Relationship between Brand Equity and Customer Loyalty

This research investigates the relationship between brand equity and customer loyalty, focusing on Nike. It aims to increase knowledge about brand equity, determine its influence on customer loyalty, explore ways to increase customer loyalty towards Nike, and examine strategies for improving brand equity. Brand equity is the additional value or importance that customers attach to a brand, and it has a positive impact on customer loyalty. The study will contribute to understanding the role of brand equity in maintaining customer loyalty.

Project proposal-Task 1
(An investigation into the relationship between brand
equity and customer loyalty)

Table of Contents
INTRODUCTION ..........................................................................................................................3
Aim and objectives .....................................................................................................................3
Background ................................................................................................................................3
Research questions .....................................................................................................................4
LITERATURE REVIEW ...............................................................................................................5
PROPOSED METHODOLOGY ....................................................................................................7
PROPOSED ANALYSIS .............................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Aim and objectives
Aim: Main purpose of this research is “To identify the importance of brand equity in
improvement of the customer loyalty”. A study on Nike
Objectives:
 To increase knowledge about the brand equity within an organisations.
 To determine the influence of brand equity in enhancement of customer loyalty.
 To explore ways for increasing customer loyalty towards Nike.
 To examine the strategies for improving brand equity of an organisations.
Background
Brand equity introduces to an effective value of organisation that is gains from a product
with a admired and recognisable name. In simple word, Brand Equity introduces to the additional
value or importance that a customer attaches with the brand that is innovative form all the other
brands present in the market. Customer loyalty refers to the output of systematically positive
emotional experience, sensed value of experience as well as physical attribute-based satisfaction,
that covers the services or products. Along with this, brand equity has positive impact on
customer loyalty (Foroudi and et. al., 2018). This will helps company in increasing of sales,
improving brand awareness, attracting of larger customer base, reducing marketing cost etc.
These are considered major advantages of brand equality for company in maintaining of
customer loyalty.
For this research project, Nike is a chosen multinational organisation that is engaged in
the design, creation, producing and worldwide marketing and sales of accessories, footwear,
apparel, equipment, and services. Company was founded in 1964 by Bill Bowerman, Phil
Knight. Nike has successfully developed a strong brand by attaining the pillars of brand equity,
that include: awareness of brand, brand loyalty, sensed quality and brand associations. Company
has strong brand in marketplace that helps them in improvement of its growth and success easily
and successfully.
Main rationale behind selecting this topic is to identify the role of brand equality in
maintaining of customer loyalty. This project helps at personal as well as professional level.
According to the personal level, present study support researcher by enhancing its research skills

such as time management, literature review, data collection and data analysis. With the help of
these skills, researcher will complete entire project in systematic manner. At professional level,
this study also important as it support students by improving their understanding regarding the
relationship between the brand equity and customer loyalty (Kamath, Pai and Prabhu, 2019).
Research questions
 Explain about the concept of brand equity in context of an organisations?
 How brand equity helps in improvement of customer loyalty within Nike?
 What are the effective ways for increasing customer loyalty towards Nike?
 What are the effective strategies that will helps Nike in improvement of its brand equity?

LITERATURE REVIEW
Literature review is the process of gathering secondary data from different number of
secondary sources. Sources of secondary data collection includes books, articles, publication
research and so on. These are important and essential for the researcher in collecting of
secondary data about impact of brand equity on customer loyalty (Narteh, 2018). Primary motive
of literature review is to determine the research gap in past studies. Within this project, main gap
is the impact of brand equity on customer loyalty. In previous research, there are information
available regarding the impact of brand equity, but there were lack of information regarding the
effect of brand equity on customer loyalty. For overcoming this gap, research questions will be
used. These are:
Explain about the concept of brand equity in context of an organisations?
According to the Hayes (2020), brand equity introduces to a value premium that an
enterprise generates from a product or service with a unique name. This has three important
components such as consumer perception, positive or negative effects, and the resulting value.
This has direct effects on sales volume and also an organisation's profitability as consumers
gravitate towards services and products with strong reputations. Organisations can develop brand
equity for their effective services or products or process by making them more easily
recognizable, memorable and superior within quality and reliability.
How brand equity helps in improvement of customer loyalty within Nike?
As per the view presented by Nobar and Rostamzadeh, (2018), brand equity is important
for company in improving of their customer loyalty. Nike has strong brand in marketplace that
automatically increase customer loyalty. This assist company in increment of its sales, higher
customer base, improved brand image etc. Therefore, brand equity is important and essential way
for company in enhancement of customer loyalty. Positive brand equity enables company to
charge price premiums. When customers believe within the values put forth by a brand as well as
the product quality, they will pay maximum prices to buy from that brand like Nike. In addition,
should a company want to add innovative product offerings and also marketing them within the
same umbrella brand that will assist the new product or service take off quicker, as trust has
already been established.
What are the effective ways for increasing customer loyalty towards Nike?

As per the opinion presented by Furgison (2018), there are different ways that will be
essential for company in improvement of customer loyalty. These ways are make customer
service a priority, reward customers, ask for advice and listen to it, offer conveniences etc. These
are considered more essential and significant ways for increasing customer loyalty. Along with
this offering quality product or service, offering discount on products are also essential for Nike
in improvement of customer loyalty in the marketplace. This turn to support business in its
overall growth and success.
What are the effective strategies that will helps Nike in improvement of its brand equity?
According to the Jhajharia (2020), there are different strategies that are effective and
important for Nike in improvement of its brand equity. Some strategies will be explained as
below:
Offering quality products and services: This is the backbone of the brand which is vital
for business to deliver quality products or services to their customers is they want repeat
purchase and also goof word-of-mouth. This will increase sales of the company that results in
improved brand equity.
Competitive analysis: This is another strategy that assist company in improvement or
enhancement of its brand equity. For this, company must adopt to market change because it
assist them in attainment of competitive advantages. This will be significant for company in
enhancement of its brand equity in national as well as international marketplace.

PROPOSED METHODOLOGY
Methodology is the process of collecting and analysing appropriate information regarding
the topic. There are certain type of research methodologies that helps investigator in attainment
of research objectives. These methodology will be described as below:
Philosophy of the Research: This part of research methodology essentially classified 2
forms which are called positivism and interpretivisim. According to the existing topic, positivism
research philosophy will be used because it assist research in collecting, evaluating and using of
quantitative data without taking additional time and resources.
Research Approach: Inductive and deductive are considered two types of research
approach. Deductive approach will be used for analysing quantitative data (Sánchez-Casado and
et. al., 2018). Inductive approach is not useful because it requires qualitative data that requires
maximum time and cost.
Research Strategy: There are many strategies of research including experimental, case
study, survey etc. These are main types of research strategies but according to the current project,
survey is essential. This strategy will be used for collecting primary information regarding the
importance of brand equity in improvement of the customer loyalty. Main reason for using
survey is it nor require maximum time and also provide valid outcomes that results in attainment
of research objectives.
Research choice: Qualitative and quantitative are consider two types of research. In
order to carry out present investigation, quantitative research will be applied. This will assist in
collecting of numerical data in less time. Along with this, qualitative type of methodology is not
valuable as it takes more time and also not provide numerical information.
Data Collection: Primary and secondary are two methods of data collection. According
to the current investigation, questionnaire will be used for gathering primary information,
whereas, for gathering secondary information, books, magazines, articles etc. sources will be
used for literature review (Seo and Park, 2018).
Time Horizon: This section has two types such as cross-sectional time horizon and
longitudinal time horizon. Within an investigation, cross-sectional time horizon will be applied
because it is based on actual situation and also not takes maximum time in research completion.
For this part, Gantt chart will be used as a time management tool. This are:

Sampling: It is the process which is followed by investigator for choosing sample from
the entire population. Probability and non-probability are two techniques of sample selection. In

this project, probability sampling is essential because it helps in selection of larger sample in less
period. 40 employees of Nike will be selected in random basis under the probability technique.
Research instrument: This section has various instruments like observation,
questionnaire, modelling, focus group, interview etc. In this project, questionnaire will be used
because it assist investigator in gathering of valid data in minimum time that output in
accomplishment of research objectives.
Research Ethics: There are various principles of research ethics including protection of
confidentiality and anonymity of research participants, avoid using descriptive practices, reduce
the risk of harm to participants, obtain informed consent etc. These are main principles that must
be use by researcher because it helps them in completion of research project in ethical and
systematic manner (Sürücü and et. al., 2019).

PROPOSED ANALYSIS
This is a part of data analysis that introduces as a process of analysing information about
the topic. Present study is mainly based on quantitative information and for evaluating such type
of data, frequency distribution analysis as an analytical technique will be applied. This technique
will support researcher in evaluating of quantitative information easily. By using such technique,
investigator will be able in making of frequency distribution table and after this, distributing
whole table within single table in accordance to the research question. This is essential for
investigator in attainment of research aim and objectives successfully. Along with this, Ms-
Excels software will also apply for making graphs in accordance to the research questions. This
will helps in presenting of quantitative information in graphical and effective manner.
Questionnaire of the current investigation will be shown as below:
Questionnaire
Q1) Do you have knowledge about the role of brand equity in context of an organisations?
a) Yes
b) No
Q2) How brand equity helps in improvement of customer loyalty within Nike?
a) Keep Your Eye On Quality
b) Follow Up With Your Customers Regularly
c) Collect feedback from the customers
Q3) According to you, what are the effective ways for Nike in improvement of online brand
communications?
a) Provide relevant content
b) Develop customer profiles
c) Maintain an active social presence
Q4) Why is customer loyalty significant to the success and growth of company?
a) Increase revenue
b) Create brand ambassadors
c) Defend against the competition
Q5) What are the effective ways for increasing customer loyalty towards Nike?
a) Make customer service a priority

b) Reward your customers
c) Offer conveniences
Q6) Is brand equality helps Nike in attainment of competitive benefits?
a) Agree
b) Strongly agree
c) Disagree
d) Strongly Disagree
Q7) What are the effective strategies that will helps Nike in improvement of its brand equity?
a) Providence of quality products and services
b) Proper communication about the product and services
c) Increase brand awareness
Q8) What are the main challenges of customer loyalty for Nike?
a) Limited customer engagement
b) Lack of differentiation
c) Managing loyalty currency liability
Q9) What are the important and useful ways for overcoming the challenges associated with the
customer loyalty?
a) Customer Personalization
b) Innovate around the brand experience
c) Financially sound program design
Q10) Provide any suggestions to Nike in retaining of loyal customers.

CONCLUSION
From the above mentioned information, it has been concluded that brand equality helped
company in maintaining of customer loyalty. Different activities used for achieving research
objectives such as literature review, questionnaire etc. Along with this, secondary and primary
method of data collection are useful for investigator in attainment of research aim.

REFERENCES
Books and Journals
Foroudi, P. and et. al., 2018. Perceptional components of brand equity: Configuring the
Symmetrical and Asymmetrical Paths to brand loyalty and brand purchase
intention. Journal of Business Research. 89. pp.462-474.
Kamath, P. R., Pai, Y. P. and Prabhu, N. K., 2019. Building customer loyalty in retail banking: a
serial-mediation approach. International Journal of Bank Marketing.
Narteh, B., 2018. Brand equity and financial performance. Marketing Intelligence & Planning.
Nobar, H. B. K. and Rostamzadeh, R., 2018. The impact of customer satisfaction, customer
experience and customer loyalty on brand power: empirical evidence from hotel
industry. Journal of Business Economics and Management. 19(2). pp.417-430.
Sánchez-Casado, N. and et. al., 2018. The Role of online brand communties on building brand
equity and loyalty through relational benefits. Journal of Marketing Theory and
Practice. 26(3). pp.289-308.
Seo, E. J. and Park, J. W., 2018. A study on the effects of social media marketing activities on
brand equity and customer response in the airline industry. Journal of Air Transport
Management. 66. pp.36-41.
Sürücü, Ö., Öztürk, Y., Okumus, F. and Bilgihan, A., 2019. Brand awareness, image, physical
quality and employee behavior as building blocks of customer-based brand equity:
Consequences in the hotel context. Journal of Hospitality and Tourism Management.
40. pp.114-124.
Online
Bindell, S., 2017. Tips to Enhance Brand Equity. [Online]. Available through:
<https://howtobuildabrand.org/brand-advice/8-tips-to-enhance-brand-equity/>.
Jhajharia, S., 2020. Tips to Enhance Brand Equity. [Online]. Available through:
<https://www.marketingdonut.co.uk/marketing-strategy/branding/four-ways-to-improve-
your-brand-equity>.
Hayes, A., 2020. Brand Equity. [Online]. Available through:
<https://www.investopedia.com/terms/b/brandequity.asp>.