The Influence of Customer Satisfaction on Brand Loyalty

This report discusses the influence of customer satisfaction on brand loyalty and its importance for business growth and expansion. It includes a case study on BMW and explores the strategies used by the company to retain customer satisfaction and increase brand loyalty.

The influence of
customer satisfaction
brand loyalty
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Literature review..............................................................................................................................3
Influence of customer satisfaction brand loyalty on company operation....................................3
Methodology................................................................................................................................4
Discuss.........................................................................................................................................5
Case study....................................................................................................................................6
CONCLUSION................................................................................................................................7
Recommendation.............................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Customer satisfaction helps in long term growth and survival of organisation as it promote
sells and profitability of firm. Most of the company formulate effective marketing strategies to
increase their brand image and customers loyalty in order to earn large amount of profitability
and market share. The objective of report is to explain importance of brand image and customer
loyalty in growth and expansion of business across various nations. The topic is importance as it
tells other company to formulate innovative and creative strategies to retain maximum
customer’s satisfaction and large amount of profitability by fulfilling needs and demand of
customers. This report discuss about influence of customers satisfaction brand loyalty of BMW
that enhance company sales volume and profitability. Section two of report content literature
review on influence of customer’s satisfaction and brand loyalty on company operation.
Methodology that is used to conduct research is briefly described in report and a little discussion
about the topic. At last various suggestion and recommendation are given so that company can
retain maximum customer’s satisfaction and increase its brand loyalty
Literature review
Influence of customer satisfaction brand loyalty on company operation
As per view of Haile and Björk, (2019) customer satisfaction, brand loyalty is important
for each and every organisation to effective operate its various function within industry. It is one
of the marketing strategies that help company in gaining competitive advantages by satisfying
needs and preference of customers beyond their expectancy. Company by continuously
innovating its products and services can meet changing customer trend and gain higher amount
of customer’s satisfaction and brand loyalty. Commitment and determination of firm to provide
qualitative, standard and innovative products influence customers to prefer products of one
company over other to fulfil their needs and demand effectively. As per Haile and Björk, (2019)
firm by investing time and effort to plan various strategies in order to retain existing customer’s
bases can easily enhance its brand loyalty and customer satisfaction. Satisfied and happy
customer promotes products and service of company to their friends and relative thus company
can easily attract new customers to make purchase and enhance its sales volume.
As noted by Karyose, Astuti and Ferdiansjah, (2017) social media has helped in
increasing customers satisfaction and brand loyalty as people by reviewing feedback of other
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customer that have use products decided to make purchase of particular products over another.
Therefore effective services and qualitative products help in maintaining customer satisfaction
and brand loyalty so that company can gain competitive advantages. Satisfied customers only
become loyal customer of firm that means higher lifetime values of products and services offered
by company. Organisation by planning various methods to retained customers can reduce cost of
marketing its products and services. It can also easily enter into new market segment to meet
needs of unsatisfied customers so brand loyalty and customer’s satisfaction influence company
operation and productivity. The author also stated that employees of company that have high
brand image and customer loyalty are highly motivated and influenced to put their best for
organisation growth and expansion in the market. They also take active part in marketing
products and service to people by stating that it has string brand image, follow ethics and
principle and committed to provide qualitative, innovative products to customers. Therefore it
can be stated that brand loyalty and customer satisfaction adversely impact on sales volume and
market positioning of organisation.
Methodology
Data and information can be collected through various sources such as primary and
secondary or quantitative and qualitative (Huang, Lee and Chen, 2019). Various method that are
used to conduct research related to influence of customer satisfaction and brand loyalty on BMW
are secondary data and information, qualitative data to make research effective.
Research type
Qualitative Data: The research has been conducted by use of qualitative data as it provides
further chance to develop specific insight about particular topics. Qualitative data helps in
maintain quality of information and effective analysis of result for better understanding of
particular topic.
Quantitative Data: Mathematical data are collected and analysed in order to find particular
result and outcome of information gathered.
Data collection
Primary data: Information and data that are collected through primary research or by asking,
interviewing large number of audience about particular data. Information that are first hand and
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collected by asking various question to people personally so that data collected can be made
accurate (Schirmer and et.al., 2018). Therefore, lot of time and money, effort are spend to collect
large amount of data such as number of people opinion need to be asked to illustrated that
whether customers satisfaction and brand loyalty of BMW affects business operation or not.
Secondary data: Information about customer satisfaction and brand loyalty of BMW has collect
through source of secondary data such as books and journals, newspaper, articles and use of
social sites to gathered sufficient information. It has helped in effective analysis and evaluation
of qualitative information of firm that helps in understanding impact of customer’s satisfaction
and strong brand image or loyalty on sales and profitability of BMW. There are various benefits
of using secondary data such as less time and effort is involved to collect large amount of
information (Lee, Back and Park, 2017). Primary data can be further analysed and evaluated to
get best and better outcomes so secondary data helps in effective analysis of influence of
customer’s satisfaction. Therefore I have chosen secondary method to concluded research on
influence of customers satisfaction and brand loyalty on BMW.
Data analysis
Thematic analysis: It is flexible data analysis plan which is mostly used by qualitative
researcher to make different theme through use of interview data. Thus thematic analysis is
prefect approaches to analysis and evaluates different information by following easy and simple
steps.
Statistical data: Data is analysed through collecting and scrutinizing data sample form various
set of item in order to draw conclusion from samples. Therefore I have use statistical data to
conduct research related to influence of customer loyalty and brand image on BMW market
share and profitability (Han, 2017).
Discuss
From the above analysis and evaluation it can be stated that BMW by taking various steps
to enhance customer’s satisfaction and brand loyalty has gained competitive advantages and
expand its market share. BMW is one of the leading company that provided luxury cars to its
customers in order to enhance customer satisfaction and maintain brand loyalty (Pearson, 2016 ).
Most of the people feel happy and satisfied while purchasing products and services of BMW as it
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has strong brand image to provide qualitative products to customers. Company through
continuous innovation in technologies and products is able to retained existing as well as new
customers to make purchase of company products over other competitors. Most of the customer
use social media and sites to choose particular products and service by reviewing feedback of
other competitors that have purchased products of company. Positive feedback from customers
about BMW varieties of products and services helps in attracting large number of customers to
make purchase of qualitative, luxury segment car in order to get better experience. It had been
analysis that BMW has satisfied need of customer through working on various factors such as
effective delivery process, 24 hour after sales services to customers, high skilled and
knowledgeable employees and strong commitment to offer qualitative and innovative products in
Luxury segment (Samudro and et.al., 2019). BMW by maintain its loyalty of customers is able to
expand its business operation across worldwide in order to earn maximum amount of
profitability for longer period of time. Therefore commitment and high level of satisfaction
among customer beyond their expectancy has lead to growth and expansion of enterprise across
various countries. Company can easily introduce new and innovative products to meet need of
unsatisfied customers thus it helps in effective branding and marketing of products. Sales
initiative, dealer facilities and use of innovative technologies to manufacture luxury cars has
helped company to provide clients better experience. There is tremendously increased in sales
volume, profitability and market share of BMW due to influence of brand image and customer
satisfaction.
Case study
BMW has awarded certificate for rendering qualitative services to customers of UK in
terms of excellent performance and continuous innovation to satisfy needs and preference of
customers. Every customers rates services of BMW as 5 stars and write specific and positive
comment on dealers websites thus it state that company by render qualitative services able to
satisfied needs and wants of customers. As per the managing directors BMW by satisfying needs
of customers and continuously working to build strong brand image has highly contributed in
growth and success of organisation in UK (Meier, 2020). Company has always make takes steps
to meet needs and wants of customers to maximise its market share and expand its business
operation for long term in UK. Company innovate its products and services so that better opinion
can be provide to customers to satisfied their needs and preference and enhance market share of
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organisation. BMW is one of the leading companies in automobile sectors that manufacture
luxury and innovative vehicles and motorcycle. BWM has more than 100000 high skilled and
qualified employees working together to provide qualitative and innovative services to large
customers ranges. Customer satisfaction lead to brand loyalty thus most of the customers are
satisfied and happy with the quality of product and services offered by company to its customers.
Effective customer services and innovative products range provide opportunity to company to
expand its business operation (Yan and Chang, 2019). Employees of BMW are highly motivated
and influenced to work hard as they have high knowledge, experienced to face various threats
and challenges of company. Strong brand loyalty helps in retention of large number of
employees and customer within company as provide good working environment and ensure
better health and security of people.
CONCLUSION
From the above report it can be concluded that customer’s satisfaction should be one of
the objective of companies in order to grow and sustain its business within environment.
Company by building strong brand image can reduce cost of marketing as high customer’s
satisfaction and brand loyalty helps in attracting existing as well as new customers to make
purchase of firm products and services to meet their needs. BMW is leading organisation in
automobile industry that is known for providing qualitative and luxury cars to fulfil need of
higher class people that have enough money. At last it can be stated that customer’s satisfaction
and brand loyalty has impact on success of organisation across worldwide as it continuously
takes steps for meeting needs of people.
Recommendation
Various suggestions that can be given to BMW to enhance its market share and brand
image is to make continuous innovation in luxury vehicles segment so that people can easily
attracted to purchase products of company on regular basis (Schirmer and et.al., 2018).
1. Innovative infrastructure and design of vehicle also helps in retention of customer
satisfaction and brand image of company within industry.
2. Due to increasing competition in automobile sectors company has to manufactures
products that are different and unique from other competitors thus it will helps company
to charge competitive pricing from customers.
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3. Company can collect feedback of customer through use of innovative technologies such
as social media, website thus it will helps in effective marketing as well as satisfaction of
customers need within limited time and cost. BMW can effective identify grievance and
problem of customers and make quick solution so that their needs can be satisfied beyond
their expectancy. Company can make its own website to provide ease and comfort to
large number of customers as they can easily order various products while staying at
home thus increase loyalty of customers.
4. Expansion of business in more countries through launch of various innovative luxury car
products and services can also helps in maintaining strong brand loyalty and customer’s
satisfaction.
5. Training and development of employees regarding various services that need to be
provides to customers may also helps in quality of after sales services and effective
increase in brand loyalty of BMW.
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REFERENCES
Books and Journals
Haile, E. and Björk, M., 2019. Integrate… then they might be all yours: A research on how
Omnichannel retailing could affect customers Brand Loyalty.
Han, J. S., 2017. Effects of brand image on purchase intention and brand loyalty: Focused on
mediating role of the brand trust. Culinary science and hospitality research, 23(2).
pp.135-145.
Huang, P. L., Lee, B. C. and Chen, C. C., 2019. The influence of service quality on customer
satisfaction and loyalty in B2B technology service industry. Total Quality Management
& Business Excellence, 30(13-14). pp.1449-1465.
Karyose, H., Astuti, W. and Ferdiansjah, A., 2017. Customer loyalty: the effect of service
quality, corporate image, customer relationship marketing and customer satisfaction as
intervening variable-an empirical analysis of bank customers in Malang City. Marketing
and Branding Research, 4. pp.336-347.
Lee, A., Back, K. J. and Park, J., 2017. Effects of customer personal characteristics on the
satisfaction-loyalty link: a multi-method approach. Service Business, 11(2). pp.279-297.
Meier, B., 2020. Brand Choice and Loyalty. Springer Fachmedien Wiesbaden.
Pearson, S., 2016. Building brands directly: creating business value from customer relationships.
Springer.
Samudro, A and et.al., 2019. How Commitment, Satisfaction, and Cost Fluctuations Influence
Customer Loyalty. Samudro, A, pp.115-125.
Schirmer, N and et.al., 2018. The link between customer satisfaction and loyalty: the moderating
role of customer characteristics. Journal of Strategic Marketing, 26(4), pp.298-317.
Yan, X. and Chang, Y., 2019. The influence of company microblog interaction tactics on
consumer-brand relationship. Journal of Contemporary Marketing Science.
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