Brand Loyalty Final Draft

7/31/2019 Brand Loyalty Final Draft

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Brand Loyalty

Brand loyalty is an effective buying behavior of a particular brand, repeated over

time, and reinforced with a strong commitment to that brand.

It is a deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same brand or

same brand-set purchasing, despite situational influences and marketing efforts

having the potential to cause switching behavior. Loyal customers only purchase

the same brand over time even if there is an alternative brand in the market.

Price variations for consumers favorite brand only affect the quantity but not

their brand choice decision.

Factors of Brand Loyalty

To create brand loyal customers and to retain them, it is essential to understand

the major factors that influence brand loyalty among them. Here we are focusing

on seven major factors: brand name, product quality, price, style, store

environment, promotion, and service quality.

Procedure

A questionnaire was prepared for the study. It was ensured that the seven aspects

or factors that were identified as having influence on brand loyalty were included

in the questionnaire.

The observations were to be made at the North Bhavan, Thrissur. So the observer

reached the Bhavan at 9: 45 A.M on 11/6/12. Met with the Bhavan Manager and

obtained permission to do the survey on the customers.

Interviewed each customer that came into the Bhavan and the findings were

recorded. This procedure was repeated on 13/6/12 also. In total 27 customers

were interviewed and findings recorded.

The data collection was done using Schedules, in which the questionnaire was

filled in by the enumerator/ observer by asking the questions to the respondents.

The data thus obtained were analyzed using MS- Excel.


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Observations

Factor Score Rank

a. Brand Name 4.074074 1

b. Product Quality 3.944444 2

c. Price 2.648148 7

d. Style 3.148148 5

e. Store Environment 3.490741 4

f. Promotion 2.864198 6

g. Service Quality 3.759259 3

Given above are the scores of each factor of brand loyalty.

Likerts five pointer scale was used to give score to each question in the

questionnaire.

1. Strongly Disagree. 2. Disagree. 3. Neutral. 4. Agree 5. Strongly Agree

1. Brand name

It has scored the highest among the seven factors. It can be noted that customers

prefer Khadi product mostly because it is a Khadi product. The connection that

name holds to the National Freedom Struggle. Khadis brand name is closely

attached to our culture and tradition and the idea of simplicity it put forward arethe main factors that attract those who are the hardcore loyal customers of

Khadi.

2. Product Quality

Product quality encompasses the size measurement, comfort, durability etc. of

the product. This factor has scored the second highest among the seven.

Customers have all agreed to the fact that the comfort offered by the product is

very good. Once if tried then would want to use it again and again. So is the

durability of the product. Khadi products are highly durable. So it is also an

important factor that attracts a customer to repeatedly buy Khadi products.

3. Service Quality

The service quality is the next big scorer. The customers have a level of

expectation about the service quality of Khadi outlets. Since that level of


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expectation is lower when compared to other competing organizations, the

customers are satisfied with the service quality. The current level of service

quality will not hinder the purchase intentions of existing Khadi customers even

though it will not attract more new customers.

4. Store Environment

The store environment even though could be improved does not really affect the

purchase intentions of existing customers. The store location is comfortable and

has sufficient outlets. The customers are much less concerned about the store

appearance and the ambience of the store.

5. Style

The style aspect of Khadi does not have much influence on brand loyalty of Khadi

customers. But it was found pout that if Khadi can introduce more variety stylesand trendy products, it can attract more customers. Now the target market is

those belonging to an age group above 35. The youth should also be targeted and

for that new styles and varieties has to be introduced.

6. Promotion

The promotional activities of Khadi have little influence on customers. Most of the

loyal customers of Khadi will purchase Khadi without any promotion.

7. Price

It is the last among the seven factors of brand loyalty. It was found that the

customers are ready to buy the products of Khadi even if the prices are hiked. The

loyal customers give little importance when making a purchase decision.

Conclusion

It was found out that the Brand Name, product Quality and service quality are the

major factors that attract customers to repeatedly purchase Khadi products.

Importance has to be given to these items in order to maintain existing customers

and also to attract new customers.


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Documents

Brand Loyalty Final Draft