Journal Of Sociological Research 2022
This assignment requires your group to undertake the process of analysing one organisation and its operating environments from a marketing perspective.
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Added on 2022-09-21
Journal Of Sociological Research 2022
This assignment requires your group to undertake the process of analysing one organisation and its operating environments from a marketing perspective.
Added on 2022-09-21
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Journal of Sociological Research
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr327
The Comparative Analysis of the Factors Effecting
Brand Loyalty towards Samsung Products
Muhammad Ramiz
Department of Management Sciences, The Islamia University of Bahawalpur (Pakistan)
Muhammad Qasim
Department of Management Sciences, The Islamia University of Bahawalpur (Pakistan)
Muhammad Rizwan (Corresponding author)
Lecturer, Department of Management Sciences,
The Islamia University of Bahawalpur, Pakistan
E-mail: rizwan.arshad@iub.edu.pk
Faizan Aslam
Department of Management Sciences, The Islamia University of Bahawalpur (Pakistan)
Ammar Khurshid
Department of Management Sciences, The Islamia University of Bahawalpur (Pakistan)
Doi:10.5296/ jsr.v5i1.6569 URL: http://dx.doi.org/10.5296/ jsr.v5i1.6569
Abstract
Two conditions consistency levels of purchase for specific brand over the span of time imply
on brand loyalty. The most precious asset of an organization as there is neck to neck
competition in the market and it is essential for the survival of companies. Aims of this
research are basically to spot what kinds of factors influence brand loyalty in Pakistan. Six
preceding factors influence the consumer’s brand loyalty. By using self-administered
questionnaires we collected data from our 152 respondents. For regression analysis we
entered all that that data into SPSS and do analysis also. Results of our study show significant
relationship of brand image, brand trust, customer satisfaction, perceived quality, purchase
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr327
The Comparative Analysis of the Factors Effecting
Brand Loyalty towards Samsung Products
Muhammad Ramiz
Department of Management Sciences, The Islamia University of Bahawalpur (Pakistan)
Muhammad Qasim
Department of Management Sciences, The Islamia University of Bahawalpur (Pakistan)
Muhammad Rizwan (Corresponding author)
Lecturer, Department of Management Sciences,
The Islamia University of Bahawalpur, Pakistan
E-mail: rizwan.arshad@iub.edu.pk
Faizan Aslam
Department of Management Sciences, The Islamia University of Bahawalpur (Pakistan)
Ammar Khurshid
Department of Management Sciences, The Islamia University of Bahawalpur (Pakistan)
Doi:10.5296/ jsr.v5i1.6569 URL: http://dx.doi.org/10.5296/ jsr.v5i1.6569
Abstract
Two conditions consistency levels of purchase for specific brand over the span of time imply
on brand loyalty. The most precious asset of an organization as there is neck to neck
competition in the market and it is essential for the survival of companies. Aims of this
research are basically to spot what kinds of factors influence brand loyalty in Pakistan. Six
preceding factors influence the consumer’s brand loyalty. By using self-administered
questionnaires we collected data from our 152 respondents. For regression analysis we
entered all that that data into SPSS and do analysis also. Results of our study show significant
relationship of brand image, brand trust, customer satisfaction, perceived quality, purchase
Journal of Sociological Research
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr328
criteria and advertising spending on brand loyalty. These factors influence the green purchase
intention. Our study is a vital source for the national and international marketers to collect
information how different factors effect consumer’s brand loyalty.
Keywords: brand loyalty, brand image, brand trust, customer satisfaction, perceived quality,
purchase criteria and advertising.
1. Introduction
Brand loyalty is the level by which consumers continue to purchase the same brand within a
product or service category. "The unfair behavioral reactions, expressed over time, out of a
set of such brands, and is a function of emotional (decision making, evaluative) processes by
some assessment of making elements, with respect to one of more alternate brands." Brand
loyalty defines the consumers are willingness to pay high prices to a definite brand in the
same manufactured goods faction and direct people around him to purchase that product
(Glidden’s, 2002).
The improved sales and the capability to charge premium prices are the effect of brand
loyalty. In other words, brand loyalty can be considered as the extent to which a customer
makes repeated purchase. Many factors influence brand loyalty and it is a complex process.
The purpose of our research is to investigate the factors affecting the brand loyalty
specifically perceived quality, brand image, brand trust, purchase criteria, advertising
spending and customer satisfaction.
Coming on top of the list is the brand image or the identity of the brand plays a very
important role in differentiating a brand from its competitors and helps building up new
costumers as the studies has shows that in the wide variety of brand the customers choose the
most prominent and oldest ones as they have strong brand image but it take trust to build up
the image of the brand.
The perceived quality is also among the most vital factors that influence the most. It is the
customer’s observation about the general quality and the supremacy of the product or service
in term of its basic purpose virtual to available substitutes is perceived quality. Perceived
quality cannot essentially be independently determined, in part because it is a perception and
also involves the judgments about what is important to customers. Perceived quality could be
considered as the intangible feelings about a brand. Nevertheless, perceived quality is based
on essential dimensions that include uniqueness of the goods by which the brand is fond of
such as dependability and performance. It will be useful to identify and measure the
underlying dimensions to understand perceived quality,
Business starts and close for the customer and hence their satisfaction and dissatisfaction
matters much for running the business. Customer satisfaction is a part of customer’s
knowledge that shows a supplier’s behavior on customer’s expectation. It can only be
attained through overall good relationship between the customer and supplier. Satisfaction
has positively influence on brand trust. If the product meets the consumers desire it means
product reaches its satisfaction level. And this level enforces the consumer to revisit the same
brand again and again. An understanding of the impact of brand image, perceived quality and
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr328
criteria and advertising spending on brand loyalty. These factors influence the green purchase
intention. Our study is a vital source for the national and international marketers to collect
information how different factors effect consumer’s brand loyalty.
Keywords: brand loyalty, brand image, brand trust, customer satisfaction, perceived quality,
purchase criteria and advertising.
1. Introduction
Brand loyalty is the level by which consumers continue to purchase the same brand within a
product or service category. "The unfair behavioral reactions, expressed over time, out of a
set of such brands, and is a function of emotional (decision making, evaluative) processes by
some assessment of making elements, with respect to one of more alternate brands." Brand
loyalty defines the consumers are willingness to pay high prices to a definite brand in the
same manufactured goods faction and direct people around him to purchase that product
(Glidden’s, 2002).
The improved sales and the capability to charge premium prices are the effect of brand
loyalty. In other words, brand loyalty can be considered as the extent to which a customer
makes repeated purchase. Many factors influence brand loyalty and it is a complex process.
The purpose of our research is to investigate the factors affecting the brand loyalty
specifically perceived quality, brand image, brand trust, purchase criteria, advertising
spending and customer satisfaction.
Coming on top of the list is the brand image or the identity of the brand plays a very
important role in differentiating a brand from its competitors and helps building up new
costumers as the studies has shows that in the wide variety of brand the customers choose the
most prominent and oldest ones as they have strong brand image but it take trust to build up
the image of the brand.
The perceived quality is also among the most vital factors that influence the most. It is the
customer’s observation about the general quality and the supremacy of the product or service
in term of its basic purpose virtual to available substitutes is perceived quality. Perceived
quality cannot essentially be independently determined, in part because it is a perception and
also involves the judgments about what is important to customers. Perceived quality could be
considered as the intangible feelings about a brand. Nevertheless, perceived quality is based
on essential dimensions that include uniqueness of the goods by which the brand is fond of
such as dependability and performance. It will be useful to identify and measure the
underlying dimensions to understand perceived quality,
Business starts and close for the customer and hence their satisfaction and dissatisfaction
matters much for running the business. Customer satisfaction is a part of customer’s
knowledge that shows a supplier’s behavior on customer’s expectation. It can only be
attained through overall good relationship between the customer and supplier. Satisfaction
has positively influence on brand trust. If the product meets the consumers desire it means
product reaches its satisfaction level. And this level enforces the consumer to revisit the same
brand again and again. An understanding of the impact of brand image, perceived quality and
Journal of Sociological Research
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr329
satisfaction towards the indirect effects of advertising on brand loyalty will help managers
seize the true impact of advertising in development of brand loyalty. Advertising spending
has also positively influence on making brand trust. Price promotion was considered as
company’s offensive strategy for attracting the new customers even from the rival brands but
advertising spend has been considered as the company’s defensive strategy for retaining its
customer loyalty stated by Agrawal (1996).
On the other hand purchase criteria pave the way towards brand loyalty. It consists of the
standards over which the product is evaluated by its prospective purchaser. These principles
might relay to a product in terms of its trustworthiness, expertise, sale’s person’s credibility,
technical specifications, and the manufacturer of the product in terms of its reputation for
quality.
2. Literature review
Brand loyalty
Brand loyalty is the extent to which the customer recommends and keeps on purchasing the
same product/service. As per (Aaker 1992) it implies both favorable attitude and steady
purchase of the same brand. As proposed by (Jacoby and Olson (1970)) it was a emotional
purchase practice formed by some definite decision units who measured more than one
brands.
Guest (1942, 44, 55, 64) defined brand loyalty as an attitude behavior and a measured degree
of preference consistency and purchasing behavior. Brand loyalties develop when the brand
fits the brand image or personality of the customer or when brand offers satisfying and
distinctive profit that consumer seeks. In both instances individual affection develops towards
a brand.
In early studies, researchers usually include the repurchase for measuring the brand loyalty.
But in recent studies, some investigators indicated that for the measurement of brand loyalty
the most suitable way is to measure the affective loyalty.
Assessment of the literature showed that there are two separate approaches for investigating
brand loyalty. One estimates the direct effect of several determinants on brand loyalty. For
example, Yoo et al. (2000) investigated the mixed marketing factors over the brand loyalty.
The other approach concentrates on the indirect effects of these determinants on brand loyalty
like advertising spending affects potential of product or service quality (Kirmani and Wright,
1989; Moorthy and Zhao, 2000; Yoo et al., 2000), its role is in some ways connected to brand
loyalty signifying that rather than the advertisement itself, it is how advertising affects
customer perception of the firm that is more critical in shaping brand loyalty.
Customer satisfaction
By using a specific product satisfaction is the consumer’s positive attitude developed in the
result of his depletion understanding. Customer satisfaction is the originator of the brand
loyalty it. As (Kasmer, 2005) customer satisfaction is the assessment about the brand. All the
key factors regarding Brand loyalty effecting their judgment of repeated purchase. According
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr329
satisfaction towards the indirect effects of advertising on brand loyalty will help managers
seize the true impact of advertising in development of brand loyalty. Advertising spending
has also positively influence on making brand trust. Price promotion was considered as
company’s offensive strategy for attracting the new customers even from the rival brands but
advertising spend has been considered as the company’s defensive strategy for retaining its
customer loyalty stated by Agrawal (1996).
On the other hand purchase criteria pave the way towards brand loyalty. It consists of the
standards over which the product is evaluated by its prospective purchaser. These principles
might relay to a product in terms of its trustworthiness, expertise, sale’s person’s credibility,
technical specifications, and the manufacturer of the product in terms of its reputation for
quality.
2. Literature review
Brand loyalty
Brand loyalty is the extent to which the customer recommends and keeps on purchasing the
same product/service. As per (Aaker 1992) it implies both favorable attitude and steady
purchase of the same brand. As proposed by (Jacoby and Olson (1970)) it was a emotional
purchase practice formed by some definite decision units who measured more than one
brands.
Guest (1942, 44, 55, 64) defined brand loyalty as an attitude behavior and a measured degree
of preference consistency and purchasing behavior. Brand loyalties develop when the brand
fits the brand image or personality of the customer or when brand offers satisfying and
distinctive profit that consumer seeks. In both instances individual affection develops towards
a brand.
In early studies, researchers usually include the repurchase for measuring the brand loyalty.
But in recent studies, some investigators indicated that for the measurement of brand loyalty
the most suitable way is to measure the affective loyalty.
Assessment of the literature showed that there are two separate approaches for investigating
brand loyalty. One estimates the direct effect of several determinants on brand loyalty. For
example, Yoo et al. (2000) investigated the mixed marketing factors over the brand loyalty.
The other approach concentrates on the indirect effects of these determinants on brand loyalty
like advertising spending affects potential of product or service quality (Kirmani and Wright,
1989; Moorthy and Zhao, 2000; Yoo et al., 2000), its role is in some ways connected to brand
loyalty signifying that rather than the advertisement itself, it is how advertising affects
customer perception of the firm that is more critical in shaping brand loyalty.
Customer satisfaction
By using a specific product satisfaction is the consumer’s positive attitude developed in the
result of his depletion understanding. Customer satisfaction is the originator of the brand
loyalty it. As (Kasmer, 2005) customer satisfaction is the assessment about the brand. All the
key factors regarding Brand loyalty effecting their judgment of repeated purchase. According
Journal of Sociological Research
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr330
to (Labarbera and Mazursky, 1983)the satisfaction is found to be increased when computing
the brand loyalty in terms of repeated purchase of the same product. Satisfaction is
commonly considered in many studies (Lam, et al, 2004; Tian, 1998; Yang, 2004; Li and
Vogel song, 2003) indicate that the rapid judgment of the customers experience results the
satisfaction, the satisfaction is found to be the crucial helping element while predicting the
customer satisfaction (Rizwan et al., 2013).
We concluded from the studies that loyalty is affected by satisfaction and social variables, tha
are estimates of repurchase intention for products are predicted by satisfaction (Egret , A.
&Ulaga, 2002).. Rodriguez del Bosque and San Martin (2008) said that consumer satisfaction
is not only rational but also emotional. While in the definition of satisfaction, there are at
least two common formulations of satisfaction: transaction- specific and overall satisfaction.
Transaction-specific satisfaction is an instant post-purchase evaluative judgment and, as such,
is an affective reaction to the most recent experience with a firm (Oliver,1993). According to
transactional specific approach that contentment happens at the post-consumption stage
following a single encounter with the service provider (e.g., satisfaction with a specific
employee) (Jones & Suh 2000). According to (e.g. Ismail, Hasnah, Ibrahim, & Isa, 2006;
Da Silva & Syed Alwi , 2006; Anderson & Sullivan, 1993; Chiou et al., 2002; Bloemer &
Ruyter, 1998: Yang & Peterson, 2004)several studies confirmed that consumer's satisfaction
has positivelypartial loyalty. When customers are happy and satisfy from branded products
then they also tell others to purchase them. They are less likely to shift to other different
brand, and are likely to repeat purchase said (Bennett & Rundle-Thiele, 2004).
H-1 satisfaction has positive effect over brand loyalty
Perceived quality states the customer's observation of the overall superiority of a product or
service with respect the satisfaction of its purpose, effective to alternatives. Basically the
features and the characteristics are to fulfill the promised needs are encompassed by the
quality. According to (Olsen, 2002)Perceived quality is the common estimation of a customer
about the product or brand quality, its consistency to the values and it’s gratifying its
functions.
We can say it is “a deeply held assurance to re-buy a preferred product reliably in the future.
There is a positive relationship between brand loyalty and perceived as the studies of (Chiang,
1991; McConnell, 1968). Such type of a relationship has the potential to contribute
differentially to customer outlooks and behaviors, because the strength of brand loyalty could
be explained by perceived quality (McConnell, 1968).
The regarded effects of apparent quality over brand loyalty are direct and indirect. Perceived
quality is basically a virtual concept and changes liable on the experiences and potentials of
people. As Oliver (1999) said that perceived quality is perceptive and leads overall
satisfaction, which is an effective response. Perceived quality also affects the trust in positive
sense that more indicate to brand loyalty as per the former research by Corritore et al., (2003)
investigated the effect of perceived quality on trust.
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr330
to (Labarbera and Mazursky, 1983)the satisfaction is found to be increased when computing
the brand loyalty in terms of repeated purchase of the same product. Satisfaction is
commonly considered in many studies (Lam, et al, 2004; Tian, 1998; Yang, 2004; Li and
Vogel song, 2003) indicate that the rapid judgment of the customers experience results the
satisfaction, the satisfaction is found to be the crucial helping element while predicting the
customer satisfaction (Rizwan et al., 2013).
We concluded from the studies that loyalty is affected by satisfaction and social variables, tha
are estimates of repurchase intention for products are predicted by satisfaction (Egret , A.
&Ulaga, 2002).. Rodriguez del Bosque and San Martin (2008) said that consumer satisfaction
is not only rational but also emotional. While in the definition of satisfaction, there are at
least two common formulations of satisfaction: transaction- specific and overall satisfaction.
Transaction-specific satisfaction is an instant post-purchase evaluative judgment and, as such,
is an affective reaction to the most recent experience with a firm (Oliver,1993). According to
transactional specific approach that contentment happens at the post-consumption stage
following a single encounter with the service provider (e.g., satisfaction with a specific
employee) (Jones & Suh 2000). According to (e.g. Ismail, Hasnah, Ibrahim, & Isa, 2006;
Da Silva & Syed Alwi , 2006; Anderson & Sullivan, 1993; Chiou et al., 2002; Bloemer &
Ruyter, 1998: Yang & Peterson, 2004)several studies confirmed that consumer's satisfaction
has positivelypartial loyalty. When customers are happy and satisfy from branded products
then they also tell others to purchase them. They are less likely to shift to other different
brand, and are likely to repeat purchase said (Bennett & Rundle-Thiele, 2004).
H-1 satisfaction has positive effect over brand loyalty
Perceived quality states the customer's observation of the overall superiority of a product or
service with respect the satisfaction of its purpose, effective to alternatives. Basically the
features and the characteristics are to fulfill the promised needs are encompassed by the
quality. According to (Olsen, 2002)Perceived quality is the common estimation of a customer
about the product or brand quality, its consistency to the values and it’s gratifying its
functions.
We can say it is “a deeply held assurance to re-buy a preferred product reliably in the future.
There is a positive relationship between brand loyalty and perceived as the studies of (Chiang,
1991; McConnell, 1968). Such type of a relationship has the potential to contribute
differentially to customer outlooks and behaviors, because the strength of brand loyalty could
be explained by perceived quality (McConnell, 1968).
The regarded effects of apparent quality over brand loyalty are direct and indirect. Perceived
quality is basically a virtual concept and changes liable on the experiences and potentials of
people. As Oliver (1999) said that perceived quality is perceptive and leads overall
satisfaction, which is an effective response. Perceived quality also affects the trust in positive
sense that more indicate to brand loyalty as per the former research by Corritore et al., (2003)
investigated the effect of perceived quality on trust.
Journal of Sociological Research
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr331
H-2 perceived quality positively influence the brand loyalty and customer satisfaction
Brand image
Brand plays a very important role in discriminating a brand from its opponents and helps
making up new costumers. A brand’s image is an essential factor of brand equity, (Aaker,
1991). Keller (1993) and shows differently the brand image, brand suggestions in addition to
the favorability, might and exclusivity of these connotations. By keeping in view an image is
emotionally constructed by the consumers few basic impressions selected from the lake of
many Brands; it came into existence through an artistic course of action where the chosen
impressions are expanded, inflated, and prepared.
In making consumers release the likelihood of purchase of that brand will increase which
flourish that they need it and make its variance identity form its opponents.
By the public corporation or its manufactured goods which continuously holds a promising
image, definitely increase a better position in the market, increase market share, workable
competitive advantage, and or enactment (Park, Jaworski,&MacInnis, 1986). Even that
numerous empirical findings established that a promising image (i.e. Brand, store/retail) will
lead to loyalty (e.g. Koo, 2003; Kandampully & Suhartanto, 2000;).
The brand image is directly related to the brand loyalty due to the assistances the consumers
feels they have from the brand. Keller (1993) defined that such type of image advantages can
be grouped into experimental, useful, and demonstrative benefits, that were actually resulted
from the study of Park et al. (1986). Here, we said that the practical advantages are linked to
the intrinsic advantages of product or services utilization. For example, observed advantages
refer to "kinds of feelings by using the product or services and usually communicate the
product related qualities", whereasthe underlying needs for social approval or personal
appearance and outer-directed sense of worth and basically correspond to non-product related
attributes connected with figurative benefits.
H-3 brand image have positive effect over the brand loyalty
Advertising spending
Huge researches focuses on advertising as an ancestor of brand loyalty (Agrawal, 1996; Yoo
et al., 2000). It has very important effect in reconstruction of supposed performance and
usage experience of a particular brand (Kirmani and Wright, 1989; Moorthy and Hawkins,
2005). Since we are paying attention on the customer viewpoint we follow Kirmani and
Wright’s (1989) and adapt Yoo et al.’s (2000) conceptualization for defining advertising
spending as the perceived frequency and expenditures as the measure of consumers
perception on advertising spending..
Advertising spending plays important role in building up customers brand loyalty since it
have no direct effect over it. Store image is related to advertising spending. Even after
accounting for intended quality and price perceived quality and advertising spending are
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr331
H-2 perceived quality positively influence the brand loyalty and customer satisfaction
Brand image
Brand plays a very important role in discriminating a brand from its opponents and helps
making up new costumers. A brand’s image is an essential factor of brand equity, (Aaker,
1991). Keller (1993) and shows differently the brand image, brand suggestions in addition to
the favorability, might and exclusivity of these connotations. By keeping in view an image is
emotionally constructed by the consumers few basic impressions selected from the lake of
many Brands; it came into existence through an artistic course of action where the chosen
impressions are expanded, inflated, and prepared.
In making consumers release the likelihood of purchase of that brand will increase which
flourish that they need it and make its variance identity form its opponents.
By the public corporation or its manufactured goods which continuously holds a promising
image, definitely increase a better position in the market, increase market share, workable
competitive advantage, and or enactment (Park, Jaworski,&MacInnis, 1986). Even that
numerous empirical findings established that a promising image (i.e. Brand, store/retail) will
lead to loyalty (e.g. Koo, 2003; Kandampully & Suhartanto, 2000;).
The brand image is directly related to the brand loyalty due to the assistances the consumers
feels they have from the brand. Keller (1993) defined that such type of image advantages can
be grouped into experimental, useful, and demonstrative benefits, that were actually resulted
from the study of Park et al. (1986). Here, we said that the practical advantages are linked to
the intrinsic advantages of product or services utilization. For example, observed advantages
refer to "kinds of feelings by using the product or services and usually communicate the
product related qualities", whereasthe underlying needs for social approval or personal
appearance and outer-directed sense of worth and basically correspond to non-product related
attributes connected with figurative benefits.
H-3 brand image have positive effect over the brand loyalty
Advertising spending
Huge researches focuses on advertising as an ancestor of brand loyalty (Agrawal, 1996; Yoo
et al., 2000). It has very important effect in reconstruction of supposed performance and
usage experience of a particular brand (Kirmani and Wright, 1989; Moorthy and Hawkins,
2005). Since we are paying attention on the customer viewpoint we follow Kirmani and
Wright’s (1989) and adapt Yoo et al.’s (2000) conceptualization for defining advertising
spending as the perceived frequency and expenditures as the measure of consumers
perception on advertising spending..
Advertising spending plays important role in building up customers brand loyalty since it
have no direct effect over it. Store image is related to advertising spending. Even after
accounting for intended quality and price perceived quality and advertising spending are
Journal of Sociological Research
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr332
positively related. High brand equity is dependent on high promotional spending and store
image. Consumer gladness (e.g. pleasantness and satisfaction) is prejudiced by their previous
assessments. For example, if previous experiences from product (or quality) are pleasurable,
the upcoming experience will be even better in inducing the same level of satisfaction.
The advertising can be considered as a “defensive” policy that build brand loyalty, that helps
in retaining the brand loyal customers, and price promotions is considered as an “offensive”
policy used to attract the customers from the rival brand. The weaker brand poses little threat
on the strong brands and so they need to spend less for advertising. Instead of advertising
they focus on promotional campaigns (provided advertising is cost effective) for attracting
the weaker brand’s loyal customers of the competing brand. But on the other hand the weaker
brand had to spend on advertising for defending its market shares or retaining its existing
customers, as promotions do not help much due to the difficulty in attracting away the
stronger brand’s loyal consumers. For protection of loyal customers from the rival brands the
advertising spending is necessary. The only difference is that the weaker brand spends more
while the stronger brands spend less on advertising.
H-4 advertising spending positively influences the brand loyalty and brand image
Purchasing criteria
The attainment of customer loyalty is the most optimistic outcome as a result of customer
satisfaction. The concept of “loyalty” raised up of the term “persistence” coined by Copeland
(1923). The stage of consumer’s attitudes toward the demand, Persistence is for branded
products. Consumers do not accept alternatives when they decide to purchase a product or
service. Basically the concept of brand loyalty is widely checked in buyer and marketing
studies as a performance, an attitude, or a composite of both these concepts. According to
(Jacoby and Kyner, 1973), Brand loyalty studies showing that there are variances in
purchasing criteria among brand loyalty.
A purchase criterion has been broadly in the literature as a forecaster of ensuing purchasing.
Aaker and Keller (1990) stated thata brand with high consciousness and good image can
promote brand loyalty to consumers, hence the higher the brand awareness the higher brand
trust and purchase objective are to consumers. A well-known brand will have a higher
purchase intention than a less well-known brand, Brand loyalty is a repurchase commitment
that promises consumers will repurchase their, fortunate brands in the future and they will not
change their loyalty under any situation.
Griffin (1997) stated that loyalty and the purchase cycle by representing the repurchase loop.
When consumers purchase a product that they are not loyal to, they will purchase a different
brand of that product. Hence the loyal consumer have a tendency to purchase the same brand
that they feel a strong bond with and as long as this bond is not affected by switching factors
(Dick and Basu, 1994; Bolton et al., 2000). According to Ehrenberg (1988) states that loyalty
and switching factors do not mark the purchase choice instead it only be subject to on buyer
characteristics. Johnson (1984), on the other hand, calls the decline of brand loyalty a myth,
as neither Ehrenberg et al. (2004) nor Lal and Padmanabhan (1995) have found adequate
ISSN 1948-5468
2014, Vol. 5, No. 1
www.macrothink.org/jsr332
positively related. High brand equity is dependent on high promotional spending and store
image. Consumer gladness (e.g. pleasantness and satisfaction) is prejudiced by their previous
assessments. For example, if previous experiences from product (or quality) are pleasurable,
the upcoming experience will be even better in inducing the same level of satisfaction.
The advertising can be considered as a “defensive” policy that build brand loyalty, that helps
in retaining the brand loyal customers, and price promotions is considered as an “offensive”
policy used to attract the customers from the rival brand. The weaker brand poses little threat
on the strong brands and so they need to spend less for advertising. Instead of advertising
they focus on promotional campaigns (provided advertising is cost effective) for attracting
the weaker brand’s loyal customers of the competing brand. But on the other hand the weaker
brand had to spend on advertising for defending its market shares or retaining its existing
customers, as promotions do not help much due to the difficulty in attracting away the
stronger brand’s loyal consumers. For protection of loyal customers from the rival brands the
advertising spending is necessary. The only difference is that the weaker brand spends more
while the stronger brands spend less on advertising.
H-4 advertising spending positively influences the brand loyalty and brand image
Purchasing criteria
The attainment of customer loyalty is the most optimistic outcome as a result of customer
satisfaction. The concept of “loyalty” raised up of the term “persistence” coined by Copeland
(1923). The stage of consumer’s attitudes toward the demand, Persistence is for branded
products. Consumers do not accept alternatives when they decide to purchase a product or
service. Basically the concept of brand loyalty is widely checked in buyer and marketing
studies as a performance, an attitude, or a composite of both these concepts. According to
(Jacoby and Kyner, 1973), Brand loyalty studies showing that there are variances in
purchasing criteria among brand loyalty.
A purchase criterion has been broadly in the literature as a forecaster of ensuing purchasing.
Aaker and Keller (1990) stated thata brand with high consciousness and good image can
promote brand loyalty to consumers, hence the higher the brand awareness the higher brand
trust and purchase objective are to consumers. A well-known brand will have a higher
purchase intention than a less well-known brand, Brand loyalty is a repurchase commitment
that promises consumers will repurchase their, fortunate brands in the future and they will not
change their loyalty under any situation.
Griffin (1997) stated that loyalty and the purchase cycle by representing the repurchase loop.
When consumers purchase a product that they are not loyal to, they will purchase a different
brand of that product. Hence the loyal consumer have a tendency to purchase the same brand
that they feel a strong bond with and as long as this bond is not affected by switching factors
(Dick and Basu, 1994; Bolton et al., 2000). According to Ehrenberg (1988) states that loyalty
and switching factors do not mark the purchase choice instead it only be subject to on buyer
characteristics. Johnson (1984), on the other hand, calls the decline of brand loyalty a myth,
as neither Ehrenberg et al. (2004) nor Lal and Padmanabhan (1995) have found adequate
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