BUSINESS RESEARCH

How does Brand Loyalty influence Customer Behavior?

Table of Contents

Introduction3

Research Questions3

Research Objectives3

Literature Review3

Research Methodology4

Philosophy4

Approach5

Strategy5

Data Collection Method6

Data Analysis Procedure7

How does Brand Loyalty influence Customer Behavior?

Introduction

Research Questions

The research focuses on the following research questions:

Does quality of the brand affect the buying attitude of customers?

Does price of the brand affect the buying attitude of customers?

Do individuals' health beliefs affect loyalty?

Research Objectives

The key objective of the research is to study how does brand loyalty influence customer behavior. However, the sub objectives of include the following:

To know the importance of quality of brand in affecting customer behavior towards brand loyalty.

To know the importance of price of brand in affecting customer behavior towards brand loyalty.

To know the importance of health beliefs in affecting customer behavior towards brand loyalty.

Literature Review

According to Philip Kotler, gaining new customers costs about 5 to 7 times more than keeping the existing customers. Thus, the effort of customer retention is an investment that will ensure reduced costs and increased sales. In relation to this, loyal customers are more likely to buy through more than one channel that is phone, shop or internet etc. and also tend to consume more (Allender, 2009). They are more faithful, more useful for the life of the customer portfolio of the company, which facilitate in the lowering the cost of recovery from the customers and greater financial value added to the brand.

Loyal customers complain when they have a bad experience, because they want to see their problem solved, believe in the brand and want to improve it. From the past researches, it is found that about ninety five percent of dissatisfy customers do not complain as they just stop buying. Furthermore, these dissatisfy customers usually infect 13 others, while a happy influences only five (Eliwa, 2006).

In addition to this, satisfaction is also an important element for the brand loyalty as every customer expects out a satisfaction from a commercial transaction and also expects that the company is committed to satisfy them. However, having a satisfied customer does not guarantee its accuracy in relation to brand loyalty influencing the customer behavior (Ha, 2007).

Brand loyalty is the unconscious or conscious decision of consumers conveyed through behavior or intention in order to repurchase the brand. For that reason, it is found from the past researchers that brand loyalty influence customer behavior as the brand loyalty come to minds because the consumer recognizes that the brand offers the right product image, features with high quality at the appropriate price (Ong, 2008).

Research Methodology

Philosophy

The research philosophy of the study that is how does brand loyalty influence customer behavior is based on interpretivism, which assume that consumers associate and create their individual intersubjective and subjective for meanings about the brands which reflects the customer behavior as they work together with the world around them. Therefore, interpretive researchers try to be aware of the fact through accessing the meanings consumers that is participants allocate to them.

The philosophy of interpretivism research start from the position that the understanding of reality that also entails ...