The combination of brand-reputation and consumers-brand relationships is not ,in depth, present in social media research. They do acknowledge importance of brand reputation, but do not give a clear structure of how reputation influence the social media channels which influence the consumer-brand relationship. 3.3 The effects of brand reputation and consumer-brand relationships on Brand Loyalty Brand loyalty is a term which is occasionally present in brand relationship theory research. Brand loyalty is often compared to consumer-brand relationships, but a consumer-brand relationship can exist without a consumer being brand loyal (Fournier & Yao, 1997). Four out of the fifteen articles did mention specifically brand loyalty in their results (See Appendix A).
Lin and Chen (2006) in their studies found that brand image plays a pivotal role in deciding customers’ preference of purchase and recommendation. When brand image is positive or favorable then consumers will perceive a congruent corporate reputation and then increase the likelihood of maintaining their positive attitudes and behaviors. Schultz (2005) also found that loyal consumers more prefer to recommend a specific brand to other people and less likely influenced by competitors. Without a favorable and strong brand image, businesses cannot obtain a greater percentage of the market share, thus corporations always keep observing their branding strategies and practices (Schultz, 2005). According to Wu (2011), brand image has been acknowledged as a significant
Though these types of studies customer brand desires can be identified. By identifying brand loyalty of a particular brand, the manufacturers and marketers can identify the factors influencing brand loyalty. Therefore, they can manufacture better goods and offering better service to the customers. Customer wants, tastes and desires are always dynamic in nature and it is always changing in time to time. Hence, it is very important to study the brand loyalty and its influencing variables so as to know the brand loyalty of a particular
It can be conclude to the customer’s knowledge is base on the brand awareness and brand image and the customer response are base on the perception performance and behavior. Both of Aaker and Keller’s theoretical orientation is base on the psychology, they pointed out that brand image would effectively reduce the risk perception of the service itself, by giving the customer the trust and the perception of the quality, affect the customers' buying intentions. Lassar et al. (1995) Five perceptual dimension of brand equity includes performance, social image, value, trustworthiness and attachment. Within the brand equity model the trustworthiness as an important attribute in assets the strengths of a brand.
Currently, around the world, corporations are being appealed to embrace their social obligations not only because it is the right thing towards shareholders, customers, employees, society and environment, but also because it strengthens their brands (Zaman, 2014). According to Li et al. (2013), brand image has been acknowledged as one of the most important concepts in marketing and it referred to the characteristic feature of a brand that reflected as brand associations held in public memory. In addition, several empirical findings have confirmed that a favorable brand image elevates the brand trust, brand equity and also the likelihood that consumers will purchase the brand. Furthermore, Fan (2005) states that consumers’ purchasing decisions is not only influenced by the perception of product, service quality or price, but also based on how ethical the company has fulfilled responsibility in producing its products or services.
He suggests comparing a product with a brand name to an unnamed product what can explain the consumer’s buying habits and preferences (Jara & Cliquet, 2008). Keller applies brand awareness and brand image as two major components of his model. Thus, brand awareness relates to brand spontaneous recognition in consumer’s mind, and brand image is defined as brand associations erased in consumer’s memory. In regards to brand associations, three categories emerge, namely, attributes, benefits, and brand attitudes. Attitudes correspond to descriptive characteristics of the product; benefits relate to the personal value attached to the product; and brand attitudes are used for customers’ evaluation of a product.
Brand loyal consumers reduce the marketing cost of the firm as the cost of attracting a new customer (Levins, 2009) . Brand loyal consumers are willing to pay higher prices and are less price sensitive (Reichheld and Sasser, 1990) .Brand loyal also provides the firm with trade leverage and valuable time to respond to competitive moves (Aaker,1991) . The following are the most common benefits from brand loyalty. 3.6.1 Higher sales Volume The average company loses half of its customers every five years, equating to a 13% annual loss of customers. This statistic illustrates the challenges companies face when trying to grow in competitive environments.
Powerful and strong brands are as a rule a source of economic income, which is going to grow if target audience is loyal to the brand. Thus, Aaker (2014, p. 10-11) emphasizes three assets of brand equity – awareness, associations and loyalty – which have to be considered in the process of brand building and developing. The first dimension – brand awareness – is known to affect perceptions of people, because they tend to think positively about the things they are familiar with. The fact that brand is recognized can be a sign of brand success and commitment of consumers. The second dimension – associations which brand elements (design, product attributes, design, innovativeness) trigger are capable of connecting the brand target group to the brand and influence on their relationship and experience with the brand.
Brand awareness refers to whether consumers can recall or recognize a brand, or simply whether or not consumers know about a brand (Keller, 2008). Brand awareness precedes building brand equity. Brands represent enormously valuable pieces of legal property, capable of influencing consumer behavior, being bought and sold, and providing the security of sustained future revenues to their owner. The value directly or indirectly accrued by these various benefits is often called brand equity (Kapferer, 2005; Keller, 2003). The concept of brand equity began to be used widely in the 1980s by advertising practitioners.