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Growing and sustaining brand equity
A conceptual model of service quality and its implications for future research
Research proposal brand loyalty
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Recommended: Growing and sustaining brand equity
If customers are satisfied with certain services, they are likely to repeat their purchases. Satisfied customers will probably talk to others about their purchases, and consequently they will engage in positive mouth-to-mouth (verbal) advertising. On the contrary, dissatisfied customers are more likely to interrupt their relationship with the organization and engage in negative mouth-to-mouth advertising. In addition, behaviors such as repetition of shopping and mouth-to-mouth advertising directly affect the survival and profitability of the company (Jamal and Naser, 2003). Research shows that ninety percent of dissatisfied customers are no longer returning, and each of these dissatisfied customers transmits dissatisfaction to at least nine …show more content…
A behavioral loyalty approach involves repeating the purchase and recommendation of a brand to others, and the attitudinal approach includes the intention to purchase the brand and the commitment to it, despite the provision of consistent services and extensive marketing efforts by competitors. The third approach is derived from the combination of attitudinal approach and behavioral approach (Chen, 2001). One point to note is that Some people believe brand loyalty is the ultimate goal of brand equity. Still, brand loyalty, regardless of its relation to other dimensions of brand equity (perceived quality, awareness and brand association), can not be ascertained. However, although loyalty may be affected by other dimensions of brand equity, loyalty can be created independently of other dimensions. For example, instead of a high-quality brand, a person may be loyal to a low-quality brand for personal reasons. Therefore, many researchers believe that loyalty to the brand is both output and input of brand equity, that is, in addition to being affected by other dimensions of special value, brand loyalty is conditional on brand shopping and experience, while other dimensions of brand equity are also generated for brands that have not yet been used. In the Acer brand equity model, loyalty is a business leverage to reduce marketing costs, attract new customers (in the form of awareness raising and reassurance), and time …show more content…
Corporate social responsibility affects company's reputation.
2. Corporate social responsibility affects brand equity.
3. Customer satisfaction has a mediating role in the relationship between corporate social responsibility and company's reputation.
4. Customer satisfaction has a mediating role in the relationship between corporate social responsibility and brand equity. According to his analysis, all of his hypotheses were proved.
Mise, J. K., Nair, C., Odera, O., & Ogutu, M. (2013). Determinants of Brand Loyalty and Product Quality of Soft Drink Consumers. Asian Journal of Business and Management , 1 (1), 8-13.
A customer’s response falls in two categories, judgment and feelings. Consumers are constantly making judgments about a brand. These judgments fall into four categories: quality, credibility, consideration, and superiority (Keller, 2001). Customers judge a brand based on its actual and perceived quality, and customers judge credibility using the perception of the company’s expertise, trustworthiness, and likability. To what extent is the brand seen as “competent, innovative, and a market leader,” “dependable and sensitive to the interest of customers,” and “fun, interesting, and worth spending time with” (Keller,
In a recent time companies are giving more attention to develop a CSR (Corporate Social Responsibility) and mainly their core values. Core values are used in marketing strategies (Berry, 1999) also in customer-retention management in order to create distinctive, long-lasting relationships with customers (Prahald and Ramaswamy, 2004; Normann, 2001) and stakeholders (Pruzan, 1998; Post et a, 2002). The interaction with a stakeholder and concerns a business operation use to understood CSR as the voluntary integration of environmental and social, but it has failed to discuss and analyse CSR explicitly from the perspective of stakeholders (Andriof et al,2002; Post et al,2002).
In conclusion, the customer- based brand equity model is an important platform that may help in building a strong brand. It could assist a company in assessing its progress as well as providing a blueprint for marketing research activities. If properly planned and implemented, it could help the company in achieving its marketing strategies and in the realization of an increased profit margin (Grover & Vriens 2006, p. 147).
Repeat purchasing, however, may only indicate consumers' temporary acceptance of a brand. Therefore, the concept of brand loyalty was extended to encompass both attitudinal and behavioral loyalty (Jacoby and Kyner, 1973). Behavioral loyalty means
“Traditionally, customer loyalty has been defined as a behavioural measure. These measures include proportion of purchase (Cunningham, 1966), probability of purchase (Farley, 1964; Massey, Montgomery, & Morrison, 1970), probability of product repurchase (Lipstein, 1959; Kuehn, 1962), purchase frequency (Brody & Cunningham, 1968), repeat purchase behavior (Brown, 1952), purchase sequence (Kahn, Kalwani, & Morrison, 1986), and multiple aspects of purchase behavior (Ehrenberg, 1988; DuWors & Haines, 1990)” (Kumara et al., 2004) While Khan (2013) defines customer loyalty as “the intention of repurchasing goods, stating that this is the goal of industry and loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future, thereby causing repetitive same-brand or same-brand set purchasing” (Khan, M, 2013). This suggests Khan (2013) proposes customer loyalty can be defined as a commitment to a brand or retailer where a consumer continuously repurchases from that specific brand. This can be based on numerous qualities and experiences which influence repetitive buying behaviour. There are many reasons why customer loyalty is important, including effective forecasting for the retailer when based on regular customers. Figure 1 shows the positive economic effects of customer loyalty online produced by Schrodter (2003) (Heinemann et al., 2010).
Without customers continuing to purchase products from any company, there will not be any profit. For consumer needs, good communication habits are required so that his or her satisfaction is always priority. By consistently keeping an open means of communication with purchasers, there will be continued knowledge of how to keep them satisfied. Word of mouth can make or break a company (Richins, 2009). When consumers receive negative feedback about a product by someone they trust in their personal life, they are very likely to avoid purchasing that product.
Companies use a collection of brand equities to represent their products in the market (Voolnes, 2012). Brand equity refers to the commercial value that is derived from the perception of consumers on any given brand name of particular products in the market as opposed to the product itself. Ataman (2003) notes that the effect to the consumer is in the brand name and not the product itself. Companies use logos, trademarks and a collection of other symbols to present this information to the customers. The use of these symbols is meant to try and capture the customer mindset so that they can be thinking about the company products at all times through the items they possess at home (Estes, Gibbert, Guest, & Mazursk, 2012). This can well be explained by use of the customer-based brand equity model that brings together the requirements for a publicly renowned brand in the market.
Corporate Social Responsibility (CSR) is a very familiar term in today’s world. Most of the successful companies try to be ethical and socially responsible toward their stakeholders. Because becoming ethical and socially responsible gains a lot in terms of profit or capturing more market share (Aras and Crowther,2009). This socially responsible approach is paved by the CSR activities of the companies which has a great contribution to their corporate strategy of winning the customers’ mind. In this assignment, the pros and corn of CSR activities of a particular organization a...
The aim of this report is to apply the theoretical and practical ideas of corporate reputation and corporate social responsibility presented in this course to the organizations in the same industry.
Building loyalty to a brand or company is a challenge. A company must establish trust with its customer while also meeting his or her psychological needs. Once trust has been built, companies must resolve any ethical issues and obligation so consumers can continue to trust the company and its products and services. In addition, some individuals are more likely to be loyal to a brand or company compared to other people. To establish consumer loyalty, a company must determine how to meet all of these challenges. This paper will discuss the issues facing organizations in creating consumer trust and loyalty for it and its products and services.
Corporate image is defined as the perception of an organization that customers’ hold in their memories. Because it works as a filter through which a company’s whole operation is perceived, a corporate image reflects a company’s overall reputation and prestige. Brown andDacin (1997) claim corporate image derives from customers’ perceptions of capability and social responsibility. Corporate capability refers to the company’s expertise in delivering product and service offerings, such as effective innovation and high service quality, while corporate social responsibility refers to the company’s management of social issues. Corporate image thus impacts a customer’s evaluation of service quality, satisfaction and loyalty (Andreassen and Lindestad, 1998; Zins, 2001
This article studies the relationship between advertising and sales promotions and their impact on brand equity. A main priority for most companies is to establish and achieve a strong and powerful brand name. A company can build a strong brand name by creating the market for their customers want. By creating a strong brand name, a company will become more established. Brand equity is important to the producer, retailer and consumer. The consumer knowledge of the brand says how the producer will produce and market the product. The consumer knowledge of the brand name also determines the quantity the retailer will sale. Brand equity can have a positive or negative effect. A positive effect would be for everyone to recognize the name and purchase the product. The negative effect would be to have the product recalled. Brand equity is important because it can offer many advantages for a company. Brand equity can create a high demand for your product, reduce marketing cost and the company’s brand name will have high credibility.
In conclusion, the customer- based brand equity model is an important platform that may help in building a strong brand. It could assist a company in assessing its progress as well as providing a blueprint for marketing research activities. If properly planned and implemented, it could help the company in achieving its marketing strategies and in the realization of an increased profit margin
we would be tempted to believe that is a simple, linear relation between satisfaction and loyalty. According the research of (Jones & Sasser Jr., 1995) , relation satisfaction and loyalty is different according to time and circumstances. Unless they are totally satisfied, there is always a chance you will see your customers be lured away (Jones & Sasser Jr., 1995).