Cairo University Faculty of commerce MBA Marketing group

Factors affect brand loyalty

Proposal of master thesis
Sherif Mohamed Salah Eldin

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Factors affect brand loyalty

Introduction Brand loyalty is very important from the standpoint of strategic marketing particularly in the current market which is characterized by high maturity stage and highly competitiveness Keeping consumer loyalty for the brand is important for the survival of the organization and continuity, this strategy is more effective and efficient than attracting new consumers; where has been estimated that the costs of attracting new customers is six times the maintain of one consumer.( Peter&Olson,1996,p513). Market segmentation according to the degree of loyalty Has become the most common method at the moment; once specify which group of consumers with a high degree of loyalty to the organization set up data mining, send promotional materials to them and give them the advantages and discounts.

Importance of research
Brand is a kind of organizational assets which allow the organization in crisis to sell the products and to improve market penetration as well as product development. Brand loyalty decreases the external threats facing the organization and reduces the chance of competitors enterance to the market. Organization should be aware with the factors that affecting brand loyalty to improve the positively related factors and discard the negatively related factors.

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Research objective

1. Determine the factors affect brand loyalty. 2. Ranking of factors affect brand loyalty. 3. Determine the proportions of university students who buy only one brand name regarding the cloth brands mentioned in the research. 4. Determine the effect of demographic factors on brand loyalty.

Literature review

Fader & Schmittlein (1993) Research objective The study aims to find out the reasons behind the rise and consumer loyalty to brands with high market share; the study conducted in the United States and Japan. Research results: The reasons of consumer loyalty to brands with high market share may due to the preference of distribution channels to brands and trust of customer in brands with high market share.

Roth (1995) Research objective Link the brand image strategies to the product performance. Manage the brand image in international market.

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Research results: Brand image has a high effect over the market share when the Individual culture of the community motivates the variation and Modernity in high level. Brand image has a high effect over the market share when the Individual income is high.

Balbinger &Rubinson (1996) Research objective Questionnaire had been submitted to 2261 American customers and collect data about 27 brands and after one year the process repeated around the same brands to identify the brand loyalty. Research results: The consumer with brand Behavioral and directional loyalty has attendance to continue using the brand. The consumer with brand Behavioral loyalty and low directional loyalty has attendance to change the brand. The consumer with brand low Behavioral loyalty and low directional loyalty has attendance to change the brand and recharge the new one also. The brand may gain brand loyal consumer but not real one (Behavioral and directional loyalty).

Lin al (2000) Research objective Find the suitable way to understand the brand loyalty by market analysis.

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The data had been collected through telephone interviews with 1209 Taiwan customers. Research results: The factors affect the brand loyalty are: Product features, Service after sales, perceived quality, brand reputation. Chaudhuri & Holbrook (2001) Research objective The aim was studying the effect of Behavioral and directional loyalty of consumers as variables affect the brand and brand trust at a side and market share in another side. Research results: Brand trust affect of Behavioral and directional loyalty of consumers.

Taylor (2004) Research objective: Assessment the importance of factors affecting brand loyalty as: satisfaction, perceived value, emotional benefits and trust. Research results: Brand loyalty positively related to satisfaction. Brand loyalty positively related to perceived value. Brand loyalty positively related to emotional benefits. Brand loyalty positively related to brand trust.

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Problem statement
Organizations are trying hardly to keep customers as long as possible and make a lot of marketing efforts in the areas of promotion, product planning, pricing and distribution in order to achieve this varied ; focused efforts on all of these elements differ from organizations and the area in which they operate but what is important is to measure the effect of these marketing efforts exerted on the loyalty of consumers for the brand and therefore the study of this area will lead to the optimization of these efforts utilization and direct them to the best direction to get the desired results.

Research question
1. Does the brand loyalty affected by its functional benefits? 2. Does the brand loyalty affected by its emotional benefits? 3. Does the brand loyalty affected by its symbolic benefits? 4. Does the brand loyalty affected by its Perceived value? 5. Does the brand loyalty affected by its Perceived quality? 6. Does the brand loyalty affected by brands store image? 7. Does the brand loyalty affected by Perceived salesmen services of brand store?

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Theoretical framework
Variables Independent variables:
1. Brands functional benefits 2. Brands emotional benefits 3. Brands Symbolic benefits 4. Brands perceived value 5. Brands perceived quality 6. Perceived brands store image 7. Perceived salesmen cervices of brand store

Dependent variables:
Brand loyalty

Hypotheses
1. There is a statistically significant positive relationship between the functional benefits of brand and loyalty for it 2. There is a statistically significant positive relationship between the emotional benefits of brand and loyalty for it 3. There is a statistically significant positive relationship between the symbolic benefits of brand and loyalty for it 4. There is a statistically significant positive relationship between the Perceived value of brand and loyalty for it 5. There is a statistically significant positive relationship between the Perceived quality of brand and loyalty for it

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6. There is a statistically significant positive relationship between the Brands store image and loyalty for it 7. There is a statistically significant positive relationship between the Perceived salesmen services of brand store and loyalty for it

Study model

Independent variables
Brands functional benefits
Brands emotional benefits Brands Symbolic benefits Brands perceived value Brands perceived quality Perceived brands store image Perceived salesmen services of brand store

Dependent variable

Brand loyalty

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Research design
Research aimed to recognize the factors affecting brand loyalty through descriptive method in Field study. In order to achieve the objectives of the research the researcher used the testing hypothesis method.

Researcher use correlation as a type of investigation with non contrived study setting. There is minimal extent of researcher interference where no any experimental actions will be done. Research will be done in Cross sectional Time horizon.

Population and sample

The population of the research is the university students in Cairo University. And this population has been chosen due to the high density and variation of students categories. Research population is 188,048 students in Cairo University. according statistics published by supreme council of universities 2009/2010. Researcher will use Stratified complex probability sampling of 384 students. The sample units include male and female with age ranged from 17 to 23 years.

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Data collection method

The primary data is obtained by opinion survey using the questionnaire as a tool to collect data with Individuals Unit of analysis student. Questionnaire will be submitted by direct interviews with researcher. Secondary data is obtained from supreme council of universities and related articles, books and published papers

References
Chaudhuri, A & Holbrook, M. B. (2001) " The chain of effects from brand trust and brand affect to brand performance : the role of brand loyalty " , Journal of Marketing , Vol.65 , April, pp.81-93. Coulter, R. A. , Price, L. L. & Feick, Lawrence .(2003)" Rethinking the origins of Involvement and brand commitment : insights from postsocialist central europe " , Journal of Consumer Research , Vol.30, pp.151-169. Darly, W. K. & Lim, J. (1999) " Effects of store image and attitude toward secondhand stores on shopping frequency and distance traveled " , International Journal of Retail & Distribution Management , Vol.27 , No.8 , pp.311-318. Dick, A.S. & Basu, K. (1994) " Customer loyalty : toward an integrated conceptual framework " , Journal of The academy of Marketing Science , Vol.22 ,No.2 , Spring, pp.99-113. Dyson, P. , Farr, A. & Hollis, N. S. (1996) " Understanding, measuring, and using brand equity ", Journal of Advertising Research , November/December, pp.9-21.

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Fader, P. S. & Schmittlein, D. C. (1993) " Excess behavioral loyalty for high-share brands: deviations from the dirichlet model for repeat purchasing", Journal of Marketing Research , Vol.xxx, November , pp.478-493. Goff, B. G. , Boles , J. S. , Bellenger, D.N. & Stojack, C. (1997) " The influence of salesperson selling behaviour on customer satisfaction with products " , Journal of Retailing , Vol.73 , No.2 , Summer, pp.171-183. Gounaris, S. & Stathakopoulos, V. (2004)" Antecedents and consequences of brand loyalty : an empirical study ", Journal of Brand Management, Vol.11,No.4,April,pp.283-306. Orth, U. R. , McDaniel, M. , Shellhammer, T. & Lopetcharat, K. (2004) "Promoting brand benefits : the role of consumer psychographics and lifestyle " , Journal of Consumer Marketing , Vol.21 , No.2 , pp.97-108. Papatla, P. & Krishnamurthi, L. (1996) " Measuring the dynamic effects of promotions on brand choice " , Journal of Marketing Research , Vol. xxxiii , February, pp.20-53