Analyzing Customer Satisfaction's Role in ASDA's Brand Image & Loyalty

This report investigates the impact of customer satisfaction on brand image and brand loyalty, focusing on ASDA, a British supermarket chain. The research aims to understand the conceptual framework of brand loyalty, brand image, and customer satisfaction, analyze the impact of brand image on customer satisfaction within ASDA, discern the advantages of brand loyalty for ASDA in dealing with market rivalries, and evaluate the challenges faced by ASDA in implementing brand loyalty and brand image strategies to improve customer satisfaction. The study employs quantitative research methods, including frequency distribution analysis, to interpret data collected through questionnaires. The findings provide insights into how ASDA can enhance customer satisfaction to strengthen its brand image and foster greater brand loyalty, ultimately contributing to business growth and revenue.

Impact of Customer
Satisfaction Brand Image and
Brand Loyalty of ASDA

Table of Contents
CHAPTER 1- INTRODUCTION....................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
Explain the conceptual framework of brand loyalty, brand image and customer satisfaction?..6
Discuss the impact of brand image for enhancing the Customer satisfaction in context of
ASDA?........................................................................................................................................7
What are the advantages of brand loyalty for ASDA to deal with market rivalries?..................9
Discern the challenges faced by the ASDA in implementing the strategies of brand loyalty and
brand image in improving customer satisfaction?....................................................................11
CHAPTER 3- RESEARCH METHODS AND METHODOLOGY.............................................13
CHAPTER 4: DATA ANALYSIS AND DISCUSSION .............................................................16
Frequency distribution table......................................................................................................16
Data interpretation.....................................................................................................................18
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................33
CONCLUSION.........................................................................................................................33
RECOMMENDATIONS..........................................................................................................33
REFERENCES .............................................................................................................................35
Books and Journals...................................................................................................................35
APPENDIX....................................................................................................................................37
Questionnaire............................................................................................................................37
Gantt Chart................................................................................................................................39

CHAPTER 1- INTRODUCTION
Origin of the research
Research is systematic and creative work undertaken for increasing the stock of
knowledge. It includes the accumulation, organisation and evaluation of information for
increasing understanding of a issue or topic. Paul Felix Lazarsfeld is known as the father of
research surveys and has great contribution in statistical survey analysis, contextual analysis and
many more (Khoironi, Syah and Dongoran, 2018). The current research has incorporated after
identifying the importance of brand image and brand loyalty. For this appropriate aim and
objectives are formed with independent and dependent variables. Hence, the main purpose of
doing research is to increase the knowledge of reader about the certain topic or problem.
Background of the research
Brand image is referred as the term that highlights the perception of the brand in the mind
of consumers. This clearly shows how and what customers think about a particular brand. The
brand image increases with time in the mind of customers as per their experiences and
interactions with the same. These experiences and interactions take place in several forms and
not essentially include the use or purchase of the different products and services. In simpler
words, brand image is the aggregate of ideas, impressions and ideas that a customer has
regarding a specific brand. Brand loyalty is defined as the positive association of customers to a
specific brand or product. Consumers who display brand loyalty are dedicated to a particular
service or product. It can be demonstrated by their repeat number of purchases despite efforts of
competitors to lure them away. Companies invest great amounts of money in consumer service
and marketing for creating and maintaining brand loyalty for an established products and
services (Kim, Choe and Petrick, 2018). Customer satisfaction is referred as a measurement that
identifies how happy consumers are with the products, services and capabilities of an
organisation. Customer satisfaction is one of the significant indicators of buy intentions and
customer loyalty. It also assists in predicting business growth, development and revenue. The
current report is conducted to collect information about the impact of customer satisfaction on
brand loyalty and brand image. The chosen organisation is ASDA, it is popular as a British
supermarket chain. The headquarters of this supermarket is located in Leeds, England. The
company has great brand image and brand loyalty as well as has larger number of customer base.

Statement of the research problem
“The main problem which led to conduct the current investigation is organisation not able
to satisfy customers by their offerings and this ultimately creates negative impact over brand
loyalty and brand image.” In this several challenges are also included which are faced by an
organisation to implement strategies of brand image and brand loyalty to improve customer
satisfaction. So it assists in showing the reason of satisfying customers towards the offerings of
the organisation and the need to create brand image and brand loyalty.
Aim of the research
To identify the impact of customer satisfaction on brand image and brand loyalty: “ A
study on ASDA”
Objectives of the research
 To understand the conceptual framework of brand loyalty, brand image and customer
satisfaction.
 To analyse the impact of brand image for enhancing the Customer satisfaction in context
of ASDA.
 To discern the advantages of brand loyalty for ASDA to deal with market rivalries.
 To evaluate the challenges faced by the ASDA in implementing the strategies of brand
loyalty and brand image in improving customer satisfaction.
Research Questions
 Explain the conceptual framework of brand loyalty, brand image and customer
satisfaction?
 What is the impact of brand image for enhancing the Customer satisfaction in context of
ASDA?
 What are the advantages of brand loyalty for ASDA to deal with market rivalries?
 What are the challenges faced by the ASDA in implementing the strategies of brand
loyalty and brand image in improving customer satisfaction?
Significance of the research
There is great importance of the present investigation because it is dependent upon
impact of customer satisfaction on brand loyalty and brand image. This current investigation
covers the the conceptual framework of the brand image, brand loyalty and customer
satisfaction. This also shows the positive impact of brand image to enhance the customer

satisfaction within an organisation. This holds great importance for the researchers,
professionals, organisations and students. In respect of researchers, the current investigation can
act as base and foundation for conducting future investigations. In respect of organisations, this
research provides ways and strategies to improve customer satisfaction so that brand image and
brand loyalty can be improved (Kim, Choe and Petrick, 2018).
Outline of the research
Introduction: Introduction is the foremost chapter that includes aim, objectives and
questions of the investigation. This also includes significance of the whole research.
Literature review: It is the second chapter that accumulates the published and used data
from the different sources such as journals, articles, newspapers, publications, books and so on.
Research methodology: Research methodology includes several kinds of research
methods for the collection and analysis of information. Quantitative information is accumulated
and frequency distribution analysis is used for analysing that information.
Data analysis and discussions: In this proper representation and interpretation is done
with the proper graph and tables. The carried out findings is also shows so that defined aim and
objectives could be attained.
Conclusion and recommendations: In this chapter proper summary is included about
each chapter in a brief manner. After summary, certain recommendations are given to chosen
organisation in relation to the topic.
Summary of the chapter
It has been summarised from the above accumulated information that the introduction
part has given basic information about the brand image, brand loyalty and customer satisfaction
for an organisation. This has included the purpose of conducting the whole investigation as well
as the problem that led to conduct the research on this particular topic. This has clearly
highlighted the importance of brand loyalty and brand image. This also shows several research
questions that need to be addressed for the attainment of objectives and aim. Therefore, this
chapter holds great significance as it provides basic knowledge about the whole topic in
systematic way.

CHAPTER 2: LITERATURE REVIEW
Literature review is that part of the research report which contain all the published past
information about the chosen topic. Here examiner gain a detailed understanding about the topic
so that research gap can be obtained between the past and present research. This section contains
the data from various secondary sources like books, journal, magazine, articles and many more.
Explain the conceptual framework of brand loyalty, brand image and customer satisfaction?
According to Srivastava and Rai (2018), Brand loyalty, brand image and customer
satisfaction are a positive approach for the organisation if they enhance them in large manner.
The time has gone where organisation only look out on the mass production without given
concern to their customer, but with the change in time and business environment they are gaining
more importance. The dynamic surrounding raises the concern for all these three elements and
know they has grown up. The need to be taken care in more effective way so that companies can
gain competitive advantages from the rivalry within the same industries. All the three elements
are the marketing components which need to be taken care properly by the marketing department
of the companies and they need to make different innovative and attractive strategies for
increasing the awareness. Brand loyalty is directly attach with the consumer who buy the
organisation product and services. Brand loyalty is a tendency of the buyers to repeatedly
purchase the same product or service from a particular brand which they like the most. The
people do not switch to the substitute goods if the same product is available to them in cheaper
price. A good example of brand loyalty is the coco cola company; the buyers purchase the coke
of the company without any thought of switching to other brand. The company also maintain the
same loyalty factor from decades. The main reason behind the brand loyalty is the purchaser
perception. It plays a very important role for the individual when they make any buying decision.
The main thought behind this is that buyer think that goods and service of the company is more
superior than that of other choices available to them from various organisation. The main
advantage that business can get from this is that buyer will always buy the product regardless of
the price they pay for the product. So organisation should always invest in designing attractive
tactic to create and maintain brand loyalty among the targeted customer. In short choosing the
same company over other firm within same sector (Rather, Tehseen and Parrey, 2018).

The other conceptual understanding is Brand image of the company. In recent time brand
image matters a lot for the company and organisation need to think a lot to create a good image
in the market for their products. Brand image means creating an impact on consumer mind about
the company. The company develop some logo, image and message through which purchaser
can identify business product and services. generating a brand image is important because it will
help the companies to fight with their competitor in more effective and efficient manner. This
will help the business to make a good impression in buyer’s mind so that they can buy goods and
service from them. The vital benefit that companies can gain from this is that they can introduce
new product within the brand because marketing will be easy as customer already know about
the organisation. The other advantage is that business can enhance more market share by
attracting more new customer and can enhance profit for the company. Brand image is that factor
of the organisation which determine the sale portion of the business. Colgate is the best example
of the brand image as it creates such an impact in the market that if the buyer thinks of any
household grocery, then company name will automatically be click in their mind (Plumeyer and
et. al, 2019)
In last the another term that will gone be discussed is customer satisfaction. Customer
satisfaction the term itself say to satisfy the buyers. It is a measuring concept which is used by
the company to determine the happiness level of the buyers towards goods and service they
purchase from organisation. There are various method that can be used by the marketing
manager to know the satisfaction level of their purchaser some of them are customer satisfaction
score, net promoter score, web analytics and customer feedback and many more. The fulfilment
level of the buyers depends upon quality, price and expectation. The price charge by the
organisation is to be fair, quality means the product should possess some standard and the last
expectation means it should fulfil the need in greater way. If these are best, then automatically
purchaser will be happy. There are three Cs for customer satisfaction that is customer journey
consistency, emotional consistency and communication consistency. The business should give
more importance to their buyer so that they can attract them and their mouth of publicity can be
increased by them (Yi and Nataraajan, 2018).
Discuss the impact of brand image for enhancing the Customer satisfaction in context of ASDA?
As per the view of Mohammed and Rashid (2018), brand image and customer satisfaction
goes hand in hand, it means that there is a direct relationship between them if brand image is

more than customer satisfaction will be high. Brand image plays very vital role foe increasing the
customer satisfaction and this could be explained with the help of the company ASDA. The
impacts ae as follow:
Enhance brand loyalty: Brand image try to attract more buyers towards the company
which in directly help the ASDA to gather more loyal customer by providing the goods and
service in standard way which will help them to satisfy their needs and wants. If the buyers are
satisfying, then they will become the loyal purchaser and will make repeated purchase from the
business. having the more loyal buyer is a good approach because they will be the assets for the
organisation. So this is the one of the positive impact of brand image on customer satisfaction.
Consumer buying behaviour: The another major impact of brand image is on the
consumer behaviour towards the purchasing. ASDA has created their positive image all over the
worlds were they operates their stores by designing various ideas and then implementing them to
market their goods ad service. This help the company to change the behaviour and attitude of the
consumer in very positive manner towards them. Buyers are also using the company’s goods and
services they offer and they are satisfying by the product. This satisfaction help as the buyers are
doing publicity of the buyers in greater way (Farooq and et. al, 2018).
More customer base: The next affirmative impact is that brand image help the ASDA to
gain more buyers which will help them to enhance their customer base. This means that the
organisation will have more buyers for their goods and service than that of rivalry firms. This
will be a great advantage for the ASDA as they will have more buyers which will help them to
gain more profit and revenue than that of the other companies within same industry. Having
more buyers is good for the organisation as they will help them to run for longer time period and
earn success in effective manner.
New product line: One of the most powerful impact of brand image is that it will help the
ASDA to expand their product line as the buyers are satisfy by the existing goods and services.
They will be ready to try the brand new goods and service that are been produced by the
company because they have trust on the company and are satisfaction level is also good. So with
the help of brand image customer satisfaction can be developed which will help them in
introducing fresh product category in the market. ASDA see this as a good approach for their
company growth and success that why they are investing more capital in brand image so that
they can satisfy their purchaser and will develop themselves with the time.

Enhance the sale: The major reason for the companies is to sale their product and services
for which they do a lot of marketing activity and the one among them is brand image. It is very
important for the company to create a perception in the mind of buyers that they can think of the
goods and will purchase them. This will help them to enhance their sale and satisfy more
customer. Customer satisfaction also depends upon the education they have about the company’s
product. If through brand image they are providing a detailed knowledge about the use and type
of product than customer will be happier that they can use them for their desirable purpose.
Mouth publicity: The other great impact of brand image is that it will attract more buyers
for ASDA and the buyer will use their product. If they will be satisfied by the goods and service,
they avail then this will do mouth publicity. This promotional activity is the greatest source of
advertisement in the recent time because it creates a peer pressure on the other consumer to
purchase that product because of the excellent reviews get by the others. Mouth publicity also act
as a weapon for the competitors lies in the market and it will become tough for them to build
their market image in more effective manner (Hallencreutz and Parmler, 2021).
What are the advantages of brand loyalty for ASDA to deal with market rivalries?
According to the (Olson, 2018), brand loyalty is very important for the companies who has
large competitor within the same industry. In the recent time brand loyalty is vital for
organisation so that they can attain their goals and objective in more effective and efficient
manner. Loyal buyers will always purchase product form the ASDA and this will help them to
gain advantage from their rivalry. Some of the advantages of brand loyalty to deal with market
rivalries are discussed below:
Competitive advantage: One of the vital benefit that can be obtained by the ASDA is that they
can earn competitive edge from their competitor. This will help them to fight with them in
such a manner that rivalry feel tough to fight with them. They need to invest more than that
of the ASDA so that they can gain market share. Buyers are emotionally attached with the
brand so if fake news that is published by the rivalry then this will not affect them instead
they will ignore it and still buy the goods. Gain competitive advantage is good for the
company in recent time.
Customer retention: Another advantage that can be gained by ASDA is that it will help in
retaining more buyers than that of their rivalry because consumer is more loyal and they fell
satisfy by the goods or services provided by them. Customer retention is the biggest way

through which the company can fight because they know that this is the permanent market
share that they will have and to retain them they will develop those tactics which will help
them to increase their customer retention rate. If company holds customer for longer period
of time, then this will be a greatest disadvantage to the firms who is operating in the same
industry (Hino and Takeda, 2020).
More revenue: Brand loyalty means making repetitive purchase by the buyers. The customer
comes back to the same brand over and over this will enhance the revenue of the ASDA.
The company has lot of consumer that are loyal so whenever they need any product and
service that company sale they will come at the store and buy. This buying habit of the
customer help the ASDA to gain more revenue than that of the other competitor and increase
their profit margin day by day. Having loyal buyers is the greatest source of revenue for the
companies in this dynamic environment.
Better Brand recognition: The other competitive advantage of the brand loyalty that is obtained
by the ASDA is it help them to be recognised as one of the best brand in UK. Having better
branding is the vital weapon for the company through which ASDA can deal with the
rivalry. The buyers of the company are emotionally attached to the brand that they always
create a good brand image of the ASDA in front of other. They only want that ASDA should
be recognised more than that of their competitors. They are so stiff that they do not want to
switch to the substituted organisation.
Reduce the cost of publicity: another significant advantage that can be avail by the ASDA is
that there cost of marketing is reduced to some extent. This help them to invest that money
to satisfy their customer in greater way than that of their competitor. Marketing and sale cost
are so high that company invest lot of capital to promote their brand. ASDA gain advantage
as their buyers are doing Mouth publicity in such increasing way that the more customer is
getting attracted towards them. They will automatically reach to the targeted audience by
their loyal customer and will promote the brand.
Ease in expansion: Expansion and diversification is important for the company because this will
help them to grow and diversify their market in the world so that they can run for longer
time period. ASDA gain a benefit by brand loyalty from their customer as they will easily
introduce new product and service in the industry and the buyer will adopt that because they
know whatever they manufacture will be best in quality as well in price. So expansion of

business is good as ASDA can compete with the competitor and can gain more market share
of their rivalry to (Liu, and et. al, 2020).
These all are the advantage that can are obtained by the ASDA from their competitor and
in recent time it is one of the preferable choice for the customer to purchase goods and service
because of the quality and price they offer to their Purchaser.
Discern the challenges faced by the ASDA in implementing the strategies of brand loyalty and
brand image in improving customer satisfaction?
As per the view of Rather, Tehseen and Parrey (2018), In earlier time when initially they
ae implementing the strategy the ASDA faces lot of challenges which act as a hurdle to create
brand loyalty and brand image so that they can satisfy their customer. Problems are the part but
ASDA faces lot of challenges because there are high number of competitors that are there within
the same industry. Some of the problem that are encounter by them are as
Challenge no 1: Limited customer engagement: When they are designed the strategy at that
time they have lack of customer engagement and this create problem as they are not able to
effectively implements the approaches of brand loyalty and image so that they can satisfy their
buyer in greatest sense. ASDA has limited buyer also at that time so make an interaction was the
problem because they need innovative strategy for making the engagement. This challenges is
the foremost problem which is encounter by them at that time of adopting.
Challenge 2: Customer data: The other problem that occurs in front of ASDA is that the taste
and prefer4nce of the buyer are so different and that keeps on changing in constant rate. So to
make the strategy of brand loyalty and brand image they need the exact and valid data of their
buyers. For this they need expertise so that they can gain an insight about the buyer’s behaviour
and attitude that will help the ASDA to develop proper strategy and approach by which they can
satisfy their customer. Getting accurate behaviour and perception is very important for any
company if they want to make their customer happy.
Challenge 3: Deciding the budget: Next issue that is being faced is that deciding the proper
budget for brand loyalty and brand image strategy. Designing the financial sound program is
very difficult because at that time they did not know whether their investment will be profitable
for them or not. Customer was also limited at that time and the competition was so high. The
company is facing the challenge to properly allocate their financial resources in innovating the

strategy so that effective utilisation can be made without any loss to the company (Mohammed
and Rashid, 2018).
Challenge number 4: Proper source of marketing: There are multiple source of channels that
is available to promote the strategy of brand image. Selecting the right and effective one which
can be seen by the targeted customer is the greatest problem for the company. ASDA cannot rely
on a single source for enhancing their market image. They need to have at least two to three
channels so that they can reach to the buyers and by their strategy they can create impact on their
mind. Customer are not only satisfy by the product but many other factor like marketing tool,
message, logo company uses. These all are also important for the purchaser because they think
for all the perspective.
Challenge no 5: Maintaining proper consistency: Consistency in message, way of behaviour,
service provide by the brand is also important element. At the time when ASDA think of
implementing the brand image and loyalty strategy they have limited employee for marketing
and the whole organisation depends upon them. The employee has lots of other work to do, this
creates problem as due to scarcity of the staff they are not able to maintain consistency. But
when the time passes know they are providing full reliability to the customer.
Challenge no 6: Customer tribalism: One of the greatest challenge that is been encounter by
the ASDA is customer tribalism. The company sales variety of product but there is some
tribalism that is been formed by the buyer for some specific product. This creates problem as
they are not ready to use the other goods and service and gain satisfaction from them. Company
need to research more on the strategy that will help them to break the tribalism. ASDA need to
focus more on their approaches of brand image and loyalty so that customer can be satisfied
(Salehzadeh, Pool and Najafabadi, 2018).