Importance of Brand Loyalty - PDF

RESEARCH
PROJECT

Table of Contents
CHAPTER 1 INTRODUCTION.....................................................................................................3
Background of company.............................................................................................................3
Statement of problem .................................................................................................................3
Aim and Objectives of Research.................................................................................................4
Objectives....................................................................................................................................4
Research Questions.....................................................................................................................4
Rational of research.....................................................................................................................5
Statement of problem .................................................................................................................5
CHAPTER 2: LITERARATURE REVIEW...................................................................................6
Concept of Brand Loyalty...........................................................................................................6
Positive Impact of Brand Loyalty on Revenue of Hilton............................................................6
Importance of Brand Loyalty in Growth and Development of Organisation.............................7
CHAPTER 3: RESEARCH METHODOLOGY ............................................................................1
Chapter 4: Data Findings, Analysis and Discussion .......................................................................3
Chapter 5: Conclusion and Recommendations..............................................................................10
REFERENCES..............................................................................................................................12

TITLE – To Identify the impact of product quality on brand loyalty of customer – A study on
Hilton Hotel.
CHAPTER 1 INTRODUCTION
Brand Loyalty can be defined as a pattern of customers' behaviour which encouraged
them to make purchases of the product on regular basis. In other words, it is an essential activity
for already or newly established businesses to conduct several marketing activities so that brand
loyalty of customers can be increased towards offering of organisations. Apart from that,
hospitality business is defined as the combination of services that includes lodging, food or
accommodation services. Chosen area for this investigation is London, UK. Taken organisation
for completing this investigation is Hilton hotel which is a big name in hospitality sector and
offers services across the world. Managerial personnels have realised that brand loyalty of their
customers are decreasing day by day. Due to which managers of hotel have decided to increase
brand loyalty of their customers by providing unique services to their guests during their stay.
This will automatically leads their hotel towards huge profitability and customer base.
Background of company
Hilton hotel is a private hospitality industry that was founded in 1919 by Conrad Hilton.
In current scenario, company have its 586 hotel across the world. In 1927, the first hotel of
Hilton was incorporated with cold running water and air conditioned rooms. In 1959, the first
airport hotel of company was incorporated and in 2016 according to their manifesto, their
presence was determined in across 100 nations and territories. It is also known as the largest
hotel brand across the world. Their branches are situated in major locations such as near airports,
popular destinations etc. Main aim of organisation is to providing unique quality in hospitality
services so that good brand image can be maintained at marketplace (AK, 2017). Their offerings
includes accommodation, food and beverages, Swimming pool, Parking, Playground etc.
Statement of problem
The hotel staff and senior managers are facing lower profitability in their operations that
was occurred due to ineffectiveness of employees and reduced quality of products and services
which are offered to customers. Because of this reason, brand loyalty of customers are
decreasing on regular basis towards the firm and its offering which is impacting upon the
customer base and revenue figures of Hilton.

Aim and Objectives of Research
Main aim of research is “To Identify the importance of product quality on brand loyalty
of customer” A study on Hilton Hotel
Objectives
 To acquire knowledge regarding the concept of brand loyalty
 To determine positive impact of brand loyalty on revenue of Hilton
 To identify the challenges that can be faced in enhancing brand loyalty
 To analyse the importance of brand loyalty in growth and development of organisation
Research Questions
 Do you know about the concept of brand loyalty ?
 What are the positive impact of brand loyalty on revenue of Hilton ?
 What are the challenges faced by Hilton at the time of enacting customer brand loyalty ?
 What are the importance of brand loyalty in growth and development of Hilton ?
Gantt Chart
It is a bar chart that is used by researchers or project managers for scheduling the project
effectively. This chart was given by Henry Gantt in 1915. this chart is used to define
interrelationship between task activities and time frame. With the help of it, researchers can
easily complete the each activities of research in given time-frame.

Rational of research
Main purpose of conducting this research is to identify the importance of brand loyalty
for growth and success of business operations. In current scenario, the business operations of
Hilton are not operating properly due to which quality of products and services are affected and
impacting negatively on the satisfaction of customers.
Statement of problem
Main reason is related to the performance of lower level employees because they are not
performing well in their roles and responsibilities which is impacting on the overall quality of
products and services due to which customer’s satisfaction level has been decreased.

CHAPTER 2: LITERARATURE REVIEW
Concept of Brand Loyalty
According to Carol Kopp, 2019, Brand Loyalty can be defined as the positive association
of customers in relation to the products and services of an organisation. The following attraction
of an individual towards the products and services of an organisation are related to the
continuous purchase of the products and services of an organisation. Customers makes the
purchase of the products and services of an organisation in every situation and the products and
services of other companies does not make any sense for these customers. In case, the
competitors is having good quality products than of the ours, in that situation also the products
and services of the company are preferred by these customers. Prices does not create any
consideration on the purchase of the products. However, after a certain period of time, the
customer will lesser the amount of purchase but will not shift to any other products. Some
organisation also make their marketing campaigns so that they could make their potential
customers into the real customers. In the marketing campaigns, the information about the
products and services and the benefits that could be provided by the company to their customers
and this makes them to make changes in the mindset of customers. The main reason of creation
of brand loyalty among the customers is related to the first purchase of any products and service
and at that instance if the product or services meets the quality of that individual that it is sure
that the customer will not shift to any other product or service as the customer knows about the
mind diversion in case of trying other products.
Positive Impact of Brand Loyalty on Revenue of Hilton
According to Lisa Furgison, 2019, Brand Loyalty helps in the creation of positive impact
on the revenues of Hilton. It is because brand loyalty means that the customer will have the
services of the company in every situation and these decisions of customers will not be impacted
by any circumstances. These types of customer do not need any advertisement or any other thing
in order to maintain their loyalty. As it is rightly said that “first impression is the last
impression”, so this line also applies here as the customer is attracted by the very first impression
of the company and this will help in making the customer to use again and again the services of
the company. This helps in the increment in the revenues of the company. Another reason is
because some customers are like making use of services of different companies and are not

centred to one. But the loyal customers are not like these customers, they are stable customers
and believe in the services of only one organisation and they are the continuous source of income
for the companies. So the revenues of an organisation are dependent on the loyal customers and
they help in making an increment in the revenues of the organisation.
Importance of Brand Loyalty in Growth and Development of Organisation
According to Jeffrey Hayzlett, 2019, it is important for the organisation to have
something other then the competitors that makes the products and services of the organisation
different from that of others. The examples are related to the technology, goodwill, reputation,
services, quality and many more which are important to have for an organisation in order to
attract the customers and also make the potential customers of the organisation into the real
customers. In case the company is providing their customers with unique services than it will
help the company to attract the customers as the organisation is providing the customers with
that services which are not provided by any other company. So this attraction helps not only in
the maintaining the customers but also in making increment in the number of customers. It is
possible that the satisfied or loyal customers also give advice to other customers to make use of
the products and services. This helps in the growth and development of a firm in the market area.
As the company is not only developing from one side but from all the aspects which are
important and ensure proper growth and development of the organisation. Customer preferences
also impacts upon the mindset of customers as the company is providing their customers with the
services that could make their customers more loyal as their consideration is taken into mind by
the company and is enough to impact positively on the mindset of customers. So the overall
growth and development could also be ensured with loyal and dedicated customers. Additionally,
the company could also provide their loyal customers with certain kinds of discounts, offers and
many more in order to retain them for a long period of time.

CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is refer to an effective procedure that is used by investigator for
accumulate proper information or data about the chosen study or topic. It is a very important
chapter that defines the concepts of research which will be applied by researcher for conducting
the study. This methodology provides the ways that can be used by investigator for addressing
the research questions and objectives was gathered. There are different kind of investigation
methods which are briefly explained as below:
Research philosophy: In this, mainly two kind are used by investigator that are
interpretivism and positivism. As per the topic, interpretivism is an effective philosophy
approach that can be used by investigator so as to completing this research. On the other hand,
Positivism philosophy is not appropriate for carrying out research activities in an effective
manner.
Research Approach: Two kind of approaches are used by researcher i.e. inductive and
deductive that are used by researchers for completing the research through gathering proper or
in-depth informations about the topic. As per the topic, Inductive approach is more suitable
because it helps the investigator in gathering effective and in-depth information about the chosen
topic which will automatically assist the researcher in completing the research in given time-
frame.
Research Choice: Researcher have two kind of choices such as qualitative and
quantitative in which they can select best one for executing the research properly. In qualitative,
researcher collects information in quality manner whereas, in qualitative method informations
are gathered in number form or statistical manner
Time Horizon: It can be considered as the most important element for researcher while
conducting investigation on a specific topic because without it desired goals can't be achieved in
easy manner. For this researcher can also use Work breakdown structure for managing the
research activities. 5 months of time period have decided by researcher for completing this
research programme.
1

Research design: It is an effective plan or structure for research that includes a list of
procedure or specification for controlling the research project. There are basically three kinds of
research designs are used by researcher for conducting research appropriately such as
descriptive, exploratory and experimental in which descriptive is most appropriate because it will
help the researcher in analysing gathered information in most effective manner.
Sources of data: For completing the research basically two kinds of data collection
techniques such as primary or secondary are used so that preset objectives of research can be
achieved easily. Primary data is the technique in which data is collected for the very first time.
Whereas, secondary data is gathered through the already published journals articles or books.
Both of these methods are used by researcher in this report so that valuable or reliable conclusion
can be constructed at the end of research programme.
Data collection techniques: There are several kinds of data collection techniques such as
personal interviews, questionnaire, observations etc. that can be used by researcher for collecting
accurate or vast informations about the topic. In this project, questionnaire is used so that valid
and reliable information can be collected easily.
Research sampling: Sample is a group that is taken by researcher from a large number of
individuals so that research can be conducted in an effective manner. Two kind of sampling
techniques such as non-probability and probability. For this project, probability technique is used
by researcher so that resources can be used in optimal manner. Main reason behind choosing this
technique is to getting valuable information for the research topic so that valid conclusion can be
constructed at the end of research.
Data presentation techniques: These techniques can be defined as the clear way of
presenting informations. There are several ways that can be used by researcher for presenting
data or information that are pie charts, tables, line graph and bar charts etc.
Research Limitation: Different kind of problems or issues can be faced by researcher
while formulating aims or objectives or conducting research. Some of them are lack of funds,
resources etc. these are the challenges that can impact the researcher while conducting research
activities.
Sample Size – It is a term which is used in market research for defining the number of
views that are taken by researcher for completing the research programme. Mainly three kinds of
data sampling techniques are used by researcher for selecting sample size i.e. systematic, random
2

and stratified sampling in which random is taken by researcher so as to completing this project
effectively. Sample size of 40 selected by investigator so as to completing the investigation
properly.
Research reliability and validity: This is the main thing in research methodology which
defines the reliability and validity of research. For getting valid outcomes researcher have used
questionnaire method so that valid and reliable information about the topic of research can be
received easily.
Questionnaire – It is a set of questions which is distributed by researcher among the
selected respondents so as to gaining their views and opinions for constructing valid conclusion
at the end of research (Kaur and Mittal, 2017).
Chapter 4: Data Findings, Analysis and Discussion
Data analysis techniques: Mainly three kinds of analysis techniques are used by researchers
which are deductive, inductive and regression. All of them having their own importance but in
this topic inductive analysis technique is used so that alternative explanations about the topic of
research can be made which will support the researcher in completing the research easily.
Questionnaire
Q1. Do you have knowledge about brand loyalty?
Yes
No
Q2. Do you think there is relation between quality of products and brand loyalty among
consumers of Hotel Hilton?
Yes
No
Q3. What kind of impact does brand loyalty have over the revenue of Hilton hotel?
Positive
Negative
Q4. What are the advantages Hotel Hilton can gain with strong brand loyalty in industry?
Employee retention
Increment in revenue
Word to mouth promotion
3

Q5. Which of the following department mainly focus on their working style?
Production
Marketing
Research and development
Consumer service
Q6. Which of the following parties are involved to maintain positive brand image among
consumers?
Employees
Management of organisation
Consumers
Q7. What are the factors which has to considered for managing brand loyalty among
consumers?
Proper training to employees
Quality of products and services
Well balanced communication
Q8. What are the issues faced by Hotel Hilton to maintain good brand loyalty?
Competitors policies
Substitutes available
Change in consumer expectation.
Q9. Recommend some ways through which managers of Hotel Hilton can maintain strong
brand loyalty among consumers?
Q1. Do you have knowledge about brand loyalty? Frequency
Yes 40
No 10
4

Yes No
0
5
10
15
20
25
30
35
40
40
10
Frequency
Interpretation: While doing research, it is clearly identified that mostly respondents are
well aware about the concept of brand loyalty. Out of 50 respondents, there are 40 respondents
who are well aware about brand loyalty and 10 of them are not have any idea about brand
loyalty.
Q2. Do you think there is relation between quality of products
and brand loyalty among consumers of Hotel Hilton?
Frequency
Yes 38
No 12
5

Yes No
0
5
10
15
20
25
30
35
40
38
12
Frequency
Interpretation: It is clearly observed from the above graph that there is direct
relationship between the quality of products and brand loyalty among customers of Hotel Hilton.
In this case when above given question is asked to the respondents out of total 50 respondent 38
of respondents are think that there is a relation between quality of products and brand loyalty and
mention that better quality products raise brand loyalty where as 12 are not think so.
Q3. What kind of impact does brand loyalty have over the
revenue of Hilton hotel?
Frequency
Positive 39
Negative 11
6

Positive Negative
0
5
10
15
20
25
30
35
40
39
11
Frequency
Interpretation: In this above table, it is clearly seen that out of total 50 respondents 39
of them are think that brand loyalty of Hilton effect positively over the revenue of a hotel where
as 11 of them not found any such connection of brand loyalty and revenue between these two.
Theme 4:- Advantages that Hotel Hilton can gain with strong brand loyalty in industry
Q4. What are the advantages Hotel Hilton can gain with strong brand
loyalty in industry?
Frequency
a) Employee retention 20
b) Increment in revenue 15
c) Word to mouth promotion 15
Interpretation:- As per the investigation performed over Hilton hotel it has been found
that there are number of advantage that it get after maintaining a strong brand loyalty. Over this
20 out of 50 respondents said that it support in gaining higher employee retention as workers like
to work over a place that holds up higher goodwill at marketplace. On other side 15 respondents
said that by maintaining a strong brand value Hilton hotel become able to enhance the revenue
by attracting larger number of customers. Despite of this strong brand image leads to provide a
better experience to customer which in turn results into word of mouth publicity.
7

Theme 5:- Department that mainly focus on their working style
Q5. Which of the following department mainly focus on their working
style?
Frequency
a) Production 10
b) Marketing 20
c) Research and development 10
d) Consumer service 10
Interpretation:- As per the above mentioned information it has been found that 10 out of
50 respondents said that production department focuses on their working style in order to
improve the quality of production. On the other side 20 respondents said that marketing
department is mainly focuses over it working style because this unit is responsible for
representing brand among customers. Despite of this research and development unit is more
focused toward its working style because the quality of work they performed is totally depend
over the final outcome of business efforts in marketplace. But 10 respondents said that customer
service unit is more focused over working style because they have to resolve the issues with
customers and improper management of this may results into negative brand image.
Theme 6: Parties are involved to maintain positive brand image among consumers
Q6. Which of the following parties are involved to maintain positive
brand image among consumers?
Frequency
a) Employees 20
b) Management of organisation 15
c) Existing consumer 15
Interpretation:- As per the above mentioned information it has been found that there are
number of entities who holds up direct relationship with maintain a positive brand image among
customers. On this 20 out of 50 respondents said that employees plays a crucial role in
8

improving brand image of a business by providing high quality of productivity. On other side 15
respondents said that management of an organisation plays a crucial role in creating a positive
brand image among customer by offering products or services as per their requirement. Despite
of this 15 respondents said that existing customer of a brand plays a crucial role in developing a
positive brand image by performing word of mouth publicity to the quality of services.
Theme 7: Factors which has to considered for managing brand loyalty among consumers
Q7. What are the factors which has to considered for managing brand
loyalty among consumers?
Frequency
a) Proper training to employees 10
b) Quality of products and services 30
c) Well balanced communication 10
Interpretation:- As per the information gathered through investigation it has been 10 out
of 50 respondents believed that by providing proper training to employees Hilton hotel become
able to manage brand loyalty among customers. On the other side 30 respondents said that by
improving the quality of product as well as services brand loyalty can be enhanced among the
customers as it help in building up trust. Despite of all this 10 respondents said that well
balanced communication must be the main focus of Hilton hotel in order to manage brand
loyalty among customer.
Theme 8: Issues faced by Hotel Hilton to maintain good brand loyalty
Q8. What are the issues faced by Hotel Hilton to maintain good brand
loyalty?
Frequency
a) Competitors policies 15
b) Substitutes available 10
c) Change in consumer expectation. 25
Interpretation: It is clearly observed from the above table that there are many issues that
can be faced by Hotel Hilton in order to maintain good brand loyalty. Out of the 50 respondents,
there are 15 respondents who said that competitors policies may restrict company to achieve
9

good brand loyalty whereas the remaining 10 and 25 respondents thinks substitutes of products
and changes in customer expectations may restrict Hilton Hotel to achieve strong brand loyalty.
Chapter 5: Conclusion and Recommendations
From the above discussed research, it has been concluded that brand loyalty is an
important factor which supports the organisation in terms of raising their customer base and sales
figures in market. There are various advantages that can be gained by owners of organisation
through the brand loyalty such as employee retention, enhancement in revenue figures, word of
mouth publicity etc. which automatically leads the firm towards growth and sustainability in
marketplace. For maintaining brand loyalty within the customers, managers of Hilton have
responsibility to segment roles and responsibilities among the divisions and employees as per
their capabilities and skills so that better contribution can be gained from them in achieving
desired goals and objectives. It is also very important for the managers of organisation to
maintain effective quality of services at workplace so that brand loyalty of customers towards
their offerings can be increased in marketplace. During the research, researcher have faced
several issues like lack of resources, ineffective communication skills etc. that restricted them in
completing their research in given time-frame. In future, it has been recommended to researcher
10

to allocate resources effectively so that any problem not be faced by them in execution of
research (Alnawas and Altarifi, 2016). Furthermore, it has been also concluded that there are also
some departments such as production, marketing, research and development, customer service
those have to perform their duties effectively so that brand loyalty of customers towards the
offerings of firm can be maintained in marketplace.
It has been also recommended that managers of organisation have to provide effective
training to their employees so that quality of services get improved that automatically leads
positive brand loyalty among the customers towards products and services of organisation. There
are also some issues that should be consider by managers so as to increasing brand loyalty of
company among the customers. Along with it, there are some ways that should be considered by
the managers for maintaining strong brand loyalty among the customers:
Improving customer service – This is an effective method that can be used by managers
of Hilton so as to improving brand loyalty of their firm. Guests who enters within the hotel
premises having different needs that should be fulfilled by employees of organisation if they
can't able in satisfying their needs then it will posses negative impact on the brand loyalty.
Therefore, it is an effective way that has to be considered by managers for maintaining their
brand loyalty.
Analysing demands of customers – Customer’s needs can be changed over a time so
that, it is very essential for the organisations who are providing their services in hospitality
industry to making modifications according to the needs of customers and market trends. So that
through adopting or implementing effective changes brand loyalty of customers can be
maintained towards the organisation and its offerings.
11

REFERENCES
Books and Journals
AK, F. R., 2017. A Study of Consumer Buying Behaviour of FMCG Products in Calicut City
(With Special Reference of Tooth Paste). International Journal of Scientific Research
and Management. 5(7). pp.6455-6460.
Alnawas, I. and Altarifi, S., 2016. Exploring the role of brand identification and brand love in
generating higher levels of brand loyalty. Journal of Vacation Marketing. 22(2).
pp.111-128.
Calder, B. J., Malthouse, E. C. and Maslowska, E., 2016. Brand marketing, big data and social
innovation as future research directions for engagement. Journal of Marketing
Management. 32(5-6). pp.579-585.
Davis, C., 2016. Focus groups: Applying communication theory through design, facilitation, and
analysis. Routledge.
Han, H. and et.al., 2018. Drivers of brand loyalty in the chain coffee shop industry. International
Journal of Hospitality Management. 72. pp.86-97.
Heding, T., Knudtzen, C. F. and Bjerre, M., 2015. Brand management: Research, theory and
practice. Routledge.
Kaur, P. and Mittal, P., 2017. Impact of Clones Refactoring on External Quality Attributes of
Open Source Softwares. International Journal of Advanced Research in Computer
Science. 8(5).
Khan, I. and Fatma, M., 2019. Connecting the dots between CSR and brand loyalty: the
mediating role of brand experience and brand trust. International Journal of Business
Excellence. 17(4). pp.439-455.
Kumar, A. and Koyadeen, R. T., 2016. A Methedology to Simulate and Analyse Molecules as
Molecular Switches. International Journal of Simulation--Systems, Science &
Technology. 17(32).
Kuo, Y. F. and Hou, J. R., 2017. Oppositional brand loyalty in online brand communities:
Perspectives on social identity theory and consumer-brand relationship. Journal of
Electronic Commerce Research. 18(3). p.254.
Leckie, C., Nyadzayo, M. W. and Johnson, L. W., 2016. Antecedents of consumer brand
engagement and brand loyalty. Journal of Marketing Management. 32(5-6). pp.558-
578.
Pappu, R. and Quester, P. G., 2016. How does brand innovativeness affect brand loyalty?.
European Journal of Marketing. 50(1/2). pp.2-28.
Sasmita, J. and Mohd Suki, N., 2015. Young consumers’ insights on brand equity: Effects of
brand association, brand loyalty, brand awareness, and brand image. International
Journal of Retail & Distribution Management. 43(3). pp.276-292.
Veloutsou, C., 2015. Brand evaluation, satisfaction and trust as predictors of brand loyalty: the
mediator-moderator effect of brand relationships. Journal of Consumer Marketing.
32(6). pp.405-421.
Yeh, C. H., Wang, Y. S. and Yieh, K., 2016. Predicting smartphone brand loyalty: Consumer
value and consumer-brand identification perspectives. International Journal of
Information Management. 36(3). pp.245-257.
Online
12

Hayzlett, J., 2019. 4 Strategies That Drive Brand Loyalty. [Online]. Available Through:
<https://www.entrepreneur.com/article/286767>
Furgison, L., 2019. Why Brand Loyalty Matters and What Impacts It. [Online]. Available
Through: <https://blog.fivestars.com/why-brand-loyalty-matters-and-what-impacts-it/>
KOPP, C., 2019. Brand Loyalty. [Online]. Available Through:
<https://www.investopedia.com/terms/b/brand-loyalty.asp>
13