THE RELATIONSHIP BETWEEN CUSTOMER LOYALTY AND PRODUCT BRANDS
Hussein vazife dust[1]Gholamrezaaskarzade[2]
ABSTRACT
Nowadays, brand management is regarded as a competitive advantage in marketing which results in customer loyalty in the short term.in fact; product brands relate companies to customers producing a strong and significant relationship among them. In this article, the effective factors of loyalty, the relationship among them and also a new model of loyalty to brands have been presented. The variables of this model are satisfaction,trust,perceived quality, commitment and several other factors. The results demonstrate that product brands result in an increase in satisfaction level, profitability and company share in the competition market.
Keywords: brand, loyalty,satisfaction,Trust, Perceived quality, Continuous commitment.
Introduction
According to theory of America Marketing Association (AMA) the brand is a name, phrase, symbol, design or combination them. This factors which areexpress the essential nature of a company, is a product or service. At First aspect, commercial brand is a commitment and says that you know the name and trust in its commitment. Trust is the main and critical objective of brand. David Aker says the brand is a symbol that is associated with many assets and intellectual commitment (Matzler, 2008).Commercial brand recognition has a positive effect on perceived value, brand trust and customer satisfaction. Perceived value is a subjective evaluation of the trade or loss the exchange relations (Zeithaml, 1988). Emotional relationship with the main objective can be put under the influence of cognitive assessment (Murphy and Zajonc, 1993). As the brand recognition represents a deep and meaningful relationship, the company's reputation is linked strongly with the brand identity (Bhattacharya and Sen, 2003). Brand recognition can increase customer satisfaction in two ways:
1. By increasing the perceived performance
2. Overall favorable assessment leads to emotional attachment to commercial brand
Chaudhuri and Holbrook, (2001) statesthat companies and institutions need or don’t need to invest to loyal customers based on build relationships and create intimacy is an issue that has been hotly debated. Creating such relationships lead to peak out the loyalty. Ndubisi, (2004), explained the brand loyalty as customers tendency to choose a product or business among other products for a specific need .Novo (2004)stated that create and keep customers loyal to the brand is an important strategy for maintaining competitive advantage of organizations that eventually has a positive effect on brand performance, by considering the dimensions and factors affecting brand loyalty (Windbergs and Olbrich,2006)
The expression R
Brand is an important relational means in management of corporate-consumer relationship. As study of Erdem and Souit (1998) shows, that research flow that is made based on information of economic pattern, is used for product and suggests that brand is valuable for two reasons for consumers: 1.They decrease risk perceived by consumer, 2. They save costs of decision-making (Erdem and Swait, 1998).The basis of these statements is that brand is an effective symbol of market that corporate develops it to consider asymmetry of market information. In other words, consumers have less knowledge on product or services of a corporate that corporate itself. Therefore, they are positioned in adverse conditions that finally leads to doubt of consumer about product (Sweeney and Swait, 2008) is called brand loyalty as a deep commitment from the customer that leads to repeat purchases and his repeating purchases from the company. Brand loyalty is defined as referring tothe product or service constantly in future by considering marketing specialist efforts and contingency affects that have required potential to change the behavior.Nevertheless,position impacts and marketing proposals are potentially influence the changing customer behavior in marketing (Oliver ,1999).In Olsen(2002) point of view there is difference between Mental and behavioral loyalty and measurement of loyalty is something more than attitude measurement alone (Olsen ,2002).As studies have shown, increasing customer loyalty lead to the increased company sales and exchanges, which is eventually followed by profitability. In fact, brand loyalty have positive effects on company performance, the number of transactions, increase liquidity and reduce errors (Windbergs and Olbrich,2006).To create loyalty we should achieve customer satisfaction, in fact customer satisfaction is equivalent to achieve assure about performance or provided service by the organization with customer expectations. Customer satisfaction is the product of achieve to goods or service with minimal deviation of customer expectations. there is customer dissatisfaction in opposite. Dissatisfaction of customer is a condition in which one of the factors of dissatisfaction has affected him/her enough about the quality of products or services he /she purchased(Biggs and Swailes ,2006).In fact, Customer satisfaction is one of the most structural evaluation concepts that followed in many businesses to create loyalty. As the customer loyalty is seen as the key to business success, loyal customers are more profitable and make higher re-purchases, so increase the market share and caused to introduce the company to others. Brand is one of the key issues in creating loyaltyin customers.
Main objective:
- Studying the effective factors in flouncing customer loyalty to brands.
Sub objective:
- Identifying the effective factors in flouncing customer loyalty to brands.
-Measuring any of the effective factors in flouncing customer loyalty to brands.
- Rating any of the effective factors in flouncing customer loyalty to brands.
- Extracting the conceptual model of the effective factors in flouncing customer loyalty to brands.
- Developing and drawing a conclusion from the extracted conceptual model the effective factors in flouncing customer loyalty to brands.
Research Hypotheses
- There's a positive and significant correlation between satisfaction and customer loyalty to product brands.
- There's a positive and significant correlation between brandvalue and customer loyalty to product brands.
- There's a positive and significant correlation between oral advertising and customer loyalty to product brands.
- There's a positive and significant correlation between commitment and customer loyalty to product brands.
- There's a positive and significant correlation between Trust and customer loyalty to product brands.
- There's a positive and significant correlation between perceived value and customer loyalty to product brands.
ResearchBackground
Row / Scholar / Year / Subject / The results1 / Hallowell, roger / 1996 / The relationship between customer satisfaction, customer loyalty and profitability of practical study / Customer satisfaction have affected the customer loyalty that this loyalty will lead to increased profitability of company.
2 / Yoo, B., Donthu, N / 2000 / Study the Effect of selecting marketing mix elements and brand value / Costs of advertising and pop stores have an impact on brand value and brand loyalty
3 / Berry, L. / 2000 / Cultivating Service Brand Equity / Brand share value, external relations.
Consumer experience from organization, concept of brand, knowledge of brand, brand were shown.
4 / Greece O'cass / 2003 / An Exploratory of Service Brand Associations / Dimensions of service brand in the framework of brand evidence and brand relationships were studied
5 / Taylor, stevenCeluch, Kevin & Goodwin, Stephen / 2004 / The importance of brand equity on customer loyalty / Satisfaction, value, feel, and trust are the relevant factors which affected the brand loyalty of customers in industrial markets
6 / BridyBordo / 2005 / The Importance of Brand Cues in
Intangible Service / Dimensions of service brand in the framework of brand evidence and brand relationships were studied
7 / Kuusik, Andres / 2007 / Product or brand? Relationship between customer satisfaction and customer loyalty / Satisfaction, confidence value, the image and commitment influence the customer loyalty
8 / LaisonSondohJr, Stephen / 2009 / Brand image, customer loyalty and satisfaction of women customers in Malaysia / Customer satisfaction have positive affection on loyalty by 4 aspects of the brand (brand value, product components, the practical benefits, experiential benefits)
9 / Touzani, Mourad
, Temessek, Azza / 2009 / Brand loyalty: the influence of cognitive and emotional variables / Attitudinal aspects of brand loyalty, which expresses the commitment of loyalty leads to loyalty behavioral brand and has a positive effect upon that
Some researches and studies conducted in the Customer loyaltyand brand Impact In order to be successful in today's complex and competitive markets. It can help companies to retain their loyal customers and attract potential customers. Also, these results suggest that the customer satisfaction has a positive effect on their attitude and ultimately will create loyalty. Loyalty to the Commercial brand has positive effect on commercial performance. some customer satisfaction are includes : 1 - certainly the satisfactionis related to customer loyalty and committing to relations. 2 –More satisfied customers are doing widely spoken advertising for companies(N d b s I,2005)Although the customer satisfaction is an important factor to customer loyalty, but researches show that is not the only factor (Thomas et al,2007).The commercial brand particularly has affection on customer satisfaction. Since the brand is a promise that gives to customers, if we can implement this promise and act as the customer expectation, the customer satisfaction will be achieved. Loyalty in the psychological sense belonging and a desire to continuing the relationship with the company. Brand also creates a continuous commitment to the customer (Keller,1993)Therefore, if we can design a good brand andcommitted to the commitments that the brand claims to be committed, We can get customer satisfaction by good performance, ensure their loyalty to ourproducts ,This means the long-term relationship of the company with customers which make long-term profitability for the company.
Conceptual model of the research:
According to studies on the described model, we have achieved a functional model, which examines the brand effect on customer loyalty. In the following table show expressed variables in six previous models along with proposed model.
Model 1Hongwei He
(2011) / Model 2
Donio et al
(2006) / Model3
Rios &Rijueme
(2008) / Model4
Youl Ha et al.
(2011) / Model5
Suhartanto
(2011) / Model6
Souinisouit model
(2008) /
The proposed model
--- / --- / --- / The cost of advertising / --- / --- / ---
--- / --- / --- / Appearance of the store / --- / --- / ---
Brand / --- / --- / --- / --- / --- / ---
Brand recognition / --- / --- / --- / --- / --- / ---
Brand value / Brand value / Brand value / --- / --- / Brand value / Brand value
--- / --- / --- / Perceived quality / Perceived quality / --- / Perceived quality
--- / --- / --- / --- / Quality of Service / --- / ---
Satisfaction / --- / Satisfaction / Satisfaction / Satisfaction / Satisfaction / Satisfaction
Trust / --- / Trust / --- / --- / Trust / Trust
Loyalty / Loyalty / Loyalty / Loyalty / Loyalty / --- / Loyalty
--- / --- / --- / --- / Attitudinal loyalty / --- / ---
--- / --- / --- / --- / Cognitive loyalty / --- / ---
--- / --- / --- / --- / Emotional loyalty / --- / ---
--- / --- / --- / --- / Effortloyalty / --- / ---
--- / --- / --- / --- / Behavioral loyalty / --- / ---
--- / --- / --- / --- / Brand image / --- / ---
--- / --- / --- / --- / --- / Linguistic advertisement / Linguistic advertisement
--- / --- / --- / --- / --- / Against change / ---
--- / --- / --- / --- / --- / Continuous commitment / Continuous commitment
Table 2 - Variables used in the model R
As shown in the above table, used variables in the proposed model, according to the variables used in the six studied models are presented. Brand value variable from the 1,2,3,6st model and Perceived quality jointly from models of 4,5 and satisfaction variable jointly from models1,3,4,5,6and trust variable from models 1,3,6 and loyalty variable from models 1,2,3,4,5 andLinguistic advertisement variable and Continuous commitment variable From models 6.According to the results of the six studied models in this research, we have finally reached a proposed model. The conceptual framework of proposed model is presented below.
Brand Value: Value or asset of the brand is a concept beyond the familiar of customers with the brand and in fact there isn’t a special factor to identify the brand value exactly and is just a perception concept from customers. In recent years the most important measurements which used to assess and evaluate the brand value or asset of a organization include: the physical quality of the company product (or service), employee behavior of the company, the ideal self-adaptive of product with changes, brand recognition by customers and product compatibility with customers' lifestyles (Nam, 2011).
Loyalty: According to him studies, although initial cost must be expended to attract and preserve loyal consumers, but in general, loyalty to brand decrease costs, because cost of preserving consumer is less than cost of obtaining consumer and loyalty to trademark creates resistance among loyal consumers against competitive strategies of competitors(Sanzo,2007)
Satisfaction: Satisfaction is an effective reply and is obtained following expected experience that includes observational process. After evaluation of performance, consumers compare the results before purchase or consumption to their expectations and any difference leads to insistence. Positive insistence means. That if performance is higher than what is expected, it increases satisfaction. Negative insistence means that if performance is lower what is expected, it decreases satisfaction and causes dissatisfaction (Broner et al, 2008).
Trust: Trust means that belief of a partner to the fact that other partner to the fact acts so that positive results are obtained. In view of Josanzo et al (2007); there are two types of trust:
1. trust to honesty of partner or belief to the fact that partner has necessary skills effectively and fulfills his/her obligations.
2. Belief to the fact that a partner interests to welfare of other partner. Ability of a partner for obtaining positive results for other partner determines commitment to relationship. Therefore, trust is an important determinant in commitment to relationship and when occurs that a partner be honest and trustworthy (Sanzo, 2007).
Commitment: It has been proven that commitment to creating a relationship with customers to creating a relationship with customer's results in a reduction in customer's attitude changes and an increase in their purchases and their future satisfactory intentions like customer loyalty .commitment has been identified as a sophisticated phenomenon having very many dimensions. There are many factors among we will continue discuss two aspects apply: commitment to loyalty (LC), continuous commitment that this aspects of commitment, most contact with the subject. These two dimensions demonstrate tendency to keeping relationships in the course of time.an effective commitment results in commitment to loyalty which transfers a positive feeling to our partners in a relationship (Sweeney&Swait,2009).
Perceived quality: The perceived quality of products and services is of two types: subjective and objective. Olsen quotes oliver as saying “The product and service quality focus on realizing consumers "expectations and perceptions and is an emotional and cognitive answer which precedes their general satisfaction (Olsen,2002).
Oral advertising:Oral words are any activities which consumers create in order to transfer in formation to other consumers. Oraladvertising is an informal relationship among customers with each other or with producers about ownership,use, virtues of a particular type of service or product (Gremler.2001).
Figure 1 - The proposed model
Model Analysis
The main part of customer loyalty model is composed of service quality and commitment to the offered services and also trust is an important part of the model which is attainedthrough Brand Value, Oral advertising and also through supporting customers which results in continuous visits of customers to the brand ;Then factor of satisfaction one of the model factor which covers pevceived value and commitment ,finally brand loyalty is given.
The research universe
As for performing this research, a primary sample of 30 people was chosen and for observing its reliability,cronbachs Alpha was used. As it is obvious from the table below, α =0.971, which proves that the questionnaire is reliable.
Reliability StatisticsCronbach's Alpha / N of Items
.971 / 30
In this research,the effects of variables like trust,brand value,perceived quality,commitment,oral advertising and satisfaction on customer loyalty will be examined.
N / Normal Parametersa / Most Extreme Differences / Kolmogorov-Smirnov Z / Asymp. Sig. (2-tailed)Mean / Std. Deviation / Absolute / Positive / Negative
Brand value / 384 / .4035 / .08840 / .079 / .079 / -.072 / 1.418 / .058
Linguistic advertisement / 384 / .3443 / .06452 / .079 / .079 / -.074 / 1.539 / .087
Continuous commitment / 384 / .3404 / .06131 / .085 / .085 / -.083 / 1.665 / .068
Trust / 384 / .3720 / .06891 / .092 / .092 / -.089 / 2.118 / .060
Perceived quality / 384 / .3308 / .07031 / .081 / .080 / -.081 / 1.583 / .053
Satisfaction / 384 / .3429 / .06805 / .070 / .068 / -.070 / 1.891 / .082
Loyalty / 384 / .3451 / .06930 / .088 / .085 / -.088 / 1.724 / .063
The table above studies the normality of variables which use the criteria of Kolmogorov-Smirnov test'sitsobvious, the p-value of all variables are bigger than Sig of 0.05,which shows that all variables follow normal distribution.
Correlationsvalue / advertisement / commitment / Trust / quality / Satisfaction / Loyalty
Brand value / Pearson Correlation / 1 / .519 / .523 / .451 / -.040 / -.061 / .642
Sig. (2-tailed) / .000 / .000 / .000 / .429 / .235 / .014
N / 384 / 380 / 384 / 384 / 384 / 384 / 384
Linguistic advertisement / Pearson Correlation / .519 / 1 / .387 / .236 / -.008 / -.040 / .733
Sig. (2-tailed) / .000 / .000 / .000 / .882 / .433 / .021
N / 384 / 384 / 384 / 384 / 384 / 384 / 384
Continuous commitment / Pearson Correlation / .523 / .387 / 1 / .165 / -.064 / .017 / .717
Sig. (2-tailed) / .000 / .000 / .001 / .210 / .740 / .007
N / 384 / 380 / 384 / 384 / 384 / 384 / 384
Trust / Pearson Correlation / .451 / .236 / .165 / 1 / .086 / .052 / .677
Sig. (2-tailed) / .000 / .000 / .001 / .094 / .307 / .001
N / 384 / 380 / 384 / 384 / 384 / 384 / 384
Perceived quality / Pearson Correlation / -.040 / -.008 / -.064 / .086 / 1 / .327 / .913
Sig. (2-tailed) / .429 / .882 / .210 / .094 / .000 / .000
N / 384 / 380 / 384 / 384 / 384 / 384 / 384
Satisfaction / Pearson Correlation / -.061 / -.040 / .017 / .052 / .327 / 1 / .822
Sig. (2-tailed) / .235 / .433 / .740 / .307 / .000 / .000
N / 384 / 384 / 384 / 384 / 384 / 384 / 384
Loyalty / Pearson Correlation / .000 / .733 / .717 / .677 / .913 / .822 / 1
Sig. (2-tailed) / .014 / .021 / .007 / .001 / .000 / .000
N / 384 / 384 / 384 / 384 / 384 / 384 / 384
Because these variables have normal distribution, soPearson correlation coefficient has been used to study the impact of these factors on loyalty variable; in the table above, the correlations among these variables have been shown and according to this table, these hypotheses will be studied.
First hypotheses:
According to the table above, the correlation coefficient between value and customer loyalty is 0.642 and also by considering p-value = 0.014 that is smaller than0.05, therefore the hypothesis stating that the variable of value influences customer loyalty is accepted.
Second hypotheses:
According to the table above, the correlation coefficient between oral advertising and customer loyalty is 0.733 and considering p-value= 0.021 which is smaller than0.05, therefore the hypothesis stating that the variable of oral advertising influences customer loyalty is accepted.
Third hypotheses:
According to the table above, the correlation coefficient between commitment and customer loyalty is 0.717 and considering p-value= 0.007 which is smaller than0.05, therefore the hypothesis stating that the variable of commitment influences customer loyalty is accepted.
Fourth hypotheses:
According to the table above, the correlation coefficient between Trust and customer loyalty is 0.677 and also by considering p-value= 0.007 which is smaller than0.05, therefore the hypothesis stating that the variable of commitment influences customer loyalty is accepted.