Preview

The Effect of the Relationship of Brand Trust and Brand Affect on Brand Performance: an Analysis from Brand Loyalty Perspective (a Case of Coffee Instant Product in Indonesia)

Powerful Essays
Open Document
Open Document
4699 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Effect of the Relationship of Brand Trust and Brand Affect on Brand Performance: an Analysis from Brand Loyalty Perspective (a Case of Coffee Instant Product in Indonesia)
The Effect of the Relationship of Brand Trust and Brand Affect on Brand Performance: An Analysis from Brand Loyalty Perspective (A Case of Coffee Instant Product in Indonesia)
Rizal Edy Halim Department of Management Faculty of Economics, University of Indonesia

Abstract Brand that manages to bring a meaningful impression on consumers are more likely to win a special attention. Value-added brands are also more likely to win a distinctive spot in consumers’ minds. In addition, brand could affect consumers’ brand affection and brand trust. Consumers attempt to choose the brand they want with the consideration of the value of purpose and pleasure (Batra & Athola, 1990), availability, uniqueness, quality (Sheth, 2001), etc. This research is conducted to discover the effect of the relationship of brand trust and brand affect toward brand performance mediated by purchase loyalty and attitudinal loyalty as units of consumer brand loyalty. This research uses one product category (instant coffee), consisting of four brands (Nescafe, Torabika, ABC, and Kapal Api). Keywords : Brand Affect, Brand Trust, Brand Loyalty

Electronic copy of this paper is available at: http://ssrn.com/abstract=925169

Introduction Brands act as a distinctive factor that distinguishes one product from the other. For example, consumers are no longer buying coffee but choosing brands in the market, i.e. Nescafe, Torabika, ABC, Kapal Api, etc. Consumer sensitivity is the sensitivity or perceptiveness of consumers towards an object (brand) that builds their pattern of behavior towards the object. Producers of the various instant coffee brands can provide a detailed explanation on the differences of the brands. Consumers see the differences in the package, logo, color, even the shape of fonts used by the brands. This is called consumer sensitivity. Therefore, it is very important for producers to manage their brand to make their products a success in the market. A highly, professionally managed



References: Aaker David.A (1991), “Managing Brand Equity”, The Free Press, New York. ____________(1996), “ Buliding Strong Brands”, The Free Press, New York. ____________& Joachimsthaler Erich (2000), “Brand Leadership”, The Free Press, New York. Agung I.G.N (2002), “ Statisitika : Analisis Hubungan Kausal Berdasarkan Data Kategorik”, Cetakan kedua (Feb.2002), RajaGrafindo Persada, Jakarta. Assael Henry (1998),“Consumer Behavior and Marketing Action”, South-Western College Publishing, Ohio. 12 Aurifeille, Clerfeuille Fabrice, & Quester Pascale (2001), “Consumers Attitudinal Profiles: An Examination at the Congruence between Cognitive, Affective, and Conative Space”, Advanced in Consumer Research, Vol.28: 301-308. Bloemer, Jose.M.M (1998), “ Brand Choice Involvement And Commitment : Two Different Though Related Concepts”, European Advanced in Consumer Research, Vol.3 : 21-31. Bollen Kenneth.A (1989), “Structural Equation With Latent Variables”, John Wiley & Sons,Inc. Chaudhuri,Arjun & Holbrook, Morris B (2001), “The Chain Of Effect From Brand trust and Brand Affect To Brand performance : The Role Of Brand Loyalty”, Journal Of Marketing, 65 (April): 81-93. _______________(1999), ”The Effect Of Brand Attitudes And Brand Loyalty On Brand performance”, European Advanced in Consumer research, Vol.4: 276. _______________(1998), “Antecedents Of Brand Loyalty : The Role Of Perceived Risk”, European Advanced in Consumer Research, Vol.3 : 32. Delgado-Ballester (2001), “Brand trust in The Context of Customer Loyalty”, European Journal of Marketing, Vol.35: 1238-1258. Dhar, Ravi & Wertenbroch, Klaus (2000), “Consumer Choice Between Hedonic and Utilitarian Goods”, Journal Of Marketing Research, Vol.37 (February) : 60-71. Dholakia, Utpal M. (1997), “An Investigation Of Some Determinants Of Brand Commitment”, Advanced in Consumer Research, Vol.24: 381-387. Garbarino, Ellen & Johnson, Mark S. (1999), “The Different Roles Of Satisfaction, Trust, Commitment in Customer Relationship “, Journal Of Marketing, Vol.63 (April) : 70-87. Hair Joseph.P.Jr, Anderson Rolph.E, Tatham Ronald.L, & Black William.C (1998), “Multivariate Data Analysis”,5th ed, Prentice-Hall,Inc. New Jersey. Joreskog Karl & Sorbom Dag (1996),”Lisrel 8: Users Reference Guide”, SSI,Inc. Chicago. Kapferer Jean-Noel (1992), “Strategic Brand Management: New Approaches to Creating and Evaluating Brand Equity”, The Free Press, New York. Keller, Kevin Lane (1993), “Conceptualizing, Measuring, and Managing CustomerBased Brand Equity”, Journal of Marketing, 57 (January):1-22. _________________(2001), “ Building Customer-Based Brand Equity”, Marketing Management, (July-August) : 15-19. Knapp Duane.E (2000), “The Brand Mindset”, McGraw-Hill, New York. Knox Simon & Maklan Stan (1998), “Competing On Value: Bridging the Gap between Brand and Customer Value”, Financial Times Pitman Publishing, London. Lepla F.Joseph & Parker Lynn.M (1999), “Integrated Branding; Becoming Brand-Driven Through Companywide Action”, Qourum Books, Greenwood Publishing Group,Inc. McEnally & Chernatory (1999), “The Evolving Nature of Branding: Consumer and Managerial Considerations”, Journal of The Academy of Marketing Science, Vol.2. Oliver, Richard L. (1999), “Whence Customer Loyalty”, Journal Of Marketing, Vol.63 (Special Issue): 33-44. 13 Pearson Steward (1996),” Building Brands Directly: Creating Business Value from Customer Relationship”, Macmillan Business. Schiffman Leon.G & Kanuk Leslie Lazar (2000), “Consumer Behavior”, 7th edition, Prentice-Hall.Inc, New Jersey. Sheth, Jagdish.N (2001), “Competitive Advantage Through Customer Satisfaction”, Bombay Management Association Review: 13-25. Spangenberg, Eric R., Voss, Kevin E., and Crowley, Ayn E. (1997), “Measuring the Hedonic and Utilitarian Dimensions of Attitude: A Generally Applicable Scale”, Advanced in Consumer Research, Vol.24: 235-241. Szymanski, David M. & Henard, David H. (2001),” Customer Satisfaction: A MetaAnalysis Of The Empirical Evidence”, Journal Of The Academy of Marketing Science, Vol.29 (1):16-35. 14

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The Brand Report Card

    • 396 Words
    • 2 Pages

    Keller (2000) identified a brand equity assessment framework that will give companies managers an insight evaluation tool. The Brand Report Card (figure 1) in which brand managers are asked to score their brands against 10 pre-determined facets. Keller lays out ten characteristics that brands need to incorporate and to share, Keller starts with the relationship of the brand to the consumer in terms of brand when excelling at delivering the benefits customers truly desire, and its relevancy to customer overtime. The third characteristique to considere is if the pricing truly reflects consumers' perceptions of value. Keller then move into considering marketing strategy and implementation in terms of brand positioning, its message consitency to the customers, and Sub-brands relation to one another in an orderly way within a portfolio of brands, where a full range of marketing tools are employed to build brand equity. Finally, keller looks at management consideration where managers of strong brands understand what the brand means to their customers. Then the company gives the brand proper support and sustains it over the long term, and consistently…

    • 396 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Brand loyalty involves a promise of tangible and intangible benefits that are designed to meet the needs of the customer, thereby creating lasting relationships. A successful brand is not simply a product that receives the most media attention, strong sales, and customer satisfaction. Strong, enduring brands are built with the vision of brand loyalty in mind. “Brand loyalty is the strongest form of brand equity and reflects a commitment to repeat purchases. Loyal customers enable a company to reduce marketing costs, leverage trade relationships, and speak to competitive threats with greater success” (Marshal & Johnston, 2010, p 310).…

    • 755 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Simplified brand loyalty describes a status in which consumers determine their selves in; out of it they become committed to a brand. Thereby they continue purchasing products or services of a specific brand. At this point consumers rather spent more money on a product of a specific brand than buying from multiple suppliers within the same category. Mainly brand loyalty is a result of consumer’s behavior, which is enforced through a company’s measurements regarding branding. Branding is a process that a company runs through in order to establish a new brand. The ambition here is to strengthen a unique name and image for a product in the consumer’s mind. If branding proceeds successfully customers retain as loyal customers. The American Marketing Association defines brand loyalty in two ways:…

    • 1175 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Virgin brand analysis

    • 3916 Words
    • 16 Pages

    Severi, E., & Kwek Choon, L. (2013). The Mediating Effects of Brand Association, Brand Loyalty, Brand Image and Perceived Quality on Brand Equity. Asian Social Science, 9(3), 125-137. doi:10.5539/ass.v9n3p125…

    • 3916 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Harrods Essay

    • 1875 Words
    • 8 Pages

    A Marketing Audit on the brand Harrods on how it markets its products to the British market.…

    • 1875 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    Brand loyalty is the ‘Holy Grail’ to all marketing organizations. Marketing practitioners are consumed by it. They search. They try. They dream. They want to achieve the ultimate in brand loyalty, making it so airtight that no competition can lure their consumers from their brands of products. Unfortunately, there is no one-size-fit-all methodology. Competition is dynamic. There’s no way to accurately anticipate what the creativity of their competitors can bring to the marketplace, which can lead to the eventual overwhelming of an established brand. There’s no telling how the motivations and perceptions of their customers may change, having inundated by communications in every conceivable fashion on a daily basis. Yet the organizations that can achieve strong brand loyalty for their products can ensure profitability for their stakeholders. Those who cannot shall perish in the war of the marketplace. Building strong brand loyalty for a company’s products is not just an idea, or a one hit wonder. Rather, building strong brand loyalty is a process that requires management excellence. For this reason we look at brand loyalty from a multi-faceted perspective. Somewhere out there, among the numerous ideas and theories, may lie one that may help turn the fortune of an organization.…

    • 2105 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    Marketing Mix and Branding

    • 1424 Words
    • 6 Pages

    References: Bennett, R., & Rundel-Thiele, S. (2005). The Brand loyalty life cycle: implications for marketers. Journal of Brand Management, 12(4), Retrieved February 17, 2010 from http://web.ebscohost.com/bsi/pdf?vid=3&hid=106&sid=0eca48ed-1ea6-4729-b299-80614bf5004c@sessionmgr114…

    • 1424 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Academic research (Chaudhuri and Holbrook, 2001) discussed the role of brand loyalty and distinguished two aspects of brand loyalty, namely purchase loyalty and attitudinal loyalty. Purchase loyalty refers to the willingness of the consumer to repurchase a particular brand. Attitudinal loyalty, however, has to do with the affective and cognitive aspects…

    • 1154 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Waiting Line Management

    • 7462 Words
    • 30 Pages

    Chauduri, A. and Holbrook, M.B. (2001), “The chain of effects from brand trust and brand affect…

    • 7462 Words
    • 30 Pages
    Powerful Essays
  • Powerful Essays

    Management Control Systems

    • 6467 Words
    • 26 Pages

    References: Ambler, T. (2000) Marketing and the Bottom Line. Pearson Education Ltd, UK. Ambler, T. & Barrow, S. (1996) The employer brand. Journal of Brand Management, 4(3), pp. 185–206. Babbie, E.R. (1992) The Practices of Social Research. Belmont, CA: Wadworth. Bentler, P.M. (1990) Comparative fit indexes in structural models. Psychological Bulletin (March), pp. 238–246. Bergstrom, A., Blumenthal, D. & Crothers, S. (2002) Why internal branding matters: the case of Saab. Journal of Communication Management, 5(2/3), pp. 133–142. Berry, L.L. (1981) Perspectives on the retailing of services, in Stampfl, R.W. & Hirschman, E.C. (eds), Theory in Retailing: Traditional and Non-traditional Sources. Chicago, IL: American Marketing Association, pp. 9–20. Berry, L.L. & Parasuraman, A. (1991) Marketing Services. Competing Through Quality. New York: The Free Press. Biel, A.L. (1999) Exploring brand magic, in Jones, J.P. (ed.), How to Use Advertising to Build Strong Brands. Thousand Oaks, CA: Sage Publications, pp. 157–176. Bolles, R.N. (1997) What Color is your Parachute? Berkley, CA: Ten Speed Press. Calder, B.J., Philips, L.W. & Tybout, A.M. (1981) Designing research for application. Journal of Consumer Research, 8 (September), pp. 197–207. Carman, J.M. (1990) Consumer perceptions of service quality: an assessment of the SERVQUAL dimensions. Journal of Retailing, 66(1), pp. 33–55. Carmines, E.G. & Zeller, R.A. (1988) Reliability and Validity Assessment. Beverly Hills, CA: Sage. Churchill, G.A. Jr (1979) A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, XVI, pp. 64–73. Collins, C.J. & Stevens, C.K. (2002) The relationship between early recruitmentrelated activities and the application decisions of new labor-market entrants: a brand equity approach to recruitment. Journal of Applied Psychology, 87(6), pp. 1121–1133. Cronbach, L.J. (1951) Coefficient alpha and the internal structure of tests. Psychometrika, 16(3), pp. 297–333. Economist, The (2003) Economic and financial indicators, 17 May, 367(8324), p. 112. Ewing, M.T. & Caruana, A. (1999) An internal marketing approach to public sector management: the marketing and human resources interface. International Journal of Public Sector Management, 12(1), pp. 17–26.…

    • 6467 Words
    • 26 Pages
    Powerful Essays
  • Good Essays

    Decision

    • 473 Words
    • 2 Pages

    Cardoso, O. O., Joao, B. N., & Serralvo, F. A. (2011). Brand loyalty on Internet: a study of influence factors on decision making process. International Journal of Business Research, 11(6), 126+.…

    • 473 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Brand Loyality

    • 5091 Words
    • 21 Pages

    Rizwan Arshad1, Idrees Akbar2, Abdul Muqtadir3, Urooj shafique4, Hafsa Zia5, Waheed Naseer6, Shoaib Ahmad Amin7…

    • 5091 Words
    • 21 Pages
    Good Essays
  • Best Essays

    References: Bartlett, R. (2009) Driving Brand Loyalty in Foods and Drinks. Datamonitor, November, pp 78 – 86…

    • 3158 Words
    • 11 Pages
    Best Essays
  • Better Essays

    Student

    • 9094 Words
    • 37 Pages

    Chaudhuri, Arjun and Morris B. Holbrook (2001), "The Chain of Effects from Brand Trust and Brand…

    • 9094 Words
    • 37 Pages
    Better Essays
  • Good Essays

    Gyhjghj

    • 776 Words
    • 4 Pages

    The concept of brand equity is very important in today’s market place. Every firm is striving to build, maintain and also using it to obtain a strategic advantage. The basic idea behind that effort is to add value to the product by the help of brand. This concept brand equity engaged us to think about the future of brand equity in a broader perspective regarding internet and store branding. Different researchers portrayed brand equity in their own way but the extracted concept of these researches is that the value of brand is created due to the effect of brand on consumer.…

    • 776 Words
    • 4 Pages
    Good Essays