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F063 marketing research paper.docx

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1991 Words 10738 Characters

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7 Pages 37.8KB

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Nov 2, 2022 12:18 AM GMT+5:30 Nov 2, 2022 12:19 AM GMT+5:30

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Summary
SEMESTER 1 (Academic year 2022-23)

MARKETING

TOPIC- “A study on factors affecting brand loyalty.”

SUBMITTED TO:

Dr. Parveen Kaur

Professor

NMIMS Kirit P Mehta School of Law

SUBMITTED BY:

NANDINI BHANSALI

BBA LLB (Hons.) Div F

Roll No. 63
Abstract

In the current era of fierce competition, developing brand loyalty has become a necessity.
Creating good brand loyalty has become crucial and important as it helps in gaining advantage
over competitors. This paper discusses the importance of customer loyalty towards brands and
discusses the various factors that affect brand loyalty. This study examines the way different
factors like brand name, product price, quality of product and brand trust influence the loyalty
of customers towards a particular brand. The paper first talks about what is brand loyalty and
how it is important for businesses in today’s world of growing competition. It further reviews
studies done by other researchers and assesses the ways in which different factors influence
building of brand loyalty. The findings of our study demonstrate a considerable association
between brand loyalty and customer happiness, perceived quality, purchase price, brand image,
and brand trust. The study is intended to give some light on how to do empirical research, help
scholars construct conceptual frameworks, and help practitioners rationalise market strategies.

Introduction

There is no way to overestimate how crucial brand loyalty is for businesses. The extent to
which customers stick with the same brand within a certain product or service category is
referred to as brand loyalty. Creating a strong brand equity is important for businesses and also
academic researchers as it helps marketers in building an advantage over other brands. Given
the importance of branding and the fact that practically every marketing activity aims to create,
manage, and capitalise on brand equity, gaining further understanding of brand loyalty and its
effects is crucial. Companies must be aware of their consumers' requirements, wants, and
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demands in order to increase customer satisfaction and loyalty. When consumers view a
particular brand favourably, they may be more likely to be loyal, as evidenced by their intention
to purchase the product as their first choice. As a result, the company may gain a competitive
edge in the market over other marketers. For an improved practise of brand management,
managers must have a deeper understanding of the idea of brand equity and its effects on
customer brand loyalty. Thus, it becomes essential for firms and businesses to build a strong
and good relation with the consumers.

In order to gain high customer loyalty and build a good brand image it becomes vital to look
into factors that effect brand loyalty. Since over 30 years companies have started focusing more
on building brand loyalty rather than just being profit making companies. There are many
factors that influence a consumer’s loyalty towards a brand like brand name, brand image, price
of product and quality of product. It is essential for firms to take into consideration these
various factors that may affect the loyalty of customers towards their brand. Hence this studies
analysis and extracts the various factors that brands and researchers use in order to build a
strong brand image and increase loyalty of consumers towards their brand. With this, it seeks
to inform decision-makers about the most important elements that influence brand loyalty.

Keywords

Brand loyalty, brand trust, customer satisfaction, customer loyalty, brand image, product price
and quality.

Research questions

i. What are the factors that lead to build trust in between the customer and the
company?
ii. How and what factors influence customer’s loyalty towards the brand?
iii. How can marketers create a good brand image and increase brand loyalty?

Research objectives
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i. To understand the factors that leads to build brand trust in between the customer
and the company.
ii. To determine the factors that drive customer brand loyalty and to examine the
influence and impact of those elements on brand loyalty.
iii. To help researchers in the decision-making process by assessing all factors that
influence brand loyalty.
Hypothesis

Product characteristics have long been emphasised as having a big impact on brand loyalty. In
actuality, the messages consumers are exposed to frequently emphasise product benefits. It is
believed that a brand's characteristics are required for consumers to like it and keep buying it.
As a result, it is anticipated that customers will be more devoted to a brand if they receive
certain functional benefits from it. We therefore hypothesise that:
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H1: There is a positive relationship between Brand Social Responsibility Image and Brand
Loyalty.

H2: Word-of-mouth (WOM) and brand trust are positively correlated.

H3: Product Quality and Brand Loyalty are highly correlated.

H4: There is a positive relationship between Brand Name and Brand Trust.

H5: Consumer’s price consciousness will have a negative relationship with brand loyalty.

Review of literature

Putro et al. (2014) believed that “when someone already has a loyal attitude, he will have a
positive view on a brand, have a commitment to the brand, and will repurchase it in the future”.
1
When customers are not loyal to a product that a company has released, it is inevitable that
customers will switch to other items, making customer loyalty crucial for good corporate
6
services and goods to improve revenues. According to him, customer loyalty must be built
through a learning process and based on the experiences of the customers themselves from
regular purchases over time. It cannot be established in a short period of time. “Customer
loyalty is an important element of the company, the success of the company's profitability is
influenced by customers with the highest loyalty” (Surahman et al., 2020). The business owner
must prioritise improving service quality in order to maximise client satisfaction and encourage
repeat business. The study's findings revealed a favourable and significant relationship between
customer satisfaction and customer loyalty. Increased customer pleasure will also result in
greater customer loyalty. On the other hand, declining customer pleasure will result in declining
customer loyalty.
Ganesh et al., 2000 speaks about brand trust and says “Brand trust creates satisfaction, and is
well researched for consumer services”. The research says that customers that have faith in a
brand are more likely to be loyal to it, which breeds dedication and associations between the
customer and the brand, which in turn fosters highly valued trading relationships. The results
show that, it is crucial to consistently uphold the value of the relationship with customers
4
through customer commitment of loyalty that comes from brand trust. Over time, loyal
customers build businesses by buying more, paying premium prices, and providing new
referrals through positive word of mouth.

According to the study by Malik, Ghafoor, & Iqbal (2012) the price of a service can have
significant influence on the perception of quality and satisfaction. The price aspect has a direct
2
impact on client satisfaction as well. Customer satisfaction is positively impacted by pricing
fairness, but the susceptibility of the customer may have a negative impact on how fairness is
7
viewed. Customers are happier when they pay a fair price. They clarified that pricing is crucial
for retaining clients and fostering customer pleasure, which boosts revenues for all firms. As
per results, in order to increase customer satisfaction, service companies should manage their
customers' perceptions of price by offering them realistic, alluring, and affordable prices
without compromising quality. Fairness in pricing has an impact on consumer sentiments and
behaviour. Customers may act negatively if they feel that the price being offered is
incompatible with their budget or is not realistic.

Hasan et al. (2013) defined that “service quality affects loyalty”. According to this study,
retaining customers depends on a variety of factors, including product quality, cost, and service
calibre. The research says that Customer happiness and loyalty are mostly influenced by service
quality. Consequently, customer loyalty will increase as service quality improves. The findings
show that customer happiness and service quality have a strong positive link. It therefore
supports what other literature has attempted to imply here, namely that by enhancing service
quality, it may perhaps enhance customer pleasure.

Brand name is a crucial component of brand equity that is occasionally used as a synonym for
the identity or perception of a product. According to study by Kohli and Thakor, 1997. The
brand name plays a key role in rationally capturing the relationship between the product and
the consumer. It also serves as a very effective means of communication for projecting a
favourable image of the product to the public. Branded goods are distinctive from those of
competitors and give manufacturers a competitive edge and create brand loyalty towards the
products from that particular brand.

Research methodology

This research paper used an analytical research approach, and the researcher relies on
secondary data for the investigation. For sourcing trustworthy material, the researcher turned
to books, case studies, Scopus journals, and online pieces. This research hasn't used any
primary data.

Findings

The findings of this study are based on the various articles that have been reviewed and
mentioned in the references. The study was done in order to identify and examine various
factors that build or decrease consumer loyalty towards the brand. According to the research
done these various factors include brand name, product quality, brand social responsibility and
consumers price consciousness. Service quality has a direct relation with brand loyalty as
proved by Hasan et al. (2013). It says that better the quality of the product more is the trust of
the consumer towards the brand. Brand name is also an important factor influencing brand
image. The results demonstrate that there is a strong correlation between perceived quality and
the high quality and dependability of the brand, as these are the main factors that influence
consumer brand loyalty. When a brand has a good name in the market consumers are more
likely to purchase their products in comparison to other brands. It also is an effective way of
projecting a favourable image in front of the public about the brand. One of the key elements
influencing a customer's decision to buy and stick with a brand is brand image, which is the
distinct identification of a brand in the presence of competitors in the customer's mind. The
study also shows the relation between price and consumer trust. A consumer is always attracted
to products that are cheaper and have a good quality. Price consciousness of consumers during
purchasing often has a negative impact on brand loyalty. Through this research we have been
able to assess and prove the five hypothesis statements defining the relation between various
factor and brand loyalty. When a customer has trust on a brand there is a high tendency of them
coming back to the brand for the same or similar products. A happy customer is more likely to
purchase a product from the same brand again, which increases brand loyalty. Customers are
more inclined to continue buying a brand when they believe it to have good value for them.

Conclusion

In conclusion, the study outlines the critical elements that are necessary and essential in the
growth of consumers' trust and loyalty towards the brand. In the current study, various brand
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equity characteristics were discussed, including brand name, brand trust, brand social
responsibility, perceived quality, word of mouth, and brand knowledge that affect the brand
loyalty of an organization. The purpose of the current study was to highlight the critical
elements of brand equity to help marketing managers create innovative concepts and distinctive
goods and services in order to gain more consumer trust and confidence in the brand. Customer
loyalty is vital for future growth. Organizations must make an effort to ensure that customers
desire to maintain their loyalty because consumer demand can change quickly. According to
the study's findings, there is a significant and favourable correlation between customer loyalty
and brand name, service quality, and brand recognition and there is negative correlation
between price of product and customer loyalty. This study hopes to help markers in building a
good brand image and increasing brand loyalty.
 Similarity Report ID: oid:9832:25921876

9% Overall Similarity
Top sources found in the following databases:
5% Internet database 1% Publications database
Crossref database Crossref Posted Content database
8% Submitted Works database

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Nelson Mandela Metropolitan University on 2022-07-29

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Trinity College Dublin on 2022-07-10

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Monash University on 2022-09-14

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journals.sagepub.com
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pdfs.semanticscholar.org
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bircu-journal.com
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University of West London on 2022-07-17

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Rajiv Gandhi Indian Institute of Management on 2018-10-01

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