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Dr. Gaur Hari Singhania Institute of Management & Research, Kamla

Nagar, Kanpur

Final Research Project

On

Factor affecting brand loyalty: Do

different factor have various

influence on level of loyalty forFMCG sector

UNDER THE GUIDANCE OF

Mr. Puneet Rai

Assistant Professor

SUBMITTED BY:

ANKIT SHUKLASec-A

Roll no. 1160

Pgdm 15 th batch

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Acknowledgement

First of all I would like to express my regards and thank wholeheartedly to Prof. Dr. Prithvi

Yadav, Director, Dr. Gaur Hari Singhania Institute of Management and Research-Kanpur,)

for granting me an opportunity to do my Final research project.

With a deep sense of gratitude and humble submission I would like to express my heartiest

gratefulness to my Faculty Guide Prof. Puneet Rai for guiding me throughout my Final researchproject. I feel motivated and encouraged every time I attend his class. Without his

encouragement and guidance this project would not have materialized.

I am also obliged to all the staff members of Institute. And lastly I give my heartiest thanks to

all my faculty members and all my classmates for supporting me throughout my project.

Date: signature

CONTENT2

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Acknowledgement 2

Declaration 3

Introduction 4

Research on Brand Loyalty 5

Importance of Research Issues 7

Questionnaire Design 11

Questionnaire 13

Research objective 15

Finding & observation 17

Factor analysis & interpretation 17

Factors 23

Discriminant Analysis 25

Implication of research 30

Conclusion 32

Recommendation 33

Refrences 34

INTRODUCTION

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Recent years have shown a growing interest in customer loyalty. The globalisation

of competition, saturation of markets, and development of information technology

have enhanced customer awareness and created a situation where long-term success

is no longer achieved through optimised product price and qualities. Instead,

companies build their success on a long-term customer relationship. According toformer studies, it can cost as much as 6 times more to win a new customer than it

does to keep an existing one. (Rosenberg et al. 1984: 45) Depending on the

particular industry, it is possible to increase profit by up to 60% after reducing

potential migration by 5%. (Reichheld 1993: 65) Hence we can see that the increase

and retention of loyal customers has become a key factor for long-term success of

the companies. The main emphasis in marketing has shifted from winning new

customers to the retention of existing ones.Traditionally there are two approaches to treat customer loyalty. Some researchers

have investigated the nature of different levels of loyalty, others have explored the

influence of individual factors on loyalty. In this article both treatments are

combined. The starting point of the paper is to test whether the list of most

important factors affecting customer loyalty is dependent on the levels of loyalty of

costumers. More specifically the current paper is going to estimate which specific

factors in telecommunication sector

Influence the loyalty rate of the various customers segmented by loyalty.

The potential for establishing loyalty depends on the object (i.e. product or vendor),

on the subject (customer) or on the environment (market, other suppliers etc.). This

paper focuses on the analysis of object-related factors that are subject to direct

impact by companies.

Research on Brand Loyalty

A major objective of any marketing strategy for most product categories is the

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facilitation of consumers to repurchase the brand through preference or

involvement. Therefore, the topic of repeat purchase or brand loyalty has received

considerable attention both by academicians and practitioners. Brand loyalty refers

to the consumers behaviour of repeatedly purchasing a specific brand over a

certain period of time. This is based on the past behaviour and the brand loyal

consumer is likely to purchase the products of a specific brand currently and in thefuture (Lin, Wu and Wang 2000). However, a debate that has been going on in this

field since the seventies is whether brand loyalty involves more than a behavioural

measure of repurchase (Day 1969). Therefore, researchers have focused on another

dimension of brand loyalty ,namely attitudinal loyalty (Werner and Kumar 2002).

This debate has not reached any consensus, but the fact remains that brand loyalty is

believed to be a powerful tool to combat increasing competition in the

marketplace (Amine 1998).Brand loyalty is important for marketers because ithelps in retaining customers and often requires less marketing resources than

acquiring new ones (Reichheld and Sasser 1990). It also has positive

implications brand

equity (Aaker 1991; Uncles and Laurent 1997; Chaudhri 1999). The purchase

behaviour of consumers is greatly influenced by increasing competition

reflected in the proliferation of brands in the packaged product categories, andin the consumers thirst for variety (Choong 1998). Further, it has also been

pointed out that not all consumers are created equal (Hallberg 1995) and their

relationships with brands are also not alike either in strength or character

(Fournier and Yao 1997). The concept of Double Jeopardy advocated that

smaller brands experience the double jeopardy effect. This effect established

that smaller brands have lesser market share and also have fewer consumers

loyal to them as compared to larger brands that have higher market shares andhigher degrees of brand loyalty (Ehenberg, Goodhardt and Barwise 1990). This

may be very applicable to emerging markets because there may be a number of

smaller brands. It is therefore important to understand factors influencing brand

loyalty of consumers so that marketers can accordingly formulate the marketing

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mix of their brands to target appropriate segments. This study is an attempt to

understand key factors influencing brand loyalty in a changing environment.

A number of studies have focused on understanding the concept of brand

loyalty and the factors influencing it. Product attributes, after sales

service/usage, marketing capabilities, perceived quality/aesthetics, depth of

product line and brand popularity are key differentiating factors influencing thebehaviour of repeat purchasers and brand switchers in case of consumer

durables (Lin, Wu and Wang 2000). Studies have also found that brand

commitment is a necessary condition for true brand loyalty to occur(Bloemer

and Kasper 1995; Amine 1998). This was supported by the findings of Knox

and Walker (2001), wherein they found that a number of factors like packaging,

new product trial, price, store location, product quality/features, vouchers, free

gift, variety, childrens influence and advertisements discriminate switchingmotivations of heterogeneous consumer segments like brand loyals, habitual

loyals, variety seekers and switchers. Consumers demographic characteristics

like age and household income are also associated with high levels of brand

loyalty (East, Gill, Hammond and Hammond 1995). The study also found that

brand loyal consumers are more concerned with quality than price, are heavy

spenders and are slightly more store loyal also. Brand loyalty is also influenced

by market structure (Lin, Wu and Wang 2000; Sharyn and Rebekah 2001),

positioning and marketing mix strategies (Bhattacharya 1997). It was also found

that brands which cater to niche markets are bought in higher quantities, have

lower prices, are promoted to a lesser extent, have shallower price cuts and

enjoy more than expected loyalty levels. Recently, Knox and Walker (2003)

found a weak but significant relationship between level of involvement and

brand loyalty in the grocery market. Further, it is also recommended that while

brands explore the possibility of exploiting the benefits of retail environment,

brands should fully exploit the ability to communicate with all the senses and

should specifically focus on sonic branding, which can be a powerful tool in the

development of brand loyalty (Fulberg 2003).

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While several factors influencing brand loyalty have been studied in the extant

literature, the authors opine that brand loyalty has to be studied from the

viewpoint of certain recent developments in academic research without losing

the useful insights gained from traditional research studies. This study therefore

attempts to investigate empirically the influence of key factors viz. brand

functional benefits, price consciousness, brand trust, brand symbolism andgenetic influence on brand loyalty. These factors represent traditional and

emerging dimensions influencing brand loyalty and could help practitioners of

marketing in designing suitable marketing strategies.

Importance of Research Issues

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Brand loyalty has been researched for the last several decades. As discussed in the

literature survey the traditional aspects of loyalty are undergoing a change in a changing

environment. Researching any aspect of marketing, especially a concept like brand loyalty,

which is topical and contextual requires exploring a new dimension associated with it .The

authors have

attempted this aspect in this research study. Researching the basic aspects and moving into

recent developments is a well-accepted practice in research (Baker 2000). This paper

makes an attempt to explore certain topical aspects of the concept in an emerging market.

Recent literature on the concept suggests that brand loyalty could be an offshoot of

attachment towards the brand and consumers could develop attachment towards a brand on

a number of counts. These aspects associated with the brand relationship could be could be

hedonism, personal gratification, self image, pleasure of the relationship, development of

consumers family and the brands association with people with whom the consumer has

emotional connections (Kapferer 2004). This study attempts to provide some of thedimensions in the backdrop of brand loyalty.

Another aspect of the research which warrants a study of this nature is that in the

developing markets such studies on brand loyalty have not been published and this would

be an opportunity to address issues which are not only relevant for academic research but

which could also be useful to practitioners of marketing. The Indian context is witnessing

the entry of

multinational brands in the fast moving consumer goods categories. In the category of

toothpastes for example, LG the Korean company is a new entrant and SmithKlineBeecham launched its Aquafresh a few years Other multinationals like Proctor & Gamble

(which also launched a number of its global brands in India in the detergent category) may

also launch its brands in India. This dimension of competition is a marked part of the

scenario in an emerging market like India.

What is more interesting and distinguishing about the Indian market is that apart from

competition from multinational brands, there is a huge Unorganised market in the country

in a number of categories. An Unorganised market is one which caters to the local market

in terms of geographical boundaries, has an offering which may have a slightly sub

Standard offering in terms of quality, uses small pop and mom shops for Distribution and

uses unconventional advertising like wall painting (Advertisements of the offering may be

painted on the walls of buildings). These offerings priced much below the branded

offerings appeal to the Masses who use them before they upgrade to branded offerings

over a Period of time as their purchasing power gets enhanced. These markets may Be

found in categories like biscuits, detergents, foot wear, tea, edible oil, hair Oil, cassettes8

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and mineral water. Besides multinational brands and the unorganised market, there have

been a new breed of brands which could be referred to as regional brands and these brands

have been giving the larger brands a difficult time in the market at the lower end. In the

category of toothpastes, Anchor is a brand, which is posing a threat to a brand like Colgate.

Tea, detergents, edible oil, coffee, watches, mens apparel, toilet soaps and fast foods are

some of the other categories in which regional brands have started making their presence

in a significant manner. The regional brands (distributed in a much wider Geographical

area than a typical offering from the unorganised sector) offer a Quality which could be

comparable to that offered by multinational brands; Advertise in conventional media

though selectively within the region of their Operations and they use the distribution

channels which are used by large Brands. They are priced below the multinational brand

but a bit above the Unorganised offerings. The challenge of the marketer of a strongly

entrenched brand and a regional brand is to upgrade the consumer from the Unorganised

sector and also to build loyalty in a variety of ways. Hence apart From the topicality of the

concept, brand loyalty concepts in an emerging Market could have a profound impact onpractice-oriented strategies, which Are focused on loyalty and repeat purchase.The study

attempts to work around a traditional set of dimensions associated with brand loyalty

(functional benefits and pric consciousness) and combine them with contemporary

developments in brand loyalty

(symbolism, brand trust and genetic influence). The objective of the study is to address

academic issues which also have practical significance in the management of loyalty in

packaged product categories which are strongly Prone to brand switching due to price

sensitivity and sales promotion. The study also takes into consideration the shifting brandproposition in consumer product categories where brands make an attempt to create

bonding with emotional and self-concept oriented appeals. The aims of the study was to

study the mix of issues associated with brand loyalty and provide a framework for

marketers who would be able to derive insights from the framework to retain consumers in

the respective categories.

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Questionnaire Design, Pre-Testing and Final Administration

The questionnaire was constructed in simple language reflecting the various aspects of brand

loyalty to ensure that respondents would not have problems understanding what kind of

responses were expected from them. Though the respondents chosen were familiar with the

product category, in the context in which research was conducted consumers do not frequently

fill in questionnaires and hence may not understand a complex questionnaire.

Besides, it was also necessary to make the questionnaire short without sacrificing the content

required, to ensure that respondents respond to the questionnaire. Long questionnaires generally

result in low return rates. The sequence of the questions in the questionnaire was selected based

on consumer familiarity of brand loyalty dimensions. For example price as a

factor affecting repeat purchase is relatively easier for respondents to comprehend (than

probably brand trust). The dimensions they may be relatively familiar with, namely price and

functional benefit aspects, were listed in the first phase of the questionnaire. After this sequence

which would have ensured their initial interest, they were exposed to dimensions of repeatpurchase, which would have made them think about their repeat purchase behaviour. The

complex aspects of brand loyalty, namely brand trust and genetic influence on brand loyalty,

were covered later in the questionnaire after repeat purchase aspects. The idea of the sequence

reflected in the questionnaire design was to progress from simple to complex aspects involved

with the research issue with the introduction of repeat purchase in the middle to enable the

respondents to think about their repurchase after going through some simpler dimensions of it.

Based on the dimensions identified from the literature and the hypotheses

that were proposed subsequently, a questionnaire was formulated using thescales available inthe literature to collect data from a large number of respondents. The questionnaire was pre-

tested on a random sample of forty consumers who represented the target respondents for the

final questionnaire. The sample had various kinds of consumers viz. male, female married,

unmarried, student, employed, and self-employed. Brand symbolism, brand trust, price

consciousness, brand functional benefits, genetic influence and brand loyalty were measured

using multi- item five-point Likert scale. Price consciousness was measured using a three-item

scale developed by Lichtenstein, Bloch and Black (1988). Brand trust was measured using a

four-item scale and was adopted from Chaudhuri and Holbrook (2001). Brand loyalty was

measured using a four-item scale (Jacoby and Chestnut 1978) consisting of purchase loyalty

and attitudinal loyalty. No scale for brand functional benefits is available in the literature, and it

was also found difficult to develop a general scale of brand benefits, which would be applicable

to all FMCG product categories. Therefore, a six-item scale for

brand functional benefits was developed specifically for this particular study based on inputs

from personal interviewing of consumers. A three-item brand symbolism scale was adopted

after minor modification of different scales of brand symbolism, product sign and brand sign

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from Bhat and Reddy (1998) and Knox and Walker (2001). A two-item genetic influence

measure was developed for this study based on personal interviewing of consumers. Although,

most of the scales were adopted directly from the literature, except brand functional benefits

and genetic influence, some of the items from existing scales were modified based on the inputs

after pre- testing of the questionnaire from a sample of forty consumers. The final items used in

the questionnaire are provided in Appendix-1. The hypotheses generated above were tested on a

random sample of 444 customers from a metropolitan city in India. The mean age of the sample

respondents was 27 years and standard deviation was 9 years.

The questionnaire was administered in the field through an investigator who explained any

doubts the respondents may have had with regard to the items mentioned in the questionnaire.

The questionnaire was collected back by the field investigator after the respondents had filled in

the responses

QUESTIONNAIRE

1:- From last three months, no. of brands of soaps you have experienced or purchased.

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1) 1 2) 2 3) 3 4) 4 5) more than 4

2) I usually buy bathing soap, which is on discount.

1) Highly Agree 2) Agree 3) Neutral 4) Disagree 5) Highly Disagree

3) I buy the lowest priced bathing soap that suits my needs.

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

4) When it comes to choosing bathing soap for me, I rely heavily on price


5) I trust my regular brand of bathing soap for my skin related problems


6) I am likely to use my regular brand of bathing soap even if there is a scam surrounding it


7) My regular brand of bathing soap is a reliable brand.


8) Using my regular brand of bathing soap helps me express my personality.


9) My regular brand of bathing soap is the same as what my parents had used for many years


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10) My regular brand of bathing soap is the one I had used since my childhood


11) I feel that use of my regular brand of bathing soap provides me freshness throughout theday.


12) I feel myregular brand of bathing soap help me to save from skin related problems.


13) I feel that prolonged use of my regular brand of bathing soap helps in fairness of skin.


Personal details:

NAME:

AGE: SEX:

MARITAL STATUS:

OCCUPATION MOBILE:

ADDRESS:

RESEARCH OBJECTIVE

Brand loyalty is a topic of interest both to academicians and practitioners involved with

marketing. The concept of relationship marketing has its underpinnings in brand loyalty. . In

consumer products, typically fast moving consumer goods (FMCG), there are a host of

complexities that affect brand loyalty. This study examines the combined effects of brand

benefits, brand symbolism, brand trust, genetic influence and price consciousness of consumers

on brand loyalty for bathing soap product category.

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A major objective of any marketing strategy for most product categories is the facilitation of

consumers to repurchase the brand through preference or involvement. Therefore, the topic of

repeat purchase or brand loyalty has received considerable attention both by academicians and

practitioners. Brand loyalty refers to the consumers behaviour of repeatedly purchasing a

specific brand over a certain period of time.

A number of studies have focused on understanding the concept of brand loyalty and the factorsinfluencing it. Product attributes, after sales service/usage, marketing capabilities, perceived

quality/aesthetics, depth of product line and brand popularity are key differentiating factors

influencing the behaviour of repeat purchasers and brand switchers in case of consumer

durables

The current paper studies the influence of various factors on customer loyalty. The main

hypothesis of the study insists that the list of most important factors affecting loyalty is

dependent on the level of loyalty of costumers.

Level of Loyalty

There is large variety of customer in the market they consume according to their requirement,

there limited resources available to them and by their attitude toward purchasing the product.

Consumer are consider as the king of the market we make product for which suit to their

personality and need.there are customers who purchase product continuously, some may switch

sometime to another brand which gave them similar brand feeling and some are continuously

switching to different brand by attracting toward the positioning done by the marketers. Then

we have Categorise loyalty in three different categories like as:-

Highly loyal customers,

Moderate customers,

Low loyalty customers

Highly loyal Customers:- Highly loyal customer are define as per their purchases hasdone in for soap product for last three months. The person will be called highly loyal if the

person is fixed to one brand from last three months and he is not switch to any brand among the

available brands. It may be happen only when the customer feel attached with the brand and

have some functional benefits of the product without any pricing problem.

Moderate Customers:- we have define moderate customers as the person whoconsuming the product but in between he or she may change the product one or two times in

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period of three months. It may be happen in the situation of non availability of the product in

the market and shop keeper suggest other brand in place of the preferred brand

Low level of loyalty:-Low loyalty of customer is defined as per the purchasing attitude ofthe customer, as we mention the time limit of three years where the person purchase brand of

soaps more than three or four brands in the period of three years. This may be happen because

customer more focuses on low price, discounts, attitude of shifting to other brands easily,attracted by market promotional strategies.

FACTOR ANLYSIS

To check effectiveness of the variable we have taken 11 variables in to consideration to check

the no correlation between the variables. Variables which are used for the analysis are discount

which means that the consumer are willing to buy the product which are on discount. Anothervariable is low price product which satisfied their need and the price sensitive people who want

to buy that product which are cheapest available in the market. Skin related problems they are

more rely on their regular brand of bathing soaps, person used their preferred brand of bathing

soap whenever there is scam around it about the bathing soaps, they are more reliable on their

regular brand of bathing soap, customer may use those product which are help to them their

personality in the society, there may be some type of genetic influence in buying the bathing

soap like they use the brand which their parent are using or used from their childhood, some

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take care of the product function benefit related to the bathing soap like freshness, fairness,

fragrance in the product.

For that purpose we make the questionnaire to get detail of the 100 respondents. And collecting

the data we put the factor analysis to factorize variable into factor or used factor analysis to

reduce the data.

Descriptive Statistics

Mean Std. Deviation Analysis N

Discount 3.92 .761 100

Lowprice 4.28 .805 100

Pricesensetive 3.97 .937 100Skinproblem 2.25 .757 100

Scams 2.52 .689 100

Reliability 2.14 .569 100

Personality 2.68 .530 100

Genetic 3.59 .793 100

Childhood 3.61 .875 100

Freshness 2.61 .803 100

Fairness 2.85 .730 100

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of

Sampling Adequacy. .690

Bartlett's Test of

Sphericity

Approx. Chi-

Square

1423.98

0Df 55

Sig. .000

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InterpretationThis KMO and Bartlett's Test box show adequacy of the model which is .690. significance levelis .000

Total Variance Explained

2.945 26.774 26.774 2.945 26.774 26.774 2.098 19.076 19.076

1.780 16.182 42.956 1.780 16.182 42.956 1.927 17.521 36.597

1.520 13.817 56.773 1.520 13.817 56.773 1.835 16.680 53.277

1.459 13.260 70.033 1.459 13.260 70.033 1.582 14.379 67.657

1.001 9.104 79.137 1.001 9.104 79.137 1.263 11.481 79.137

.747 6.790 85.927

.636 5.781 91.708

.308 2.799 94.507

.263 2.390 96.897

.234 2.124 99.021

.108 .979 100.000

Component

1

2

3

4

5

6

7

8

9

10

11

Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Extraction Method: Principal Component Analysis.

Interpretation

This is total variance explained table show the initial eigen value which show value more

than 1or equal 1.if the initial egein value is more than 1 it consider as a factor and like

that there are five factor get extracted. First one, is having the value 2.946 which means

is that more than 2 variable work in this factor. and %age of variance for this factor is

Communalities

1.000 .750

1.000 .858

1.000 .745

1.000 .646

1.000 .873

1.000 .707

1.000 .884

1.000 .834

1.000 .785

1.000 .815

1.000 .808

discount

lowprice

pricesensetive

skinproblem

scams

reliability

personality

genetic

childhood

freshness

fairness

Initial Extraction


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20.774,which means 20.77 percent of total variable classified in this factor. As in second

one eigenvalue is 1.780 and %age of variance is 16.187 and commulative % is

42.958.and in 3rd one the eigen vaue is 1.520 there two variable working in this factor

and the %age 13.817 and commulative %is 56.773 total of variableget classified in

factors like all five factor get extracted by factor analysis which commulative % 79.137%

of variable are classified correctly.

Component Matrixa

.733 .246 .068 -.280 -.251

.708 -.072 .183 -.426 .167

.686 -.017 -.018 -.429 .451

.606 -.312 -.412 .347 -.245

.591 -.497 -.451 -.030 -.085

.401 .804 -.077 -.069 -.259

.221 .718 .227 .297 .062

.104 -.387 .816 .084 -.034

.453 -.235 .604 .208 -.342

.412 .030 -.127 .674 -.073

.351 .053 .069 .544 .668

pricesensetive

discount

lowprice

freshness

fairness

personality

reliability

genetic

childhood

skinproblem

scams

1 2 3 4 5

Component


5 components extracted.a.

It classify variable in factor it is help to analyze that in which factor which variable comes

it show that variable whose highest correlation score exists in which factor group. In

factor 1 the price sensitive, discount and low price are having highest correlation value

in factor 1 so comes in factor 1. In factor 2, reliability having the highest value in column

2 so it comes in factor 2. Like that all the 5 factor having having more than contribution

of 2 variables. But this thing is more from

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Rotated Component Matrix a

.902 .070 .024 -.062 .188

.828 .104 .091 .215 -.004

.578 .272 .516 .176 -.198

.103 .892 .023 .038 .085

.394 .765 -.245 -.062 -.058

-.176 .576 .265 .139 .440

.176 .043 .904 -.159 -.094

-.039 -.158 .739 .060 .361

.074 -.178 -.210 .864 .086

.104 .235 .137 .837 -.004

.143 .110 .033 .037 .915

lowprice

discount

pricesensetive

freshness

fairness

skinproblem

personality

reliability

genetic

childhood

scams

1 2 3 4 5

Component


Rotation Method: Varimax with Kaiser Normalization.Rotation converged in 7 iterations.a.

Interpretation

Rotated matrix clearly show the picture which factor have combination of

variables in factor 1 there are3 variable working on it low price , discount, price

sensitive.In factor 2, there are variable three variable working freshness, fairness, skin

related problem,.

In factor 4, there are 2variable working, personality and reliability.

In factor 5 there is only 1 variable contributing,scams.

Component Transformation Matrix

.686 .563 .345 .242 .187-.055 -.361 .871 -.315 .092

.057 -.516 .086 .846 .091

-.627 .389 .127 .199 .632

.362 -.367 -.314 -.296 .741

Component

12

3

4

5

1 2 3 4 5


Rotation Method: Varimax with Kaiser Normalization.

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Component Score Coefficient Matrix

.417 -.087 -.031 .065 -.009

.507 -.139 -.108 -.142 .189

.195 .085 .265 .090 -.244-.226 .323 .137 .072 .258

.090 -.066 -.091 -.065 .759

-.067 -.124 .396 .040 .239

.002 .016 .511 -.085 -.159

.018 -.144 -.113 .552 .047

-.078 .110 .098 .544 -.110

-.102 .501 .002 -.005 -.033

.118 .390 -.176 -.093 -.091

discount

lowprice

pricesensetiveskinproblem

scams

reliability

personality

genetic

childhood

freshness

fairness

1 2 3 4 5

Component



Component Scores.

Component Score Covariance Matrix

1.000 .000 .000 .000 .000

.000 1.000 .000 .000 .000

.000 .000 1.000 .000 .000

.000 .000 .000 1.000 .000

.000 .000 .000 .000 1.000

Component

1

2

3

4

5

1 2 3 4 5



Component Scores.

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Componen

t31.00.5

0.0-0.5

-1.0

Component2

1.0

0.5

0.0

-0.5

-1.0

Component1

1.00.50.0-0.5

-1.0

personality

pricesensetive

discountreliability

lowprice

freshness

childhood

fairness

skinproblem

scams

genetic

Component Plot in Rotated Space

FACTORS

Factor which are extracted from the factor analysis

BRAND FUNCTIONAL BENEFIFTS

CONSUMERS PRICE CONSCIUOSNESS

BRAND TRUST

BRAND SYMBOLISM

GENETIC INFLUENCE

Relation to Research:

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BRAND FUNCTIONAL BENEFIFTS: It has long been emphasised that product

attributes have a significant influence on brand loyalty. In fact the messages to which

consumers are exposed, often stress product benefits. The attributes of the brand have

been considered as necessary for consumers to like the brand and purchase it repeatedly

(Lin, Wu and Wang 2000, 2000; Knox and Walker 2001). It is therefore expected that if

consumers get certain functional benefits from a brand, they are likely to be more brand

loyal to that brand.

CONSUMERS PRICE CONSCIUOSNESS: Price Consciousness is defined as the

degree to which the consumer focuses exclusively on paying a low price. A price

conscious consumer is more concerned with price, seeks out lower price, and sees such a

search as worthwhile. Several studies have found price promotion to be negatively related

to brand loyalty. It has been found that high price conscious consumers look for better

price and have lower buying intentions. Therefore, it is expected that consumers whocontinuously look for price before purchasing a brand will not purchase the same brand

repeatedly until the brand is offered at the cheapest price continuously vis--vis other

competitive brands in the market. Most of the brands in the market place introduce

discounts/sales promotion on a regular basis in most fast moving consumer categories

and price conscious consumers will keep on switching brands continuously as and when

the brand is offered on sale.

BRAND TRUST: Past research has proposed that brand trust is a calculative process

based on the ability of the brand to continuously meet its obligations, and on an

estimation of the costs versus rewards of staying in the relationship. wherein brand trust

is defined as the confident expectations of the brands reliability and intentions in

situations entailing risk to the customer. We adopt this definition because we feel that

trust is based not just on cost estimation but the confidence a consumer has in a brand.

This definition has been conceptualised by considering literature from social psychology,

sociology, management and marketing, which supports our view of brand trust. We

propose that brand trust positively influences brand loyalty as has been suggested in

previous research. This is because high confidence or trust in a brand will help customersto reduce perceived risk and facilitate in purchasing the brand repeatedly.

BRAND SYMBOLISM: Brands have been considered important in creating individual

identity related to consumers psychological needs associated with status, exclusivity and

prestige. It has also been found that marketers do not necessarily have to position a brand

as a prestige brand with its associations of expensiveness and exclusivity to tap the

symbolic needs of the customer. One way to approach a brands marketing strategy is to

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investigate if symbolism could be used to nurture brand loyalty. A marketing strategy that

shows how the brand can be used to express a consumers personality is an effective

strategy for influencing the customer to exhibit loyalty towards the brand. We propose to

investigate the influence of brand symbolism as reflected by the self-concept of

consumers. We propose a positive relationship between brand symbolism and brand

loyalty. In an emerging market like India, consumers in a changing context, full of

lifestyle orientation, could use a brand for expressing their personality or self-concept and

hence are more likely to be loyal to the brand.

GENETIC INFLUENCES: Several studies have identified intergenerational influence or

lineage as key factor influencing brand loyalty. Reference group influence on the

purchase behaviour of a consumer can be from friends, colleagues, peer group, family

etc. This study proposes that intergenerational influence or genetic influence can be a key

factor influencing brand loyalty. This is because consumer socialisation research

emphasises that adult consumer habits are formulated during childhood and duringadolescence. Therefore, reference groups could influence childhood preferences in an

environment, where choices are not available and hence may have had an impact on

brand loyalty. It is therefore expected that consumer preferences are formed towards

certain brands early in childhood and result in adult loyalty. This is especially relevant in

a market scenario like that of the Indian market where there were only a few brands

before the markets were opened up for competition about fifteen years ago.

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DISCRIMINANT ANALYSIS

The null hypothesis that the variance/covariance matrices are equal in the population

Log Determinants

5 -5.568

5 -4.584

4 .a

5 -4.247

bpp

1.00

2.00

3.00

Pooled within-groups

Rank

Log

Determinant

The ranks and natural logarithms of determinants

printed are those of the group covariance matrices.

Singulara.

Tests of Equality of Group Means

.771 13.659 2 92 .000

.947 2.578 2 92 .081

.884 6.059 2 92 .003

.931 3.391 2 92 .038

.988 .568 2 92 .569

priceconciuosness

brandtrust

brandsymbolism

brandbenefit

geneticinfluence

Wilks'Lambda F df1 df2 Sig.

The significance value for factor shows that these factor responsible for the

discrimination of level of loyalty. These function are as follows:

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1) Price consciousness

2) Brand symbolism

3) Brand benefit

Test Resultsa

65.203

4.023

15

14719.066

.000

Box's M

Approx.

df1

df2

Sig.

F

Tests null hypothesis of equal population covariance matrices.

Some covariance matrices are singular and the usual

procedure will not work. The non-singular groups will

be tested against their own pooled within-groups

covariance matrix. The log of its determinant is -4.132.

a.

(Box's M = 65203, p = 0.000)

The null hypothesis that the variance/covariance matrices are equal in the population is not

accepted.

This show that discrimination of the level of loyalty because the significance value is less

than .05.

Eigenvalues

.671

a

82.3 82.3 .634.144a 17.7 100.0 .355

Function

1

2

Eigenvalue % of Variance Cumulative %

Canonical

Correlation

First 2 canonical discriminant functions were used in the

analysis.

a.

For each discriminant function, the eigen value is is the ratio of between

group to with-in group sum of square . larger eigen value emply superior

function.

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Wilks' Lambda

.523 58.304 10 .000

.874 12.122 4 .016

Test of Function(s)1 through 2

2

Wilks'

Lambda Chi-square df Sig.

The wilks lambda value for 1 is showing the value .523 and function is significant

The wilks lambda value for 2 is showing the value ..874 and function is significant

tandardized Canonical Discriminant Function Coefficients

-.963 .394

-.313 -.368

.866 .608

-.171 .334

.592 .435

priceconciuosness

brandtrust

brandsymbolism

brandbenefit

geneticinfluence

1 2

Function

Standardised conanical discriminant function coefficient value for function

1 shows highest correlation of brand symbolism .866 and genetic influence .

592

Standardised conanical discriminant function coefficient value for function

1 shows highest correlation of brand symbolism.608 and pruce

concoiusness .394 andgenetic influence is .435.

The discriminant function coefficient unstandardised are the multiple of of

variable , when the variable are in original unit of measurement.

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Canonical correlation measure the the extent of association between the

discriminant score and the group. It is a measure of association between the

single discriminant function and the set of dummy variable that define the

group membership.

Structure Matrix

-.572 .733*

.348 .593*

-.283 .372*

.032 .285*

-.258 -.280*

priceconciuosness

brandsymbolism

brandbenefit

geneticinfluencebrandtrust

1 2

Function

Pooled within-groups correlations between discriminating

variables and standardized canonical discriminant functions

Variables ordered by absolute size of correlation within function

Largest absolute correlation between each variable and

any discriminant function

*.

Interpretations :

Structure matrix is the largest absolute correlation with one of the canonical functions. Within

each variable, values are ordered by size. The second function seems to be very useful since 5

factors e.g. price consciousness(.733), brand symbolism(.593), brand benefit (..372), genetic

influence(.285) and brand trust (.280) have very high correlation.

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Classification Resultsa

21 9 0 30

3 45 5 53

2 7 3 12

0 5 0 5

70.0 30.0 .0 100.05.7 84.9 9.4 100.0

16.7 58.3 25.0 100.0

.0 100.0 .0 100.0

bpp

1.00

2.00

3.00

Ungrouped cases

1.002.00

3.00

Ungrouped cases

Count

%

Original

1.00 2.00 3.00

Predicted Group Membership

Total

72.6% of original grouped cases correctly classified.a.

Interpretation

1 for highly loyal is showing the result 70% correctly classified and

2moderator is showing the result 84.9% correctly classified and 3low loyal isshowing the result 25.0% correctly classified.

Implications of the study to Marketing Practice Developing a framework for Contemporary Brand Loyalty

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The study established that the concept of loyalty is expressed in terms of their linkages with

brand benefits, brand trust, genetic influence, and brand price consciousness. The study also

probed into the significance of brand benefits, brand trust, price consciousness, symbolism and

genetic influence of brand selection, on brand loyalty. These factors were found to have varying

degrees of influence on brand loyalty. Loyalty is an important and topical marketing issue. The

linkages of loyalty with the factors studied become important to avoid mismanagement of

loyalty and to ensure that loyalty management programs are not wasted through indiscriminatesales promotion. Brand associations form an important aspect of branding. In an environment

full of advertising clutter, managing brand associations is important. There is a need to manage

brand associations in a manner that would appeal to consumers with different degrees of loyaltyto the brand, and at the same time ensure that consistency of brand associations is maintained.

Several brands in FMCG categories build themselves with symbolism (linked to self-concept

or reference group aspects). The impact of symbolism on brand loyalty poses interesting

challenges to marketers. Finally a framework that involves `Brand benefit set (involving

brands functional benefits and trust) and loyalty that could be used by marketers to explore

several marketing strategies is suggested. The following framework shown in Figure 1 involves

two dimensions `Brand benefit set (concerned with, both brands functional benefits and brandrust) and brand loyalty. This would give rise to form different categories of consumers whocould be approached through different kinds of marketing strategies (as appropriate to FMCGcategories).

Figure: 1 Developing Contemporary Brand Loyalty - A Framework

BrandLoyalty

Low High

BrandBenefit Set

High `MYSTERY `VITALS

Low `FLOATERS `SHAKERS

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`Brand benefit set means brand benefits and brand trust. While price consciousness may

have an impact on loyalty, a consumer, who perceives a brand high on `Brand benefit set,

may experience less price consciousness.Consumers who could be categorised as `high on

`Brand benefit set and loyalty are Vitals. These consumers are the core consumers of thebrand and they not only perceive the brand `high on benefits but also feel that they could

rely on the brand even when the brand is going through a troubledphase. A brand should

reward such consumers, and reinforce the goodwill, that they have in the brand. A database

of such consumers with specific criteria endorsing their high degree of loyalty should enable

the company to plan promotional programs for such consumers. Besides specific discounts

on the brand (clearly communicating that the benefit is a result of their loyalty), frequent

updates on the brand and its benefits could hold the involvement of these consumers. For

example, a leading brand could offer its new variant exclusively for these consumers during

the initial period of launch. The brand could also update the consumers on efforts taken by

the company to improve its offerings. Depending on the type of brand

association/positioning, innovative sales promotions that enhance the perception of these

consumers on brand benefits could be formulated. For example, a brand like Colgate Total

positioned on functional attributes (with a premium price) could offer dental check-ups (as a

sales promotional effort) with a leading dentist in a specific town/city. Besides being

rewarded, consumers would also have an

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CONCLUSION

1. Initially there were 11 important variables found to be more

effective to brand loyalty by analysing previous researches

2. All variables are extracted in 5 factors from factor analysis

because the covariance existing among them name be

formed as factor are price consciousness, brand

benefit, brand symbolism, genetic influence and brand

trust.

3.All these factors have various influence towards the level ofloyalty .

4. Price consciousness, brand symbolism, and brand trust play

an important role in discriminating the level of loyalty.

5. Highly loyal customers are more conscious about the

functional benefit of brand.

6. Price consciousness and brand benefit play important role in

moderate category.

RECOMMENDATIONS

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Marketer should make functional benefit oriented

advertisement

Marketer should regularly check the fluctuation in theprice of the competitor product and additional benefit

provided by them.

Marketer should target low loyal customer.

Marketer should be more concern about existing

customers Marketer should launch different type of product for

different category of buyer.

Brand benefit set (involving brands functional

benefits and trust) and loyalty that could be used by

marketers to explore several marketing strategies is

suggested.

References

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www.google.com

www.scribed.com

Research paper of S.kumar & Yashwant adwani

Tartu University Press www.tyk.ee

Indian general of marketing 2001-02

Advance marketing research by Naresh malhotra

Kenblack book of statistics

Marking book kotler
http://www.google.com/http://www.google.com/http://www.scribed.com/http://www.tyk.ee/http://www.tyk.ee/http://www.google.com/http://www.scribed.com/http://www.tyk.ee/

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