Chapter 1 Introduction 1.1 Background In the continuous trend of globalization borders are not restricting the nations that they use the local products only, the usage of internet, media, tourism, and increasing trend of consuming the global brands creating a new segment of consumers named cosmopolitans? Cosmopolitanism is defined in these terms ‘open-minded individuals whose consumption orientation transcends particular cultures, localities or communities and who appreciates diversity including trying products and services from a variety of countries’(Riefler and Diamantopoulos, 2009, p, 415). Consequently, globalization is changing the ways consumers and markets integrate with each other (Hannerz, 1992; Arnett, 2002; Craig and Douglas, 2006; …show more content…
In this study we will prove that there is positively association between Cosmopolitanism and Global Brand Loyalty. 1.3 Research Question How does country development status moderate the relationship between Cosmopolitanism and global brand loyalty? 1.4 Research Objectives Understand the association between Cosmopolitanism and global brand loyalty within developed and developing country. 1.5 Significance of the Research By this research we will find the brand loyalty about different aspects in developed and developing country and also examine the nature and thinking of cross border peoples and also finds where the Cosmo politics are more effect the people behavior about the purchasing decisions. And which country peoples are more loyal with global …show more content…
In general, brand loyalty is understood to describe the characteristics of those consumers who have a strong commitment to a brand, because they view that brand as being more satisfactory than the alternatives and this evaluation is reinforced through repeated use (Jonna, 2001). The literature is quite clear on what brand loyalty means; however, there are differences of opinion on its measurement. The instrumental conditioning perspective views behavioral measures such as actual purchase patterns as being the best indicators of brand loyalty. This line of research maintains that brand loyalty develops from the positive reinforcement received from trying a brand and being satisfied with it, which leads to repeat purchase (Jonna, 2001). The problem is that behavioral measures cannot distinguish between actual brand loyalty (i.e., affect for the brand) and “spurious” repeat purchase patterns that may result from convenience, availability, inertia, or other factors. The cognitive school proposes that only measures of a consumer’s mental processes and beliefs can make the distinction between actual brand loyalty and spurious behavior (Day, 1969; Lutz & Winn, 1974). From this perspective, brand loyalty is the result of the consumer’s search and attributes evaluation process, which leads to beliefs of brand appropriateness or superiority and repeat purchase. An example of this is the
The results of the study indicate that a large portion of the repeat buying behavior is due to unexplained factors across purchasing occasions. The authors state that this study has a 72% of reliability, but did not show the calculation of how the number was derived. The written English is weak and some descriptions are not so clear. Despite this deficiency, this article provides marketing managers with another perspective to sustain brand loyalty. In regards to the 72% reliability, further research can incorporate quantitative methods of research to indentify outliers, which can lead to a more accurate
Al, 1992). Also, it creates a concrete base of consumers with high brand loyalty to sustain the brand’s expected product’s life. Moreover, Brand loyalty can be measured in several different ways but the most main categories are through consumers; attitude loyalty and purchase evaluation of the product (Chaudhuri et al, 2001). Consumers’ Attitude is when consumers have a favorable likelihood to purchase a product toward a brand and the company. Therefore, attitude can increase of brand loyalty which helps the brand compete against its respective
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
The direct relation and effect of cosmopolitanism on foreign product purchase behavior is an aspect which needs to be studied for a better insight of it in India. Thus measuring these variables and study the effects of cosmopolitanism has a scope in International marketing research.
Forging good brand relationships can be done via behavioral loyalty by the understanding the patterns of repeated purchases, quantity and types of products consumed(Keller, 2001).
Brand awareness plays an important role in influencing purchase decisions of Indian customers as they are sensitive to brand image, as oppose to British customers because the market for luxury products in Britain is already saturated. Findings also suggests that ‘Country of Origin effect’ matters to customers in both the countries because products from developed nation tend to receive better product evaluation and products 'Made in a developing nation' would turn off consumers because of lack of familiarity or inferior image (Chinen, Sun & Ito, 2014).
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
We owe a debt of gratitude to (professors name), for the vision and foresight which inspired us to conceive this research project on topic Influence of Brand Loyalty on Consumer Sportswear as for providing necessary information regarding the project & also for her support in completing the project.
Understanding the relation between country image and consumer brand equity is very important for many reasons, first the spread of globalization and the increase of international businesses which facilitate the transfer of the products from one country to consumers in other countries. Second, firms in developed countries start to shift the production lines to other countries to benefit from the cheap labor and low transportation cost. Finally firms sell their products in other countries for strategic reasons economy of scale. Putting into consideration the importance of brand equity as an asset for firm and also it is a source of competitive advantage a firm can rely on in marketing its products, So it is important for the marketers to understand the relationship between country image and brand equity before changing the production to other countries. (Pappu, Quester, Cooksey, 2007).
The most complete definition of consumer loyalty is given by Jacoby e Chestnut (1978) that sustain that brand loyalty represents the non random repetition of the buying behaviour of the same brand or group of
Creating and maintaining strong brand and a band wagon of loyal customers have become increasingly difficult in today's competitive environment due to proliferation of numerous brands in a generic product category. Brand loyalty has been shown to be associated with higher rates of return on investment due to increase in the market share. Past studies in this area reveal the dependence of researchers to administer the scale developed by Kapferer and Laurent as well as
Brand loyalty is often based upon perception. A consumer will consistently purchase the same product because she perceives it as being the superior product among the choices available. You should note that brand loyalty usually relates to a product, not a company. For example, while you may be loyal to your Honda Accord, but when it comes to motorcycles, you might believe that a Harley leaves a Honda motorcycle in the dust.
Globalization is an inevitable phenomenon that is leading the entire world towards becoming one market, a global village. With the world becoming a single market, globalization has had a major contribution in enabling the organizations worldwide to step out of the restricted domestic markets and to set up their operations across the globe with confidence. This has largely led to a decline in the importance in national borders and a greater emphasis on what the consumers actually demand no matter the consumer is located in the very country in which the organization exists or an entirely different part of the world. Moreover, with the rapid increase in global competition, companies that strictly adhere to and cater to the needs of the local markets are finding themselves at a disadvantage and gradually losing the competitive advantage that they so much strived to achieve. However, for some products and services the tastes and preferences of consumers in different nations are beginning to converge on some global norm.
Read the Case study 4.1 "The implications of globalization for consumer attitudes" on page 218 and answer the question there.
Brand trust is basically the emotional commitment of the customers with brand. Marketers are now days very much interested in trust because mostly it is observed that higher trust ratings are positively related to loyalty (Reast, 2005). Studies elaborated that trust plays an important role in customer repeated purchase decision and long term customer satisfaction (Ballester and Aleman, 2001). Brand trust development is a long term process, a trustworthy brand cares the customer expectations, fulfill promises and value its customers that eventually leads to brand trust and reliability (Ballester and Aleman, 2005). Present study is carried out to gauge the strength of relationship between brand trust and customer loyalty. Customer Satisfaction: Satisfaction is traditionally considered as an overall affective response resulting from the use of a product or service (Oliver 1981). It is believed to have a direct influence on customer loyalty (Mittal and Lassar, 1998; Oliver, 1997) and repurchase behaviors (Kumar, 2002; Mittal and Kamakura, 2001). Many agree on a direct affect of satisfaction on loyalty but some other researchers have focused more on identifying moderators and/or mediators of the effect