Research Proposal

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LITERATURE REVIEW
Customer Loyalty
The companies must provide efficient services for meeting customer expectation in order to get loyal customers. For this they must be able to understand their behavior in a better way. This is what Hossain et al (2011) said in a study on customer loyalty and the factors that influences it. It was further said that customer retention is becoming a very important factor for companies to be successful and often for their ultimate survival. Moisescu (2005) in a conceptual analysis of brand loyalty, as a core dimension of brand equity, found out that when the competing brands become more substitutable as the product quality increases, differentiation is lower, and consumers become increasingly price-sensitive, brand loyalty is the key success factor for any company. With these conditions, consumers are rarely loyal to a single brand. However, it was found that there are still some brands towards which the consumers have demonstrated intense sole-loyalty, and those brands were found to have brand communities. So it could be concluded that by getting the consumers more integrated into such communities, they could get them more loyal even in the presence of high price-sensitivity, high quality and lower differentiation. Image:

Hossain et al (2011) conducted a research on factors that influence customer loyalty. Findings suggest that managers should focus on carrying out such activities that would enhance the company image and also develop trust among clients. Company image and trust among clients, both contribute positively towards customer loyalty, and loyal customers also encourage other people to buy the trusted brand. To communicate the positive aspects of services to the clients, in order to develop a better image, incurring heavy advertising expenditure is required. The services should be delivered just as promised. This helps in strengthening the trust among clients. Jahangir et al (2009) in a research explored the mediating role of customer loyalty and found out that the parent brand’s loyalty strongly affects the loyalty of extended products for customers as well. Hence the consumer-brand relationship is a worthy asset that marketers could capitalize upon. And the brand extension strategy could be used to leverage that brand strength. This also suggests that consumers’ perception towards the extended products largely depends upon their perception about the parent brand, so a strong focus should be made on developing a positive brand image. Martin S. Roth (2000) conducted a study on brand image and suggested that standardization in the brand image is related to the variation in the national environmental market conditions. Managers use the image building strategy to change the consumer perception. They change the marketing mix resulting in a change in the brand image and hence the consumer perception. Managers enhance the brand performance by changing brand image and the consumer perception. He suggested that consumer perception and brand image are directly related to one another. Quality:

Sweeney et al (2001) conducted a study on brand equity and suggested that branding concept could also be applied to services just like it is used with goods. Branding for services increase the credibility and perception of quality of that service. Ramos et al (2005) researched upon the effects of marketing on brand awareness and brand image. It was found that marketing helps making consumers aware of the brand. It develops a group of associations in the consumers’ minds towards the brands. This awareness and association improves the brand image. Thus marketing has a positive effect on brand image. Tam (2007) suggested that most consumers judge the quality of the clothes by initially looking at the materials, followed by style, color, durability, price and performance. Country of origin of clothes is also of importance in determining the perceived quality by the consumers. A common perception is that...
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