I ntroduction:-

Brand loyalty occurs when a customer chooses to repeatedly purchase a product produced by
the same company instead of a substitute product produced by a competitor. For example, some
people will always buy Coke at the grocery store, while other people will always purchase
Pepsi. 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, when it comes to motorcycles, you
might believe that a Harley leaves a Honda motorcycle in the dust.
Brand loyalty is important for several reasons. First, it reduces the cost of production because
the sales volume is higher. Second, companies with brand-loyal customers don't have to spend
as much money on marketing the product, which will permit the company to either retain more
earnings or to invest resources elsewhere. Third, companies may use premium pricing that will
increase profit margins. Finally, loyal customers tend to recommend products that they like.
Businesses do have to exert significant effort to facilitate brand loyalty. You need to convince
potential customers that your product has a significant advantage over other products to justify
consistent purchases of your product. Businesses also will attempt to leverage brand loyalty
developed for a product to other products offered by the company. The hope is to create brand
loyalty for as many products as possible.
Representing one of the most important factors believed to explain consumer brand choices, it is
no surprise that the concept of brand loyalty has aroused an enormous interest among academics
as well as practitioners within the eld of marketing and consumer behavior. Firms with large
groups of loyal customers have been shown to have large market shares, and market share, in
turn, has been shown to be associated with higher rates of return on investment (Buzzell et al.,
1975; Raj, 1985; Reich held and Sasser, 1990). Dick and Basu (1994) suggest that brand loyalty
favours positive worth of mouth and greater resistance among loyal customers to competitive
strategies. Obviously such ndings encourage marketers to build and maintain brand loyalty
among customers. When striving for such goals, information on factors determining the creation
of brand.
A great example of a company that has successfully leveraged brand loyalty resulting in practical
product-line loyalty is Apple. Let's say you fell in love with your first iPod. Then you couldn't
resist getting the iPhone with its music, video, and app abilities. You loved your iPod and iPhone
so much that you decided to trade the old PC in for an iMac. Finally, you have become so loyal
to the Apple brand that you have purchased an iPad to fill out your consumer electronic needs.
Literature Review:-
Waheed Akhtar (2011): organizations. Results of current study conclude that factors such as
customer satisfaction, customer relationship, product image and trustworthiness of organization
play very important role in strengthening customer loyalty. Long-term success and sustainable
reputation of an organization depends on customer loyalty. This study supports the view that
customer relationship and customer satisfaction should remain prime focus for the organization
to maintain market share in todays competitive business environment. The business whose
customers are not loyal with them cannot enjoy a respectable position in the market. There are
some factors that affect customer loyalty. These factors are: lack of after sale services and
compromise on the quality of the product.
Yousaf (2012): The purpose of this research is to know the brand loyalty and contribute to the
knowledge that how brand credibility, brand awareness, brand association, perceived quality, and
product knowledge is important to build brand loyalty The results indicate the positive
relationships between brand credibility, brand awareness, brand association, perceived quality,
product knowledge (independent variables) and brand loyalty (dependent variables). Further
among all the variables studied brand awareness has the highest impact on brand loyalty and
according to this research L'Oreal consumer is more as compare to other brands. However more
importantly, the purpose of this study is that cosmetic industry must focus on brand association,
perceived quality, product knowledge, brand credibility in order to build Brand Loyalty.
Rizwan Arshad (2011): Brand credibility, brand switching, service quality and customer
satisfaction was experimental to have a momentous helpful relationship with brand loyalty.
These results undo up a fresh argue for researchers and practitioners in the sense that credibility
and perceived quality of a brand do not have a direct relationship with customer loyalty and that
without involving credibility of the brand, superior levels of customer loyalty may not be
achieved. This study implies assured guiding principle for the brand managers. Managers should
heart on sponsorship strategies like media campaigns, etc. but must give a true picture of their
product and avoiding claims that cannot be warranted upon the use of the product. Our findings
emphasize the insignificant moderating effects between satisfaction and customer orientation on
brand loyalty, so the given hypothesis is rejected the study observations are consistent with what
was revealed in Al-Rousan et al. (2010) study that tangibles, reliability and empathy positively
contributed to brand loyalty whereas assurance didnt play any role in building making
customers loyal to their banks.
Tahir Naveed: n this study it is tried to investigate the relationship of new product produced by
mobile industry of Pakistan and how this innovation is effecting the satisfaction and brand
loyalty. The results described the significant relationship between the independent variable
(innovation) and independent variables (customer satisfaction and brand loyalty). These results
described that innovative product caused the customer satisfaction and brand loyalty. The value
addition is that this kind of study is at minor level in the mobile industry of Pakistan. With these
variables and on the specific market of university students have not done before. So, this study
provides the information about behavior of university students towards the innovative products.
Ahmed Usman: his research intended to investigate the factors that influence brand loyalty in
telecommunication sector. The objective of the study was to provide a comprehensive conceptual
model of brand loyalty and its antecedents for this service sector and for those who share
common characteristics. To sum up the discussion, it could be concluded that Service quality,
satisfaction, commitment and trust are major antecedents of brand loyalty for telecommunication
sector and for other similar markets. Service quality is most important factor that directly
influence brand loyalty. Furthermore, service quality and satisfaction also have indirect positive
influence on customer loyalty.