Role of Brand Loyalty in Building Bran Equity: A Comparative Study of Consumer Involvement Levels (original) (raw)
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Proceedings of the 2017 International Conference on Organizational Innovation (ICOI 2017), 2017
The prior research indicated there were significant relationship between customer involvement, brand equity, and customer loyalty. The purpose for the study was to find out how customer involvement mediates the relationship between brand equity and customer loyalty. The participants for this research were selected as the consumers having the shopping experience for smart phone in Taiwan, resulting in 182 individual surveys for this research. The results supported hypothesis and revealed brand equity and customer involvement had significant and positive relationship with customer loyalty, while customer involvement has partial indirect effect on customer loyalty in path analysis. Finally, this research generated the suggestions for business strategies and suggested future scholar studies.
Critical Review of Literature on Brand Equity and Customer Loyalty
International Journal of Business, Economics and Management, 2020
Brand equity is recognized as the driving force of customer loyalty in the competitive firms operating in the changing business environment. The culture of attracting and retaining customers is dependent on which organization can enhance the value of their products to conform and exceed customer needs. By extension, brand equity is regarded as a multi-dimensional facet that comprise of brand loyalty, brand awareness, brand association, perceived quality, brand association and proprietary assets. Theories and models which have been discussed extensively and inform the basis of arguments of this study include; brand equity theory, consumer utility theory, customer based brand equity model, service branding dominant logic model and brand evolution model. Despite conflicting ideologies and evolving nature of brand equity based on psychological aspects of consumers like attitudes and perceptions, it is noted that that there is a positive correlation between brand equity and customer loyalty. Based on the existing literature, it can be concluded that brand equity is the only strategic marketing initiative companies can enhance customer relations and sustainability. Therefore, it is recommended that companies should always strive to enhance their image in the mind of consumers by repositioning their brands in the market. Contribution/Originality: This study contributes to existing literature by developing the link between brand equity, company attributes, customer attributes and customer loyalty. 1. INTRODUCTION In a world of global competition and changing consumer needs, brands have continued to remain strategic drivers among competitive firms operating in the global and local marketplaces (Kapferer, 2008). Organizations are using brand management strategies to achieve their goals in the changing business environment (Kotler & Keller, 2009). Increased competition in multiple industries has resulted to enhanced brand management techniques which focus on enhancing customer loyalty (Martens & Hilbert, 2011). With changing customer needs and wants, brand management has continued to evolve since 1980s. Companies operating in the 21 st century have continued to invest in brand management in order to increase their productivity. Calvo and Calvo (2012) suggest that a brand is understood by customers based on different perspectives that range from psychological aspects and organizational attributes. Product and services can receive a distinct identity in the mind of consumers by fulfilling the expectations of the consumer. Argues that consumers are likely to have a permanent memory stick of brands that exceed their expectations and vice versa. Internal and external stakeholders are likely to have a strong attachment
Mediterranean Journal of Social Sciences, 2014
Brand is not only a name but it is a representative of a product class. Sometimes, a product's name is embedded in consumers' minds so firmly that consumers forget it is only a name and view it as equal to a product and service. Brands are considered as being very important in market. They are joints between consumers and companies. Loyalty to a brand is created when a customer believes that a brand reflects some aspects of his or her perception. If a brand establishes symbolic relationship with customers, they will be attracted to the brand and trust in the brand and become loyal to it. They will buy the product and believe in its supremacy. The present research tries to investigate the impacts of brand experience on satisfaction with brand and brand experience on trust in brand and in general, it investigates the impacts of brand purchase involvement, brand trust, satisfaction with brand and brand experience on loyalty to brand. The present research is a descriptive study and simple random sampling method was used to pick sample members. 282 questionnaires were collected. Structural equations modeling method was used to analyze data. PLS software was used for analysis because data distribution was not normal. Results showed that brand experience has direct influence on satisfaction with brand, trust in brand and loyalty to brand. Further, satisfaction with brand, trust in brand, pleasure with brand purchase and brand symbolic value have direct impacts on loyalty to brand.
The Impact of Brand Equity on Brand Loyalty: The Mediating Role of Customer Satisfaction
The study investigates the impact of brand equity on brand loyalty with the mediation of customer satisfaction in restaurant sector of Lahore, Pakistan. The study uses seven dimensions of brand equity, which include physical quality, staff behavior, ideal self-congruence, brand identification, life style-congruence, trust and environment. Questionnaire has been used to collect the data from the customers using restaurants as a choice for their food demand. The data has been collected from 400 respondents and analyzed through SPSS and AMOS. All hypotheses have been supported except last hypothesis which has been partially supported. The effect of life style-congruence and environment has not been fully mediated by customer satisfaction and has proved insignificant, therefore these two variables have been dropped from modified model fit. It has found that the effect of physical quality, staff behavior, ideal self-congruence, brand identification and trust on brand loyalty has been fully mediated by customer satisfaction in case of Lahore. The study will enable the managers to change policies and to train the staff so they can satisfy the customers which in turn would make customers loyal with the organization. The study is limited only to the fast-food restaurants situated in the city of Lahore only. Future studies can be conducted across different type of businesses and cultures. This paper provides a basis to study the effect of trust on brand loyalty with mediation of customer satisfaction and offers practical help for managers to train employees which could enhance customer satisfaction and loyalty.
Brand equity, brand loyalty and consumer satisfaction
Annals of Tourism Research, 2011
This study aims to investigate the mediating effects of consumer satisfaction on the relationship between consumer-based brand equity and brand loyalty in the hotel and restaurant industry. Based on a sample of 378 customers and using structural equation modelling approach, the five dimensions of brand equity-physical quality, staff behaviour, ideal selfcongruence, brand identification and lifestyle-congruence-are found to have positive effects on consumer satisfaction. The findings of the study suggest that consumer satisfaction partially mediates the effects of staff behaviour, ideal self-congruence and brand identification on brand loyalty. The effects of physical quality and lifestyle-congruence on brand loyalty are fully mediated by consumer satisfaction. Keywords: brand equity, customer satisfaction, brand loyalty. Ó
SSRN Electronic Journal
The main objective of this study is to empirically examine the interrelationships between the brand equity dimensions and to identify which factors are influential in building brand equity. Brand awareness, perceived quality, brand association, brand image and brand loyalty; the most researched and cited brand equity dimensions are hypothesized to contribute to brand equity. The results present interesting implications.
Brand Equity and Consumer Responses: Conceptual Framework and Preliminary Testing of Scales
2019
This study aims to review the literature relating to brand equity and customer responses. The relationships between brand equity dimensions and brand equity, as well as the impact of brand equity on consumer responses, are shown through a proposed model. Based on extant literature and previous empirical research, the following hypotheses are postulated: (1) brand awareness, perceived quality, brand associations and brand loyalty have a positive influence on overall brand equity; (2) overall brand equity has a positive influence on willingness to pay a price premium, attitude towards extensions, brand preference, purchase intention and customer satisfaction; and (3) brand preference has a significant positive effect on purchase intention. Moreover, this paper also aims to test the initial scales of research concepts that are adopted from previous studies. Some suggestions for future research are also provided.
The Effect of Consumer-Based Brand Equity and Satisfaction on Loyalty: An Empirical Study
Jurnal Economia, 2019
Economic growth in Indonesia encourages the growth of many industries. Specifically, the food and beverage industry has grown significantly in Indonesian economics. Coffee shops with foreign or local brands are growing and competing for having customer loyalty. Many research has been conducted to examine customer loyalty in a particular coffee shop. However, little research has been focused on comparing both local and foreign brand names of the coffee shop. The comparative study is needed to understand whether foreign or local brand names matter in predicting both customer satisfaction and loyalty. This research uses a quantitative paradigm using descriptive research type. The object of research is Starbucks (foreign brand) and Djournal Coffee (local brand). Data were collected through questionnaires distributed by applying judgemental sampling. Data analysis was conducted by using structural equation model (SEM). In this study, there are two unsupported hypotheses namely (1) the relationship between the ideal self-congruence and customer satisfaction, and (2) the relationship between brand identification and customer satisfaction. The study also provides theoretical contributions, managerial implications and suggestions for further research.
International Journal of Management Studies, 2019
In this study, authors developed a theoretical framework for examining the relationship between brand satisfaction, customer brand engagement (CBE) dimensions and brand equity in the context of hedonic brands and utilitarian brands. Three dimensions namely cognitive processing, affection and activation were used to measure customer brand engagement. On the basis of theoretical evidences, the results reveal that brand satisfaction and CBE dimensions have a differing impact on brand equity. Theoretical implications and avenues for further research were also discussed.