THE UNIVERSITY OF NORTHAMPTON
Submitted in partial fulfilment of requirements for the award of a degree in Business Administration
The University of Northampton
Table of Contents2
1.1. Background Information5
1.2. Problem Statement6
1.3. Purpose of the study7
1.4. Objectives of Study7
1.5. Research Hypothesis8
1.6. Organization of the Reminder of the Study8
CHAPTER 2: LITERATURE REVIEW8
2.1. Theoretical Framework8
2.2. Customer’s Perceptions about the Company’s Product15 2.3. Approaches for Developing Colgate Brand Equity15
2.4. Marketing Strategies17
2.5. Determining Brand Loyalty19
2.5.1. Effective market share19
2.5.2. Relative price ratio20
3.1. Primary Data20
3.2. Secondary Data21
3.3. Data Analysis21
3.4. Data Interpretation21
CHAPTER 4: ANTICIPATED RESULTS and DISCUSSION &21
CONCLUSION AND RECOMMENDATIONS24
Appendix 1: Questionnaire25
I would like convey my heartfelt thanks to my supervisor Prof/Dr…………… and my tutor Dr/Prof………….for their genuine commitment in guiding on how to write this dissertation proposal.
I wish to thank our entire college library workforce from the bottom of my heart for the help they accorded me to get all resource materials which aided me in preparation of my project.
I would like to give humble gratitude to my parents who supported my studies both financially and morally.
Lastly, I wish to appreciate all my colleagues for giving me friendly atmosphere and moral support during the entire period I was writing my project.
The study explores how company profitability can be influenced by dedication of the consumers to its products. The purpose of the study is to examine how a company can gain consumer confidence and benefits which a company attain by having established customers’ confidence for their products. The study will give an analysis of the company’s benefits and approaches used by the marketers to ensure clients get a thorough knowledge about the product. It will also assess the clients’ understanding of attributes of company’s products. If a company has dedicated clients for its products, it will be able to enjoy large market share. This also gives them an opportunity to survive during economic hardships and can be able to overcome their rivals in the same industry. Although a company must spend a lot of resources in order to win consumer trust for its products, they manage to make colossal sales and profits margins from large sales volumes hence significant revenues. This is because they are able to enjoy economies of scale hence can offer their products at a cheaper price hence maximizing their sales and grip of the market.
1.1. Background Information
Brand loyalty is the establishment of consumer trust and dedication towards a specific brand name to the extent of establishing a close relationship with the products name or the name of the company producing the product (Lee, 2009). Developing consumer trust involves a number of stages which includes thorough market examination to understand desires of the clients, delivering consumer value and ensuring consumer satisfaction (Anselmsson, Johansson & Persson, 2007, p.407). It is essential for companies to develop consumer trust for their products in a competitive environment because it helps companies to make huge revenues all the time and compete effectively in the market (Laforet, 2010). While the consumers are able to get products that best satisfy their needs, companies...