Brand Loyalty Analysis

2.3.2 dimensions and scales of brand loyalty

According to Dick and Basu (1994), the brand loyalty includes attitudinal and behavioral two dimensions. Odin et al. (2001) further expand this notion to explain that the behavioral dimension defines brand loyalty as customer’s repetitive and systematic purchasing behavior towards a given brand. This kind of repetitive purchasing behavior over a period of time and then becomes an indication of the loyalty of the consumer. However, the attitudinal dimension refers to customer’s positive beliefs and feelings toward a brand among a set of competing brands (Odin et al., 2001). According to this view, brand loyalty is recognized as an attitude presented mainly by consumers’ brand preference or psychological

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. When consumers know that the company trying to undertake social responsibility it may result in a positive brand image in their minds (Mart ́ınez et al., 2013). Moreover, Lynch and Chernatony (2004) argue that a brand related to emotional values is perceived more appealing and less likely replaced by competitor brands. In the study conducted by Chen and Bouvain (2005) find out that the company whether or not performs social responsibility has a great influence on its CSR Ranking

(2) Emotional brand image: The brand can satisfy consumers’ inner desires, which contributes to the pleasant experiential benefits derived from owning or interacting with a brand.

The majority of researches show a positive direct relationship between four domains CSR perception and both domains of brand image. For example, firstly, corporations initiating CSR will offer a foundation for customer to evaluate the product (Wu and Wang, 2014). An enterprise provides customer oriented CSR can meet consumers’ demands and hence has the ability to create a competitive advantage in the market (Hitt et al., 2009). Consequently, carrying out CSR activities for consumers could build relationships between customers and the brand, and then create a favorable brand image in public minds (Wu and Wang, 2014). As the result of brand image includes functional image and experiential image, therefore, based on the previous ideas, hypotheses were elaborated as