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The term Brand Loyalty is been defined by many researchers over the
time. The broader vision of brand loyalty illustrates the utter satisfaction
and likability of the consumer to a typical brand in a specific sector
(Bloemer and Kasper, 1995). Hence, brand loyalty has become a known
phenomenon from decades. However; there are many factors which
influence brand loyalty directly or indirectly. As time passed more brands
entered in the market, this is due to emerging markets and globalization.
Owing to the tough competition companies are more focused on keeping
old customers than attracting new ones (Heskett et al, 1994).
Globalization is the most important factor which is influencing the change
in the customer preferences and customer satisfaction. As the time
passed in Pakistan a number of MNCs have been penetrated and which
has increased the customer awareness. Emerging markets has largely
affected the preferences of customers for international brands over
national brands. Customers put more focus on the brands which fulfills
their maximum needs than those which are available every time (Zeenat
et al, 2012).
The factors, which influence customer buying preference and the changes
in the buying patterns along with the major factors which influence brand
loyalty and customer satisfaction, will be studied in the research. In
Pakistan, the buying habits of consumers have been changed due to new
brands and better availability in large retail stores. This has changed the
buying behavior of the consumer on the whole. The study tries to identify
the key factors which affect the brand loyalty and how factors like
consumer preference, price, and quality and post purchase experience
affect brand loyalty. Consumer preference is influenced by the consumer
behavior. Consumer behavior is a broader term which contains information
like psychology, sociology, social anthropology and economics (Tripathi
and Singh, 2012). Dr. Tripathi studied the patterns of consumer behavior
in their research; they studied the major factors of consumer preferences
on mobile phone buying in India.
In the developing country like India or Pakistan, the influence of emotional
buying is higher than rational buying. Psychological affect is maximum
than any other factor in consumer buying behavior or preferences (Tripathi
and Singh, 2012). Usually consumers use five major steps in the decision
making process. The five steps will be stated in the paper ahead, although
in the FMCG sector, consumers usually shift from 1 st step i.e. need
recognition to 4th step purchase decision and they also change their
decision immediately in the next buying process due to 5 th step; post
purchase experience. (Johnston, 2013).
The trend of using washing powder is common in Pakistan. Ladies use
most convenient and commonly sold detergents for cleaning their
valuable clothes. Though due to increased brand awareness the need of
fabric care is increased, as people spent a lot of money on buying clothes
so ruining the valuable clothes with harsh chemicals in not at all accepted.
In this study, I will analyze the issues faced by household ladies who
laundry and handle the homecare. Also I will consider the factors which
influence them to stick to their favorite brand or on which grounds they
can shift to another brand especially in laundry or fabric care.
In the cleaning industry much likely called as home personal care
industry, there is strong brand loyalty to some market leaders like Ariel,
Surf Excel or Brite. In this scenario changing the market trend or shifting
general public to a new entrant is a biggest challenge. The Research helps
to analyze the gap between brand loyalty and consumer preference on
the whole.
PURPOSE STATEMENT:
The increase of globalization changed the buying preference of the consumers
even in the third world countries like Pakistan. In this scenario maintaining the
performance quality of all products is also important for companies otherwise
consumers can easily shift their favorite brand to the closest substitute.
Therefore, the main purpose of this study is to explore the consumer point of
view regarding the major factors which influence their brand loyalty or buying
preference especially in Fabric care range. Along with this, the buying preference
will help in identifying the causes of market trends at this moment.
RESEARCH QUESTION
MAIN QUESTION
How consumer buying preference and closely related factors affect brand loyalty
SUB QUESTION
1. What are the major factors which affect the brand loyalty in a positive or
negative way?
2. What is the intensity of each factor on Brand Loyalty?
3. How is the globalization affect on brand loyalty or brand choice?
LITERATURE REVIEW
The brand Loyalty is a known phenomena and it is analyzed under different scenarios. The
relationship of brand loyalty and consumer preference is being under discussion by different
researchers. In 1994, Bloemer and Kasper have studied brand loyalty and customer
satisfaction. Just like this, the details of other direct and indirect research papers are listed
below.
An Examination of the effect of product performance on brand reputation, satisfaction
and loyalty
Fred in 1993, focused on different aspects of brand loyalty. Fred studied the correlation of
performance quality with different independent variables like customer satisfaction and brand
reputation. Along with this, the researchers studied the moderate effect of performance and
satisfaction on brand loyalty. The study explains the main concept of relationship between
brand reputation and customer satisfaction. The key function of brand is to facilitate choice
when intrinsic cues or attributes are difficult or impossible to employ. The intrinsic cues
include the physical or technical composition of the product. Brand may be evaluated on the
extrinsic cue which includes brand name, brand price and packaging. In order to judge or
evaluate the intrinsic cues of a product it needs to be used at the first hand. This aspect is
similar in product and service.
Brand trust in context of consumer loyalty
Companies focus on brand loyalty and consumer interest because it enhances the companys
strategy towards the competitor threats. Most of the studies focus on psychological
orientation, which supports the brand strength (Dick and Basu, 1994), this approach centers
around perceived quality, customer satisfaction and loyalty. Current study centers on brand
trust and commitment. The concept of brand trust is about affective and emotional
commitment between the brand and customer. In the study by Duhan (1996) and Selnes
(1993) brand reputation is considered as a mediating variable between satisfaction and
loyalty. According to the commitment theory trust is the key variable in the development of
an enduring desire to maintain a relationship in a long term. Consumer behavior can be
analyzed by understanding different important variable like commitment, satisfaction price,
tolerance and trust. (Dick and Basu, 1994). The commitment theory is different with variable
like price, tolerance and other antecedents. In this study, the trust is identified as feeling of
security; the respondents had to demonstrate the degree of security they feel from the brand.
The results in this study says that brand trust has a significant effect, which in turn influence
the customers price tolerance towards the brand and also customer involvement exerts a
moderating effect on relationship between brand trust and customer commitment. (DelgadoBallester & Munuera-Aleman, 1999)
influence on brand equity. The life of the firm also affects the brand equity. (Kapareliotis &
Panopoulos, 2010)
consciousness of consumers on brand loyalty for toothpaste product category. The research
identified how to manage brand loyalty under different scenarios and suggested that
marketers need to support the traditional axiomatic view of brand loyalty in the emerging
market.
THEORETICAL FRAMEWORK
Brand Trust
Globalization
Consumer
Buying
Preference
Percieved
Quality
Reliability
Advertisemen
ts
Brand Loyalty
BIBLIOGRAPHY
Abdul Wahid Mohd Kassim, O. A. (2014 ). Mediating Effect of
CustomerSatisfaction on Perceived quality, percieved value and relation with
brand loyalty . International Journal of Research in Management & Buisness
Studies , 13-18.
Amine, A. (1998 ). Cosumers' True Brand Loyalty: the central role of
commitment . Journal of Strategic Marketing , 305-319.
Delgado-Ballester, E., & Munuera-Aleman, J. L. (1999). Brand trust in context of
consumer loyalty . Europeon Journal of Marketing , 1238-1258.
Johnston, E. (2013, June 24). 5 steps f understanding your consume's buying
process. Retrieved january 18, 2016, from b2bmarketing:
https://www.b2bmarketing.net/resources/blog/5-steps-understanding-yourcustomers-buying-process
Kapareliotis, I., & Panopoulos, A. (2010). The determinants of brand equity- the
case of Greek quoted firms. Manageial Finance , 225-233.
S. Ramesh Kuamr, J. Y. (2005). Factors affecting brand loyalty: a study in an
emerging market on fast moving consumer goods . Journal on consumer
behaviour , 251-275.
SHERRIFF T.K. LUK, L. S. (2008). The moderator effect of monetary sales
promotion on the relationship between brand trust and purchase behaviour .
Brand management , 452-464.
Zeenat Ismail, S. M. (2012). Factors affecting consumer preference of
international brand over local brand. 2nd international conference on social
sciences and humanity IPEDR (pp. 56-59). Singapore : IACSIT Press .
Heskett, J. L., T. O. Jones, et al. (1994). "Putting the Service-Profit Chain to Work." Harvard
Business Review 72(2): 164-170.
Bloemer. J, and Kasper, H. (1995) The complex relationship between customer satisfa
ction and brand loyalty, Journal of Economic Psychology, Vol. 16 No.2, pp. 311-29.