As proposed in the previous sections, brand credibility has three components, trustworthiness, expertise and attractiveness. Relationship marketing theory suggests that trust leads to affective commitment (Morgan and Hunt, 1994). If consumers believe that the company can deliver on its promise of service or product quality (i.e., high trustworthiness), they tend to have higher affective commitment, since trust in a company justiﬁes consumers ' positive feelings towards and reliance on the company (Erkmen and Hancer, 2015; Hunt et al., 2006). H3. Brand credibility positively affects consumers ' affective commitment.
They developed the concepts of "cycle of success" and "cycle of failure". In the cycle of success, they propose that an investment in employees’ ability to provide superior service to customers can be seen as a virtuous cycle in which benefits would be interlinked. Furthermore, they emphasize that efforts spent in selecting and training employees and creating a corporate culture in which they are empowered can lead to increased employee satisfaction and employee competence. Consequently, this will possibly result in superior service delivery and customer satisfaction. This in turn, will create customer loyalty, improved sales levels, and higher profit margins.
and Sattler, H., 2006) Mentions that these evaluations by consumers especially on their perceptions of quality of the product will be transferred if consumers recognize that the new product extension fits the mother brand. According to (http://www.brandextension.org/benefits.html) brand extensions enable companies or organisations to capitalize on the “previously paid for” brand building activities and equity of its current brand names. And they further explains that brand extensions are cost saving strategies for companies, also with the added benefit of additional sales derived from sales growth of the parent brand after the successful launch of the new brand extension. . 3.4.1 Benefits of brand extension According to (K. Mundt, J. Dawes, and B.
Moore et al (2003) also described that positive perception of consumers about a particular brand is an indicator of status, quality and prestige; i.e. factors other than price. Brand Loyalty Schiffman and Kanuk (2004) have stated brand loyalty as one of the desired outputs of learning of the consumers. It is the probability of positive behaviours and attitude towards a brand, thus it could result in positive word of mouth and repeat purchase (Rawly and Dawes, 1999). Quester and Lim (2003) also explained the two major types of brand loyalty.
This was a conclusion from their study to know the role of individual characteristics on customer loyalty. The results show that some individual factors have positive and significant relationships with the customer loyalty; these factors are masculinity level, agreeableness, self-esteem, emotional stability, internal locus of control and openness to experience. Durukan & Bozaci, (2011) inferred from the research results that giving importance to customer loyalty creating and maintaining activities in societies and cultures, which has high level of masculinity, agreeableness, self-esteem, emotional stability, internal locus of control and openness to experience, would be a more profitable and effective approach for businesses. Loyalty is not determined exclusively by the intrinsic characteristics of service offered; it can also depend on external traditional activities, such as advertising and public relations, well known to those in charge of marketing (Nguyen et al 2013). Nguyen et al (2013) added that “to build customer loyalty and sustain it, relationship marketing can play a key role to influence positively customers’ perceptions of the organization and to enhance customer trust.” Customer loyalty is of prime importance for business
The importance of service quality arises from the essential need to create customer satisfaction. It is like a chain that used to connect customer expectations and perceptions in order to achieve customer satisfaction. Service quality can simply described as the difference between customer expectation of the service they will use and customer perception of the service has been provided (Oliver 1997). The higher the conformance of degree, the excellent the service quality will be and vice versa. Accordingly, the core value to achieve good service quality is customer satisfaction (Oliver 1997) or maybe the customer will be more pleasured and become loyal customer (Gibson 2005) and that means that they are also likely to spread positive word
(1994), Eklof and Westlund (1998), and Geyskens et al. (1999), customer satisfaction was very important to the profitability of the organization. Naumann (20010 pointed that customer satisfaction is a part of strategic planning of the organization. In addition, Augus (2000) said that implementing total quality management could improve the company’s customer satisfaction. However, Concept Articulation that effective TQM processes can generate great improvements in both product and service quality which then resulted in increased customer satisfaction and organization’s profit (Gallear, D and A. Ghobadian, 2004).
As trade barriers of international market minimized due to better transportations, sophisticated information technology and government support, the business has witnessed quick globalization and struggle (Daun & Klinger, 2006; Kandampully & Hu, 2007; Shoemaker & Lewis, 1999). According to this situation, developing and containing of brand loyalty is one of the best elements to achieve sustainable competitive advantage. Marketing literature revealed that it is extremely important to gain positive perception of company’s most valuable consumers. There are number of studies which confirmed that positive association between brand loyalties and to achieve customer satisfaction exists. (Oliver,1999, Rusell-Bennett et al,
CSR is related with brand loyalty, as more the number of customers will be attracted towards the corporation because nowadays image of the brand matters a lot for generating profits and strengthening the brand position. CSR is used as marketing tool and it has a positive impact on consumer-corporate relation which directly improves the brand loyalty. Firms try to attract customers, so they use CSR and portrait themselves as an environment friendly and sustainable firms so that more people engage with them. Brand plays a vital role in generating profits and also strengthens the relation between the consumers and corporation as more the loyalty, more solid image will be of the brand and firm as well. The data of the research was obtained from American and South Korean subjects.
As indicated by Cai (2002), while overlooking branding as strategic viewpoint not just set of images, it can be said that brand play the role of centric approach that attract consumers towards the company, the formation of unique brand image include a logo, high-end product, price of the product as well as the location of its business range. These factors all together build an efficient brand image for a company. In addition, it also helps the company to maintain its competitive advantage (Cai,