Analyzing Impact of Brand Image on Customer Loyalty for Business

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This report proposes a research study on the impact of brand image on customer loyalty, a crucial factor for business success. The study aims to investigate how brand image influences customer retention and acquisition. The research methodology involves designing questionnaires, collecting data on a Likert scale, and analyzing the data using exploratory factor analysis, correlation analysis, and principal component analysis. The study also explores extended analysis of customer loyalty. The research will utilize primary data collected from consumers and will address data integrity concerns to ensure trustworthy results. The research aims to provide insights into the factors organizations must consider to ensure customer loyalty and will address challenges such as geographical limitations. The report emphasizes the importance of brand image in shaping consumer behavior and its significant role in marketing strategies.
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Running head: IMPACT OF BRAND IMAGE ON CUSTOMER LOYALTY
Impact of Brand Image on Customer Loyalty
Name of the Student
Name of the University
Author Note
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1IMPACT OF BRAND IMAGE ON CUSTOMER LOYALTY
Table of Contents
Introduction:...............................................................................................................................2
Background of the Research:.....................................................................................................3
Benefits of this Research:...........................................................................................................4
Research Methodology:.............................................................................................................4
Questionaries Design:............................................................................................................4
Analysis Method:...................................................................................................................5
Correction Analysis:...............................................................................................................6
Extended Analysis of Customer Loyalty:..............................................................................6
Data Integrity:............................................................................................................................6
Data for the Research:................................................................................................................7
Conclusion:................................................................................................................................7
References:.................................................................................................................................9
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2IMPACT OF BRAND IMAGE ON CUSTOMER LOYALTY
A Proposal to Research Impact of Brand Image on Customer Loyalty
Introduction:
In present marketing strategies organizations uses several important processes so that
they can attract new customers and can hold their existing customers. Actually, the brand can
be main factor for retaining the standing customers and for appealing the new customers.
This is possible as brands are valuable for the customers. Brands are important for the
customers as they decrease the risk for the customers (Pappu and Quester 2016). Thus, most
of the customers always prefers high quality brands so that risk associated with their products
always gets reduced. As brands plays a vital role for customer retention and new customer
attraction (Coelho, Rita and Santos 2018), this paper will propose a research regarding the
influence of brand image on the loyalty of customers. Customer retention and attracting new
customers is extremely important for the organizations so that they can survive in the
competitive market situation. Regarding this, a research on impact of brand image on
customer loyalty can help the organizations to identify the importance of the brand image and
ultimately it will also help those organizations in better management of the customers (Yeh,
Wang and Yieh 2016). For this reason, the current study is extremely important. The main
questions which this research aims to answer are the,
How the brand image improves the customer loyalty?
How the organizations can work to improve their present brand image in the market?
Both of the questions will be answered in the current research. Proper analysis will be
done in the research regarding the factors which improves the brand image, and whether
these factors are capable of attracting new customer and retaining the existing customer or
not. The main theme of this research project is identifying the measures for improving the
brand image so that customer loyalty can be ensured.
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3IMPACT OF BRAND IMAGE ON CUSTOMER LOYALTY
Background of the Research:
The current study is mainly aiming to identify how the brand image influences loyalty
of the customers. An extended research will be done for the examination of brand image and
its effect over the customer behaviour. In some specific terms, the current study is important
as from the previous researches various of issue has been identified regarding brand image
impact on the perceived quality and the satisfaction of the customers. Some similar type of
research has been also done previously which has shown that brand image does have a strong
influence over the customers loyalty (Wolter et al. 2017). However, in those researches there
was lack of proper empirical studies for discovering the outcomes, and implication of the
customer loyalty. From the theoretical perspective it can be argued that customer satisfaction
is one of the important factors for ensuring the customer loyalty. In this aspect, the brand
image represents important aspects of marketing which assists organization to create
association in customer mind. This will also add some extra value in terms of emotional
benefits, where it can be extended beyond the attributes of the products and will also provide
functional benefits (Cossío-Silva et al. 2016). However, this is just an assumption and it
needs to be tested across different types of market.
From this perspective, the current study is totally valid as it will be analysing
behavioural outcomes of a customer loyalty and also, it will explore the brand image impact
regarding it. This study will play a significant role for all type of consumer markets as there is
less empirical knowledge regarding the current study. There are various of countries which
are experiencing a fast economic growth and for that countries this study is extremely
important as this study will provide some extra knowledges regarding how useful and
sensitive the brand image can be for influencing the customers. (Nyadzayo and Khajehzadeh
2016)
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4IMPACT OF BRAND IMAGE ON CUSTOMER LOYALTY
Therefore, current study is aiming for conceptualising and measuring influences of the
brand on the consumers by performing the examination of brand image impact on the
customers loyalty. This study will be also analysing the possible association among the brand
image and the current variables by implementing the most suitable approach of research.
Benefits of this Research:
There are several types of benefits upon successful completion of this research. First,
benefit of this research is that it will help the organizations and businesses to understand the
importance of brand image degree within their customer base and it will also help the
organisations to act accordingly. Also, this study will indirectly help the whole world
regarding the economic growth of it. Also, this study will help the organizations to achieve
loyal customers which will benefit their overall business procedure (Budianto 2019) and will
also help the organizations in holding their customers from switching to any other products or
organization.
Research Methodology:
In this case, for execution of this research, some specific steps will be taken. All the
important steps for performing this research can be considered as the research methodology.
For performing this research, first, it is important to collect the required information or the
data these will be collected from different types of consumers. Thereafter, analysis will be
done on the gathered data for this research.
Questionaries Design:
Questionaries will be designed for this research so that primary data can be collected
for the research purpose. In this aspect quantitative data will be collected from the consumer
on a Likert scale of one to ten. The data on the Likert scale will be taken from the consumers
with respect of a given statement. In this Likert scales if the consumer provides the feedback
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5IMPACT OF BRAND IMAGE ON CUSTOMER LOYALTY
one on the Likert scale, it means the consumer completely disagrees with the given statement.
Similarly, if the consumer provides the feedback of ten in the Likert scale, it means the
consumer or the participant completely agrees with the given statement. The main resolution
of this data collection technique is offering the respondents with several of choices and
capturing the feelings of them regarding the brand choices of them (Voutilainen et al. 2016).
This type of assessment will also provide a proper room for validity assessment and
reliability of the scale.
To conduct this research, 30 different statement will be used depending on which
feedback will be gathered through the Likert scale. For this research total 280 participants
will be selected from whom the data will be collected for this research. The collected data
from the survey will be analysed by using the exploratory factor analysis (Bandalos and
Finney 2018). In this aspect factor extraction and scale item reduction will be done for
execution of the research. Reliability test will be also done for the collected data. Finally,
correlation analysis will be done for the assessment of association and variable differences.
Analysis Method:
For this current research, principal component analysis will be done. For this study
the items will be scaled to exploratory factor analysis. Varimax rotation for the scale
reduction will be also done with the principal component analysis. Also, small factors set and
factor extraction will be identified with eigenvalues equal or greater than 1. The principal
component analysis depends on several type of factors so that it can be used for the data
analysis purpose (Jolliffe and Cadima 2016). In this case before performing the principal
component analysis, data integrity will be checked due to the purpose of factor analysis.
The above analysis technique will be used for testing of usability and suitability of the
instruments for this kind of study. This is done due to the fact that there is evidences from
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6IMPACT OF BRAND IMAGE ON CUSTOMER LOYALTY
various of studies which supposed to measure this type of behavioural components, but in the
real case scenario calculating something similar is quite different from the actual concept in
the study. Thus, it is justified that the scale is important for the measurement of influence of
the brand image on the customers loyalty.
Correction Analysis:
In this research the correction analysis will be also utilized for the determination of
possible association among all the component variables which are brand image and customer
loyalty. The preliminary analysis will be done so that it can be ensured that there is no
desecration of the hypothesis of linearity, normality and homoscedasticity.
Extended Analysis of Customer Loyalty:
For this research an extended analysis will be also done over the loyalty of the
customers. In this research, the responses of the participants will be subjected to the
frequency analysis. For the further study of customer loyalty, behavioural assessment will be
done of the customers in total two dimension. In the first case, evaluation will be done
regarding the repeat purchase of the customers (Bilgihan 2016). In the second case, attitude
assessment of the customers will be done where brand recommendation of the customers to
the others will be evaluated.
Data Integrity:
For execution of this type of research it is always important to ensure that the
collected data is trust-worthy. For this research some specific steps will be taken so that
trustworthiness of the collected data can be ensured. First, in this research it will be ensured
that the pathway to the data is totally transparent. In this case a consistent access to the raw
data will be ensured to make the data trust-worthy (Yu et al. 2016). During this research, in
each and every stage it will be ensured that the data security is consistent. Establishment of
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7IMPACT OF BRAND IMAGE ON CUSTOMER LOYALTY
the data security will ensure that the collected data is not manipulated and trust-worthy. In
this aspect, ensuring the data quality is also important for the research. For this research, data
profiling will be done so that quality of the data can be ensured. Also, during the research it
will be confirmed that there is no duplication of the actual data. Through this, quality check
and data integrity for the research can be confirmed.
Data for the Research:
As discussed previously, to conduct this research primary data will be used. In this
case primary data will be gathered through the quantitative research. The main source for
collecting the data are the consumes of different types of brands.
For the execution of the current research, primary source of data is relevant as this
type of data much more accurate while compared with any type of secondary data (Daniels,
de Andrade and Bjarkefur 2019). The most important concern is that, to execute this research
some specific type of statistical data is also required and primary source of data should be
always used for taking any type of statistical data consideration for the research. If the
statistical data is taken from any type of secondary resources then there is always a chance of
data manipulation which should be avoided at any cost. The data collected from the primary
sources by the researcher is always regulated which ensure genuine outcome from the
research. For this reason, primary source of data is the most relevant for the execution of the
current research.
Conclusion:
The above discussion has properly demonstrated the requirement of the proposed
research. Proposed research will help to recognize the factors which must be confirmed by
organizations to ensure the customer loyalty. In this aspect it has been determined that there
are several of skills which needs to be improved so that a high quality and impactful project
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8IMPACT OF BRAND IMAGE ON CUSTOMER LOYALTY
can be ensured regarding the current research. The main skills which requires the
improvement in this context are the communication skills, leadership skills and the critical
thinking skills. The most important challenges that the current research will face is the
geographical limitations. Different types of consumers are present all over the world, and
different types of brands treat their consumers in different way. But it will be not possible for
the researcher to collect the data from the consumers all around the world. Thus, this research
will be executed within some specific geographical region. Through this research both the
organizations and the consumers will be benefitted as the organization will be figuring out the
factors for the customer loyalty, which shall be achieved by providing proper services to the
consumers. In this way, by overall improvement all the parties will be benefitted. The main
ethical issue that can occur during this project is regarding confidentiality of the research
participants. To ensure this type of issue does not occurs, personal data will be collected
separately which will be protected through encryption and the confidential data will be not
mentioned in the main research paper.
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9IMPACT OF BRAND IMAGE ON CUSTOMER LOYALTY
References:
Bandalos, D.L. and Finney, S.J., 2018. Factor analysis: Exploratory and confirmatory. In The
reviewer’s guide to quantitative methods in the social sciences (pp. 98-122). Routledge.
Bilgihan, A., 2016. Gen Y customer loyalty in online shopping: An integrated model of trust,
user experience and branding. Computers in Human Behavior, 61, pp.103-113.
Budianto, A., 2019. Customer loyalty: quality of service. Journal of management
review, 3(1), pp.299-305.
Coelho, P.S., Rita, P. and Santos, Z.R., 2018. On the relationship between consumer-brand
identification, brand community, and brand loyalty. Journal of Retailing and Consumer
Services, 43, pp.101-110.
Cossío-Silva, F.J., Revilla-Camacho, M.Á., Vega-Vázquez, M. and Palacios-Florencio, B.,
2016. Value co-creation and customer loyalty. Journal of Business Research, 69(5), pp.1621-
1625.
Daniels, B., de Andrade, L.C. and Bjarkefur, K., 2019, August. iefieldkit: Stata commands
for primary data collection and cleaning. In 2019 Stata Conference (No. 11). Stata Users
Group.
Jolliffe, I.T. and Cadima, J., 2016. Principal component analysis: a review and recent
developments. Philosophical Transactions of the Royal Society A: Mathematical, Physical
and Engineering Sciences, 374(2065), p.20150202.
Nyadzayo, M.W. and Khajehzadeh, S., 2016. The antecedents of customer loyalty: A
moderated mediation model of customer relationship management quality and brand
image. Journal of Retailing and Consumer Services, 30, pp.262-270.
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Pappu, R. and Quester, P.G., 2016. How does brand innovativeness affect brand
loyalty?. European Journal of Marketing.
Voutilainen, A., Pitkäaho, T., Kvist, T. and Vehviläinen‐Julkunen, K., 2016. How to ask
about patient satisfaction? The visual analogue scale is less vulnerable to confounding factors
and ceiling effect than a symmetric Likert scale. Journal of advanced nursing, 72(4), pp.946-
957.
Wolter, J.S., Bock, D., Smith, J.S. and Cronin Jr, J.J., 2017. Creating ultimate customer
loyalty through loyalty conviction and customer-company identification. Journal of
Retailing, 93(4), pp.458-476.
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.
Yu, Y., Au, M.H., Ateniese, G., Huang, X., Susilo, W., Dai, Y. and Min, G., 2016. Identity-
based remote data integrity checking with perfect data privacy preserving for cloud
storage. IEEE Transactions on Information Forensics and Security, 12(4), pp.767-778.
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