 Introduction........................................................................................................................12
2.2 Concept of Brand:..............................................................................................................12
2.3 Brand Equity Model...........................................................................................................13
2.4 Brand Image:......................................................................................................................14
2.5Perceived brand quality.......................................................................................................15
2.6 Brand experience:...............................................................................................................16
2.7 Brand switching cost:.........................................................................................................16
2.8 Brand loyalty......................................................................................................................17
2.9 Fashion as a brand:.............................................................................................................18
2.9.1 Fashion cycle...................................................................................................................18
2.9.2 Fast fashion.....................................................................................................................20
2.10 Customer satisfaction:......................................................................................................20
2.11 Customer satisfaction theories.........................................................................................22
2.11.1 Assimilation theory.......................................................................................................22
2.11.2 Contrast theory..............................................................................................................22
2.11.3 Assimilation-Contrast theory........................................................................................23
2.11.4 Negativity theory...........................................................................................................24
2.11.5 Disconfirmation Theory................................................................................................24
2.11.6 Cognitive Dissonance Theory.......................................................................................24
2.12 Customer satisfaction and Brand loyalty (Differences)...................................................26
2.13 KANO model of customer satisfaction............................................................................26
2.14 Customer product involvement:.......................................................................................28
2.15 Relationship between customer satisfaction and brand loyalty.......................................29
2.16 Conclusion and Conceptual framework:..........................................................................32
Chapter 3.................................................................................................................................34
Research Methodology.............................................................................................................34
3.1 Introduction........................................................................................................................34
3.2 Methods outline..................................................................................................................34
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3.3Type of investigation...........................................................................................................35
Data collection plan..................................................................................................................36
3.3.1Justification for choosing descriptive research................................................................36
3.4Research Philosophy...........................................................................................................37
3.4.1 Justification for choosing positivism..............................................................................37
3.5 Research approach.............................................................................................................38
3.5.1 Justification for choosing deductive approach................................................................38
3.6 Data sources.......................................................................................................................39
3.6.1 Primary sources...............................................................................................................39
3.6.2 Secondary sources...........................................................................................................39
3.7 Data Type (Qualitative and Quantitative...........................................................................39
3.7.1 Quantitative data.............................................................................................................39
3.6.1.1 Justification for choosing Questionnaire survey..........................................................40
3.6.1.2 Testing the questionnaires............................................................................................41
3.6.2 Qualitative data...............................................................................................................41
3.6.2.1 Justification for conducting Interview.........................................................................42
3.7 Data analysis......................................................................................................................43
3.8 Sampling and sample size..................................................................................................43
3.9 Ethical considerations........................................................................................................43
Chapter 4.................................................................................................................................45
Data Analysis and Findings.....................................................................................................45
4.1 Introduction........................................................................................................................45
4.2 Quantitative data analysis..................................................................................................45
4.3 Qualitative data analysis – Interview.................................................................................66
Chapter 5.................................................................................................................................72
Conclusions and Recommendations........................................................................................72
5.0 Conclusion..........................................................................................................................72
5.1 Linking objectives with the conclusion..............................................................................72
5.2 Recommendations..............................................................................................................75
5.3 Limitations of the study.....................................................................................................76
5.4 Scope for future research...................................................................................................76
References:...............................................................................................................................77
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List of Tables
Table 1 Gender.........................................................................................................................44
Table 2 Age Group...................................................................................................................45
Table 3 Tenure with the brand.................................................................................................46
Table 4 Idea about a brand.......................................................................................................47
Table 5 Characteristics of a strong brand.................................................................................48
Table 6 Brand failing to meet customer expectations as a source of dissatisfaction...............49
Table 7 Satisfaction with the brand..........................................................................................50
Table 8 Good experience definitely leads to customer satisfaction.........................................52
Table 9 Always good experience with the brand.....................................................................53
Table 10 Satisfaction with a brand stimulates to make repeat purchase..................................54
Table 11 Strategies to make customers’ you brand loyal........................................................55
Table 12 Increased Brand loyalty leads to higher satisfaction.................................................57
Table 13 Satisfied with the brand to recommend it to others..................................................58
Table 14 Feeling emotionally connected to the brand.............................................................59
Table 15 Purchase from the brand even after price increase...................................................60
Table 16 Rating Overall satisfaction with the brand................................................................61
Table 17 Core reasons that often lead to dissatisfaction with the brand..................................63
List of Charts
Chart 1 Gender........................................................................................................................45
Chart 2 Age Group...................................................................................................................46
Chart 3 Tenure with the brand.................................................................................................47
Chart 4 Idea about a brand.......................................................................................................48
Chart 5 Characteristics of a strong brand.................................................................................49
Chart 6 Brand failing to meet customer expectations as a source of dissatisfaction...............50
Chart 7 Satisfaction with the brand..........................................................................................51
Chart 8 Good experience definitely leads to customer satisfaction.........................................52
Chart 9 Always good experience with the brand.....................................................................53
Chart10 Satisfaction with a brand stimulates to make repeat purchase...................................55
Chart 11 Strategies to make customers’ you brand loyal.........................................................56
Chart 12 Increased Brand loyalty leads to higher satisfaction.................................................57
Chart 13 Satisfied with the brand to recommend it to others...................................................59
Chart 14 Feeling emotionally connected to the brand.............................................................60
Chart 15 Purchase from the brand even after price increase....................................................61
Chart 16 Rating Overall satisfaction with the brand................................................................62
Chart 17 Core reasons that often lead to dissatisfaction with the brand..................................63
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Chapter 1
Introduction
1.1 Introduction
The research on the issue of brand loyalty element that impacts the customer loyalty is
elaborated in this chapter. The context of fashion apparel that is linked to the self concept of
the UK individuals’ outer image and ideal self is closely linked to the brand loyalty
perspectives. The positive outcomes of the customer satisfaction wearing jeans are bound to
influence the user’s positive attitude towards the jeans brand and loyalty factor (Kotler and
Pfoertssch, 2010).
1.2 Background and context

The customer affinity towards a particular brand and repurchases thus prompted the
researchers to look deeper into the aspect of the brand loyalty as it is more of a outward
manifestation of behaviour which is a motive in the heart. Loyalty therefore is correlated to
the repeat purchase activity, the purchase sequence, and also the probability of the purchase
(Salinas, 2011). However, the issue became complex with the presence of other competitive
brands that prompted to speculate the repetitive purchase and the brand loyalty factor being
swayed. The marketers’ perspective of re-buy or a re-patronise was therefore analysed in
situational context with the behaviour being labelled as switching. Aaker and Joachimsthaler,
(2007) indicated that the strength of the brand loyalty weakened which prompted the user to
switch to similar alternative brands. The attitudinal aspect in this continuum was discussed
which injected a new angle of user’s positive or negative attitude towards the brand. This
relativity of attitude towards a new or an old brand is subject to the user experience and
indicates that patronage and preference will only work when the attitude is on the positive
side (Chandon, 2003). Another thought that went in, is the value of the goods or services
bought, so involvement of user for a high valued or every day use product will differ in the
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loyalty factor (Bennett & Rundel-Thiele, 2005). The argument is towards the durability
which the user is likely to seek to maximise the money spent and procure the best. This
indicates the loyalty is linked to user’s perception of brand being consistently meeting the
expectation set of the user.
1.3 Rationale of the study

As discussed in the background, the issue is therefore of tremendous importance for the
marketers who design products in order to meet the user(s) desire and create more demand,
positive response rate in buying it. The brand loyal customers therefore are likely to buy and
stick to the same variant of product or service and are also likely to be the brand ambassador
to others (Back, 2003). This is primarily due to the customer satisfaction that is derived by
the user, where the post purchase experience and the pre purchase expectation is evaluated
through the price paid by the user. The output in the user ‘customer satisfaction’ is the
buyer’s perspective and is based on the series of cumulative experience of the brand usage,
experience or encounter (Ahmad and Clifton, 2009).
It has been defined as a psychological response of the evaluation of the consumption against
the preset mental expectation from the brand. This satisfaction also aids to be compared
when the market offer choices. The satisfaction thus relates to the benefits of the brand that
the customer experiences which meets or falls short of expectation standards of performance
from the brand (Duteurtre and Benderson, 2008). Here, the issue of product or service or a
combination brings in complexity of the tangibility and intangibility, previous experience
and pricing to this issue. The research for the brand loyalty in adorning the self, for fashion
apparels or daily wears needs exploration. The UK origin Pepe Jeans brand has been a
preferred choice amongst the British while the Levis US is the original jeans inventor that is
a global favourite hence will be evaluated against the consumer preference and brand loyalty
and its impact on the UK customer satisfaction.
1.4 Research aim

Aim of the research is to critically analyse the impact of brand loyalty on customer
satisfaction. The brands chosen to conduct the research are PEPE Jeans and LEVIS, UK.
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1.4.1 Objectives
 To understand the relationship between brand loyalty and customer satisfaction

 To investigate the strategies formulated by PEPE Jeans and LEVIS, UK to foster
brand loyalty
 To critically analyse whether brand loyalty leads to customer satisfaction
 To identify the challenges faced by the companies in keeping customers satisfied and
give suitable recommendations
1.4.2 Research question

Main question
What is the impact of brand loyalty on customer satisfaction?
Sub questions
Q1) What is the relationship between brand loyalty and customer satisfaction?
Q2) What are the strategies formulated by PEPE Jeans and LEVIS, UK to foster brand
loyalty?
Q3) How effective are their brand strategies in terms of achieving customers’ satisfaction?
Q4) What are the challenges faced by these companies in using brand loyalty strategies to
achieve customer satisfaction?
1.5 Research Methodology

In order to answer the research questions, the use of ‘mixed methods’ to data collection will
be followed. This implies that quantitative and qualitative research strategies will be
combined to obtained empirical data through primary research. The data collection process
can be explained as follows –
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Quantitative data collection -- This will involve survey conducted from 50-60 customers
from each company (PEPE Jeans and LEVIS, UK). The survey will include structured,
closed ended questionnaires to be distributed to customers using online technique such as
Google forms. Most of the questions will be based on Likert scale (5 Point). The customers
will be sampled through probability sampling, simple random technique.
Qualitative data collection -- This will involve conducting telephonic interview from 2
managers (1 from each company), particularly from the marketing department. The interview
will be semi-structured, open ended and will seek to identify the strategies implemented to
achieve customer satisfaction by fostering brand loyalty. The managers from each company
will be sampled using non probability, convenience technique which will help to select those
managers easily accessible and willing to take part in the interview.
1.6 Research structure of the work
Chapter 1: The opening chapter outlines the research topic and the background to built up
the credibility for the gaps and the importance to understand the impact of the brand loyalty
on customer satisfaction on jeans brands in UK. The research aims, objectives and research
questions are laid out along with the brief of the methodology.
Chapter 2: The second chapter discusses the brand, brand loyalty, customer satisfaction and
goes on to elaborate on the perceived brand equity, brand experience, brand image, brand
switching costs, customer product involvement which helps to substantiate the hypothesis.
Chapter 3: This third chapter outlines the method using which the researcher will collect the
data. This has been justified with survey methodology chosen to understand the two brands
of jeans and the impact on the UK customer loyalty.
Chapter 4: The illustration of the data collected is analysed in this fourth chapter which
allows the synthesis of the findings and establishing some key factors.
Chapter 5: The last and final chapter links the outcomes of the data collected from the last
chapter and tests to meet the research aims and objectives. The gaps found are put into the
recommendations, with limitations and the future study scope defined.
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1.7 Conclusion of this chapter:
The chapter introduced the topic along with a brief background of the area under
investigation. The rationale sets out the justification for choosing the topic and the research
problems are reflected in the questions and objectives. The methodology outlines the
methods to collect data to resolve the research problems
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Chapter 2
Literature Review
2.1 Introduction
The literature review of the research outlines some of the key elements like defining the
brand, the fashion brand concept, customer satisfaction and the host of dependent factors
which goes into creating the brand loyalty. The Brand Equity model with its key dimensions
such perceived quality, brand loyalty etc are discussed along with other brand elements such
as brand image, brand experience, and brand switching cost. The concept of fashion as a
brand and fast fashion has been discussed as the chosen industry to carry out empirical
research are two major jeans’ brands – Levis and Pepe. The conceptual understanding of
customer satisfaction along with the underpinning theories such as the Assimilation theory,
Contrast theory, Assimilation-Contrast theory, Negativity theory, Disconfirmation Theory,
and the Cognitive Dissonance Theory is discussed along with the criticism of these
approaches. The Kano model is also linked with the concept of customer satisfaction. Finally
the relationship between customer satisfaction and brand loyalty is outlined with the help of
empirical literature obtained from secondary sources.
2.2 Concept of Brand:

Kapferer (2008) defined that brand to be a tangible and intangible, realistic and emblematic,
visible and invisible under the conditions that are economically feasible for the company.
According to the American Marketing Association (AMA) brand may be defined as a name,
term, design, symbol, of a combination of these elements, intended to recognize the goods
and /or services of a particular seller or groups, and to distinguish them from the competitors.
A brand makes a promise that reflects key differentiated benefits. Brand is a type of product
which is manufactured by a company bearing a specific name, bearing a designed logo of
distinct shape and colour (Aaker and Joachimsthaler, 2007).
A brand helps to differential a product in various forms and is broadly categorised into
tangible (rotational), and intangible (symbolic and emotional). Either way, Keller (2003)
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opines that while the main functions are performed by the product, the brand contribute to
the product differentiation. These elements differentiate a brand from an unbranded product
counterpart and give it an equity representing the total of consumer feelings and perceptions
about the product attributes and how the products perform; about the distinct brand name and
what it stands for; and regarding the company that is correlated with the brand (Wood,
2012). Severi & Ling (2013) argues that a strong brand offers the customers with several
access point towards the brand and attract them through, both, emotional and functional
attitudes.
Tangible elements created by the brand are high quality, innovativeness, excellent features,
and attractive price, and these are observed from the marketing mix and performance of the
product (Taylor et al. 2004). On the other hand, intangible dimensions comprise of those
elements that cannot be quantified and go ahead of the product level to become a synaptic
(psychological) process in the brain (Taylor et al. 2004). This implies that consumers will be
able to respond and choose the specific brand even if the product is not present (Brakus et
al .2009), as an intimate rapport between the customer and the brand may be developed
(Romaniuk & Nenycz-Thiel, 2013). Kapferer (2009) explains that the most crucial
contribution of a strong brand is that is reduces the customers’ search time and cost while
being confronted with a range of identical products. In order to gain more clarity on the
concept of brand, and brand loyalty, as a variable chosen in this literature, an understanding
of the brand equity model is hereby given.
2.3 Brand Equity Model

Aaker (1996) explained brand equity to be a set of assets and liability. Aaker (1996) also put
forward five different dimensions of brand, namely; brand awareness, brand loyalty, brand
association, perceived quality, and other proprietary brand assets which are the rudiments of
value creation.
In academic literature, brand equity is identified as a multidimensional construct; consisting

of brand awareness, brand loyalty, brand association and perceived quality (Kotler and
Pfoertssch, 2010). However, researchers such as Riezebos et al. (2009) asserted that brand
association may be recalled in the consumer’s mind in the form of an emotional impression.
Consumer decision making is influenced by brand awareness by influencing the potency of
the brand association in their mind (Wiley and Vallaster, 2010). Brand association of a
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particular product or service can be stored in the consumer’s mind preceded by the product’s
brand awareness which is already in their memory (Wood, 2012).
Severi & Ling (2013) stress on the customer-based brand equity that occur when the
consumer has brand familiarity and holds strong, favourable, and unique brand associations
in his/her memory.. Few of the important elements of ‘Brand’ and ‘Brand Equity model’ are
discussed in the next sections.
2.4 Brand Image:

The brand is unique with the logo, design, form factor, colours and performance output. The
brand image which lurks in the mind of the consumer when there are many choices in the
offering shows the ability of the individual to recognise the product and get attracted by its
attributes (Janonis et al. 2007). Brand image is a sum of tangible and intangible attributes,
and is also made up of the knowledge of the customer about the product or service, the set of
beliefs in a post purchase context. The personal opinions which are consumption based are
also important to shape up the ideal brand image, based on the advertising, promotion,
friends or families (Kim et al. 2008). The word of mouth element is an issue to be discussed
here as a consumer the recognition of the brand depends on the functionality or output. This
generates positive word of mouth, and the brand image of the product rises above the rest if
it meets the customer expectation set (Back, 2003). If it delights the customer, then the
chances are that the customer acts as a brand ambassador promoting the brand in the known
reference circle. Though it is a matter of subjective perception, the mental faculty that forms
the analysis of the brand design, functionality assessment to form an overall image and adopt
a positive outlook and attitude (Goldstein, 2009).
The issue for the fashion brands is more important as the individual customer tries to
associate the self image seeking a boost to the self concept after using the brand of outfits,
apparel or dress materials. These has been seen to form a clan or groups in teenagers where
endorsing by wearing a brand is a allegiance to the definitive ideology (Bennett & Rundel-
Thiele, 2005). In a societal perspective, the group adorns an identity with the group members
using the same brands and believing in the brand image. There is a symbolic association of
the brand image, and the brand strength is favoured by the customer(s) which is a tangible
element of the performance and improves the social status, self identity and status in society.
Thus it is evident that the brand image brings on the attitudinal and behavioural responses in
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the customers using a particular brand. The marketers point of view is a strong following that
is brand loyalty and to an extent where the customers are willing to pay premium to be a part
of the branded feeling and affiliation (Jenkins, 2009).
2.5 Perceived brand quality:
Human perception of a brand and the attributes is a personal framework in the mind of every
individual. Individual differences in each person therefore make the relativity of perceiving
the brand qualities in varied levels. Though it is argued that customer is the king and is the
best judge of the brand performance which translates into quality as a reference, the
parameters for the product and services are however, differ widely. It is the tangibility and
non tangibility factor which needs further understanding. The quality dimension for the
products is durability, performance, features, easy to use, which appeals to the customers
(Roy, 2011). All of these are closely linked to the use and extend the functionality of the
product to meet the customer wants from that product. Thus longevity of the product which
has been purchased for a price is also linked to the serviceability factor that upon usage
allows the product life cycle to be extended. Prestige of the product gains level when the
relevance and its performance for select group is very different than that of the rest of the
competitors. Though quality of the product is a VOC (voice of the customer) but translating
the customer demands into the product features is a key strategy for branding (Back, 2003).
This adds value to the product and increases the willing to buy which sets the product apart
from the rest. The customers are therefore willing to pay for the brand that either has design,
functionality or a mix of both to make the offering very unique. Quality denotes the promise
and reliability of the brand to repeat is functional output which in turn develops a strong
customer loyalty. Thus brand loyalty in service is about the ability to create consistent level
of service delivery at the right time, place that makes the customers brand loyal (Tucker,
1964). It also sets the service quality an identity or a value add to the product sold to the
customer. The perceived quality also defines the default quality criteria which all customers
expect as an output of the product. Romaniuk & Nenycz-Thiel (2013) argued that the repeat
purchase is dependent on the quality of the performance of the brand which the customer
bought; at a price customer perceive as the worth the benefits derived using the brand. Thus
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the ability to design the product that meets all of customer needs and repeat robust
performance is a sure indicator of the positive perceived quality and repurchases intention.
2.6 Brand experience:

The journey of the customer from being a prospect to the brand loyal is based on the
feelings, sensory experiences, cognitions and behavioural responses that is a part of the SR
theory (Brakus et al. 2009). The stimulus of the brand attributes which evokes a single or
cluster of responses from a individual therefore defines the engagement of the brand
experience (Heding et al. 2009). Though it is expressed in the form of the adjectives and is a
relative term when the association of the brand design and functionality is taken together as
identity, brands are capable of exhibiting brand related stimuli. The search to find a brand
the meet needs expands with the knowledge of the reference groups helping is the first point
of contact. The customer buying the brand uses the five senses to understand the brand
though it varies from product type (Goldstein, 2009). So a food product will be visually
tested, smelled while fashion apparel will be tried on the body. The brand experience also
relates to the packaging of the item, the retail shop or online shop from where the product
was bought. Thus it is a mix of the affective, cognitive and behaviour response of the brand
used (Sheth, 2007). However this is particularly more relevant for a fashion brand as the self
concept with the fashion brand has a more positive outcome at societal level that is induces
the customer to purchase more. Hence, the ability of the design, style or colour to evoke a
positive perception of the customers self image is a brand experience which is bound to find
a direct relationship with repurchases and the brand loyalty factor.
2.7 Brand switching cost:

The switching cost issue arises only when there are alternatives to the brand that is available
in the market (Temporal, 2011). The argument therefore acknowledges that competition
exists with the laggards catching up fast and under pricing to eat into the product innovator’s
market share. However, the customer switches a brand towards another one at time, and each
time evaluating the cost associated with it. There are varied costs which are associated with
switching phenomenon: searching cost, transaction cost, learning cost, customer habits,
cognitive effort, emotional cost, financial costs, societal cost which is a risk on the user or
customer. The item or product that fails to meet the expectation set(s) of the customer is
therefore a sunk cost (Hirshleifer and Hirshleifer, 2009). Explained in economic terms, it is
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therefore a onetime purchase cost which the user incurs, while purchasing the brand and is
also a path towards switching cost towards other brands.
The consumer learning cost to find an alternative requires time, efforts, energy and help from
reference groups. However, the social reference groups affect the final decision in narrowing
or eliminating brands which might have been in the consideration set of the user (He et al.
2011). The marketers point of view is that switching cost is a boon as it makes the customer
no more focussed on the price issues, but more on the satisfaction level from the new brand
attributes. Dissatisfied customers reach a state which allows them to go beyond their means
even if there is a high switching cost. Though the argument is Hill et al. (2008) that
switching costs if high, discourages the loyalists and prevent them to develop preference for
alternate brand, however this does not hold true when the dissatisfaction level is too negative
for a customer’s brand experience.
2.8 Brand loyalty

According to Chaudhuri & Hoibrook (2001) brand loyalty can be defined as deeply held
commitment that a customer has towards a preferred product and/or service, time and again,
in the future, and makes repeat purchase. The customer has strong commitment regardless of
situational influences and key marketing attempts that have the potential to cause switching
intentions. Brand experience generally leads to brand loyalty through by way of emotional
association with the brand that the customer forms through engagement and trust (Kim et al.
2008).
Brand loyalty stimulates consumers to make repeat purchase and discourages them from
switching them to a different competitor offering almost identical products and/or services
(Back, 2003). Hence, greater the customer loyalty, higher the level of brand equity will be.
Brakus et al. (2009) opines that brand loyalty serves as a barrier for the new competitors and
shapes the basis of a price premium.
Researchers such as Mao (2010) explain brand loyalty to be an outcome of brand experience,
brand trust and brand satisfaction. Hur et al. (2011) argues that positive brand experiences
affect the brand satisfaction by way of creating customer trust with the brand, and this leads
to increased loyalty. Romaniuk & Nenycz-Thiel (2013) believe that a positive association
between the aforementioned variables exists and hence significant to be able to offer
customers a kind of ‘security’ with the corresponding brand. Such security is largely based
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on customer belief and confidence that the brand is reliable, and concerned with the
customer betterment and welfare. This perception aids the brand building of brand trust, and
thereafter brand loyalty (Saeed et al. 2013).
Nam et al. (2011) explains brand loyalty to be an important part of the communication and
customer-relationship building process. A well organised communication that a brand has
with the consumers is the stepping stone towards creating a strong customer relationship
(Mao, 2010).Brakus et al. (2009) view the idea from a different perspective, and claims that
the capability to create a strong brand loyalty is replicated in the company’s values that
provide barriers to entry for new rivals and augment the ability to respond to upcoming
markets threats, increase the customer base, and sales revenues. Loyalty is identified to be a
multidimensional construct, and reflects customers repeat purchase and advocacy for the
product/service even after price increase (Kotler and Pfoertssch, 2010). Customers, loyal to a
brand, apart from having low switchover intention, also recommend the brand to others
through verbal or non-verbal communications (Romaniuk & Nenycz-Thiel, 2013).
2.9 Fashion as a brand:

The fashion for a consumer can be art, music, clothing and it has been seen that consumer of
varied age groups accept new styles, designs, colours to set the group norms. Chandon
(2003) argued that fashion is a uniting factor for the likeminded people who adopts it so
depict an attitude towards the life philosophy. In both genders, there are gate keepers who
are opinion leaders and interest factor raises the engagement with the brand. The type of
clothes, shape, style or colour is a statement of the personality, age and style quotient. Kotler
and Pfoertssch (2010) explained that the family values, own moral values, and the societal
cultural factors are important ones that allow to shape the fashion sense and preference for a
brand. Though fashion brands are affected by the ethnicity, occupation and even religion,
means that there is a societal conformist look which binds the people hailing from similar
background, country (Ahmad and Clifton, 2009).
2.9.1 Fashion cycle:
Fashion moves through stages during the cycle of existence as the population accepts and
rejects it over a period of time. It passes through the introduction stage where the product
enters the market, followed by the rise stage, where it rises in the consumer knowledge radar
increasing in buying interest. The peak stage is the top of the hill of the fashion cycle curve,
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and it is when the acceptance of the particular design, colour, style, material of a brand is the
highest. Mass production happens to meet the market demands however the prices are not
low though it may vary depending on the marketing organisation (Salinas, 2011). The longer
a fashion brand can stay in the peak the product becomes a classic genre with the firm
banking on this cash cow item. The updates on the similar products or items as variation is
the next move to keep the interest level of the customers high and the product to enjoy the
peak stage (Baldwin and Davis, 2006).
Figure 1: Product Life Cycle of a Fashion brand
(Source: Salinas, 2011, p.11)
Considering the above research, the product category chosen is jeans and both the brands are
actively present in creating new styles of jeans, in different colours, cuts and hence can be
best explained by the following figure.
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Figure 2: Comparing Acceptance Cycle of Fad Fast Fashion, Moderate Fashion and Classics
(Source: Harris, 2010, p.54)
2.9.2 Fast fashion:
The term fast fashion is used to describe the clothing that is a time period of the newest
trends in fashion circuit surviving the journey of introduction to the obsolescence (Harris,
2010). This is used when the fashion cycle is moving faster and people are progressing in
terms of expressing their liking towards a particular trend of fashion. The moderate fashion
is what is existing and has potentiality to be cyclical, while the fast fashion is engineered by
the manufacturers and fashion houses to speed-up the new fashion styles in the retail or
online stores and satisfy the consumer demand peak to sustain over the fashion brand sales.
Thus the research referring to the jeans being a preferred casual wear falling in the modern
fashion is also attempting with variations each season to reach the fast fashion category. The
idea is to test the brand loyalty due to customer satisfaction for each of these fashion brands
iconic Levis from USA and the Pepe Jeans of UK origin.
2.10 Customer satisfaction:

The customer who is the end user of the product or the service experiences and compares
with the pre purchase set expectations (Grigoroudisand Siskos, 2009). The level of customer
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being satisfied also depends on the set expectations in the mind that may be low, high or no
expectation at all. The importance here is not the price paid but the value derived from the
product or services consumed. The satisfaction is a subjective and a relative concept will
tend to vary from the same experience from using product by the different consumers. This
relative concept also leads to disconfirmation satisfaction theory, where it states that
evaluation of the product or services by the user is a comparison of the expected
performances. Goldstein (2009) explained that disconfirmation theory therefore has
conceptualised the expectation, performance and disconfirmation and satisfaction.
Expectation is the customer’s anticipated performance a framework in the mind, which also
has the customers angle of interest attached to it. The brand performance is directly linked to
the customer’s expectation is the aggregates of wants from the brand. Performance is totally
dependent on the how the marketers manufacture a product or design a service to meet the
purpose of the existence of the product. Brands therefore can be a baseline for setting the
standards which shows consistency and reliability meeting the user’s expectation set. So
these can be the hardware, software, stylishness and other attributes.
Disconfirmation is the variance of the pre expectation and actual performance, so any
customer can have positive or negative disconfirmation of individual experience. Positively
aligned disconfirmation exceeds the expectations while this is subject to change when there
are alternative choices, substitutes in the market. Conversely , if the customers do not have
any prior experience with other brands which is a indication of less exposure, expectation
and performance and less likelihood of switching (Foxal et al. 2007). Thus a satisfied
customer is more likely to stay with the product or service while for the firms it is far more
expensive to acquire a new customer than retaining the existing one. However, the
marketplace consists of competing brands which tries to influence the customer satisfaction
through varied experiences like sampling. Here, the customer is likely to try out and evaluate
the current brand used with the new brand. Customer staying loyal to the brand is bound to
be a satisfied one, or switching is the only viable option available. Duteurtre and Benderson
(2008) argued that even if the customers are satisfied with current brands, can switch
shunning the repeat purchase and show more of adventurous side and not being conservative.
Brand satisfaction definitely is positively correlated with the positive customer satisfaction,
and creating the right attitude of the customer as brand advocacy to the family friends circle.
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2.11 Customer satisfaction theories

The consistency theories of customer satisfaction empathise that when the actual product
performance does not match expectations, the customer undergoes some degree of tension.
To ease the tension the customer tends to make adjustments, either in the expectation or the
insights of the product’s real performance. The consistency theory includes the assimilation
theory, contrast theory and the assimilation-contrast theory of customer satisfaction.
2.11.1 Assimilation theory

The assimilation theory is formed on the basis of the dissonance theory wherein the latter
hypothesizes that consumers (as product/service users) make some sort of comparison
between their expectations and the perceived performance of the product (Peyton et al.
2003). Any discrepancy between the expectations and the perceived performance of the
product leads to negative disconfirmation or dissonance (Oliver, 2006). This idea of the post
usage evaluation was included in the literature of customer satisfaction in the form of
assimilation theory by Anderson (1994), in the proposition of customer dissatisfaction.
Dissatisfaction was proposed as a consequence of disconfirmed expectancy on the perceived
performance of the product.
The assimilation theory is subject to criticisms due to its weaknesses. Flint et al. (2011)
argues that the theory assumes that there is an association between expectations and
satisfaction, however, does not recognize how the disconfirmation of an expectation may
result in either satisfaction or dissatisfaction. The assumption that consumers are motivated
enough to adjust their perceptions about the product performance or their expectations is not
applicable in the real life situation. On this point Wong & Dioko (2013) argues that if a
consumer adjusts their expectations or perceptions regarding the performance of products;
the outcome of post usage evaluation will not be dissatisfaction.
2.11.2 Contrast theory

The contrast theory is the tendency to enlarge the discrepancy between a consumer’s own
attitude and the attitude that is signified by opinion statements (Mithas et al. 2005). The
theory presents different view of the customers’ post usage assessment process as compared
to that presented in the assimilation theory in the evaluation post usage, the process that lead
to outcome in converse predictions for the outcome of expectations on satisfaction. While the
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assimilation theory hypothesized that users seek to diminish the inconsistency between the
expectations and performance, the contrast theory assumes that surprise effect occur
resulting in inconsistency/discrepancy being exaggerated or magnified (Szymanski &
Henard, 2001).
This theory further implies that any divergence of experience from the expectations leads to
exaggeration in the path of discrepancy. For example, if the advertising message raises the
expectations of the consumers, and the consumer experiences slightly less than what is
promised, the product and/or service of the company is rejected as users would perceive it to
be totally un-satisfactory. On the contrary, any under-promise in the advertisement and/or
over-delivering leads to positive disconfirmation, and is subject to exaggeration (Wu, 2007)
The contrast theory is criticised on grounds that it envisages customer reaction rather than
reducing disagreement; the customer tends to enlarge the differences or divergence between
the product expectations and the performance.
2.11.3 Assimilation-Contrast theory

This theory explains that if the performance of a product/service is within a consumers’
range/latitude of acceptance, although it may not meet expectations, the
discrepancy/disagreement will be ignored, i.e. the assimilation will operate while the
customers will deem the performance to be acceptable (Oliver, 1980). However, the
performance is below expectations, and is below the range of rejection; contrast will exist
and the discrepancy will be exaggerated. As an outcome, the product /service will be deemed
to be unacceptable (Grissemann & Stokburger-Sauer, 2012).
The assimilation-contrast theory was proposed as a different way to elucidate the association
between the variables in the disconfirmation model (Flint et al. 2011). This theory is an
attempt to demonstrate that both the assimilation and the contrast theory are applicable in the
context of studying customer satisfaction (Stock & Bednarek, 2014).
The assimilation-contrast theory is not free from criticisms. Kursunluoglu (2014) argues that
the idea to reconcile the assimilation and contrast theory is a methodological flaw. Various
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researchers such as Stock & Bednarek (2014) made attempts to this theory empirically and
came up with mixed results.
2.11.4 Negativity theory

The Negativity theory explains that discrepancy or divergence of performance from the
expectations will lead to distraction of the individual, thereby producing negative energy
(Chandrashekaran et al. 2007).The foundation of this theory is also in the disconfirmation
process. Deng et al. (2010) point out that the foundation of this theory is in the
disconfirmation process. The theory explains that when consumer expectations are strongly
held; the customers tend to act in response negatively to any disconfirmation. Dissatisfaction
will arise if the perceived performance is less than the customer expectations or in case if the
perceived performance exceeds the expectations.
2.11.5 Disconfirmation Theory

According to the disconfirmation theory ‘satisfaction is linked to the direction and size of the
disconfirmation that occurs as an outcome of the comparing service performance against the
expectations’. Reginald et al. (2003) identified in the meta-analysis that disconfirmation
ideology can best predict the level of customer satisfaction. Elaborating on this theory,
Petrick (2004) explains that ‘satisfaction is a judgment that the feature of a product/service,
or the product/service itself, provides a delightful level of consumption-related fulfillment,
including the extent of under or over fulfilment.
Supporting the disconfirmation theory, Ekinci & Sirakaya (2004) argue that is the most
underpinning theory of customer satisfaction; which presumes that satisfaction is related to
the direction and size of the disconfirmation experience occurring as a result of comparison
between service performances against the expectations. Fundamentally, satisfaction is an
outcome of the experiences that a customer has with a product or service, which occur by
comparing the perceptions or discernment against a predefined standard (such as
expectation). In this context, research by Koller & Salzberger (2007) revealed that how the
service is delivered is more significant than the result of the service process, while
dissatisfaction towards a service merely occur when the customer perceptions fail to meet
their expectations.
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2.11.6 Cognitive Dissonance Theory

Cognitive dissonance refers to an uncomfortable feeling that is caused by holding two
conflicting ideas simultaneously. The theory proposes that consumers maintain a
motivational drive to diminish dissonance (disagreement) by changing their behaviour,
attitude, and believes, or by rationalizing or justifying them (Harmon-Jones et al. 1996)
Graham (2007) explains that the Cognitive Dissonance theory finds its application in the
consumer behaviour research. This is because this theory makes key predictions about the
way people thinks and behave after making a purchase decision, known as post-decisional
dissonance. The ideology of Cognitive Dissonance has implication for persuasion as well as
explicit forms of persuasion known as induced compliance.
Figure 3: Cognitive Dissonance Theory
(Source: Harmon-Jones et al. 1196, p.378)
The Cognitive dissonance is a widely accepted theory of customer satisfaction and largely
followed in empirical studies of consumer behaviour, its applications in the current
marketing research is being questioned (Salzberger et al .2010). The theory is criticised
because dissonance is a simply a transitory phenomenon. Moreover, the issues of
measurement and problems in administrating data collection often create hindrance in while
addressing cognitive dissonance empirically (Telci et al. 2011).
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2.12 Customer satisfaction and Brand loyalty (Differences)

Customer satisfaction is an emotional construct and indicates the extent to which a product
or a service is able to fulfil or surpass his/her expectations (Hill et al. 2008). Satisfaction is
generally achieved after a customer experiences a product or service and evaluates its
characteristics in terms of the benefits it provides. Brand loyalty, on the other hand, relates to
the tendency of a customer to buy the same brand of goods and/or services rather than
switching over to a competition brand. Brand loyal customers, exhibit satisfaction with the
brand, make repeat purchase and even recommend the brand to others (Hill et al. 2008). It is
positive feelings towards the brand, and a tendency to choose the same brand even if the
price is increased (Nam et al. 2011). These are the differences between customer
satisfactions, and customer satisfaction is identified to be an antecedent of brand loyalty.
2.13 KANO model of customer satisfaction

The KANO model categorizes consumer attributes on the basis of how customers perceive
them and what is their effect on customer satisfaction (Lin & Niu, 2009). The proposition of
this theory is based on three types of attributes; (i) fundamental or expected attributes, (ii)
spoken or performance attributes, and (iii) surprise and delight related attributes.
Figure 4: KANO model of customer satisfaction
(Source: Lin & Niu, 2009, p.28)
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Performance or spoken attributes are those that are expressed expectations of a consumer.
The expected or basic attributes are those characteristics without any key importance that is
worth mentioning. The third and the last attribute, surprise and delight, are those elements
that are beyond or ahead of customer expectations.
The model helps to measure satisfaction as against the customer perceptions of performance
of attributes (Bilgili et al. 2011); and gives grading to customer requirements; determine the
extent of customer satisfaction (Yu & Yu, 2009). A fundamental assumption of the Kano’s
model is that satisfaction is not, at all times, proportional to how completely functional the
product/service is. Seen from a different perspective, this implies that higher product quality
does not essentially lead to increased satisfaction for all the attributes of the product or
service requirements.
The Kano model differentiates between three main types of fundamental requirements that
influence customer satisfaction. These are (a) Must be requirements – If ‘must be
requirements’ are not fulfilled, the consumer will exhibit higher dissatisfaction. In case if
the consumer assumes such requirements and takes them for granted, the fulfilment of these
will not enhance his/her satisfaction. (b) One-dimensional requirement –These are generally
demanded explicitly by the consumer, and higher the fulfilment level, higher is the extent of
customer satisfaction, and the other way round (Yu & Yu, 2009). (c) Attractive Requirement
– These are those requirements that reflect product/service criteria having the highest
influence on how satisfied a user will be with a particular product/service (Wang, 2013).
2.14 Customer product involvement:
The product and service continuum evolved over years and each a complementary to the
product sold. Though it depends on the type of goods, the marketers have found the
emotional connection with the product by allowing to voice their feedback in a post purchase
and post usage environment. The customer’s level of involvement which started as VOC
(voice of the customer) and incorporates the changes in the product design and functionality
has been a known fact. The issue however, changes when it is not a mass production item,
and is more related to the personal or self identity. The concept of self, the societal level of
self esteem, and the overtly self consciousness factor that emerges in this discussion
predominantly points to the fashion aspect. Personal preference for a design, style, colour
have been endorsed in the past and more actively now seen in the marketplace. Chernatony,
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et al. (2010) added that the customers are designing their shoes (Nike), apparels to match is a
customer involvement with the brand that has deeper underlying reasons. Mao (2010) added
that the factors are utilitarian (functional, rational, economic) goals, the sign value (self
concept, social status to impression management) and lastly the experiential goals.
The idea is that neither the customer nor the manufacturer wants to buy inferior products or
rather buy slightly tweaked product that meets the individual customer preference and
expectation set. This changes the perspective of consumption as a product or service, and it
is not to just satisfy the need of the consumer, but to express the other side of creativity
inside of the customer. The brand loyalists are found to repetitively engage into the product
interaction, right from the search, to provide meaningful valued feedback which states the
emotional connectivity at a strong level (Wiley and Vallaster, 2010). These are the signs
which show that the consumers are likely to be committed to those brands that are allowing
listening to them, and this is an attitudinal loyalty (Goldstein, 2009). It is allowing the
humans to link the sensory pleasure with the brand they prefer to reach a experiential goal of
self actualisation.
The fashion loyalists therefore are dependent on the social response to the customer’s
individual persona or aura adorning the fashion brand. This is a brand building process and
more engagement with different outfits under the same brand increases the brand association
and enriches the brand experience continuum. In modern marketing sense, the fashion has
evolved and even customer involvement to design the outfits, shoes are a positive
engagement strategies which are currently pursued (Hayes and Dredge, 2009). This makes
the self concept and the idea of the colour, cut, style in the charge of the customer allowing
flexibility and making the product unique and different from the mass production fashion
garments. From experience point of view, it enhances the social, self concept image with the
brand for driving the customer involvement to raise the impression in the society.
2.15 Relationship between customer satisfaction and brand loyalty

Satisfaction often predicts whether a customer will make a future purchase from a particular
brand or not (Hill et al. 2008). Hayes and Dredge (2009) researched that satisfied customers
are more likely to make repeat purchase from a brand after the initial purchase is made, are
motivated to recommend the same to others (Nam et al. 2011), and are less receptive to the
offerings of the competitors (Erciş et al. 2012). In specific terms, satisfaction is identified to
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be necessary antecedent/precursor of customer loyalty (Erciş et al. 2012). Earlier research

carried out by (Conklin et al. 2004), (Torres & Tribó, 2011), and (Severi & Ling, 2013)
identify that customer satisfaction and loyalty are strongly related, wherein satisfied
customers tend to be brand loyal. Other researchers such as Martisiute et al. (2010) found
that the relationship between brand loyalty and customer satisfaction is interchangeable,
while Kursunluoglu (2014) consider it to be unidirectional, i.e. moving ahead from
satisfaction to loyalty.
Figure 5: Relationship between customer satisfaction and brand loyalty
(Source: Martisiute et al. 2010, p.15)
Brand personality refers to a set of human characteristics that can be attributed to a brand
name. It is the manner in which a brand communicates and behaves with the audiences.
Sahin et al. (2011) explain that when brand identity or brand image is expressed in terms of
human traits, it represents brand personality. It is also identified as a set of human
characteristics that can be attributed to a particular brand. Customers tend to relate their own
persona with the brand in such a manner that reflects their self-image. Consumers generally
prefer those brands with personalities that are congruent or exhibit similar characteristics as
their own self-image/personality. In this context, Neupane (2015) argues that consumers
demonstrate favourable feelings towards a particular brand in case when brand personality
matches with their own self-image. Therefore, customers tend to develop relationship with
the brand, particularly those brands which reflect their personality and which are beneficial
to them.
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The achievement of customer satisfaction is identified as an antecedent to build brand equity,

and hence Martisiute et al. (2010), point out that apparent customer satisfaction has a
positive effect on a customer’s loyalty towards a brand. This implies that satisfaction affects
customer attitude after making a purchase and experiencing the product/service and this
attitude continually influences their intention to repurchase, leading to brand loyalty. Hence
customer satisfaction, not only maintains customer-brand relationship quality, but also
increases brand loyalty, as shown in the figure 5.
This relationship can be explained with the help of an example. For instance, a youth
passionate about new trends in fashion finds that a particular apparels brand has a personality
that matches his/her character, aspirations, and even colour and taste. The consumer may
find such similarities from the advertisements or brand messages communicated by the
brand. He/she will start to develop a relationship with the brand, and go ahead to make a
purchase. Good experience with the product will strengthen the quality of consumer –brand
relationship, and this will lead to customer satisfaction, thereby the consumer will be
stimulated to make repeat purchase. Making repeat purchase from the same brand is a mark
of brand loyalty achieved by the company, by maintaining a superior level of consumer-
brand relationship and customer satisfaction.
Paswan et al. (2007) argue that satisfied customers have a tendency to be loyal with or
without the mediation or intervention of other variables. Satisfied customers are more likely
to possess an enhanced degree of utilization for a product as compared to those who are not
satisfied (Deng et al. 2010). The former tend to have a higher intention to repurchase and
promote the brand among their acquaintances (Deng et al. 2010), while the latter spread
negative recommendations about the same.
According to Anderson et al. (2004), customer satisfaction is predicted to be a customer

attitude that infers the customers’ expectations towards the product/brand, while loyalty is
recognized to be a behavioral construct (Back & Parks, 2003). Empirical studies conducted
by Reich et al. (2005); Reinartz & Kumar (2003); Riezebos et.al.(2009) and Park (2009)
indicate a positive effect of satisfaction on attitudinal brand loyalty. The Fishbein’s model of
customer attitude has been groundwork for several researchers such as (Peyton et al. 2003),
in terms of determining the association that customer satisfaction cause attitudinal brand
loyalty. Oliver (2006) observed that customer satisfaction enhance the positive attitude of
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customers relating to a product and such attitude further strengthen the customer’s intention
for repurchase.
Both theoretical and empirical literature emphasise on the relationship between customer
satisfaction and brand trust, as the two constructs, in different contexts. Empirical research
carried out by Zboja & Voorhees (2006); and Maghzi et al. (2011) indicate that trust was a
direct outcome of customer satisfaction in the retail context. Brand trust is developed based
on the experience that a customer has with the brand that determines his /her level of
confidence in the brand and a faith that the brand is reliable (Bowden, 2009). Persistent
good experience that a consumer has with a brand gets him/her into a dedicated relationship
with it; thereby converting their satisfaction into brand trust, and finally brand loyalty.
Most of the studies in academic literature focus on direct relationship between brand loyalty
and customer satisfaction, however, few studies exhibit indirect relationship between the two
mediators/moderators (Park, 2009; Geçti & Zengin, 2013). Customer engagement theory put
forward the existence of other factors in relationship between brand loyalty and customer
satisfaction, indicating an indirect association between the two constructs. Meanwhile Lee
(2013) observed that brand trust occupied a vital position in maintaining long term
relationship with the brand. This noticeably indicates that brand loyalty is fundamentally
affected by brand trust.
Morgan & Hunt (1994) proposed the trust-commitment theory, according to which, trust
leads to higher commitment in any kind of relationship. Sichtmann (2007) also established
the fundamental role of brand trust in identifying the relationship between customer
satisfaction and commitment towards brand (loyalty). Meanwhile, Sahin et al. (2011)
established an intervening role of brand trust in the relationship between customer
satisfaction and intention to make repeat purchase (loyalty) in the retail sector. On the other
hand, the customer engagement theory proposed that consumers move through a
chronological process to become loyal to a particular brand (Shirin & Puth, 2011).
Conclusively, customer satisfaction and trust are established to be the key factors in creating
loyal customers. An experienced customer, after having repeat experience with a brand is at
an increased level of satisfaction, leading to brand association that is transformed from
attribute levels to affective/emotional (Neupane, 2015). This leads to brand trust and
increase in their emotional commitment towards the brand which ultimately develops loyal
customers for the brand/company.
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2.16 Conclusion and Conceptual framework:

The above discussion of the factors is critical and unique in every sense as they contribute in
building the brand loyalty issue in the consumers. Though it varies over time, the value of
purchase and the type of goods, the basic framework shown below stays the same with the
intensity of each factor differing at any moment of time. So the list of dependent variables
contributing to the brand loyalty independent variable is illustrated below.
Brand image
Brand
experience
Customer
satisfaction
Brand Loyalty
Brand quality
Brand switching
cost
Customer
product
involvement
Figure 5: Conceptual Framework
(Source: Author created)
The above satisfaction exhibits several antecedents of brand loyalty and customer
satisfaction is one of them. Also existing literature mainly concentrate on explaining how
satisfied customers tend to make repeat purchase from a brand, and thereby exhibit brand
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loyalty. However, customer satisfaction is achieved if a brand reflects the customer’s

personality and the latter forms a self image which stimulate the customer to make repeat
purchase. Repeat purchase indicates that the customer is brand loyal, and good experience
with the brand after every subsequent purchase leads to higher customer satisfaction. This
will be tested with the help of empirical data obtained by surveying the customers of the
chosen company.
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Chapter 3
Research Methodology
3.1 Introduction
The current chapter deals with the methodological choices relating to the type of
investigation, the use of appropriate philosophy, research approach and the methods to
collect data to resolve the research questions. The choice of each element must be in
alignment with the research topic and the area under investigation. In this research, the main
aim is to analyse the impact of brand loyalty on customer satisfaction and based on the
identified research questions, the following questions need to be resolved –
Q1) What is the relationship between brand loyalty and customer satisfaction?
Q2) What are the strategies formulated by PEPE Jeans and LEVIS, UK to foster brand
loyalty?
Q3) How effective are their brand strategies in terms of achieving customers’ satisfaction?
Q4) What are the challenges faced by these companies in using brand loyalty strategies to
achieve customer satisfaction?
3.2 Methods outline
In order to resolve the research questions, the current methodology includes the following
elements --
Current Methodology
Type of investigation Descriptive
Research Philosophy Positivism
Research approach Deductive
Data collection methods Quantitative + Quantitative
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Data collection strategy Survey – structured

questionnaires
Telephonic Interview – Semi
structured questions
Sampling technique / Sample Probability- Simple Random
size technique (Survey, n= 100)
Non probability convenience
technique (Interview, n=2)
3.3Type of investigation
The type of investigation in a research may be exploratory, explanatory or descriptive

depending on the extent to which the research problems are known and the complexities
involved. Exploratory research follows a qualitative method of data collection to understand
what the actual research problems are (Bryman and Bell, 2011). It is also useful in
understanding the best methods that can be implemented to resolve the research problems.
Hence, exploration is done when the researcher is not clear about the research problems and
extensive investigation following an informal method is required.
Explanatory research is implemented when there is a need investigate about the relationships
that the variables share (Crowther and Lancaster, 2012). Its purpose is also to analyse the
cost and effect relationship between the variables.
Descriptive research is followed when the actual research problems are clearly identified and
further investigation is needed to resolve the same. Descriptive research is also referred to as
statistical research because it helps to statistically calculate and measure quantitative data. It
is followed when the research has a formal set of objectives, and questions to be resolved
using quantitative data (Bryman and Bell, 2011).
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Data collection plan
In this research mixed methods (Quantitative and Qualitative) to data collection will be
implemented and explained below –
Survey Survey will be conducted in order to collect quantitative data from 50 customers
of Levis and 50 customers of Pepe Jeans.
Survey will be conducted by distributing structured, closed ended questionnaires
to the customers using online technique such as Google Forms. Questionnaires
will be used because it is cost effective and an easy method to collect data from a
large sample size. The customers for the survey will be selected using probability
sampling, simple random technique, which will give equal opportunity to each
individual to take part in the survey.
Interview Interview will be conducted to collect qualitative data from 2 managers of Levis
and 2 managers of Pepe Jeans. The managers will belong to the marketing
department. The type of interview will be telephonic to be conducted after
taking appointment from the managers and fixing a definite time, according to
their convenience. Interview will be conducted because it will help to probe the
managers’ about the factors that lead to customer satisfaction, and how does
brand loyalty affect customer satisfaction. The interview questions will be semi
structured and open ended. The managers will be selected through non
probability, convenience sampling, as this will allow selecting the two marketing
managers from each company based on their availability.
3.3.1Justification for choosing descriptive research
This research follows a descriptive research to go deeper into the research problems.
Descriptive research fits into both quantitative and qualitative methods and helps to find
answers from multiple dimensions by focusing on why, what, how of the research questions.
This research also has clearly indentified problems to be investigated reflected by a formal
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set of objectives and questions. Exploratory research was not considered suitable because its
use is to obtain background information using qualitative data collection and understand
what the actual research problems are. Explanatory research was also not appropriate its use
to understand the relationship between the key research variables would not have helped to
answer the research questions.
Descriptive research was therefore useful in conducting survey to obtain quantitative data
and interview to collect in-depth qualitative information, resolve the research questions, and
arrive at conclusive based outcomes.
3.4Research Philosophy
Epistemological standpoint provides three perspectives in terms of philosophical

understanding, namely, positivism, interpretivism, and realism. Positivism, followed in case
of social research helps to conduct the study as used in natural science (Saunders et al.
2009). Followers of positivism generally conduct a quantitative research where the
numerical data can be statistically calculated and the research outcome is objective based.
Interpretivism opposes the positivist viewpoint and is socially construed through human
perspectives and reasoning (Saunders et al. 2009). Instead of testing quantitative data,
followers of interpretivism conduct qualitative research and interpret in-depth information
that reflect human insights, understanding, emotions, and experiences. Interpretivism aligns
with the inductive approach to carry out qualitative based investigation using exploratory
research and build new theory.
Realism is a branch of epistemology with an assumption that the existence of objects in the
universe is independent of human mind.
3.4.1 Justification for choosing positivism

Positivism was considered suitable because it follows a scientific process to measure data
and test underpinning theories that relate to the research problems. Positivism helps to follow
a social research as used in natural sciences thereby emphasizing on scientific data
calculation rather than relying too much on human intervention (Saunders et al. 2009).
Positivism also aligns with the deductive approach to theory testing and the descriptive
research to arrive at conclusive based results. Interpretivism relies extensively on human
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opinion, perceptions and their understanding of the phenomena, and arriving new theoretical
developments. Relying too much on human interpretations may include a higher chance of
biased data and have an adverse influence on the quality of data.
3.5 Research approach

The inductive approach helps to generate new knowledge by conducting the research from a
specific to general process. Inductive research starts with observation of phenomena, and
followed by understanding the data pattern, developing tentative hypothesis, and ultimately
new knowledge development (Bryman and Bell, 2011). It mainly aligns with the philosophy
of interpretivism, follows the exploratory research and thematic/content analysis of
qualitative data to develop new knowledge.
The deductive approach helps to either confirm of modify existing theories, moving from a
general to a specific process. It starts with extensive study of underpinning theories, forming
hypothesis based on knowledge gaps, observation of data, and finally theory confirmation
(Bryman and Bell, 2011). It mainly aligns with the descriptive research and the philosophy
of positivism to test quantitative data and arrive at objective results.
3.5.1 Justification for choosing deductive approach

The deductive approach was considered to be feasible because it helps to revisit the existing
theories that underpin the research topic, and either modify or confirm them. Using
deductive approach critically study the underpinning theories relating to brand, brand equity
model, brand loyalty, and customer satisfaction theories (assimilation theory, contrast theory,
assimilation-contrast theory, Disconfirmation Theory, and Kano model of customer
satisfaction) etc. Theoretical gaps and gaps in existing academic research was identified to
formulate the research questions based on which further investigation was carried out using
primary research. The empirical findings were observed carefully and helped to test the
theories to either modify or confirm the existing theories.
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3.6 Data sources
3.6.1 Primary sources

Primary sources involve human interaction where data is collected by communicating with
the subjects either directly or indirectly (Cooper et.al.2010). However it involves higher
complexity and is more expensive to collect as compared to collecting data from secondary
sources. It helps to gain information that may be of current importance and share human
emotions and/or experiences.
3.6.2 Secondary sources

Secondary sources are those that are available in public domain and comprise of journal
articles, reports, books, publications, previously undertaken research papers, and case studies
to be accessed from academic databases. Such materials may be reproduced in different
formats and comprise of information that were original pieces of primary research.
Freshwater (2007) explains that peer reviewed academic materials such as ‘journal of
management studies’ are considered more dependable in terms of quality as compared to
commercial publications obtained from magazines.
3.7 Data Type (Qualitative and Quantitative)
3.7.1 Quantitative data

Quantitative data is measurable and is subject to statistical testing to arrive at subjective
based outcomes. It aligns with the positivism philosophy and the deductive approach to
confirming or modifying existing theories through scientific data testing (Bryman and Bell,
2011). The use of different methods such as survey, participant observation, experiments,
case studies (quantitative) etc can be made in order to collect quantitative data. Quantitative
data, however, fails to capture the emotions and elaborate experiences of the respondents as
it mainly deals with closed ended responses without scope for open discussions.
Considering the pros and cons of different quantitative data collection methods the use of
survey (closed ended questionnaire distribution) was found to be feasible as explained in the
next point.
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3.6.1.1 Justification for choosing Questionnaire survey

Survey – Bryman and Bell (2011) explain that survey is the most cost effective, flexible and
convenient method to collect quantitative data in a limited timeframe, and when the sample
size is comparatively larger. The use of questionnaires is most effective in case of surveys
which can be distributed either manually or using online techniques such as ‘Google forms’
to the respondents.
In this research questionnaires were distributed to 100 customers of the chosen companies –
Levis and Pepe Jeans (50 from each company) sampled using simple random technique. The
questionnaires were mainly distributed online using the Google forms.
Advantages of Questionnaires-
 It is cost effective
 It is easy to distribute either through online or offline methods
 It takes less time to collect data as compared to other methods
 It is most suitable when the sample size is relatively large and time is limited
The questionnaires pattern was structured and closed ended that intended to understand
customer perceptions relating to the extent of their brand loyalty with the respective
companies and how satisfied they were with the brand, as an outcome. The questionnaires
were mainly based on 5 point Likert scale and few of them are highlighted as follows –
Closed Ended Survey Questionnaires Likert scale

Q) Do you agree that good experience with a brand definitely o Strongly agree
leads to customer satisfaction? o Agree
o Neutral
o Disagree
o Strongly disagree
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Q) Do you agree that satisfaction with the brands stimulate o Strongly agree
you to make repeat purchase from the same brand? o Agree
o Neutral
o Disagree
o Strongly disagree
Q)Do you agree that satisfaction with the brand (Levis/Pepe o Strongly agree
Jeans) motivate you to recommend the brand to others? o Agree
o Neutral
o Disagree
o Strongly disagree
3.6.1.2 Testing the questionnaires

The questionnaires will be tested in order to identify if they are understandable by the
customers, and time taken to complete each set. Hence, Pilot Testing was carried out by
distributing the questionnaires to 20 customers (10 from each company) online. The
customers were requested to comment on the questionnaires in terms of its relevance, and
whether it was easy to understand. Few comments were received and the questionnaires were
modified /corrected accordingly. This helped to screen and revises the questions before
conducting the final survey.
3.6.2 Qualitative data

Qualitative data is interpretative and reflects human understanding, opinion and emotions
relating to the area under investigation. The use of qualitative data is made in alignment
with the interpretivism philosophy and the inductive approach to development of new
knowledge (Denzin and Lincoln, 2011). Often exploratory studies involve collection of
elaborate and comprehensive information based on qualitative research to obtain a deeper
understanding of the research problems.
Denzin and Lincoln (2011) explains that qualitative data is collected when the researcher
needs to transform which has already been reported and examined in writing, especially
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when secondary research is undertaken. Using primary sources, it is useful in transforming

already recorded interviews into transcripts, describing viewpoints in words and converting
observations in the form of field notes. In this context, Crowther and Lancaster (2012) point
out that qualitative data is associated with deeper understanding of phenomenon to explain
the problem area.
Qualitative data can be collected using methods such as focus groups, interviews, action
research, qualitative case studies and observation etc. However, interview is a feasible
method to collect qualitative data by building rapport with the respondents and probe deeper
into the matter to be investigated (Crowther and Lancaster, 2012). The reason to implement
interview in this research is discussed in the next point.
3.6.2.1 Justification for conducting Interview

Interview was considered suitable as it allowed the managers to define and discuss about the
nature of strategies formulated to foster brand loyalty and how it helped to achieve customer
satisfaction. The use of open ended interviews also encouraged them to provide an extensive
and a developmental answer, which helped to disclose their attitudes and obtain factual
evidences. Open ended question formulated in an interview is instrumental in seeking
answers relating to what, how, and why of the topic. It allows the researcher to build a
personal rapport with the respondent, observe their body language, share information and
probe deeper into the research problems (Denzin and Lincoln, 2011). The type of interview
was telephonic as this was convenient for the managers having a hectic schedule. Each
interview lasted for around 20 minutes.
The questions to the marketing managers mainly emphasised on the marketing strategies
formulated to achieve brand loyalty to achieve customer satisfaction. There were 8-10
questions that underpin the research questions; and few of these are as follows –
Open ended Interview Questions

Q1 What are the marketing strategies followed by the company to win customer loyalty
towards the brand?
Q2 Do brand loyal customers show higher signs of satisfaction? If so, how?
Q3 What are the challenges involved in keeping the customers satisfied?
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3.7 Data analysis

Empirical responses received from the survey were raw data and refined by coding the data
in the Ms Excel sheet. The data was segregated according to the scales included in the Likert
scale to make it easy to understand. The data was then presented with the help of tables and
charts and explain the findings by discussing the research problems.
The rich, in-depth and subjective information obtained from the interviews was interpreted
carefully after understanding the varying responses against each question. Similar views and
conflicting opinions were segregated and analysed thematically by revisiting the
underpinning theories discussed in the literature review. The findings obtained from the
interviews were used to cross validate the quantitative data obtained by surveying the
customers.
3.8 Sampling and sample size

Probability sampling is a non biased method of choosing the subjects from the identified
population, particularly when the sample size is large. It provides equal opportunity to each
individual in the population equal chance to be selected (Cooper et.al.2010). However, non
probability sampling involves biased selection of the subjects and is suitable when the
sample size is comparatively smaller. The total sample size included 100 customers (50
from each company) to take part in the survey.
The managers taking part in the interview were sampled using non probability, convenience
technique. This helped to select those marketing managers who were accessible and were
happy to take part in the interview. The total sample size included 2 marketing managers
(1from each company) to take part in the telephonic interview.
3.9 Ethical considerations

The current research was conducted in strict adherence to the ethical considerations as
followed in a social research. The names of the participants in the interview were kept
anonymous, and other personal details were kept confidential, as per the Data Protection Act,
1998. The researcher did not coerce anyone or try to persuade to take part in the primary
research. Their participation was voluntary. The participants were also informed about their
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rights to withdraw from the research at any time they wanted to. None of the questions
intended to hurt the sentiments of the participants.
3.10 Conclusion
The chapter helped to identify the most suitable research methodology to be followed to
conduct the research in a systematic manner to resolve the research problems. The methods
chosen to conduct the research are also justified to ensure that the methodology is relevant.
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Chapter 4
Data Analysis and Findings
4.1 Introduction
The current chapter analyses the findings obtained from responses obtained by surveying the
100 customers (50 customers from each company). The raw data after being coded in the
Ms Excel sheets, refined and converted into percentage, are presented with the help of tables
and charts. The diagrammatic presentations make it easier to explain the findings
triangulated by revisiting the literature review.
4.2 Quantitative data analysis
Q1.)What is your gender?
Table 1 Gender
Options Response % Response Total respondents
(frequency)
Options Levis Pepe Levis Pepe Levis Pepe
Jeans Jeans Jeans Jeans Jeans Jeans
Male 54% 38% 27 19 50 50
Female 46% 62% 23 31 50 50
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Gender distribution
Male Female
62%
54%
46%
38%
Levis Jeans Pepe Jeans
Chart 1 Gender
Data Analysis
The gender distribution shows that the number of male participants in Levis Jeans is more
while female customers are more in Pepe Jeans. Overall response indicates that there is a fair
mix of customers, in terms of gender, both the companies.
Q2.)Which age group do you belong to?
Table 2 Age Group

(frequency)
Below 25 32% 46% 16 23 50 50
Between 25-30 22% 38% 11 19 50 50
Between 31-35 28% 10% 14 5 50 50
Between 36-40 16% 6% 8 3 50 50
Between 41-45 2% 0% 1 - 50 50
Above 45 - - - - 50 50
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Age group
46%
38%
32%
28%
22%
16%
10%
6%
2%
0%
Below 25 Between 25-30 Between 31-35 Between 36-40 Between 41-45
Chart 2 Age Group

Data Analysis
Majority of the customers in the survey are below the age of 25 for both the companies,
followed by customers between 25 and 30 for both the companies. Hardly any customers are
between 41 and45 and none are above 45 years of age. However the consumers in the
survey belong to different age groups from both the companies.

(frequency)
Less than 1 years 12% 22% 6 11 50 50
Around 1-2 years 8% 16% 4 8 50 50
Around 2-3 years 8% 0% 4 - 50 50
Around 3-4 years 18% 34% 9 17 50 50
Around 4-5 years 22% 10% 11 5 50 50
More than 5 years 32% 18% 16 9 50 50
Q3.) For how long have you been purchasing from this brand?
Table 3 Tenure with the brand
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For how long with the brand

34%
32%
22% 22%
18% 18%
16%
12%
10%
8% 8%
0%
Less than 1 Around 1-2 Around 2-3 Around 3-4 Around 4-5 More than 5
years years years years years years
Chart 3 Tenure with the brand

Data Analysis
Comparative data shows that majority of the customers in the survey, from Levis Jeans have
been purchasing from the company for more than 5 years, while it has been between 3 and 4
years for Pepe Jeans. Customers have been purchasing from the brands for quite a long time,
as indicated by the overall responses.
Q4.) What is your idea about a brand?
Table 4 Idea about a brand

(frequency)
Name/Term 8% 0% 4 - 50 50
Logo 44% 56% 22 28 50 50
Symbol/Design 18% 12% 9 6 50 50
Shape/colour 0% 8% - 4 50 50
Combination of 30% 24% 15 12 50 50
all above
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Idea about a brand

56%
44%
30%
24%
18%
12%
8% 8%
0% 0%
Name/Term Logo Symbol/Design Shape/colour Combination of all
above
Chart 4 Idea about a brand
Data Analysis
The idea of a brand, for majority of customers in the survey is a logo (44% for Levis
customers) and (56% for Pepe Jeans’ customers). Others stress on symbol/design while most
of the participants believe it is a combination of all the options given. Overall data indicates
that the concept of brand for most of the customers is that of a ‘logo’, a symbol maintained
by an organisation to identify its products and services.
Q5.) Which of these elements, according to you, are characteristics of a strong brand
(in general)?
Table 5 Characteristics of a strong brand

(frequency)
Innovativeness 28% 42% 14 21 50 50
Superior quality 38% 24% 19 12 50 50
Attractive price 10% 0% 5 - 50 50
Product performance 6% 0% 3 - 50 50
Trust and confidence 18% 30% 9 15 50 50
Others - - - - 50 50
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Characteristics of a strong brand

42%
38%
28% 30%
24%
18%
10%
6%
0% 0%
ss ty ric
e ce e
ene u ali p an enc
tiv e d
rq tiv rm nfi
va io ac fo co
no
pe
r r per d
In Su Att t an
uc t
od us
Pr Tr
Chart 5 Characteristics of a strong brand
Data Analysis
Most of the Pepe Jeans’ customers emphasise on Innovativeness (42%) while for Levis
customers it is superior quality. Overall responses given by majority of the customers
indicate that the characteristics of a strong brand are mainly superior quality and
innovativeness. Participants also stress on trust and confidence, and attractive price (Levis
customers) to be strong brand characteristics.
As reviewed in the literature, Taylor et al. (2004) indicate that a brand creates tangible
elements such as high quality, excellent features, innovativeness and attractive price which
are observed in the company’s marketing mix elements and product performance as well.
Q6.) Do you agree that a brand failing to meet your expectations is a source of
dissatisfaction?
Table 6 Brand failing to meet customer expectations as a source of dissatisfaction
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Options Response % Response Total

(frequency) respondents
Strongly Agree 76% 58% 38 29 50 50
Agree 24% 42% 12 21 50 50
Neutral - - - - 50 50
Disagree - - - - 50 50
Strongly Disagree - - - - 50 50
Brand failing to meet customer ex-

pectations is a source of dissatis-
faction
Strongly Agree Agree
76%
58%
42%
24%
Chart 6 Brand failing to meet customer expectations as a source of dissatisfaction
Data Analysis
Majority of the customers from both the companies gave an affirmative response that a brand
failing to meet customer expectations leads to dissatisfaction. In case of Levis Jeans, 76%
strongly agree and 24% agreed while in case of Pepe Jeans, 58% strongly agree and 42%
agree.
This finding can be explained with the help of the Assimilation theory of customer
dissatisfaction, which is based on the dissonance theory. Customers make some kind of
comparison between their expectations and the perceived performance that they derive from
the product (Peyton et al. 2003). Any discrepancy between these two elements (expectations
and perceived performance) leads to negative disconfirmation (Oliver, 2006).As an outcome
of such disconfirmation, the concept of dissatisfaction, and hence the assimilation theory is
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based. In simple terms, failure to meet the customer expectations, leads to disconfirmation,
and the outcome is dissatisfaction.
Q7.) If the brand/product performance is acceptable, however, fails to meet your

expectations, does it still satisfy you?
Table 7 Satisfaction with the brand

(frequency)

Strongly Agree 24% 12% 12 6 50 50
Agree 18% 8% 9 4 50 50
Neutral 8% 0% 4 - 50 50
Disagree 44% 52% 22 26 50 50
Strongly Disagree 6% 28% 3 14 50 50
Brand/Product performance is acceptable,

however, fails to meet your expectations,
does it still satisfy?
52%
44%
28%
24%
18%
12%
8% 8% 6%
0%
Strongly Agree Agree Neutral Disagree Strongly Disagree
Chart 7 Satisfaction with the brand
Data Analysis
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Failure of the brand to meet the expectations of the customers, however with an acceptable
performance, satisfies most of the customers, according to the responses. Comparing the
data from both the customers, it is seen that acceptable brand performance is a source of
satisfaction for most respondents of Pepe Jeans as compared to Levis.
Revisiting the Assimilation-Contrast theory of customer satisfaction, it explains that if the

product performance is within the customers’ range of acceptance level, any kind of
discrepancy or disconfirmation with the product will be ignored, even it fails to meet
expectations (Oliver, 1980). In such a situation, the customers will accept the product
performance and will still feel satisfied. However, if the product performance is short of
expectations and below the range of rejection, contrast will exist and the customers will
exaggerate the discrepancy, thereby leading to dissatisfaction (Grissemann & Stokburger-
Sauer, 2012).
Q8.) Do you agree that good experience with a brand definitely leads to customer
satisfaction?
Table 8 Good experience definitely leads to customer satisfaction

(frequency)
Strongly Agree 54% 72% 27 36 50 50
Agree 38% 28% 19 14 50 50
Neutral 8% 0% 4 - 50 50
Disagree - - - - 50 50
Strongly Disagree - - - - 50 50
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Good experience with a brand definitely

leads to customer satisfaction
72%
54%
38%
28%
8%
0%
Strongly Agree Agree Neutral
Chart 8 Good experience definitely leads to customer satisfaction
Data Analysis
In case of Levis Jeans, affirmative response was received from 92% of the customers in the
survey (54% strongly agreed + 38 % agreed) while in case of Pepe Jeans it was 100% (72%
strongly agreed + 28 % agreed).
Good experience with a brand definitely leads to customer satisfaction as supported in the
theoretical studies as well. The disconfirmation theory of customer satisfaction is linked to
the size and direction of the disconfirmation occurring as a result of comparing performance
against expectations (Reginald et al. 2003). In case if the product provides a delightful
consumption related fulfillment, it leads to satisfaction (Petrick, 2004).
The KANO model of customer satisfaction helps to measure satisfaction as an outcome of a

customer’s perceptions of product attributes (Bilgili et al. 2011). This theory also proposed
that if the customers experience their ‘must be requirements’ is not fulfilled, it will lead to
dissatisfaction. The requirements that are demanded specifically by the customers to be
fulfilled (One-dimensional requirement) and fulfillment of such requirements lead to higher
customer satisfaction (Yu & Yu, 2009). Hence fulfilling customer requirements helps to
good customer experience and consequently satisfaction with the brand.
Q9.) How far do you agree that you always have good experience with the brand?
Table 9 Always good experience with the brand

(frequency)
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Strongly Agree 14% 4% 7 2 50 50

Agree 14% 18% 7 9 50 50
Neutral 12% 8% 6 4 50 50
Disagree 42% 28% 21 14 50 50
Always had good experience with the

brand ?
42% 42%
28%
18% 18%
14% 14% 12%
8%
4%
Strongly Agree Agree Neutral Disagree Strongly

Disagree
Chart 9 Always good experience with the brand

Data Analysis
In terms of always having a good experience with the brand, 28% of Levis Jeans’ customers
remain positive (14% strongly agree + 14% agree) while in case of Pepe Jeans it was 22%
(4% strongly agree + 18% agree). However, majority of the customers shared a negative
response; for Levis it was 60% (42% disagree + 18% strongly disagree) and for Pepe Jeans it
was 70% (28% disagree + 42% strongly disagreed).
Having a good experience with the brand, always, is the key to achieve higher customer
satisfaction, however, majority of the respondents deny to this question. Literature review
about the brand experience indicates that a consumer makes use of his senses to understand
the brand, although it varies according to the product type (Goldstein, 2009). In case of
clothing, experience may be gained once it is tried on the body. Apart from this, a customer
may have experience from the nature of customer services, after sale services, engagement
with the brand etc. Better experience with a brand is directly associated with the customers’
repurchase behaviour, and therefore loyalty towards the brand. Meanwhile Hur et al. (2011)
also suggested that positive brand experiences affect the customers’ brand satisfaction by
creating customer trust, leading to with increased loyalty.
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Q10.) Do you agree that satisfaction with a brand stimulate you to make repeat
purchase from the same brand?
Table 10 Satisfaction with a brand stimulates to make repeat purchase

(frequency)
Strongly Agree 32% 38% 16 19 50 50
Agree 42% 46% 21 23 50 50
Neutral 10% 4% 5 2 50 50
Disagree 16% 8% 8 4 50 50
Satisfaction with a brand stimulates to

make repeat purchase
46%
42%
38%
32%
16%
10% 8%
4% 4%
0%
Chart10 Satisfaction with a brand stimulates to make repeat purchase

Data Analysis
Majority of the customers, from both the companies, shared an affirmative response that
satisfaction with a brand stimulates them to make repeat purchase. 74% of Levis Jeans’
customers remain positive (32% strongly agree + 42 % agree) while in case of Pepe Jeans it
was 84% (38% strongly agree + 46 % agree).
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Review of the literature helps to indentify that higher satisfaction with the brand stimulates
the customers to make repeat purchase and recommend the brand to others (Hill et al. 2008).
Hayes and Dredge (2009) have similar viewpoint and add that satisfied customers have a
higher tendency to make repeat purchase from a brand after the first purchase. Sahin et al.
(2011) researched that brand trust had an intervening role in developing the relationship
between customer satisfaction and intention for repeat purchase in the retail industry.
Q11) Which of these strategies maintained by the company make you brand loyal?
Table 11 Strategies to make customers’ you brand loyal

Loyalty points/discounts 18% 4% 9 2 50 50
Feedback sharing/Engagement 8% 16% 4 8 50 50
Good quality at fair price 28% 50% 14 25 50 50
Match the brand personality with 34% 26% 17 13 50 50
customers self-image
Strives to build trust 12% 4% 6 2 50 50
Strategies maintained to achieve customer

brand loyalty
50%
34%
28% 26%
18% 16%
8% 12%
4% 4%
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Chart 11 Strategies to make customers’ you brand loyal
Data Analysis
Majority of the customers from Pepe jeans (50%) stress that the company offers good quality
at a fair price and this is how it is able to maintain brand loyalty. however in case of Levis;
the majority 34% reveals that it matches the brand personality with the customers’ self-
image. On the negative side, only 8% of the respondents from Levis have experienced
feedback sharing/customer engagement and only 12% believe the company strives to build
trust. In case of Pepe Jeans only 4% believe that the company strives to develop trust for the
brand.
As discussed in the literature review, consumer prefers to choose and remain loyal to brands
that represent their personality and self image. Neupane (2015) explains that brands having
similar features and attributes as the customers’ combined with satisfaction help to build
customer brand relationship, this ultimately leads to brand loyalty.
Academic research also considers trust to be an important construct in the build loyalty
element. Zboja & Voorhees (2006); and Maghzi et al. (2011) indicate trust to be a direct
outcome of customer satisfaction, and are developed according to the kind of relationship a
customer has with the brand (Bowden, 2009). Lee (2013) also claimed trust to occupy a
significant position in terms of maintaining long term customer relationship and
consequently brand loyalty. Hence it is important for companies to achieve customer trust
towards the brand which is largely possible through customer engagement and feedback
sharing.
Q12.)Do you agree that increased loyalty towards the brand leads to higher
satisfaction?
Table 12 Increased Brand loyalty leads to higher satisfaction

(frequency)
Strongly Agree 34% 46% 17 23 50 50
Agree 42% 38% 21 19 50 50
Neutral 2% 8% 1 4 50 50
Disagree 14% 8% 7 4 50 50
Strongly Disagree 8% 0% 4 - 50 50
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Increased loyalty towards the brand

leads to higher satisfaction
46%
42%
38%
34%
14%
8% 8% 8%
2% 0%
Disagree
Chart 12 Increased Brand loyalty leads to higher satisfaction

Data Analysis
Response from the Levis Jeans customers’ indicate that 76% (34% strongly agree + 42%
agree) affirmed that increased loyalty with the brand leads to higher customer satisfaction
while in case of Pepe Jeans it was 84% (46% strongly agree + 38% agree).
Brand loyalty has a direct relationship with customer satisfaction as studied in the literature
review. Customer satisfaction is identified to be an antecedent/precursor of customer loyalty,
implying that a customer satisfied with a brand is more likely to remain brand loyal (Erciş et
al. 2012). Researchers such as Torres & Tribó (2011) and Severi & Ling (2013) also
researched that customer satisfaction and brand loyalty are strongly related and satisfied
customer remain loyal to a brand.
The above question, however, intends to identify whether higher brand loyalty leads to
higher customer satisfaction. Although, lack of academic research exist in terms of
understanding whether increased loyalty leads to higher customer satisfaction, Martisiute et
al. (2010) believes that the relationship between customer satisfaction and brand loyalty is
interchangeable, i.e. brand loyal customers exhibit higher satisfaction. Findings from this
question also support the views of Martisiute et al. (2010), that increased loyalty towards a
brand leads to higher satisfaction.
Q13.)Do you agree that you are satisfied enough with the brand to recommend it to
others?
Table 13 Satisfied with the brand to recommend it to others

(frequency)
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Strongly Agree 22% 20% 11 10 50 50
Agree 32% 38% 16 19 50 50
Neutral 6% 0% 3 - 50 50
Disagree 26% 42% 13 21 50 50
Strongly Disagree 14% 0% 7 - 50 50
Satisfied enough with the brand to

recommend it to others
42%
38%
32%
26%
22% 20%
14%
6%
0% 0%
Disagree
Chart 13 Satisfied with the brand to recommend it to others

Data Analysis
A mixed response was obtained from the customers of both the companies, however it was
54% customers from Levis Jeans (22% strongly agree + 32% agree) shared a positive
response; while from Pepe Jeans it was 58% (20% strongly agree + 38% agree). A portion of
customers from both the companies remained negative about the idea.
As identified in the literature review, satisfied customers tend to recommend the brand to
others (Hill et al. 2008) and prefer to stay with the brand even if the price is increased. Deng
et al. (2010) explained that satisfied customers usually maintain a higher level of utilisation,
tend to have repurchase intention, and promote the brand among acquaintances, which is
similar to recommending the brand to others.
Q14.)Do you agree that you feel emotionally connected to the brand?
Table 14 Feeling emotionally connected to the brand

(frequency)
Strongly Agree 32% 24% 16 12 50 50
Agree 42% 18% 21 9 50 50
Neutral 10% 8% 5 4 50 50
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Disagree 16% 44% 8 22 50 50

Feeling emotionally connected to the

brand
42% 44%
32%
24%
18% 16%
10% 8%
6%
0%
Chart 14 Feeling emotionally connected to the brand
Data Analysis
The number of customers emotionally connected with the Levis brand were more, 64% (32%
strongly agree + 42% agree) as compared to Pepe Jeans, 42% (24% strongly agree +
18%agree). The customer product involvement concept studied in the literature review
indicate that customers emotionally connected to the brand voice their opinion/feedback in
post purchase environment Emotional association with the brand is formed when the
customers have good experience with the brand, and this leads to brand loyalty through
engagement and trust (Kim et al.2008). Wiley and Vallaster (2010) emphasise on the
emotional connectively of customers to a brand, indicating that brand loyalists repeatedly
engage with the brand through interaction and provide meaningful feedback. Therefore,
emotional connection with the brand signifies customer loyalty towards the brand.
Q15.)Do you agree that you will still purchase from the brand even if the price is
increased in comparison to similar other brands?
Table 15 Purchase from the brand even after price increase

Response % Response Total
Options (frequency) respondents
Strongly Agree 12% 24% 6 12 50 50 61
Agree
Foujia Mannan Keya 8% 18% 4 9 50 50
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Neutral 0% 8% - 4 50 50
Disagree 52% 44% 26 22 50 50
Purchase from the brand even after

price increase
52%
44%
28%
24%
18%
12%
8% 8% 6%
0%
Disagree
Chart 15 Purchase from the brand even after price increase
Data Analysis
A mixed response was obtained in regards to buying from the same brands even if the price
was increased.
Research by Paswan et al. (2007) indicates that satisfied customers tend to be loyal with or
without the intervention or mediation of other variables. Hence, if price is considered to be a
variable, increase in price will have no impact on the consumer purchase intention. Kotler
and Pfoertssc (2010) also indicate loyalty to be a multidimensional construct that reflect
repeat purchase behaviour of the customers even if the price is increased. Similar opinion
was also identified in the literature review, by Nam et al. (2011) who remarked that brand
loyal customers are likely to stay with the brand even if the price is increased.
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Q16.) How will you rate your overall satisfaction with the brand?
Table 16 Rating Overall satisfaction with the brand

(frequency)
Very satisfied 18% 32% 9 16 50 50
Satisfied 42% 22% 21 11 50 50
Neutral 10% 4% 5 2 50 50
Dissatisfied 26% 20% 13 10 50 50
Very dissatisfied 4% 22% 2 11 50 50
Overall satisfaction with the brand

42%
32%
26%
22% 20% 22%
18%
10%
4% 4%
Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied
Chart 16 Rating Overall satisfaction with the brand
Data Analysis
According to the response a higher percentage of customers from both the brands –Pepe
Jeans and Levis demonstrate a increased customer satisfaction, as 60% (18% very satisfied +
42% satisfied) are form Levis while 54% (32% very satisfied + 22% satisfied) are from Pepe
Jeans. As identified from the discussions in the literature review higher satisfaction with the
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brand leads to higher brand loyalty, while Martisiute et al. (2010) claimed that the
relationship is interchangeable. This implies that customers with higher satisfaction are
more likely to be brand loyal, while brand loyal customers may also exhibit signs of higher
satisfaction.
Q17)Which of the following are the core reasons that often leads to dissatisfaction with
the brand?
Table 17 Core reasons that often lead to dissatisfaction with the brand

Failure to meet expectations 28% 20% 14 10 50 50
Low brand engagement 32% 22% 16 11 50 50
Poor customer services 10% 34% 5 17 50 50
Unfair price 6% 0% 3 0 50 50
Inflexible/Rude staff members 16% 24% 8 12 50 50
Low quality products 8% 0% 4 0 50 50
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Core reasons that often leads to dissatisfaction with

the brand
32% 34%
28%
22% 24%
20%
16%
10% 8%
6%
0% 0%
ns t s rs ts
tio en ice ice be uc
a em rv pr d
ct g se ir em pr
o
pe ga er fa m
te
x en m Un ff ty
w to sta ali
ee Lo cu
s
d e qu
m
to or Ru Lo
w
re Po le/
ilu ib
Fa flex
In
Chart 17 Core reasons that often lead to dissatisfaction with the brand
Data Analysis
The core reasons that often led to customer dissatisfaction with the brands were identified as
‘low brand engagement’ as a common element for both Levis and Pepe Jean as indicated by
32% and 22% customers of both the companies. Failure to meet customer expectations was
also found to be reasons for dissatisfaction with the brand as per 28% and 20% response
from the customers of Levis and Pepe Jeans. However, poor customer services and
inflexible/rude staff members were also identified as major reasons by the customers of Pepe
jeans to be reasons for dissatisfaction as indicated by 34% and 24% of the respondents.
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4.3 Qualitative data analysis – Interview
Q1 ) What are the current strategies to achieve customers’ loyalty towards the brand?
Manager (Levis) –
The manager remarked ‘Levi’s offers an opportunity to everyone to craft experiences by

building confidence through durable clothing’. The manager explained -- Levis believes that
quality never goes out of style and superior quality, original and trendy design boost
customer confidence in the brand. Hence, good quality at a competitive price was a strategy
to achieve customer loyalty.
It provides emotional benefits by allowing customers to express their feelings and be

accepted by peers. The manager said “We instigate customers to accept themselves the way
they are and this is reflected in our originality, being real, and putting values into action”.
By saying this, the manager clearly directed attention towards maintaining a solid brand
personality.
Levis Strauss is a signature brand that extends the authenticity, style and quality and creates
a positive brand appeal for the value conscious customers. “Such signature brands were
meant to counter tough competition from other brands such as Lee, Wrangler and Pepe
“.The manager explained that being innovative and technologically driven and winning
customer trust through consistent quality at a fair price was one of the core values of the
company.
Manager (Pepe Jeans) –
The manager remarked ‘Our brand talks about the youth with a strong attitude which is
communicated through the advertisement’. The manager explained that this was done by
establishing brand storytelling trough advertising messages that resonates Pepe’s brand
personality. The manager remarked “We create stories that clearly community the values,
personality and experiences that customers may have with our brand”. This helps the
company to associate the brand with the product offerings that they offer to the target
demographics. The manager explained that the brand story helped to set the company apart
from the competitors (Wrangler, Levis, Lee) and established a distinctive identity for the
brand. This also served as a unique selling proposition (USP) and attracting customers
towards the brands. Adding to this the manager shared his personal opinion saying that “I
personally believe it is useful to be present at those touch points which matter most to the
customers and maintain an emotional connection”.
The manager further explained that the brand equity of Pepe Jeans was maintained by
extending its product profile with other associated products such as t-shirts, casual pants,
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accessories, wallets, shorts etc and offering loyalty discounts on selected range. However,
offering fair price combined with superior quality and occasional discounts motivated
customers to buy at regular intervals.
Data Analysis
Findings from the response given by the first manager (Levis) emphasised on building brand
loyalty by creating confidence among the customers through superior quality and at a
competitive price. The manager also focused towards maintaining brand personality by
motivating customers to be real, i.e. accept themselves the way they are, and this was also
reflected in the originality of the Levis’ products. Hence, the strategy was to create such as
brand image that reflected the personality of the customers which helped to develop stronger
relationship between the customers and the brand. The brand image of Levis was expressed
in terms of human traits, creating brand personality (Sahin et al. 2011).
Findings obtained from the response shared by manager (Pepe Jeans) emphasised on creating
emotional association with the customers by being present at key touch points that matter the
point. As discussed in the literature review, providing a positive brand experience leads to
brand loyalty by creating emotional involvement with the brand that the customers form
through trust and engagement (Kim et al. 2008). Pepe Jeans also associated the brand with
the product offerings and create brand stories that were congruent to the self image of the
customers. Hence, the focus was towards creating a brand personality, to relate customers
with the brand, and make them brand loyal. As discussed in the literature, Neupane (2015)
also pointed out that consumers tend to demonstrate favourable feelings towards a brand that
is able to match the brand personality with their self image. Hence in order to achieve
customer loyalty towards the brands, the companies focus on creating an emotional appeal
and matching the personality of the consumers through brand image.
Q2) Do ‘brand loyal’ customers demonstrate higher signs of satisfaction?
Manager (Levis) –
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The manager exclaimed “Oh! This is a tricky one”, “aren’t satisfied customers more loyal to
the company’, but your question is just the opposite, Interesting!” ….let me put it this way –
Yes, customers loyal to the brand will choose the product through thick and thin” and this
may be because they are satisfied with the brand”. However, this may not be the case for all
customers. The manager elaborated that brand loyalty comes after customer satisfaction as a
highly satisfied customer may not be loyal to the brand. Satisfaction is achieved when a
brand meets or exceeds customers’ expectations and motivates them to choose the brand
again and again despite getting any better offers, and engage into a relationship. However,
the relationship may or may not be satisfying for the customer and hence a brand loyal
customer may or may not be satisfied. The manager concluded that a customer satisfaction is
an emotional attribute of a brand loyal customer and it cannot be always be the case that
brand loyalty leads to customer satisfaction. Finally the manager remarked “Loyal customers
do not quit …. Satisfied customers do”.
The manager said “Let me clarify, satisfaction is a state of mind, it is the measure of how a
customer feels about a brand, the value he derives, which may change if a competitor offers
a better deal” (smiles), “meanwhile a loyal customer trusts the brand and behaves like a
solid rock, is emotionally attached and will repeatedly use the brand and recommend the
brand to others”. The manager further elaborated that a loyal customer is definitely a
satisfied customer, but it is not necessary that a satisfied customer is loyal to the brand.
The manager gave an example that Pepe Jeans through its customer service staff conducts
customer satisfaction surveys every quarter of a year and results do not always indicate that
tenured and loyal customers are the ones who are highly satisfied. However it cannot be
denied that brand loyal customers may exhibit higher satisfaction as compared to those who
are not loyal.
Data Analysis
Findings from the response given by the manager of Levis explains the relationship between
brand loyalty and customer satisfaction, saying that satisfied customers were loyal to the
brand. Customer satisfaction occurs when the customer expectations are exceeded; however
such customers may not be loyal to the brand. As discussed in the literature review, the
consistency theories of customer satisfaction emphasise on customer expectations, which is
related to the idea of satisfaction. Explanation of the assimilation theory by Peyton et al.
(2003) indicate that customer compare their expectations with the perceived product/brand
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performance. Any discrepancy between the perceived performances the expectations led to
customer dissatisfaction (Oliver, 2006).
Findings obtained from the response shared by the second manager (Pepe Jeans) reveal that a
loyal customer will definitely be a satisfied customer, but it a satisfied customer may not
necessarily be loyal to the brand. Most of the academic work is also directed towards the
notion that customer satisfaction leads to brand loyalty, however, researchers such as
Martisiute et al. (2010) stated that the association between brand loyalty and customer
satisfaction was interchangeable. This implies that brand loyal customers show higher signs
of satisfaction
Q3) How challenging is maintaining brand loyalty and achieving customer satisfaction?
Manager (Levis) –
The manager disclosed -- “Consumer needs are continuously changing, and the fashion
industry is faced with shorter product life cycle and today what is trendy will no longer be in
demand tomorrow”. This is a major challenge faced by almost every fashion brand wherein
a particular design or arrival finds it difficult to sell consistently. The challenge lies in
matching the pace of fast fashion and ensuring that the trendiest is on the shelves at the right
time and place for customers. The manager added that failure to make the right product mix
available at shelves made it difficult to meet the customer expectations, and this was a prime
cause of customer dissatisfaction. Dissatisfied customers are less likely to visit the stores,
either physical or online, and there is less possibility to achieve their repeat purchase, and
consequently achieving brand loyalty is difficult.
The manager also revealed that ‘It is quite challenging to tailor the marketing strategies
according to the expectations of each customer, as these differ, and achieving their
commitment by satisfying each of their expectations is difficult”. “Despite offering the best
in quality and innovation, and value for money, achieving winning customer trust often gets
difficult”. The manager further elaborated that the customer market in fashion industry is
highly volatile, and winning customer trust directed towards long term loyalty and higher
satisfaction is not a cakewalk.
The manager shared his insights “Maintaining brand loyalty is challenging in the
competitive fashion industry as competition is cut throat with new designs flooding the
market and leaving behind even the most reputed brands”. The manager explained that even
the most loyal customers have been found to switchover brands due to minor issues of
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dissatisfaction. The manager further elaborated that customer satisfaction and loyalty were
closely related and more satisfied a customer is more the loyalty towards the brand.
The manager pointed out that “Maintaining high customer satisfaction scores have become
difficult with increasing complexity in the current business situation. Providing a good
customer experience that subsequently leads to customer delight is the biggest challenge
even if the best value is offering to the customers in terms of quality and price”
Data Analysis
Findings from the managerial interview (Levis) indicate that short product life cycle makes it
difficult to match the changing pace of fashion and providing the customers with the latest
trend at the right time and place. Hence, the perceived performance of the brand fails to meet
the customer expectations, leading to customer dissatisfaction. The findings obtained by
interviewing the manager of Pepe Jeans, helped to understand that cut throat competition in
the fast fashion industry was a challenge that made it difficult to keep customers satisfaction
by meeting their continuously changing expectations.
The consistency theories of customer satisfaction also include the negativity theory which
proposes that any discrepancy of performance from the expectations produce negative
energy (Chandrashekaran et al. 2007) and consequently dissatisfaction. Dissatisfaction takes
place when the perceived performance is less than the customer expectations.
4.4 Conclusion
Findings from the survey indicate that the characteristics of a strong brand are identified by
the customers to be superior quality, innovativeness and ability of the brand to win customer
trust and confidence. Survey also revealed that a brand failing to meet customer expectations
was a source of dissatisfaction while satisfaction with a brand stimulates them to make repeat
purchase from the same brand. In terms of the key strategies that make the customers loyal to
the brands, the elements were identified as the brand’s ability to match the brand attributes
with the customers’ personality, good product quality at a fair price, availability of loyalty
points/discounts, and engagement with the brand.
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Customers in the survey also had a consensus that that increased loyalty towards the brand
resulted in higher satisfaction. Findings from the survey also revealed that satisfaction with a
brand stimulate the customers to choose the same brand for making repeat purchase. The
most important piece of finding was that increased loyalty towards the brand resulted in
higher satisfaction for the customers. The core reasons that often led to customer
dissatisfaction as identified from the survey was low brand engagement, and failure on the
part of the company to meet customer expectations. The managerial interviews conducted
from one manager of each company focused on the current strategies implemented by the
companies to achieve customer loyalty, and whether brand loyal customers were more
satisfied with the brand. Finally the challenges faced by the companies to maintain their
brand loyalty and keep the customers satisfied were also identified.
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Chapter 5
Conclusions and Recommendations
5.0 Conclusion
The concluding chapter revisits the findings obtained from the primary research and the
theoretical standpoints studied in the literature review to summarise the dissertation. The
research intended to understand the relationship between brand loyalty and customer
satisfaction and the strategies formulated by the chosen brands – Levis and Pepe Jeans to
maintain brand loyalty. The objective was also to assess whether analyse whether the brand
strategies of these companies led to customer satisfaction.
5.1 Linking objectives with the conclusion
To understand the relationship between brand loyalty and customer satisfaction
Review of the literature helped to theoretically understand the relationship between brand
loyalty and customer satisfaction, and the fact that these concepts interchangeable. Satisfied
customers are more likely to make repeat purchase from the same brand (Hayes and Dredge,
2009), and also recommend the brand to others (Nam et al. 2011) which exhibit their loyalty
for the brand. Hence, satisfied customers are more brand loyal than the unsatisfied ones.
Satisfied customers tend to remain loyal to the brand even if the price for its products is
increased and the competitors offer better price. Martisiute et al. (2010) indicated that the
relationship is interchangeable, i.e. brand loyal customers are likely to be more satisfied.
Findings from the survey (Q11) indicate that satisfied customers are stimulated towards
making repeat purchase, exhibiting their high loyalty towards the brand. Satisfied customers
are more likely to recommend the brand to others (Q14). Meanwhile, survey (Q13) indicates
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that increased brand loyalty leads to higher customer satisfaction as agreed by majority
participants. Hence, brand loyalty and customer satisfaction are interrelated.
To investigate the strategies formulated by PEPE Jeans and LEVIS, UK to foster

brand loyalty
Findings obtained from the survey (Q12) indicate that Levis tries to match its brand
personality with the self image of the consumers, i.e. its product design, attributes and
advertising reflect the persona of its customers in terms of trendiness, innovation and appeal.
This stimulates the customers to relate themselves with the company and develop a
customer-brand relationship while ultimately leads to brand loyalty. Apart from this Levis
also offers good quality at fair price and loyalty points to foster brand loyalty. As regards to
the strategies maintained by Pepe Jeans, the findings from the survey indicate that it offers
good quality at fair price, and this motivate majority of its customers to be loyal to the brand.
Apart from this, the company also aligns its brand personality with the consumers’ self
image to foster better relationships. Few customers also emphasise that its activities relating
to feedback sharing/customer engagement also stimulate them to remain loyal to the brand.
Findings from the survey (Q15) also reveal that most of the customers, from both the
companies are emotionally attached with the brands, which strengthen the customer-product
involvement, and helps to maintain brand loyalty.
Findings from the managerial interview (Q1) indicate that Levis maintains good quality
combined with competitive price to increase brand loyalty. It also provides emotional
benefits to customers by offering original jeans’ that create a brand personality matching
customers’ feelings. The manager also stressed on providing innovative design and
technology at fair price that helped to win customer trust was also a strategy. However a very
small percentage of customers in the survey believed that the company (Levis) strives to
build trust. The manager of Pepe Jeans revealed (Q1) how the use of ‘story telling’ helped to
communicate the brand values, brand personality and represent youth with a strong attitude,
through advertisement. Providing loyalty discounts on selected range of products was also a
strategy to foster brand loyalty.
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To critically analyse whether brand loyalty leads to customer satisfaction
Good experience with the brand increases brand loyalty, and such customers are likely to be
satisfied as identified from the survey (Q9). The survey (Q13) also revealed that increased
loyalty towards the brand led to higher customer satisfaction, and satisfied customers were
more likely to recommend the brand to others (Q14). Managerial interview (Q2) also helped
to understand whether brand loyalty influenced customer satisfaction, to which, the manager
of Levis’ believed satisfied customers tend to be loyal to the brand. The manager clearly
explained how brand loyalty and customer satisfaction were two different concepts, but
related to each other. However, the manager mainly stressed that satisfied customers were
more likely to be brand loyal, and loyal customers would not quit the brand, whereas a
satisfied customer may. The manager also explained customer satisfaction to be an emotional
attribute of a brand loyal customer; however, not all brand loyal customers may exhibit signs
of satisfaction. The manager of Pepe Jeans (Q2) explained that customers loyal to a brand is
undeniably a satisfied customer, however, a satisfied customer may not be brand loyal.
However, the manager also clarified that brand loyal customers are more satisfied. Hence,
findings from the survey and interview indicate that brand loyalty leads to customer
satisfaction, however, this cannot be generalised for all customers.
To identify the challenges faced by the companies in keeping customers satisfied and
give suitable recommendations
Findings from the survey indicate that most of the customers do not always have a good
experience with the brand (Q10), while many customers feel that they are not emotionally
connected to the brand (Q15). Survey (Q17) also indicates that a fair percentage of
customers, from both the companies, reveal higher dissatisfaction with the respective brands.
Findings from the survey (Q18) also indicate that low brand engagement was a major cause
for most customers that led to dissatisfaction (for Levis) while in case of Pepe jeans it was
poor customer services. Other reasons for lack of customer satisfaction were failure to meet
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customer expectations, and rude staff members for these brands. At the same time, findings
from (Q12) reveal that none of the brands strive to build trust between the customer and the
brand, although managerial interviews reveal building trust with the customers.
Findings obtained from the interview (Q3-Levis) also indicate that rapidly changing fashion
and shorter product life cycle was challenge that led to customer dissatisfaction, as it was
difficult to make available the trendiest product at the right time (Levis). This made it
difficult to achieve customer repeat purchase, and therefore foster brand loyalty. Another
challenge was identified in terms of tailoring the marketing strategies according to the
expectations of each customer, and keeping them satisfied. Winning customer trust was
another challenge despite offering best quality and value for money, as disclosed by
manager, and this made it difficult to satisfy customers and achieve brand loyalty.
Managerial interview (Q3-Pepe Jeans) emphasised on cut throat competition in the fashion
industry, wherein, it was difficult to retain even the most loyal customers. Providing a good
customer experience and customer delight was challenging, despite offering best quality and
price. Hence, even the loyal customers did not exhibit their satisfaction with the brand. In
context of these shortcomings the following recommendations are given in the next section --
5.2 Recommendations
Customer Engagement
Findings from the survey clearly indicate that low brand engagement is one the major factor
that leads to dissatisfaction for most of the customers of Levis and several for Pepe Jeans as
well. Engagement and feedback sharing was also identified to be an area that was not given
much importance, as per the survey. Hence it is strongly recommended that the companies
implement appropriate marketing strategies to strengthen customer engagement. Engagement
will make it possible to understand the expectations of each customer, as far as possible, and
tailor the marketing strategies accordingly. Meeting customer expectations, providing them
with superior customer services, and maintaining friendly customer service representatives
will better engagement, more satisfaction and increased brand loyalty.
Create strategies to win customer trust
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Findings from the survey indicate that both the companies hardly make any attempts or
strive to win customer trust. However, review of the literature identifies trust to be one of the
most important construct to achieve customer loyalty, followed by achieving their repeat
purchase behaviour. Both, Levis and Pepe Jeans need to provide reliable customer services,
and win customer advocacy for the brand, thereby leading to higher satisfaction.
Exceed customer expectations
Findings from the survey indicate that failure to meet customer expectations is one of the
reasons that lead to customer dissatisfaction. This was also identified as challenge in the
managerial interview. Hence it is strongly recommended that the companies take strategic
steps to ensure their product and service offerings exceed customer expectations, leading to
customer delight. This will increase the customers’ loyalty towards the brand and increased
satisfaction level.
5.3 Limitations of the study
The current research was a cross sectional study and hence the primary research was carried
out on a single set of respondents in a defined period. It was not possible to carry out a
longitudinal research due to time constraints. A longitudinal research could have helped to
conduct the same research with different sets of respondents over a prolonged period of time,
therefore maintaining higher consistency in findings. Moreover, the managers of the chosen
companies, due to their hectic time schedule, could only give 40-50 minutes of their time to
answer only three questions.
5.4 Scope for future research
The findings obtained from this research can be used as a secondary source of material by
future scholars intending to understand how brand loyalty leads to customer satisfaction.
However scope lies in terms of conducting elaborate research in the area of customer/brand
engagement, customer services, and building trust based relationship to achieve brand
loyalty and identifying how it leads to customer satisfaction.
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Appendix A -- Survey questionnaires
Q1.)What is your gender?
Male
Female
Q2.)Which age group do you belong to?
Below 25
Between 25-30
Between 31-35
Between 36-40
Between 41-45
Above 45
Q3.) For how long have you been purchasing from this brand?
Less than 1 years

Around 1-2 years
Around 2-3 years
Around 3-4 years
Around 4-5 years
More than 5 years
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Q4.) What is your idea about a brand?
Name/Term
Logo
Symbol/Design
Shape/colour
Combination of all above
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Q5.) Which of these elements, according to you, are characteristics of a strong brand?
Innovativeness
Superior quality
Attractive price
Product performance
Trust and confidence
Others
Q6.) Do you agree that a brand failing to meet your expectations is a source of
dissatisfaction?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Q7.) If the brand/product performance is acceptable, however, fails to meet your

expectations, does it still satisfy you?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Q8.) Do you agree that good experience with a brand definitely leads to customer
satisfaction?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Q9.) How far do you agree that you always have good experience with the brand?
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Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Q10.) Do you agree that satisfaction with a brand stimulate you to make repeat
purchase from the same brand?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Q11) Which of these strategies are maintained by the company to achieve customer
brand loyalty?
Loyalty points/discounts
Feedback sharing/Engagement
Good quality at fair price
Match the brand personality with
customers self-image
Strives to build trust
Q12.)Do you agree that increased loyalty towards the brand leads to higher
satisfaction?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
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Q13.)Do you agree that you are satisfied enough with the brand to recommend it to
others?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Q14.)Do you agree that you feel emotionally connected to the brand (Levis/Pepe
Jeans)?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Q15.)Do you agree that you will still purchase from the brand (Levis/Pepe Jeans) even
if the price is increased in comparison to similar other brands?
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Q16.) How will you rate your overall satisfaction with the brand (Levis/Pepe Jeans)?
Very satisfied
Satisfied
Neutral
Dissatisfied
Very dissatisfied
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Q17)Which of the following are the core reasons that often leads to dissatisfaction with
the brand?
Failure to meet expectations

Low brand engagement
Poor customer services
Unfair price
Inflexible/Rude staff members
Low quality products
APPENDIX B – Interview Questions
Q1 ) What are the current strategies to achieve customers’ loyalty towards the brand?
Q2) Do ‘brand loyal’ customers demonstrate higher signs of satisfaction?
Q3) How challenging is maintaining brand loyalty and achieving customer satisfaction?
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IMPACT OF BRAND LOYALTY ON CUSTOMER SATISFACTION Levis and Pepe Jeans based in the U.K.

Dissertation submitted in partial fulfilment

for degree of MSc in International Business

IMPACT OF BRAND LOYALTY ON CUSTOMER SATISFACTION

(Foujia Mannan Keya)

25th November 2016

1.2 Background and context

1.3 Rationale of the study

1.4 Research aim

 To understand the relationship between brand loyalty and customer satisfaction

 To critically analyse whether brand loyalty leads to customer satisfaction

1.4.2 Research question

What is the impact of brand loyalty on customer satisfaction?

1.5 Research Methodology

1.6 Research structure of the work

1.7 Conclusion of this chapter:

2.2 Concept of Brand:

2.3 Brand Equity Model

In academic literature, brand equity is identified as a multidimensional construct; consisting

2.4 Brand Image:

2.5 Perceived brand quality:

2.6 Brand experience:

2.7 Brand switching cost:

2.8 Brand loyalty

2.9 Fashion as a brand:

2.9.1 Fashion cycle:

Figure 1: Product Life Cycle of a Fashion brand

(Source: Salinas, 2011, p.11)

(Source: Harris, 2010, p.54)

2.9.2 Fast fashion:

2.10 Customer satisfaction:

2.11 Customer satisfaction theories

2.11.1 Assimilation theory

2.11.2 Contrast theory

2.11.3 Assimilation-Contrast theory

2.11.4 Negativity theory

2.11.5 Disconfirmation Theory

2.11.6 Cognitive Dissonance Theory

Figure 3: Cognitive Dissonance Theory

(Source: Harmon-Jones et al. 1196, p.378)

2.12 Customer satisfaction and Brand loyalty (Differences)

2.13 KANO model of customer satisfaction

Figure 4: KANO model of customer satisfaction

(Source: Lin & Niu, 2009, p.28)

2.14 Customer product involvement:

2.15 Relationship between customer satisfaction and brand loyalty

be necessary antecedent/precursor of customer loyalty (Erciş et al. 2012). Earlier research

Figure 5: Relationship between customer satisfaction and brand loyalty

(Source: Martisiute et al. 2010, p.15)

The achievement of customer satisfaction is identified as an antecedent to build brand equity,

According to Anderson et al. (2004), customer satisfaction is predicted to be a customer

2.16 Conclusion and Conceptual framework:

Figure 5: Conceptual Framework

(Source: Author created)

loyalty. However, customer satisfaction is achieved if a brand reflects the customer’s

3.2 Methods outline

Data collection strategy Survey – structured

The type of investigation in a research may be exploratory, explanatory or descriptive

Data collection plan

3.3.1Justification for choosing descriptive research

Epistemological standpoint provides three perspectives in terms of philosophical

3.4.1 Justification for choosing positivism

3.5 Research approach