Dissertation: Brand Loyalty and Customer Relationship Management

This dissertation examines the influence of brand name, vehicle quality, price, and customer relationship management (CRM), including brand promotion and service quality, on brand loyalty within the UK automotive industry. The research addresses the challenges of achieving and maintaining brand loyalty, emphasizing the importance of effective CRM. The study employs a descriptive research design and a survey strategy, using a systematic sampling technique for data collection. Data analysis includes descriptive, correlation, and regression analyses to identify the relationships between various factors and brand loyalty. The findings suggest a strong correlation between effective CRM and brand loyalty, highlighting the positive impact of factors like brand promotion, service quality, and after-sales service. The dissertation provides interpretations of the findings, discusses the study's significance, and offers recommendations for future research in the field of brand loyalty and customer relationship management.

Running head: DISSERTATION
Brand Loyalty and Customer Relationship Management
Name of the Student:
Name of the University:
Author’s Note:

1DISSERTATION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study.
I am indebted to my supervisor ……………………. whose guidance, advice and patience
have been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local
Education Authorities, for the time and help given throughout. Without their participation,
this research would not have been possible. In this context, I am also thankful to them, whose
research work helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or
completed! Your encouragement and support have never faltered; thank you.

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Abstract
The aim of the research is to investigate whether the name of the brand, quality of the
vehicle, price and customer relationship management that includes brand promotion and
service quality have an influence on the brand loyalty of the customers. One of the major
challenges that are identified in respect to brand loyalty is getting the customers on board
because the customers might not perceive the brand in the same way the brand perceives
them. Another problem that emerges when it comes to brand loyalty among the customers is
establishing and building trust. Even the smallest mistake leads to the development of
negative feeling and experience that acts as stimuli for a major setback. Hence, when the
relationship with the customers is ineffective and interrupted, the loyalty of the customers
towards the brand is also compromised largely leaving negative impact.
From the data analysis, it can be seen that brands can achieve and develop loyalty towards
them if the customer relationship management is highly effective. The different factors
affecting brand loyalty considered for this study are brand name, brand promotion, service
quality and after sales service are found to be positively as well as strongly associated with
each other. Hence, it can be inferred that customer relationship management is strongly
correlated with brand loyalty. From the values obtained from the regression analysis, it can be
seen that the p-value obtained is .000 that is less than 0.05. Based on the values, it can be
inferred that the null hypotheses are rejected and the alternate hypotheses are accepted.
Hence, effective customer relationship management facilitates brand loyalty and similar is the
case of automobile industry of UK.

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Table of Contents
Chapter 1: Introduction..............................................................................................................9
1.0 Overview.....................................................................................................................9
1.1 Problem statement............................................................................................................9
1.2 Research aim..................................................................................................................10
1.3 Research objectives........................................................................................................10
1.4 Research questions.........................................................................................................10
1.5 Research rationale..........................................................................................................11
1.6 Structure of the dissertation...........................................................................................12
1.7 Summary........................................................................................................................13
Chapter 2: Literature review....................................................................................................15
2.0 Overview........................................................................................................................15
2.1 Concept of brand loyalty................................................................................................15
2.2 Factors affecting brand loyalty.......................................................................................16
2.2.1 Brand name.............................................................................................................16
2.2.2 Brand promotion.....................................................................................................19
2.2.3 Service quality.........................................................................................................21
2.2.4 After sales service...................................................................................................22
2.3 Benefits of brand loyalty................................................................................................23
2.4 Challenges of brand loyalty.......................................................................................26

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2.5 Methods of overcoming brand loyalty challenges.........................................................28
2.6 Customer relationship management...............................................................................29
2.7 Factors affecting customer relationship management....................................................30
2.7.1 Interdependence......................................................................................................30
2.7.2 Communication.......................................................................................................30
2.7.3 Conflict resolution...................................................................................................31
2.7.4 Competence and friendliness..................................................................................31
2.8 Role of customer relationship management in retaining customers..............................32
2.9 Investigate the impact of branding in influencing customers........................................32
2.10 Conceptual framework.................................................................................................33
2.11 Summary......................................................................................................................33
Chapter 3: Research Methodology...........................................................................................34
3.0 Overview........................................................................................................................34
3.1 Research Outline............................................................................................................34
3.2 Research Philosophy......................................................................................................35
3.2.1 Justification of selecting positivism philosophy.....................................................36
3.3 Research Approach........................................................................................................36
3.3.1 Justification of selecting deductive approach.........................................................37
3.4 Research Design.............................................................................................................38
3.4.1 Justification of selecting descriptive design............................................................38
3.5 Research Strategy...........................................................................................................39

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3.5.1 Justification for selecting survey research strategy.................................................39
3.6 Sampling Technique and Sampling Size........................................................................40
3.6.1 Justification for selecting systematic sampling technique......................................40
3.7 Data Collection Technique.............................................................................................40
3.7.1 Justification for selecting primary data collection technique..................................41
3.8 Data Analysis Technique...............................................................................................41
3.8.1 Justification for selecting quantitative data analysis technique..............................41
3.9 Ethical Considerations...................................................................................................42
3.10 Summary......................................................................................................................42
Chapter 4: Data analysis...........................................................................................................43
4.0 Overview........................................................................................................................43
4.1 Survey procedure...........................................................................................................43
4.2 Descriptive analysis.......................................................................................................44
4.4 Correlation analysis........................................................................................................47
4.5 Regression analysis........................................................................................................49
4.7 Summary........................................................................................................................53
Chapter 5: Discussions.............................................................................................................54
5.0 Overview........................................................................................................................54
5.1 Interpretations................................................................................................................54
5.2 Summary........................................................................................................................57
Chapter 6: Conclusion and recommendations..........................................................................58

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6.0 Objective findings..........................................................................................................58
6.1 Significance of the study................................................................................................59
6.3 Recommendations for future research...........................................................................60
References................................................................................................................................61
Appendices...............................................................................................................................71
Appendix 1...........................................................................................................................71
Survey questions..............................................................................................................71
Appendix 2...........................................................................................................................75
Gender..............................................................................................................................75
Appendix 3...........................................................................................................................76
Age group.........................................................................................................................76
Appendix 4...........................................................................................................................77
Monthly income...............................................................................................................77
Appendix 5...........................................................................................................................78
Brand loyalty and customer relationship management....................................................78

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List of Figures
Figure 1: Conceptual framework.............................................................................................33
Figure 2: Gender......................................................................................................................44
Figure 3: Age group.................................................................................................................45
Figure 4: Monthly income........................................................................................................46
Figure 5: Brand loyalty and customer relationship management.............................................47

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List of Tables
Table 1: Research Outline........................................................................................................35
Table 2: Determining relationship among the factors of brand loyalty...................................48
Table 3: Brand name and customer relationship management................................................50
Table 4: Brand promotion and customer relationship management........................................51
Table 5: Service quality and customer relationship management............................................52
Table 6: After sales service and customer relationship management......................................52

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Chapter 1: Introduction
1.0 Overview
Brand loyalty and customer relationship management are two widely researched
topics is the past where the information collected has been of great use and contributed
largely for the benefits of the brands and business organizations. Past researches have
revealed that brand loyalty is necessary because it ensures competitive advantage for the
specific brands. The brands with loyal base of customers gets an upper hand from the
competitors because they are more preferred by the customers compared to other brands
(Pappu & Quester, 2016).
The building blocks of the brand loyalty are the customers and henceforth, the brands
and the business organizations need to maintain positive and trustworthy relationship with the
target customers. This can be achieved by serving the customers promptly, having an
empathetic behaviour towards them, communicating with the customers patiently and
effectively (Sasmita & Mohd Suki 2015). Taking care of the customers make them feel
valued and significant thereby, developing trust gradually and leading to brand loyalty
ultimately. Hence, it can be inferred that customer relationship management plays a
significant role in developing brand loyalty.
1.1 Problem statement
Brand loyalty and customer relationship management come with own set of
challenges and issues irrespective of the significance it offers for the brands. One of the major
challenges that are identified in respect to brand loyalty is getting the customers on board.
Getting the customers on board is a challenge because the customers might not perceive the
brand in the same way the brand perceives them. Hence, this disparity in perception makes it

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challenging for the brand to develop loyalty within the target audiences that comes with loss
of competitive advantage and loss of customers (Nyadzayo & Khajehzadeh, 2016).
Another problem that emerges when it comes to brand loyalty among the customers is
establishing and building trust. Even the smallest mistake leads to the development of
negative feeling and experience that acts as stimuli for a major setback. The customers do not
trust the brand readily in the future and the effort of the brands and the employees fails to
make an impact easily. Not only brand loyalty, even maintaining an effective relationship
with the customers is also challenging because focusing on the individual needs and demands
of the customers while serving them becomes difficult (Wali, Wright & Uduma, 2015).
Hence, when the relationship with the customers is ineffective and interrupted, the
loyalty of the customers towards the brand is also compromised largely leaving negative
impact. With the intense competition in the automobile industry in the UK, compromised
brand loyalty and relationship with the customers give rise to severe negative outcomes.
1.2 Research aim
The aim of the research is to investigate whether the name of the brand, quality of the
vehicle, price and customer relationship management that includes brand promotion and
service quality have an influence on the brand loyalty of the customers.
1.3 Research objectives
The objectives of the research are:
 To analyze the factors that influences customer relationship management in retaining
the customer
 To analyze how the branding has influenced the customers
 To examine if people consider branding as prestige
 To examine if branding can capture more loyal customers

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1.4 Research questions
The questions of the research are:
 What are the factors influencing relationship management in retaining the customer?
 What are the techniques of influencing customers using branding?
 What is the mindset of the people about considering branding as prestige?
 What is the role played by branding in capturing more loyal customers?
1.5 Research rationale
Undertaking this research is significant because both brand loyalty and customer
relationship management plays a significant role when it comes to the success of a brand. As
known, customers are the key external stakeholders that brands rely on for increased sales,
business exposure and revenue maximization. Having a loyalty customer base ensures
competitive advantage for the brand. Hence, conducting this study will help in investigating
and critically analyzing the different factors that influences customer relationship
management (Sheth, 2017). Hence, the effectiveness of brand loyalty can be compared and
contrasted in the presence and absence of effective customer relationship management. As a
result, it can be understood whether customers can be retained if effective customer
relationship management is present or absent (Zheng et al., 2015).
Progressing with the research is also significant because the research will shed light
on the effectiveness of branding in influencing customers. This will help in determining the
significant role played by branding in attracting customers that is beneficial in the long run.
Hence, it can be understood whether effective branding and brand loyalty can grab the eye of
more customers with improved loyalty towards the brand. The perception of the customers on
whether branding is a prestige or just a phenomenon for increasing sales can be determined.