2.2.3 Brand Loyalty High product sales can be explained in two different principles; the first concerned by many people buying the brand and the second concerned by that a few buying a lot. Ford (2005) referred the second principle to brand loyalty. A brand loyalty is a core factor in brand equity and should be taken in consideration when setting a value on a brand (Aaker, 1996). He continues saying that a highly loyal customer base is expected to bring in stabile sales and profit streams. When talking about loyal customer we can archive two important aspects – retain of customers and entry barrier.
Relationship marketing theory states that brand is an important relational tool in a ﬁrm 's consumer relationship management. Relationship marketing refers “to all marketing activities directed towards establishing, developing, and maintaining successful relational exchanges” (Morgan and Hunt, 1994). Relationship marketing theory posits that consumer perceptions of the strength of the relationship (e.g., commitment) shape consumers ' behavior in that relationship (Hunt et al., 2006). The most frequent perception representing the strength of the relationship is affective commitment (Morgan and Hunt, 1994; Verhoef, 2003), which refers to the psychological attachment to the relationship partner and is associated on feelings of loyalty and
(Martínez, 2004) Suggests that only companies or organisations with high quality products can effectively implement umbrella branding to transfer the quality to new products launched by them. To ensure that limited information issues are overcome by the company and quality perceptions are transferred properly, the brand in question must already enjoy a positive image. According to (Lee, H., Lee, C. and Wu, C, 2011) positive attitudes that the consumers have developed on products they love can be a sign on quality for other products within that brand. An evaluation by (Sinapuelas, I. C. and Sisodiya, S. R., 2010) suggests that consumers are likely to have their uncertainty about trying or adopting new products reduced if they have experienced a mother brand previously, as this offers availability of information and also reduces their perceived risk about this new product.
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.
According to Mcconnel (1968) point of view for the whole understanding about brand loyalty, then enough work required. This research aims to define the important factors which not related to time and also show the different advantage which customer gain from re buy of that brand. Advertising also affect and enhance the brand loyalty because through advertisement company motivate the customer that brand offer by company give value and quality according to its price. Brand equity always understands with the quality and uniqueness which is related to customer memory (Dillon et al 2001). Attraction of customer is base on company’s offered product which attracts the customers according to their needs and wants.
According to (Keller, 2003a), there state that consumer brand knowledge and understanding is based on their consumer memory, descriptive and evaluative brand-related information all come from different sources and level of knowledge such as awareness, attributes, benefits, images, feelings, attitudes and experiences to choice which packaging their prefer. At the same time, consumer also except to receive some product or services which reflects the heart, soul and spirit of the brand (Knapp, 2000), it is because consumer love something new and interesting product or services in their daily life. Besides that, company were think the manufacturer brand packaging are important asset to firm because they can reduce consumer purchase risk, simplify consumer’s decision making and increase their ability and willingness depend on a brand packaging ((Aaker, 1996; Aaker and Joachimsthaler, 2000; Keller, 2003b).A successful brand must be able to adapt well to the environment and survive in the long term competition company
When appraise a brand, consumers will depend on their perception of quality which is ‘sometimes more difficult than actually delivering high quality’ (Aaker, 1990. p. 48). This is the customer’s decision based on intangible knowledge of quality, not necessarily based on specific attributes (Zeithaml, 1988). The quality of a brand is important that will evoke customers buying behaviour based on their knowledge. Customers who have strong attitudes about the quality of a brand tend to transfer these positive attitudes to the brand extension (Asker and Keller, 1990; James, 2006). Therefore, the perceived quality will be an important variable that impact a company’s brand
The company direct lost of efforts in process of marketing for gain the customer satisfaction and for building strong relation with all customers in market , the major aims of marketing is to keep strong relation with all customers for longer time 2-a- Meaning of marketing segmentation is to decided the different segments which are available inside markets to segment which can be more effective for marketing operations Targeting According to Schumpeter , S , M , Smith , A , P , Isabel , A , R , (2010) , stated that is to focus more by companies o the best segment in markets which can ensure for companies better performance in process of
Thus the better companies understand how the cusUpper management certainly recognizes the importance of service quality. Chen, Gupta and Rom (1994) found that the executives believe in improving the levels of the product and service quality is the most crucial challenge faced by the firms, and act accordingly. Many companies felt that the need to see the quantifiable financial benefits of service quality over other company investments. Rust, Zahorik and Keininghamprovided the justification by creating a method to quantify service quality. The authors were able to suggest where the additional investments should be made so that it would be deemed worthwhile and at the same time determine the optimal expenditure level.
(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).