Impact of Brand Trust and Customer Satisfaction on Brand Loyalty

Running head: DISSERTATION
Impact of Brand Trust and Customer Satisfaction on Brand Loyalty
Name of the Student:
Name of the University:
Author’s Note:

1DISSERTATION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ......................... whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the............... [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

2DISSERTATION
Abstract
The aim of the research is to understand the effect of brand trust by the customers so that it can
lead to their satisfaction and increase their loyalty towards the particular brands. The problem
statement of the research is to investigate the importance of the brand image for the consumers
and how does it affect their purchase decision of the various products and services produced by
that particular business organisation. In the contemporary time, the market structure follows the
capitalist ideology where the different business organisations are required to compete with each
other in order to earn a high margin of profit. This is important because without displaying their
products and services to the people in this age of globalization and liberalization, it would
become very difficult for the different companies to increase their sale volume. The research is
conducted by the use of methodologies such as research philosophy, research design as well as
research approach. The research philosophy considered is the positivism philosophy. The
research design is the descriptive design and the research approach is the deductive approach.
The research is conducted by gaining responses from 100 customers via the use of statistical
methods such as SPSS, correlation and regression. The data analysis shows that the correlation
between the brand trust and customer satisfaction is .898 while the relationship between the
brand loyalty and the customer satisfaction is .963. This signifies a positive and strong
correlation between the variables. The regression analysis show that the p-value is 0.000, which
implies that the alternative hypothesis of the research is applicable, and that effect of brand trust
and customer satisfaction lead to the development of brand loyalty.

3DISSERTATION
Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.0 Overview................................................................................................................................4
1.1 Problem statement.................................................................................................................5
1.2 Research aim..........................................................................................................................5
1.3 Research objectives...............................................................................................................5
1.4 Research hypothesis...............................................................................................................5
1.5 Research questions.................................................................................................................5
1.6 Research rationale..................................................................................................................6
1.7 Structure.................................................................................................................................7
1.8 Summary................................................................................................................................9
Chapter 2: Literature review..........................................................................................................10
2.0 Overview..............................................................................................................................10
2.1 Conceptual Framework........................................................................................................10
2.2 Concept of brand trust.........................................................................................................11
2.3 Factors affecting brand trust................................................................................................11
2.3.1 Consistency as a factor of brand trust...........................................................................11
2.3.2 Promotion as a factor of brand trust.............................................................................12
2.3.3 Customer testimonials as a factor of brand trust..........................................................14

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2.3.4 Reputation as a factor of brand trust.............................................................................15
2.4 Concept of customer satisfaction.........................................................................................16
2.5 Factors affecting customer satisfaction...............................................................................16
2.5.1 Customer experience as a factor of customer satisfaction............................................17
2.5.2 Convenience as a factor of customer satisfaction.........................................................18
2.5.3 Logic as a factor of customer satisfaction....................................................................19
2.5.4 Responsibility as a factor of customer satisfaction.......................................................20
2.6 Concept of brand loyalty.....................................................................................................21
2.7 Factors affecting brand loyalty............................................................................................21
2.7.1 Customer service as a factor of brand loyalty..............................................................21
2.7.2 Rewards as a factor of brand loyalty............................................................................22
2.7.3 Customer satisfaction as a factor of brand loyalty........................................................23
2.7.4 Brand trust as a factor of brand loyalty........................................................................25
2.8 Benefits of brand trust and customer satisfaction on brand loyalty.....................................26
2.9 Challenges in achieving brand trust and customer satisfaction for a brand........................27
2.10 Methods of improving brand trust and customer satisfaction for achieving brand loyalty
...................................................................................................................................................27
2.11 Summary............................................................................................................................28
Chapter 3: Research methodology.................................................................................................29
3.0 Overview..............................................................................................................................29

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3.1 Research Outline..................................................................................................................29
3.2 Research Philosophy............................................................................................................30
3.2.1 Justification of the chosen philosophy..........................................................................31
3.3 Research Approach..............................................................................................................32
3.3.1 Justification of choosing the approach.........................................................................32
3.4 Research Design..................................................................................................................32
3.4.1 Justification of the research design...............................................................................33
3.5 Data Collection Process.......................................................................................................34
3.6 Techniques for data analysis................................................................................................34
3.7 Sampling techniques............................................................................................................35
3.8 Ethical consideration...........................................................................................................35
3.9 Research Limitation.............................................................................................................35
3.10 Summary............................................................................................................................36
Chapter 4: Data analysis................................................................................................................37
4.1 Overview..............................................................................................................................37
4.2 Descriptive analysis.............................................................................................................37
4.3 Inferential analysis...............................................................................................................39
4.3.1 Correlation analysis......................................................................................................39
4.3.2 Regression analysis.......................................................................................................44
4.4 Summary..............................................................................................................................48

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Chapter 5: Findings and interpretations.........................................................................................50
5.1 Overview..............................................................................................................................50
5.2 Discussion............................................................................................................................50
5.3 Summary..............................................................................................................................52
Chapter 6: Conclusion and recommendations...............................................................................53
6.0 Conclusion...........................................................................................................................53
6.1 Linking with objectives.......................................................................................................54
6.2 Recommendations................................................................................................................55
6.3 Future scope of the study.....................................................................................................57
References......................................................................................................................................58
Appendix 1.....................................................................................................................................67
Survey questionnaire.................................................................................................................67

7DISSERTATION
Chapter 1: Introduction
1.0 Overview
In the contemporary time, the market structure follows the capitalist ideology where the
different business organisations are required to compete with each other in order to earn a high
margin of profit. This is important because without displaying their products and services to the
people in this age of globalization and liberalization, it would become very difficult for the
different companies to increase their sale volume (Valtakoski 2015). One of the ways in which
this can be done is by promoting a healthy brand image of the business organisation. It is
important for the brands present in the market to create an image that is positive in nature in the
eyes of the customers so that they can be able to gain a competitive advantage over the rivals that
are present (Husseini, Zarandi and Husseini 2015). Globalization has helped most of the
companies to advertise their brands in a better manner so that the customers can be attracted
towards them. The success of the organisation depends on the degree of attractiveness that they
can create amongst the customers so that they are willing to purchase the products or the services
(Carnevale, Loureiro and Kabadayi 2018). The impact of brand loyalty can be analysed from the
fact that it enables the business to increase its sales volume which as a positive impact on the
level of profitability of the organisation. As a result, a need is felt on the part of the different
business organisations to inculcate a sense of brand trust among the different target population
who constitute the customer base of that particular industry (Alhaddad 2015). This would lead to
their satisfaction and increase their loyalty towards the particular brands.