An Assessment Of The Impact Of Brand Image And Personality On Customers Brand Loyalty

Project and Seminar Material for Marketing

An Assessment Of The Impact Of Brand Image And Personality On Customers Brand Loyalty


Chapter One


Introduction

1.1 Background of the Study

Brand loyalty is an essential component of a company’s business strategy and its success (Sahin, Zehir & Kitapçı 2011). Despite the growing number of empirical studies on brand loyalty towards international and global brands (Nezakati, Kok & Asgari 2011; Sze & Hamid 2012), to the researcher’s knowledge, only a handful of studies have been conducted to understand consumer loyalty towards local brands (Eze, 2011), especially in Nigeria. Furthermore, as a country with a diversified culture, Nigeria offers an excellent opportunity to conduct research on loyalty towards products or brands. A key observation is that Nigerian customers prefer imported brands (Eze, 2011).

Companies/manufacturers seek various ways to inform consumers about their products and brands (Sarah et al. 2010). Brand image is identified as a key determinant in influencing brand loyalty (Holly et al. 2012). However, previous studies on brand image have been directed towards intangible products and retail contexts (Ghazizadeh 2010; Shi & Hjaltaso 2017). Little research has been undertaken to assess brand image for tangible products. Hence, expanding a brand loyalty model by including brand image is needed not only to enhance the predictive power of the framework (Sondoh et al. 2007), but also to provide a good understanding of the determinants that stimulate brand loyalty in the local brand industry. Furthermore, Sondoh et al. (2007) pointed out the lack of brand image studies associated with concrete products and their relationship with loyalty.

Brand loyalty, as core dimension of brand equity, generates several advantages (Aaker, 1996): creates barriers to potential competitor brands entries, motivates price premiums, offers time to respond to competitor innovations etc. Some other authors (Bennett and Rundle-Thiele, 2005) emphasize that brand loyalty essentially decreases acquisition and promotion costs. Considering loyalty evaluation methods, some authors (Ha,1998) consider that brand loyalty should be analyzed considering cognitive aspects. Still, others (Fader and Schmittlein, 1993; Bayus, 1992) view brand loyalty through behavioral aspects like repeat purchases, measuring brand loyalty through such behavioral aspects like probability of repurchasing.


1.2 Statement of the Problem

The lack of a strong brand image has given a continuous challenge to the marketers of local automotive brands in Nigeria. Companies/manufacturers seek various ways to inform consumers about their products and brands (Eze, 2011). Brand image is identified as a key determinant in influencing brand loyalty (Holly et al. 2012). However, previous studies on brand image have been directed towards intangible products and retail contexts (Ghazizadeh 2010; Shi & Hjaltaso 2017). Little research has been undertaken to assess brand image for tangible products. Hence, expanding a brand loyalty model by including brand image is needed not only to enhance the predictive power of the framework (Sondoh et al. 2007), but also to provide a good understanding of the determinants that stimulate brand loyalty in the local brand industry. Furthermore, Sondoh et al. (2007) pointed out the lack of brand image studies associated with concrete products and their relationship with loyalty.


1.3 Objectives of the Study

The primary objective of this study is to assess the impact of brand image and personality on customers brand loyalty. Other objectives of the study are:

  1. To examine the factors that influence customers brand loyalty
  2. To determine the various ways brand image and personality can be portrayed to customers
  3. To examine the effects brand image and personality has on customer loyalty.

1.4 Research Questions

The following research questions will be answered in this study:

  1. What are the factors that influence customers brand loyalty?
  2. What are the various ways brand image and personality can be portrayed to customers?
  3. What are the effects brand image and personality has on customer loyalty?

1.5 Significance of the Study

This study will be greatly significant to companies and marketing industries as the findings of this study will reveal the importance of brand image, how brand image is promoted and the effects it has on customer loyalty.

In addition, this study would contribute empirically to the body of existing literature and it would serve as a reference source to students or other researchers who might want to carry out their research on the similar topic.


1.6 Scope of the Study

This study will focus on the assessment of the impact of brand image and personality on customers brand loyalty. Specifically, it will focus on examining the factors that influence customers brand loyalty, determining the various ways brand image and personality can be portrayed to customers and examining the effects brand image and personality has on customer loyalty.

Selected companies in Jos North Local Government Area of Plateau State will serve as enrolled participants for this survey.


1.7 Limitations of the Study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. The significant constraint was the scanty literature on the subject owing to the nature of the discourse thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. Additionally, the researcher will simultaneously engage in this study with other academic work. More so, the choice of the sample size was limited as few respondent were selected to answer the research instrument hence cannot be generalize to other secondary schools outside the State. However, despite the constraint encountered during the research, all factors were downplayed in other to give the best and make the research successful.


1.8 Definition of Terms

Brand Image:

Brand image is the customers’ perspective of the brand. It is how the customers actually see the brand based on their interactions.

Brand Loyalty:

Brand loyalty is the positive association consumers attach to a particular product or brand.


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