Luận văn factors influencing customer's brand loyalty o f ila language center in hanoi

Tt was also proved by survey results that brand communication perceived price and promotion: are also important factors that could influence ILA’s brand loyalty.. It shows that research

VIETNAM NATIONAL UNIVERSITY, HANOI

GRADUATION [ROJECT

FACTORS INFLUENCING CUSTOMER'S BRAND LOYALTY

OF ILA LANGUAGE CENTER IN HANOI

SUPERVISOR: Pham Thi Lien, PhD (MGSM) STUDENT: NGO THI MAL

CODE: 11071290 COHORT: 1B2012C MAJOR: INTERNATIONAL BUSINESS

Hanoi - Year 2016

LETTER OF DECLARATION

Thereby declare that the Graduation Project

“Factors influencing customer's brand loyalty of ILA language center in moi”

is the resnlis of my own research and has never heen published in any work of

others During the implementation process of this project, | have seriously taken research cthics; all findings of this projects arc results of my own rescarch and surveys; all references in this project are clearly cited according to regulations

1 bear full responsibity for the fidelity of the number and dats and other contents of my graduation project

Hanoi, 14/06/2016

NGO THI MAT

ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibility to complete this thesis, | am particularly indebled to Ms PHAM THI LIEN, my respecled supervisor This thesis could not have been fulfilled on time without her constant supports and guiding, I am also grateful to Lnternational School, Vietnam National University for helping me to build up solid foundation for future carcer I

also would like to express my prafound thanks to all people who have provided me

with lots of useful information and valuable comments on parts of my thesis especially ILA’s staffs &customers and HSBC: colieagues Lastly, f am indebted of

my family who always support me by letting me pursuing my dream and motivating

me when [an in troubles

INFORMATION ON FINAL THESIS

1 Full name: MGO THỊ MAI

IZA language centers in Hanoi

6 Major: International Business

7, Cade: $2340120

8 Guider Lecturer PHAM THI LIEN, PhD (MGSM)

(Pull name, academic title and degree)

9, Summary of the findings of the thesis:

Brand loyalty is not a new concept In the eyes of a business maker it is the key point that makes up the success of a corporation Nowadays, in education field, brand loyalty as become one of the most important key for being successful There are many researches on Brand loyalty; each research uses different layalty model

‘Chis study examined the situation of [LA English centers Based on the results of a customer survey, the study identified that quality of brand, brand satisfaction level

played a very important role in making IIA customers as loyal cnstamers Tt was

also proved by survey results that brand communication perceived price and promotion: are also important factors that could influence ILA’s brand loyalty

During the analysis of finding, il was observed thul barriers like switching cost did

not play a great role in forcing the ILA customer to continue to be loyal to their English centers Findings and analysis result further also showed that more than half

of these people were committed to [LA brand, describing their current brand as their

first choice Moreover, after analysis of the findings and related theories, it was

established that well over half of the people interviewed were loyal to ILA English centers,

10 Practical applicability, if any: Real case study of English center

TABLE OF CONTENTS TABLE OF CONTENTS

2.3.1 BENEFITS FOR COMPANY

2.3.2, BENEFITS FOR CONSUMER

‘TABLE OF FIGURES & TABLES

Table 1 Operationatization process

Table 2 Genders

Table 4 Brand coramunication

‘fable 5 Perceived brand quality

Table 6 Perecived priv

Table 7 Promotion

‘fable 8 Switching cost

Table 9 Customer Satisfaction

Table 10 Brand loyalty

Figure 1 Brand Loyalty Pyramid

Figure 2 Research model

Figure 3 1 ayout of research process

CHAPTER 1: INTROĐUCTION

This chapter begins with the general overview and background of the research area und it further includes the importance of the research, research questions, the scope

and methodology

1.1L IMPORTANCE OF THE RESEARCH

Today, most of the enterprises in all sectors have lo cope with the ficree competition

in the market, The problem that enterprises need to face is not only the lack of products and services but also loyal customers Many businesses view customer

loyalty as their competitive advantage In the field of education and training, there is

ne exception

From 1/1/2007, Vietnam officially became the 150th member of’ the International Trade Organization WTO or AEC, TPP opened the door for international integration, the need for increasing foreign Janguage Especially the English

language certificates such as TOEFL, TOEIC, IELTS, SMAT has became

"necessary condition" to study, graduate, recruitment not only for foreign

organizations but also domestic institutions

From the British Council there are no more than 15million English speakers and more than 54/195 countries using English as cftice language ‘hese number above shows me that forcign languages become one of the mast essential needs in our life

To satisfy lots of field in economy, banking system, etc many language centers are being operated Therefore, the competition supports for building value brand of

each center A big issue for the language center is the ways which ensures sludents

follow all center’s program Language cencers which build the students’ loyalty gain

4 good position in the market The reason is that all strategies are created in order to reach student’s loyalty with value brand,

The customer loyalty should be analyzed base on many different relationships with various factors And the way how to gain customer loyalty is also make marketing strategies of the owners and investors

With detail ceasons mentioned above, this study focus on.” Fuctors iylueacing

customer's brand loyalty of ILA language center in Hanoi” This study examined

the situation uf the biggest branding in language center- ILA ILA is Vielnam's

leading English language training organization It offers a broad range of educational programs and services, including: Linglish language programs for

children and adults, international test preparation teacher training, corporate training

overseas study consultancy and placement services

1.2 RESEARCH QUESTIONS AND OBJECTIVES

Since Victnam’s integration, learning English plays a greater role than ever before

‘Lherefore, there are a lot of Linglish centers being operated to serve students’ needs

and the problem is how ILA can compete with many reputable English centers and

keep custamer stay with IIA That is the reason why the author conducts this

research aiming wo identify “ Factors influencing customer's brand leyalty of ILA

language center in Hanot” and “Dees customers show loyalty to their ILA brand”

Al the same lime Ibe author conducted testing the difference in assessment of brand loyalty according to students’ demographic variables and petsonal characteristics

Since, the author gives some recommendations and suggestions for the managers

1.3, SCOPE OF RESEARCH

Students and parents whose childcen attend ILA’s courses in Hanoi

L4 METHODOLOGY AND METHOD

After the first in-depth interview with group of three people, the questionnaire was

adjusted by removing questions about customer satisfaction and adding 2 questions

related to brand loyalty As candidates shared that when they love a brand, they not

only love it in a simple way, also, they really want to do marketing for that brand Since, the statement was being added are “ 1 am proud of the brand and tell goud

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things of ILA to other people” and “I love and am willing to take part in the public

relations activities of the brand if I have chance”

Method

The study uses both quantitative and qualitative researches:

- Quantitative research: Surveys — questionnaires

- Qualitative research: In depth interviews & Foeus Groups

1.5 LIMITATIONS

Tiue to the time limitation, this study extracts only 61 respondents so the findings

of this study may not be generalized for whole ILA customers in Hanoi and SPSS model was not used to show the relationship between each factors However, the

resulls dv give an indication of customer behavior of ILA customers, regarding

‘brand loyalty

CHAPTER 2: LITERATURE REVIEW

The following chapter gives an overview of the information of this chapter The

main goal of the theoretical framework chapter is to give an overview of the

research with regard to the key topics of our study: specifically, history of brand,

branding, brand loyalty, factors relevant to brand loyalty, how to measure brand loyalty and conceptual framework

Branding is a principal concept in today marketing, thus this paper explicates the development of it By then, brand value and brand image, which are either controlled by marketers or customer behaviors will be revealed Ín order to simplify and generalize these concepts, some frameworks and formulas of researchers are used as guideline for further discussion in this paper

2.1 HISTORY OF BRANDING

Prior to the 19th century, products by manufacturers were limited to trading their

products in local markets Jones and Morgan, 1994; Moore and Reid, 2008) Trade

among countries developed and flourished in the late eighteenth and carly nineteenth centuries, through improvement of production processes, transportation, and communication (Jones & Morgan, 1994; Keller, 2008) Trade mark had been used widely when domestic manufacturers expanded their businesses to buyers in foreign countries, facilitating consumers to recognize, and to differentiate products

service from those of global competitors (Moore & Reid, 2008)

A trademark which is attached to goods refers to any distinctive word, design, or hon-descriptive mark (Cohen, 1986), According to the American Marketing Association, between the nineieenth and early twentieth century, a brand and a trade mark were regarded correspondingly The use of logos emerged as the first way of

customers to choose from a range of gonds from companies outside of their

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econonty, To cope with this great choice, logos also signal quality and advertising’s

primary rolc was to make surc everyone knew the product existed Undoubtedly, the

"Mad Men’ era of the 1960s was an explosion of brands that have come to define modera marketing The brand mix is more than the logo, or the price of a product

T's also the packaging, the promotions, and the advertising, all of which is guided

by precisely worded positioning statements

2.2 BRANDING

Today, a winning brand is one of the most important assets to many businesses (Esch et al., 2006; Pappu & Quester, 2006; Keller & Lehmann, 2006) A brand is an exclusive element (e.g., a name, logo, slogan, design scheme associated with a

product or service) that identifies the products or services of one organization from

its competitors, and enhances the value of the offerings (Aaker, 1991; Farquhar, 1989; Solomon & Stuart, 2006), Therefore, branding is the process of using a name,

symbol, design, and experience to differentiate goods/services by providing distinet

images, associations, and experiences related to the offerings and firms (Neumeier,

2006

chmitt, 1999)

A consistent image, positive associations, and favorable attitudes formed from

memorable experiences are essential in building a strong brand (Farquhar, 1989) If

Apple’s facilities were ta burn overnight, with all their physical assets being destroyed, the cormpany would be able to start up the next day due to the value of its

most important asset — the Apple brand In 2013, the Apple brand was estimated ta

be worth $98 billion, which is considering the most valuable brand in the world {Interbrand, 2013) “It’s hard to imagine that an intangible can have such value, but

it shows that a brand ig more than a name— it’s an experience,” says Keller And that is the aspect that challenges marketers today: how to create consistent, relevant and distinctive messages around their names to convey strong personalities aud

bring their brands to life in au inurcasingly competitive marketplace,

A successful braad is a product, service that buyers perceive relevant and unique added values, which match their needs closely A brand acquires added values of familiarity and reliability when it provides good service over ycars of regular uso

Added values can also come from kind of users, e.g rich or poor, young ot old;

from the belief that a brand is promised satisfaction and delivered uniform and consistent quality; from the appearance of the brand, from a manufacturer's name and reputation (Bradley, 1995, de Chernatony - McDonald, 1992) Moving away from these functional definitions, it has to be said, that branding does aot merely

have significance in the functional sense of revealing a peoducl’s origin or identity

Additionally, brands are increasingly being used to communicate meanings, throughout a symbolic finetion ‘This symbolic brand function stands for a set of certain attributes and associations which the buyer/user transfers onto binvher, trying to define hisrher self-image (Meftert, Burmann, & Koers 2002) Consumers thereby also convey something about themselves to others This symbclic meaning

of brands is becoming more and more iraportant for two different reasons For once, producers natice that their consumers have increasing difficuldes in differentialing the products solely based on their attributes and quality, as they have become too

similar throughout the markeis Secondly, consumers find themselves in a market

situation were nearly every good is globally accessible and available to the mass

markets In order to individually differentiate oneself, the consumer increasingly

fends Ww base his/her buying decisions on the sclf-revelation aspeets of the brand

Therefore, the symbolic meaning of products increasingly affects consumers”

purchasing decisions and brand preference (Govers đ: Schoormans, 2005) and is of importance, The way a product's symbolic meaning is conceptualized from a managerial perspective and the manner in which its symbolic meaning is eventually perceived differs

2.3 RENFEITS OF BRANDING

According to Kotler et al., (2005) branding benefits for consumers, business and society in a variety of ways For the society, it leads to higher performance of

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product that satisfies community, develops the product catcgorios and choice for

publics For brand owner, it provides “legal protection” for unique products and attracts loyal customers Overall, brands bridge buyer and sefler’s standpoint towards goods, add value to a particular product

2.3.1, BENEFITS FOR COMPANY

Previous researchers agreed that branding provides a variety of economic

imperatives Firstly, a firm can become a leader among the competitors in the same

product segment by a successful brand (Keller, 2008) Secondly, advertising costs decrease significantly by increasing awareness of the brand name (Keller &

Lebmann, 2006; Keller, 2008), Thitdly, marketers are able to differentiate their

offerings from their competitors by a clear brand identity (Aaker, 2007; Keller,

7008) Thus, a desirable brand identity not only helps increase the profit margin

resulling [ror consumers’ willingness to pay a premium for products, it may lead co

profitable brand extensions into the same or different markel Finally, legal protection of certain characteristics of branding from imitation helps firms avoid

copyright infringement of their product features (Keller, 2008; Keller & Lehmann,

2006)

2.3.2 BENEF[ES FOR CONSUMER

Branding provides consumers with three major berelits: cisk reduction, information

efficiency, and self-expression (Aaker, 2007; Keller, 2003, 2008, Riesenbeck & Ferrey, 2007) Keller (2008) argued that customers, by their branding awareness, are more likely to choose a product that may not perform well or meet their expectations Thus, risk reduction is accomplishcd by providing assurance of consistent quality Riesenbeck and Perrey (2007) suggested that branding may help consumers recognize and become aware of offerings in a specific product segment,

which helps tiem efficienlly filter and classified necessary information available

about the product Finally, branding invotves creating cognitive structures that help

consumers organize knowledge and experience regarding different products, which

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may help consumers transfer characteristics of the brand onto themselves (Riesenbeck & Perrey, 2007) This process, in tum, could affect consumers

‘pereeption of a brand as a reflection of their personality, character, social satus,

and lifestyle (Aaker, 2007)

2.4 BRAND LOYALTY

Brand loyalty is important as it motivate the consumer that their product has the

required qualities and this becomes the base for a future purchase behavior

Brand loyalty is defined as a deeply held commitment to re-buy a preferred product

or service consistently in the future, thereby causing repetitive same brand or same

brand set purchasing, despite situational influences and marketing efforts, having

the potential to cause switching behavior{ Son K, et al 2010) According to Holt (2004) “brand loyalty is the consumer’s willingness to stay with a brand when

competitors come knocking with offerings that would be considered cqually

atwactive had not the consumer and brand shared a history.” Most authors and researchers have focused more on behavioral aspects of brand loyalty and less on

attitudinal aspecl of brand loyally, Dick & Basu (1994) described behavioral

loyalty, dependent on proportional purchase and purchase sequence Behavioral loyally does not provide # comprehensive piclure of loyally as il fails to explain

switching away of customer to a competitive brand (Allan & Inel, 1996) The

behavioral or attitudinal attributes of loyalty have been further strengthened by Kabiraj & Shanmugan (2011), who pointed out that “brand loyalty is the consumer's conscious or unconscious decision, expressed through iniention or behavior, to repurchase a brand continually”, Recent researches concentrate on the integration of behavioral loyalty and attitudinal loyalty

Brand loyalty concept hecomes easy to understand hy studying brand loyalty

pyramid proposed oy Aaker (1991), as shown in figure J Ele proposed brand loyalty to be one of the tive elements of brand equity

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Figure I Brand Loyalty Pyrantid

(Aaker,199L) pointed out that brand Loyalty is a variable having different level of strengths depending on a particular customer Switchers are the customers, who keep on changing brands due to law switching costs Habitual buyers are the people who have 4 habit to buy the same brand repeatedly, but do not have an emotional attachment with the product Satistied customers are the people wha are loyal to a brand because it continuously satisfies their needs and wants (Aaker, 1991) Likes have an emotional attachment with the product and committed customers are at the top of the pyramid These people share strong commitment and trust with the brand

and value this attachment

According to Oliver (1999) there is a social connection between the customer and brand ‘This secial connection helps in development of the loyalty and satistaction of’ the customer towards the brand Oliver (1999) carried out a research indicating that satisfaction plays an important role in brand loyalty; however other factors like

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quality, customer’s intercst in the brand and social connection between customer and brand also important factor for brand loyalty development

2.4.1 MEANING OF BRAND LOYALTY

Brand loyalty plays an important rote in brand extensions as well as brand equity Mokhtar, et al (2000, p 82.7) pointed out that brand loyalty plays en important role

in organization’s profitability and future growth, “Loyal customers stick with their

suppli¢es or service providers over the long run” They also express their loyalty by

giving a greater share of their wallets to their high-value brands or service providers

and by generating word-ofmouth referrals All of these behaviors will directly affect profitability It shows that researcher recognizes, brand loyalty being

dependent on buth attitudinal and behavioral atwibutes of consumers and both

elements are equally important from brand loyalty persfEg

2.4.2 BRAND COMMUNICATION TH VIỄN —_

Brand connounioation inoludes adverlsing, publi jee Dạ: aes

research will foeus on brand image, one of the important steps tv reach brand loyally Based on branding theory, brand image must be congruent with the customer's image about themselves Braad imagery deals with the extrinsic of the

product, including the way that brand 7 attempts to meet customer's psychological

or social needs And brand image indicate that people think about brand abstractly tather than what the brand actually docs, therefor image refor to intangible aspects

of the brand (Keller, 2001) According to Chen & Myagmarsuren (2011) brand image plays an important role when customers measure products, and it drives

customers to became loyal Moreover, brand image influences the orientation and

behavioral character of customers toward brand, product and company

Marketing researchers (Bullmore, 1984; Dichter, 1985; Trazer, 1983; Gardner &

Levy, 1955; Keller, 2001, 2008; Newman, 1957; Pohlman & Mudd, 1973) have pointed the cognitive and affective facets of experience associated with brand image; however, most of the studies have not captured the sensory aspect of brands

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Spceifically, Wowman (1957) and Dichter (1985) defined brand image as the rotal combination of impressions shaped by consumer interactions with a brand Gardner and Levy (1955) and Bulimore (1984) saw brand image as beliets, perceptions, feelings, and attitudes towards a brand Frazer (1983) and Pohlman and Mudd (1973) thought that brand image is more strongly related to intangible aspects, such

as symbolic value than physical features of products, Similarly, Keller (2001, 2008) defined brand image as a consumer ‘s perceptions and feelings of a brand, its offerings, and imagery allribules, such as heritage, experiences values and history,

Brand image is largely a perceptual and subjective phenomenon that is formed

through consumer interpretation When brand images are strong, they can be exploited to enhance a person’s self-image (de Chernatony Dail’Olno Riley,

1998, Kecgan — Moriarty - Duncan, 1995)

2.4.3 PERCEIVED BRAND QUALITY

Perceived Quality has an influence on customer loyalty and benefit companies as it improves customer retention rate It greatly intluences customer's perception about

a brand, as he makes an assessment of overall quality of a brand as compared to its competitors (Aaker 1991, p 85) A good perception about quality of a product

improves satisfaction rate of a customer and he becomes layal to the brand The

perceived brand quality alsa affects positioning and profitability of the product in the market It also helps customers to differentiate a brand fram another an the basis

of its quality (Aaker 1991, p, 85) Consumers seem to set a minimum standard of quality which a product must meet to be acceptable But consumers frequently do not porchase the altemative that they perceive as having the highest quality According to Apéria & Back (2004, p 47) a consumer's perceived brand

quality improves financial gains for a company as it increases customer’s

satisfaction and loyalty The most common parameters used ta assess the quality of

a product are user friendliness, durability, serviceability, excellent performance and prestige features (Bruks & Naylar, 2000)

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2.4.4 PERCEIVED PRICE

A customer intentionally purchases a product of a certain brand, a generic product

and an imaginary benefit made by determined and continuous marketing effort are

purchased (Saktishree, 2010) Price is an amount that cusiomer must pay to obtain product (Zeithaml, 1988) In consumers’ point of view, the image of the brand is not

the price at which it sells rather it’s the value which it pretends to be or the value the

product would offer, So perceived price might be higher or lower than actual price

of product and services, Jewelry is a typical example of price perception associated with brand image Because most customers are not able to evaluate quality of products, so price is niche of their choices (Robert Cialdini, 1984) However, the perception of high priced brands has a better brand image is not always true as inexpensive brands like Coke, Pepsi and Wallmart which are usually sold at low price are having a very high brand value Attention to prices is likely to be greater

for higher priced packaged goods, durable goods, and services than for lower priced beverages but other factors in these categories-complexity, lack of price informalion and processing time required-may interfere with accurate knowledge of prices An

additional factor contributing to the gap between actual and perecived price is price dispersion, the tendency for the same brands to be priced differently across stores or

products’ of the same type and quality to have wide price variance (Maynes &

Assum, 1982)

2.4.5 SWITCHING COST

When a customer decides to switch to another brand, the cost incurved due to this

process is named as switching cost Switching cost makes it difficult for customers

to switch to another product or brand (Feick & Lec, 2001) Even if a customer is not satisficd with a product, he would not be able to change his brand due to high switching cost This ercates a barricr ‘for customer and he abandons search for allernative brands

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The Switching cost can be both financial and nonfinancial cost It can be transactional cost, learning cost, and emotional cost, social and psychological cost

It can also be time and effort spent to search an alternative brand (Bumham &

Mahajan, 2003) The financial cost ean be onetime payment as well as additional

cost incurred due to functional updates and additional accessories A customer may

have to spend fot of time and energies in learning functionality of new brand There

is also possibility that switching to another brand can result in social status changes, which can have adverse psychological effects on the customer (Burmham & Mahajan, 2003) The high switching cost minimize customer’s switching intentions

and benefits companies as it influences customer's loyaltics and improve their

retention rate (Serkan & Gökhan, 2005)

2.4.6 PROMOTION

Promotions refer to the entire set of activities, which communicate the product,

brand or service to the user It is one of the four basic elements of the market mix

which includes the four P's: price, product, promotion and place The idea is to make people aware, attract and induce to buy the product, in preference over

others There are several types of promotions Above the line promotions include

advertising, press releases, consumer promotions (schemes, discounts, contests), while below the line include trade discounts, freebies, inccutive trips, awards and so

on And this study focus on sales promotion which is a part of the overall promotion effort Sales promatians this includes freebies, contests, discounts, free services, passes, tickets and so on, as distinct from advertising, publicity and public relations A sales promotion is designed to entice a customer to take a specific action such as make a purchase or request more information A sales promotion usually occurs for a limited period of time to help create a sense of urgency Sales promotions offer a number of advantages to the owner of a small business: Luring New Customers with Price, Gaining Community Favor, Encourage Repeat Purchases

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2.5 MEASUREMENT OF BRAND LOYALTY

From brand loyalty definition, there are three criterions towards behavioral loyalty,

attitudinal loyaity, and combination of behavioral and attitudinal lovalty

Dick and Basu (1994) developed an attitude-behavior typology of loyalty model

The model divides consumers into four dimensions and utilized high or low level of behavioral loyalty and attitudinal loyalty as the scale of loyalty level Bennett and Bove (2001) interpreted and developed the model In the model customer strongly relies on a brand would show high relative altitude, and low relative attitude when consumers have other preferred brands Strong brand preference and low repeat patronage may cause multi-brand loyalty

No one can deny the benefit of brand loyally but to gain brand loyalty, there are

many difficulty factors a company have to cope with Some view concentrated on customer and environment factors For example, Engel et al., (1978) stated that three factors influcnec brand Joyalty: “cuslumer characieristic, market environment, and reference group” Woodside and Clokey (1974) also argued that

“sociveconomic factors, product features and decision making process” influence the brand loyalty Recently, Kim et al., (2008) put forward that true brand loyalty is influenced by five factors: “brand credibility, affective brand conviction, cognitive brand conviction, attitude strength, and brand commitment”

There are some researches on brand luyaily and cach research uses different loyalty

model, The study will show 3 researches that have the more related to this study

‘The first research is “Factors influencing the Cell Phone brand loyalty of Swedish Generation Y" by Shehzad Ahmed & Zahra Moosavi (2013) In this stady, Shehzad

Ahmed & Zahra Moosavi showed 5 factors that can influence the Cell Phone brand

loyalty of Swedish Generation ¥ They were brand image, brand quality, brand experience, switching cost and customer satisfaction Then, after analyzing of findings with existing brand loyalty theories it can be concluded that a vast majority

of Swedish Generation Y was loyal co their cell brand and factors like brand quality,

2L

customer satisfactions were the major factors influencing brand loyalty Moreover, brand experience and brand image also played a reasonable role to influence brand

loyalty of Generation Y However, switching cost factor seems to have negligible

sole in influencing consumer behavior

The second reseurch is “Factors affecting loyally of interne! customer: Evidence for

VN” Nguyen Thi Kim Oanh, (2013) This research was about mobile network and

the research model showed 4 factors that can influence brand loyalty, they were:

perceived quality, tenst, perceived price, network quality ‘Then, after analyzing of

findings with existing brand loyalty theories it can be concluded that a vast majority

of customers are loyal to their mobile network brand and factors like brand quality, Price, brand image, advertisement, public relations, distribution system, interested

in hrand were the major factors influencing brand loyalty However, employees, promotion had negligible role in influencing consumer behavior

fhe third research is a research on cosmeiic industry, it is “The Fffeet of Brand

Characteristics on Brand Loyalty: A Study of Cosmetics Prodacts in Peshawar Pakistan” by Syeda Faiza Giliani, Shahnila Yousaf and Shahzad Khan in 2613 In this model, the researcher showed 10 factors that can influence brand loyalty They are: brand name, product quality, price, store environment, ingredicnts, expiry date, promotion, design and perceived quality, Then, after analyzing of findings with

existing brand loyalty theories it can be concluded that a vast majority of customers

are loyal to their cosmetic brand and factors like brand name, expiry date, perceived

quality, design were the major factors influencing brand loyalty Moreover, store

environment, promotion, product quality, price also played a reasonable role to influence brand loyalty of customers However, purchase had negligible role in influencing consumer behavior,

All the theories are summarized in this table:

Tactors influen ng the Call Phone - "

brand loyalty of Swedish Generation | Brand quality, customer satisfactions were

, Y by Shehzad Ahmed & Zahra the major factors influencing brand loyally

Moosavi (2013)

| advertisement, public relations, distribution Factors affecting lovalty of internet | system, interested in brand were the major

2 customer: Evidence for VN by factors influencing brand loyalty However,

Nguyen Kim Chi (2013) employees promotion had negligible role in

influcneing consumer behavior

‘The Effect of Brand Characteristics | Brand name, expiry date, perceived quality,

on Brand Loyalty: A Study of design were the major factors influencing

Cosmetics Products in Peshawar _ | brand loyalty Moreover store environment,

Pakistan” by Syeda Faiza Giliani, | promotion, product quality, price aiso played Shahnila Yousaf and Shahzad Khan | a reasonable role to influence brand loyalty

2.6 CONCEPTUAL FRAMEWORK

A conceptual model was developed based on theories and models discussed above

The following conceptual model for this research presents the main issues and items

that can influence brand loyalty Besides, the conceptual framework as illustrated in

figure 2 shows factors that can influence consumer behavior Factors like brand

image, brand experience, brand quality, customer satisfaction and switching cost

which could lead to brand loyalty in Generation Y have been discussed In

methodology section of the report a questionnaire has been included, having

background information trom theoretical framework, about brand loyalty and

different factors which influence brand loyalty Developing a conceptual frame, is

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normally “modification and developments of thoorics” written in Hterature (Lien,

and Hong Van)

Figure 2 Research model

There are several hypotheses for this research model as following:

AL: Perceived quality and brand loyalty have a positive relationship That means the higherflower perceived quality factor, the higher/lower level of brand loyalty

H2: Brand communication (ineluding advertising, public relations, brand image)

and brand loyalty have a positive relotionship That means the higher/ower brand

image factor, the higher/ower level of brand loyalty

#H3: Perceived price and brand loyalty have a positive relationship That means the

higher/lower perceived price factor, the higher/lower level of brand loyalty

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4: Promotion and brand loyalty have a positive relationship That means the

higher/lower promotion factor, the higher/lower level of brand layaity

FB: Switching cost and brand loyalty have a positive relationship That means the

higher/ower switching cost factor, the higher/lower level of hrand loyalty

H6: Brand satisfaction has a positive influence on brand loyalty That means the higher/lower satisfaction, the higher/lower level of brand loyalty

tạ a

CHAPTER 3; METHODOLOGY

The following chapter gives an overview of the methads and the path of the

research, provides reliability to the readers and ensures the validity of this report

3.1 SELECTION OF TOPIC

The main purpose of the study was to find out the factors that can influence

customer brand loyalty of English centers The research topic has to be interesting

for the authors, in order to motive the researcher during the path of writing Another

element that authors have to consider when choosing the topic is the accessibility of the people and the necessary data, to enable the researcher to answer the research question Finally, the outcome of the research has to be interesting and understandable for the readers, center managers

‘The brand loyalty was interesting for the authors, and they started to explore data around this specific area to find an appropriate topic Then the product was found that would be imeresting to them, so ILA language center was chosen as the case study At the same time to conduct this research it was decided to choose Hanvi raarket, since it was casy for authons to access target group for the research,

framework Later on the quantitative method was used for collecting deta, During

final stages the collected data was analyzed according to the theories, which exist in

chapter two and then conclusion and recommendation were drawn based on the research questions

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For this study, a descriptive quantitative method was applied Quantitative research method involved the use of structured questions which are designed to obtain Tesponse to some particular aspects of the respondent's behavior, attitudes and demographic characteristics, which can be presented with accurate and quantifiable estimations (Ghauri & Cateora, 2010) To sludy the social issue, quantitative approach is suitable (Bryman & Bel! 2007 Therefore, in order to answer the research question about the factors involved in customer brand loyalty, which is categorized as social behavior, the “quantitative” research methods have been chosen for the research (Bryman & Bell 2007) Quantitative process involves

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