Literature Review for Review Method and Skill Idea

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Part – 2: Literature Review

2.1 Definition of Brand Loyalty

As indicated by(Mao, 2010), the brand loyalty definition is characterized as holding attractive over a specific goods or services. Loyal customers tend to pay money for the same product to rebuy it and talk highly about the values of the product or service. Brand loyalty concept has regarded as a significant concept in literature of marketing for 40 years ago(Howard & Seth, 1969). On the other hand, (Khan & Mahmood, 2012) recommended a definition that mirrored these advantages in a proficient way, by expressing that brand loyalty can be characterized as the unrestricted responsibility of the clients and strong communication with the brand that is not probably influenced under ordinary conditions (Maheshwari, et al., 2014).

Moreover, according to (Aaker, 1991), brand loyalty is described as “a situation which reflects how likely a consumer will be to switch to any other brand, particularly when that brand makes a change, both in price or in features of product(Alhaddad, 2015).

2.2 Importance of Brand Loyalty

Brand loyalty is vital for businesses to obtain its objectives and thus, the businesses attempt to create their clients satisfied and also solve the issue if they feel identified with their specific goods and services. Brand loyalty is the fundamental objective of the businesses that they offer about their products and services. For businesses, brand loyalty is important to improve revenues of the businesses, attain high price,maintain clients rather looking for other ones (Malik & Ghafoor, 2013).

Brand loyalty has many crucial important strategic benefits to businesses, such as regarded as an imperative feature of value of the brand, reduce down costs, less sensitive to price, deliver in new possible trustworthy consumers, and advantage in global marketplace (Mao, 2010). On the other hand,(Keller, 2003) describes brand loyalty under the work brand resonance which means customer – brand relationship and the extent to  which customers experience which they are “in sync” with the brand(Alhaddad, 2015).

2.3 Benefits of brand loyalty

Most researchers accept that benefits of an organization can be developed by brand loyalty for example; good reputation through WOM (word of mouth)(Sutikno, 2011), decreased costs of marketing activities(Chaudhuri & Holbrook, 2001), high profit of businesses(Kabiraj & Shanmugan , 2011), enhanced market share (Gounaris & Stathakopoulos, 2004) in the market. The above benefits significantly uncover positive effect of brand loyalty can have on an organization.

The loyalty is crucial since it develops brands’ market share in the future. (Eakuru & Mat, 2008)Expressed which prompts achievement of businesses. According to (Ramaseshan, et al., 2013), loyalty is the result of good marketing strategy in competitive market which makes values for brands (Alkhawaldeh, et al., 2017).

The idea of brand loyalty has been recognized as an essential construct in the literature of marketing for at least many years in competitive advantage (Howard & Seth, 1969). These benefits simply exhibits the high-quality have an impact on company loyalty can have on a firm, and as such, (Khan & Mahmood, 2012)recommended a definition that mirrored these advantages in an efficient manner, by means of pointing out that “brand loyalty can be described as the unconditional dedication of customers and a good relationship with the brand, which is now not possibly to be affected underneath everyday circumstances”(Maheshwari, et al., 2014).

2.4 Kinds of factors influencing on brand loyalty

Clients turn into loyal to brands because of its differentness and being simple because of utilizing which specific brands and customers have enough knowledge regarding to the brands and confidence which they buy based on the price factor and so forth. It is the consumer preferences to buyspecific brands due to their qualities, image and price, and moreover, they generally loyal to buy and means for others. Because of the brand loyalty their impulse buying becomes ordinary by boosting purchase time(Malik & Ghafoor, 2013).

2.5 Replicate purchase factor and brand loyalty

There arebig differences between replicate purchase and brand loyalty as replication purchase is brand purchasing often and loyalty is the outcome to continuewith actions(Bloemer, 1995). When a client has vital relations with the brand communicated by replicate purchase, brand loyalty occurs at that time. That kind of loyalty is valuable for organizations as customers agreed to purchase at superior products ultimately and may be included to get new customers to organizations(Reichheld, 1990).

2.6Definition of Customer Satisfaction by various authors

Satisfaction has often been perceived as the final outcome of all activities carried out at some stage in purchase process and consumption. Satisfaction has continually been described as procedures and results that have been recognized as a key determinant for loyalty, especially in the retail context(Bloemer & de Ruyter, 1998). When it comes to satisfaction, customers can also now not suppose about the aspects of the process and as an alternative may additionally focus completely on the outcome (Parker & Mathews, 2001). A few researchers for example;(Johnson & Fornell, 1991)endorse that customer satisfaction is the typical contrast primarily based on the whole experience with a good service over time. For example,(Swan & Oliver, 1985) describe satisfaction as a particular affective/cognitive post-purchase orientation that focuses on the contrast of the product in terms of its “performance in use”. According to (Omar, et al., 2011), consumer satisfaction happens during a precise duration, such as after the choice to purchase, consumption and accrued experience.

Extensive empirical proof has cited that satisfaction is a predominant result of activities relating to marketing and connect with the decision-making processes and consumption with post purchase phenomena such as mindset change, word-of-mouth, repeat purchase, buy intention, and brand loyalty (Cronin & Taylor, 1992);(Oliver & Swan, 1989). On the contrary, a few preceding researchers ( (Bennet & Rundle-Thiele, 2004); (Egan, 2000); (Mcllroy & Barnett, 2000)suggest that satisfaction is an crucial but no longer an adequate situation for loyalty, as even satisfied customers may additionally defect if they agree with they can get higher price and/or first-class quality elsewhere(Omar, et al., 2011).

2.7Importance of Customer satisfaction

According to (Lien & Bich, 2016), building and maintaining consumer satisfaction is considered as one component in strategic planning. However, concentrating profoundly on fulfilling expectations of customers can result in some negative outcomes, for example, reducing in market share (Tse & Wilton , 1998).

It is normally trusted that a satisfied client is progressively expected to show loyalty behavior. It is not just the crucial meter to gauge customer loyalty, it can likewise help the marketers to make out the dissatisfied clients, decline annoyance and increase sales; it is additionally a key purpose of detachment which encourages organizations to charge new clients in competitive business conditions. Normally, cosmetic are kinds of products which are utilized to improve or modify the smell and external structure of the body (Ramesh & Siranje, 2017).

2.8 Types of loyal customers influence on brand loyalty and customer satisfaction

Some businesses make their clients loyal intentionally by using monopoly power even customers do not want to be loyal and some businesses attract to get loyal customers by offering low price products and services. Moreover, businesses which are very careful about their brand (Grönholdt, 2000).

Clients who are loyal do not evaluate the brands, they simply buy confidently based on experiences(Sidek & Yahyah, 2008). There are two kinds of loyal customers which are behavioral customers and emotional customers. Behavioral customers become loyal with brand but there is no emotion. On the other hand, emotional customers have emotion and satisfaction about the specific brand in which they bought (Jones, 1995-90).

2.9Effects of price on brand loyalty and customer satisfaction

As indicated by (Cadogan & Foster, 2000), for buyers, cost is the most significant element. Buyers who have high loyalty to the brand do not care to buy more price for their favorite brands. Therefore, buying intentions do not influence on price. Moreover, as indicated by (Yee & Sidek, 2008), a client believes in their favoritevalue and price

And price of their preferred brands to such an extent that they would contrast and assess prices with other brands.

As indicated to (Bucklin, et al., 1998), price largely impact on decision of customers and procurement rate. He also expressed that price discount can make customers brand switching and buy products or brands theyneed to buy. Price are depicted like the payment remuneration for something customers. It shows price as the trade relation among goods and services which pay for one another. Cost likewise connects to the market expected value positioning of the organization of its brand. Moreover, buyers normally assess prices of products in the market before making purchase decision with retail price (Yee & Sidek, 2008)(Hanif, et al., 2010).

Customer satisfactionis likewise built by contrasting price with values and perceived costs.

Premium pricesare willingness to be paid by loyal customers regardless of whether priceshave increased as perceived risk may be high andmoreover, customers plan to pay higher prices in order to stay away from getting risk (Yoon & Kim, 2000). Essentially, loyalty in service can make loyal customer more patient about price in the long-term relationship since loyalty restrains clients from making price contrast with other products and services by buying around. In addition, prices have become crucial factors for customers’ decisions of selling values just as retailers’ evaluation (Yee & Sidek, 2008).

2.10 Effect of product quality on brand loyalty and customer satisfaction

Products’ quality includes not only the highlights but also attributes of products and services that depends on capacity of productsin order to satisfy required needs. According to (Russell & Taylor, 2006), definition of quality of products is good condition for utilization. Due to the tangibility of products, purchasers may switch brands (Yee & Sidek, 2008).

It is vital that product quality is not evaluated by the point of view of organization, it is viewed from the point of view of customers.

It raised two crucial elements which influence product quality such as expected quality of products and perceived quality of products. Perceived qualities of productsare in accordance with the expectation in details, then customers will feel satisfied and see quality of products as good ones. On the contrary, perceived qualities of products are not expected ones andquality of product as client perceived is good for the bad product quality. Hence, not only good product and bad product qualities relies upon organizations’ capability to meet expectations of customers (Razak, et al., 2016).

2.11 Effects of sales promotion on brand loyalty and customer satisfaction

The outcomes expressed that nonmonetary types of promotion make customers satisfied and have brand loyalty to the extent they develop larger amount and more ideal connection than monetary kinds of promotions. Sales promotions are used to develop knowledge of brands as customers presented to promotion stimuli evoked a larger amount and more noteworthy connections (Mendez, et al., 2015).

2.12 Connection between brand loyalty and customer satisfaction

Various academic studies describe that in retail businesses, loyalty is the outcome of satisfaction. Brand loyalty increases customer satisfaction as satisfaction increases brand loyalty vice versa. Loyalty can be increased because of satisfaction. Frequently purchase of same brand can be regarded as loyalty (LaBarbera & Mazursky, 1983).

When shoppers are happy with brands or products, they are satisfied with the brands or products, they may recommend the brands or products to others and less likely to do brand switching. Moreover, they may buy the brands or the products repeatedly (Bennet & Rundle-Thiele, 2004). Loyalty is directly influenced by satisfaction in spite of the fact that he found that the connection relies upon the industrial context. According to (Szymanski and Henard, 2001), there are many related observational investigations expressed that satisfied customers shows more loyal behavior (Al-Maslam, 2015).

2.13 Summary

The author presents definitions of brand loyalty and customer satisfaction, their importance and advantages and types of loyal customers influence on brand loyalty and customer satisfaction. And the author also expresses literature review relating to some factors which influence on brand loyalty and customer satisfaction from various point of view of many authors.