Chapter 2: Review of Related Literature and Studies
2.1 Review of Theories Related to Brand Loyalty
According to A Theory of Multidimensional Brand Loyalty (Sheth & Park, 1974), brand loyalty was a positive bias toward the brand and they classified brand loyalty behavior into three dimensions. Firstly, emotive tendency, it relate to positive emotion toward favorable brand than other brands such as likeliness, premium-value, etc. Secondly, evaluation tendency, it relate to positive evaluation toward the particular brand. For instance, consumer may evaluate particular brand that it has higher performance, which affect the utility of product, so they intend to buy the particular brand over the other brands due to the positive evaluation. Thirdly, behavioral tendency, it relate to the trust on physical activities of brand. The consumer may trust on the brand and consume it even they have to pay in advance. Hence, this behavior needs to learn from buying experience and consuming product of the brand as usual. Moreover, Sheth and Park stated that at least one of these three dimensions could create brand loyalty. Hence, as showing in Figure1, there would
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Thus, in this study, Information factor was applied to be Word-of-Mouth (WOM) because WOM tend to be potential communication channel for cosmetics product in recent year. For Perceived Utility, it was applied to be Perceived Value because the cosmetics product might not only evaluated by only utility but it also valued by many aspects. For Product Availability, it was applied to be Convenience, which related to the distribution channel or the acquisition of cosmetics product. Lastly, Consuming Experience related to customer attitude toward the purchasing, so it is applied to be Satisfaction on Product in this
Thus, companies seek to strengthen customer loyalty. Brand loyalty is considered to tilt the consumer to purchase the package / product specific brand (Jacoby and Chestnut, 1978). Later, Oliver (1997) defined loyalty as "a deeply held commitment to REBUY or repatronize preferred product / service consistently in the future, thereby causing repetitive same-brand or same brand set purchasing, despite situational influences and marketing activities, which would result in causing switching behavior "(p. 34). This conceptual definition covers two different aspects of loyalty: the behavioral. This is consistent with an integrated conceptual framework proposed by Dick and Basu (1994), that customer loyalty is regarded as a "power relationship between the relative position of the individual and repeat
Simplified brand loyalty describes a status in which consumers determine their selves in; out of it they become committed to a brand. Thereby they continue purchasing products or services of a specific brand. At this point consumers rather spent more money on a product of a specific brand than buying from multiple suppliers within the same category. Mainly brand loyalty is a result of consumer’s behavior, which is enforced through a company’s measurements regarding branding. Branding is a process that a company runs through in order to establish a new brand. The ambition here is to strengthen a unique name and image for a product in
Jaworski (2003), the process of purchase could be divided into three sections: pre-purchase, purchase and post-purchase. Authors claim that every part of purchase process is important because it is a complex action. Firstly, when a decision to buy a product is made, personal evaluation of product purchase process begins. Consumer starts collecting information regarding the criteria that determines the choice of the product and the location where the purchase is to be made. The question about loyalty to the brand is raised as well when it comes to utility of the product and service that the customer receives on purchase day. According to D. Schultz (2005), a satisfied customer will demonstrate the loyalty to the brand in a way that shows the willingness to repeat the purchase and provide positive comments to the social groups using word-of-mouth technique. The product brand itself and its importance to the client is included in purchase decision making as well.
In today’s highly competitive business markets, a consumer’s loyalty to a brand often adds reassurance to the company’s stable and lasting position in the marketing world. As the new year continues to unravel, brands must maintain strong marketing strategies in order to keep their current buyers interested as well as capture the eye of new buyers. Brand loyalty after all, is the consumer’s conscious and unconscious decision, expressed through intention or behavior, to repurchase products from a brand continually. It occurs when the consumer perceives that the brand offers the right product features, image, or level of quality at the right price. One of the industry’s most successful
There are no studies which touched on the topic of “loyalty” to hotel brand in Riyadh City in the Kingdom of Saudi Arabia but there are some studies which had discussed the “loyalty” to a brand in other production sectors. For example, the study of (Salh, 2010 ) as it aimed to study the psychological and social factors and its effect on loyalty of mobiles’ buyers to the brand as the study concluded that there is relation between the psychological and social factors of user and mobile brand. The study of (Hasen, 2017) aimed to know the factors which lead to prefer a specific brand and concluded that there are several factors of preference of a specific brand such as quality, price, specifications and mental image of the brand. The study of (Al-Zabi, 2013 ) strived to examine the effect of concepts relevant to the nature of purchasing decisions, mechanism to make these decisions, methods of its evaluation, explain the types reference groups which affect purchasing decision of consumer of automotive goods and identify the types of effect (informative and standard) and degree of their effect on purchasing decision of consumer of automotive goods. The study of (Al-Khusroom, 2011 ) aimed to know the effect of perceived difference and perceived quality of on consumer’s loyalty to a brand. The study concluded that there is big effect of perceived difference which is created by brand in consumer’s mind in his loyalty towards this brand. Also, the perception of
Brand loyalty, long a central construct in marketing, is a measure of the attachment that a customer has to a brand. It reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or in product features. As brand loyalty increases, the vulnerability of the customer base to competitive action is reduced. It is one indicator of brand equity which is demonstrably linked to future profits, since brand loyalty directly translates into future sales.
Brand loyalty is a competitive advantage for the brands. Brand loyalty is found to have a positive influence on the performance of the product. it is known to increase the financial benefits associated with the product. brand loyalty has a positive and direct relation with the financial performance of the company. The revenue generated from a product increases. When a customer buys a product and product satisfies the consumer need, the customer become satisfied. The satisfactory post purchase behavior of a consumer propels the consumer for buying a product again and again. This repurchasing behavior of a consumer increases the sales of a product and ultimately increases the revenue of a product. The financial performance of a product enhances as the revenue increases, the profitability of the product also increases. Brand loyalty sticks consumer to a brand and does not switch to other
Reflecting these critical aspects of brand loyalty in advertising, and marketing in general, the study of brand loyalty has been represented in the literature for more than eight decades, since Copeland’s introduction of brand insistence in 1923 ( Jacoby and Chestnut 1978). Early research was primarily focused on the operational definition of behavioral aspects (i.e., repeated purchase) of brand loyalty, but starting with Jacoby and Chestnut (1978), brand loyalty has been studied in terms of both attitudinal and behavioral aspects. Linking attitudinal and behavioral loyalty, some recent efforts have provided significant conceptual frameworks that distinguish true brand loyalty from spurious brand loyalty (e.g., commitment: Odin, Odin, and Valette-Florence 2001; brand sensitivity: Bloemer and Kasper 1995; commitment and trust: Morgan and Hunt 1994). True brand loyalty can be conceptualized
One of the most desirable traits that marketers would like to see in the consumers they are positioning their product towards is loyalty to their brand. Brand loyalty can be defined as “the extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands.” (Business Dictionary, 2012) An expression of brand loyalty from consumers can help companies to experience significant growth not only through repeat purchases, but also word-of-mouth: brand-loyal consumers who talk among their peers about their purchasing behaviour may talk positively about the brand they like, which allows these consumers to try these
In today’s society the need for accessibility is in demand. Society wants to be able to: (1) access all the information the internet has to offer, and (2) share this information with their friends, family, and colleagues in an environment where they can socialize with one another. Hot Tea Iced Coffee aims to provide our customers with this unique forum where they can utilize the internet for business, entertainment, and communication purposes; all while doing so in a relaxed yet social environment.
Brand loyalty occurs in every service brand or product and creates a desirability around the brand in the consumer’s eyes to invite them to want to make repeat purchases. Always turning to that brand to satisfy a need trying to be fulfilled. Whether it’s a product or service that is used or a product that is consumed brand loyalty exists, Brand loyalty is built on the basis of every interaction a customer has with your service. The key to brand loyalty is to always meet or surpass expectations with every customer encounter.
What is commercial brand? Sure everyone must walk by it from corner to corner a number of times on a daily basis. Brand can be locate at the stores we visit, on the street we walk by even in your own home, so and so, they are very much can be found ubiquitously in humanity. Commercial brands are part Of our daily life, the question is: What exactly is a Commercial brand? It can be define in
For example, company Apple produces own devices from high-quality components, as a result consumers often can forgive them for a bit higher price products. Another component of brand loyalty is service quality that is a kind of personal selling when salesmen and potential buyers create direct communication. In fact, consumers like to shop so where they are satisfied with the service and receive a small privileges. Good relationship between buyer and seller ultimately leads to the construction of communication, and as a result in the future consumer is bound to a particular brand. Moreover a personal approach to customers impacts on their experience and service’s evaluation and additionally, influence on the loyalty to the brand (To and Leung, 2001, as cited in Yee & Sidek, 2008). In the context of brand loyalty, it is also a very important concept of word of mouth. This is a peer to peer communication that consumers use it to express their attitude towards a particular product or service. Also it is very important that consumers can express their opinion about it in a positive and negative way (Rehman, Zia-ur-Rehman & Dr. Akhtar, n.d). Public forums are a great example of the concept word of mouth. On this platform people can communicate with each other and ask or express opinion about some products or services.
Investigate how the three variables (i.e. similarity, overload, Uncertainty) affect consumer’s decision postponement and brand loyalty, concerning low involvement products. A conceptual framework based on consumer behavior – and consumer confusion literature, was utilized to form six hypotheses predicting the causality between the different variables. After validating and adapting the space to data gathered through a survey, regarding Indian Population purchasing habits of Biscuits, 2 standard multiple regressions revealed that one hypothesis was supported; overload confusion proneness decreases brand loyalty in a low involvement product category. All implications were then discussed from Practitioners and researchers points of view, concluding with possible limitations and further research.
The behavior in which a consumer keeps buying a product time and again instead of buying products from other competitive companies is called Brand Loyalty. Brand loyalty can often be termed as Customer Loyalty, Brand Commitment, Product Loyalty etc. Brand Loyalty is seen among consumers when they realize that the product is better than the other products that are available in the market. This affinity of a consumer towards a particular product is considered to be brand loyalty. Although, this consumer behavior is not limited to a simple repetition of a purchase, there is also a psychological reasoning behind the consumers’ affinity towards behavior.