ArticlePDF Available

The impact of social identity of brand on brand loyalty development

Authors:

Abstract and Figures

During the past few years, there have been increasing discussions on the impact of brand in business units. Many researchers have concluded that the best way to increase sales is to introduce the brand in society. In this study, we consider the impact of brand identity on increasing product loyalty in one of Iranian dairy products. The proposed study is implemented in city of Tehran by choosing 475 people. The proposed model is analyzed using structural equation model and factor analysis. The results indicate that there is a direct positive relationship between brand and loyalty and a powerful brand could help setup a long-term relationship between customer and firm, which leads to brand loyalty. In other words, brand identity influences perception value, customer satisfaction, brand trust while perception value influences customer satisfaction and brand trust. In addition, customer satisfaction influences brand trust, brand trust influences customer loyalty and finally brand identity indirectly influences customer loyalty.
Content may be subject to copyright.
* Corresponding author. Tel: +98 9362647628
E-mail addresses: m.j.kenari@gmail.com (M. Jafarzadeh Kenari)
© 2012 Growing Science Ltd. All rights reserved.
doi: 10.5267/j.msl.2012.03.020
Management Science Letters 2 (2012) 1425–1434
Contents lists available at GrowingScience
Management Science Letters
homepage: www.GrowingScience.com/msl
The impact of social identity of brand on brand loyalty development
Zohreh Dehdashtia, Mehdi Jafarzadeh Kenaria* and Alireza Bakhshizadehb
aDepartment of Management and Accounting, Allame Tabtabaee University,Tehran, Iran
bDepartment of Management, Tarbiat Modares University, Tehran, Iran
A R T I C L E I N F O A B S T R A C T
Article history:
Received December 1, 2011
Received in Revised form
February, 14, 2011
Accepted 24 March 2012
Available online
March 25 2012
During the past few years, there have been increasing discussions on the impact of brand in
business units. Many researchers have concluded that the best way to increase sales is to
introduce the brand in society. In this study, we consider the impact of brand identity on
increasing product loyalty in one of Iranian dairy products. The proposed study is implemented
in city of Tehran by choosing 475 people. The proposed model is analyzed using structural
equation model and factor analysis. The results indicate that there is a direct positive
relationship between brand and loyalty and a powerful brand could help setup a long-term
relationship between customer and firm, which leads to brand loyalty. In other words, brand
identity influences perception value, customer satisfaction, brand trust while perception value
influences customer satisfaction and brand trust. In addition, customer satisfaction influences
brand trust, brand trust influences customer loyalty and finally brand identity indirectly
influences customer loyalty.
© 2012 Growin
g
Science Ltd. All ri
g
hts reserved.
Keywords:
Brand identity
Brand loyalty
Brand trust
Dairy products
1. Introduction
Brand is one of the most important intangible assets in any industry especially among business units.
According to Keller (2008), the most valuable asset of any firms is not their equipments or services
but it is the brand of a firm, which builds the actual value on customers' minds. According to
American marketing association (AMA), brand is the name, expression, symbol or combinations of
all these items, which builds company's identity. Brand is a commitment and it tells us that we know
this name and we trust to the name and building a mutual trust is the primary objective of creating a
brand. According brand is symbol for uniting different assets (Matzler, 2008).
One of the most important responsibilities of brands is to create loyalty among existing customers.
Existing customers are the primary sources of revenue and they could increase margin of safety for
firms. The other responsibility of brand is to provide an appropriate identity for brand and makes it as
a unique source for people.
1426
Kapferer (2008) believes having a unique identity makes a brand different from other brands and we
may be able to rely on for offering products and services. There have been tremendous efforts on
brand but brand identity has received little attention (Da Silveira et al., 2011). However, there is a
common fact among all people that brand identity influences people to distinguish a product from
another (Joachimsthaler & Aaker, 2000; Keller, 2008).
On the contrary to customer trust which is associated with external parameters influencing
organization, brand identity is an internal item impacting organizations (Burmann et al., 2009). Brand
identity has attracted little attention among researchers and there is literally little evidence to see any
relationship between brand loyalty and brand identity (He & Li, 2010; Marin et al., 2009).
In this paper, we look at the relationship between brand loyalty, its identity on creating brand identity.
Brand identities, perception received from brand and customer satisfaction are various issues
discussed in this paper.
2. Literature review
2.1 Brand identity
Brand identity is a set of exclusive features of a brand in terms of motto, promise and opportunities
provided for customers and could create a new identity or improving previous identities. We can say
identity is one of the most important factors for stabilizing brand and could lead it towards new
markets and products (Keller, 2003; Ghodeswar, 2008). A brand identity is considered effective when
it is accompanied with customers' needs (Joachimsthaler & Aaker, 2000).
In other words, brand identity is a long-term plan for attracting more customers (Aaker, 1996). A
brand could create an exclusive identity for its products or services when it builds sustainable and
related promises, which are believable (Ward et al., 1999). According to Silveira et al. (2011) brand
identity is not fixed issue over time but it is relatively dynamic concept and must change over time
based on environmental parameters as well as economical factors.
2.2. Brand loyalty
Brand loyalty has been extensively investigated over the past few decades (Dick & Basu, 1994;
Oliver, 1999; Harris & Goode, 2004; Evanschitzky et al., 2006) and there are different definitions for
brand loyalty but Oliver (1999) gives the best one. Based on Oliver, brand loyalty reflects a long-term
commitment of customer for repurchasing and becoming a permanent service or product receiver.
Brand loyalty can be defined as an aggressive attitude towards purchasing a particular product over
long-term horizon. This attitude could lead people to purchase from a particular brand and this is the
result of people's perception (Chaudhuri & Holbrook, 2001).
Any loyalty to a business brand is the result of repeat purchase activity, which is resulted from a
psychological decision. The activities associated with the repeated purchase of a product are not
based on people's direct intention but it is more unintentional and it is a result of different issues
including emotions, feeling, etc. In marketing issues, the concept of loyalty to brand comes along
with other words such as repurchase, preference, commitment and allegiance (Sahin et al., 2011;
Fournier & Mick, 1999; Chiou & Shen, 2006).
3. Proposed model
The proposed model of this paper builds a conceptual model for the relationship between brand
identity and loyalty. Fig. 1 shows details of the proposed model of this paper.
Z. Dehdashti et al. / Management Science Letters 2 (2012)
1427
Fig. 1. The framework of the proposed model
3.1 Brand identity and perception value
There are different definitions associated with perception value such as the difference between
revenue and cost (Khalifa, 2004), relationship between quality of different products sold under the
same brand and the value of brand (Gabay, 2009). However, in marketing, perception value has two
aspects of economical and non-economical (Ulaga, 2003; Woodside et al., 2008). Creating value is
one of the most important subjects of research and many believe perception value is significantly
influenced by brand identity (He et al., 2011). There are also some strong evidences, which indicate
that a brand with strong identity has a better opportunity to increase perception value. (Parasuraman,
et al., 1988). There are also other evidences, which show that there is positive relationship between
brand and the value of brand (Hansen et al., 2008). There are eight hypotheses associated with the
proposed study of this paper.
3.2 Brand identity positively influences perception value
Customer satisfaction is created from people's inside about how they are satisfied on received
products or services (Bitner & Hubbert, 1994). In other studies, customer satisfaction is a general
customer's feeling on goods and services customers receive (Anderson et al., 2004). In many cases, a
more prestigious and distinctive product could result on having stronger perception value
(Bhattacharya & Sen, 2008). People tend to be different from others and the more a brand is
exclusive, the stronger it is and customer provide better support for it (He et al., 2011). A prestige
brand is a particular brand, which is not only maintain a good quality but also it can be used for
pretention.
3.3 Brand identity and customer satisfaction
There is a relationship between brand identity and customer satisfaction (He et al., 2011; Chun &
Davies, 2006). Therefore, we state the second hypothesis as follows,
H2: Brand identity has positive impact on customer satisfaction.
3.4. Perception value and customer satisfaction
The more a brand could attract more customers, the more customer satisfaction we have. There are
different studies associated with these two concepts, which indicated a positive relationship between
these two items (He et al., 2011; Harris & Goode, 2004).
Brand
identity
Perception
value
Trust Loyalty
Satisfaction
H1
H2
H4H3
H5
H6
H7
H8
1428
H3: Perception value has a positive impact on customer satisfaction.
3.5. Brand identity and trust
Trust is the ability to rely or to accept an attribute associated with an object or a person. Trust to a
brand is a psychological aspects, which reflects all assumptions hold on the reliability of a particular
product or services (Doney & Cannon, 1997). Trust on a brand is associated with credibility, integrity
and benevolence (Gurviez & Korchia, 2002; Simoes, 2005; Elliott &Yannopoulou, 2007; Walsh et
al., 2009). The following hypothesis is established for the proposed study of this paper.
H4: brand identity increases customers' trust.
3.6. Perception value and trust
As we have already explained, customer perception from brand value is a function of their perception
and a particular brand has various values from different people's perspectives. There are different
studies associated with perception value and trust (Parasuraman & Grewal, 2000; Sirohi et al., 1998;
Sweeney, et al., 1999). However, there are only a limited number of studies on relationship between
perception value and supportive trust (Singh & Sirdeshmukh, 2000, Harris & Goode, 2004).
Anderson and Srinivasan (2003) explained that perception and trust both could positively impact
customer satisfaction and loyalty. Sirdeshmukh et al. (2002) performed an empirical study on the
relationship between perception value and trust.
H5: Perception value from a brand influences on brand trust, positively.
3.7 Customer satisfaction and trust
There are literally many studies, which describes customer satisfaction is an emotional response to a
purchase opportunity (Bagozzi et al., 1994; Anderson & Narus, 1990; Bennet et al., 2005; Sahin et
al., 2011). When a purchase yields a positive reaction, trust on brand is an immediate outcome. Trust,
on the other hand, is the result of historical transaction. Trust on brand can be a result of
advertisement, world of mouth advertisement and satisfaction from the purchase (Krishnan, 1996). It
is relatively difficult to find a cause-and-effect relationship between customer satisfaction and trust.
In other word, we cannot precisely say that customer satisfaction is the result of trust and trust is a
function of customer satisfaction. He et al. (2011) confirmed the effect of customer satisfaction on
trust and others considered the effects of trust on customer satisfaction (Harris & Goode, 2004; Lam
et al., 2004; Sichtmann, 2007; Sahin et al., 2011, Orth & Green, 2009; Tsai, 2011).
H6: Customer satisfaction influences positively on brand trust.
3.8. Trust and loyalty to brand
Trust and loyalty have close relationship with each other. The more a customer trust to a particular
brand, the more he/she will purchase that kind of product. Human being is naturally interested in
reducing risk and this motivates many to become loyal to products and services. Trust can be defined
as the degree of peace of mind where customer can rely on vendor (Agustin & Singh, 2005). The
more customer trusts a particular brand, the more customer become loyal to that brand
(O’Shaughnessy, 1992). Therefore, a purchase happens without performing any cost/benefit analysis
(Lau & Lee, 1999). Therefore, building a brand yields a long-term relationship between customer and
firm (Agustin & Singh, 2005; Amine, 1998). Trust plays an important role in creating customer-brand
relationship and has a positive impact on loyalty to brand (Sahin et al., 2011). Customer trust to a
brand is a result of positive believes on organizational behavior expectations and performance of
Z. Dehdashti et al. / Management Science Letters 2 (2012)
1429
products (Ashley & Leonard, 2009). Trust will increase customer loyalty and in long term loyal
customer will be more loyal (Chiou & Shen, 2006; Sweeney & Swait, 2008; Ambler, 1997; Mazodier
& Merunka, 2011).
H7: Trust to a brand will positively influence on customer loyalty.
3.9. Brand identity and loyalty
As we have explained earlier, brand has relationship with three items of perception value, customer
satisfaction and trust. We can explain that there is an indirect relationship between brand identity and
on trust through three variables of perception value, customer satisfaction and trust.
H8: Brand identity indirectly has positive impact on customer loyalty through three variables of
value, satisfaction and trust.
4. Results
The proposed study of this paper has designed a questionnaire and distributed among a randomly
selected people who live in city of Tehran, the capital city of Iran. The proposed study was
concentrated on a firm, which was one of major diary providers in Iran called Kalleh Diary
Corporation.
Table 1
Statistical observations for the proposed study
Standardized factor loading Cronbach alpha AVE
Brand identity 0.853 0.56
This brand is superior to other brands. 0.75
This is a high quality brand with high prestige level. 0.68
This brand is very famous. 0.75
This brand has an exclusive identity. 0.84
Perception value of brand. 0.798 0.58
I am happy about what I paid and the value I gained. 0.77
The products of this brand have been priced, properly. 0.82
Based on what I received I pay relatively fair price. 0.73
Customer satisfaction 0.853 0.65
I am completely satisfied from this brand. 0.77
I am confident that I am always happy about the brand. 0.84
I am happy about the products of this brand. 0.81
I believe this brand could completely satisfy my expectations. 0.77
Trust to brand 0.891 0.59
I trust to all brands' products. 0.75
I have never had a bad experience on this brand. 0.77
This brand has a nice image among people. 0.79
If this brand claims a good feature, that would be true. 0.73
This is an honest brand. 0.79
Brand loyalty 0.865 0.54
This brand has exactly the same features as I wish. 0.79
I prefer this brand to other ones. 0.70
I have a negative attitude towards this brand. 0.73
I like the features of this brand. 0.78
This brand has a better performance compared with other brands. 0.75
I always prefer this brand to other brands. 0.55
I always wish to examine this brands' products. 0.76
We have randomly selected some grocery shopping centers, which were selling this brand's dairy
products and have distributed some questionnaires among their customers, and collected 475 filled
1430
ones. All questions were designed based on Likert based scale from completely disagree to
completely agree. All questions were selected based on a survey accomplished on relevant literature
(He et al., 2011; Tong & Hawley, 2009; Washburn et al., 2004; Allen & Meyer, 1990; He et al., 2011;
Tam, 2004). The reliability of all test components has been examined using both convergent and
discriminate validity. Standardized factor loading as well as Average variance extracted were
measured and they were well above 0.5, which is the minimum desirable level (Fornell & Larker,
1981). Cronbach Alpha was calculated for all questions and they were well above 0.7, which is the
minimum acceptable level (Nunnally, 1978). Table 2 shows correlation ratios among different
components of our proposed study.
Table 2
Correlation ratios
Value Satisfaction Trust Loyalty Brand identity Mean
Value 1.00 3.14
Satisfaction 0.45 1.00 3.00
Trust 0.50 0.80 1.00 2.92
Loyalty 0.37 0.59 0.74 1.00 3.09
Brand identity 0.62 0.74 0.73 0.54 1.00 3.10
We have performed goodness of fit for different tests and the results of our investigations are
summarized in Table 3.
Table 3
Statistical test results for goodness of fit
Acceptable regionValueAttribute
898.34
2
χ
412df
Less than 3 2.18
2 dfχ
Less than 0.1 0.041 RMSEA
Greater than 0.9 0.98NFI
Greater than 0.90.99NNFI
Greater than 0.90.98CFI
Greater than 0.90.99IFI
Greater than 0.90.93GFI
Greater than 0.80.92AGFI
In addition, Table 4 demonstrates the results of our test results on different hypotheses.
Table 4
The results of t-student tests
Results
)r2
(
Path coefficient (
β
)
t-value Hypothesis
Confirmed 0.44 0.6212.51**
The effect of identity on value
Confirmed0.63 0.65 15.91**
The effect of identity on satisfaction
Confirmed0.69 0.19 1.64*
The effect of value on satisfaction
Confirmed0.69 0.223.37**
The effect of identity on trust
Confirmed0.69 0.0971.95*
The effect of value on trust
Confirmed0.69 0.609.61**
The effect of satisfaction on value
Confirmed0.62 0.7414.66**
The effect of trust on loyalty
Confirmed0.33 0.5413.01**
The effect of identity on loyalty
*p<0.05 **p<0.01
4.1. First hypothesis
As we can observe from the results of Table 4, t-student maintains a meaningful ratio for the test
leading us to conclude that brand identity influences perception value. The path ratio shows that an
increase of one unit in brand identity will increase perception value for 0.62 with the probability of
0.99. The ratio of r2 shows that brand identity can describe 44 percent of perception value.
Z. Dehdashti et al. / Management Science Letters 2 (2012)
1431
4.2. Second hypothesis
As we can observe from the results of Table 4, t-student maintains a meaningful ratio for the test
leading us to conclude that brand identity influences customer satisfaction. The path ratio also
demonstrates that an increase of one unit in brand identity will increase customer satisfaction for 0.65
with the probability of 0.99. The ratio of r2 demonstrates that brand identity can describe 63 percent
of customer satisfaction.
4.3. Third hypothesis
As we can observe from the results of Table 4, t-student maintains a meaningful ratio for the test
leading us to conclude that perception value influences customer satisfaction. The path ratio also
demonstrates that an increase of one unit in perception value will increase customer satisfaction for
0.19 with the probability of 0.99. The ratio of r2 explains that perception value can describe 69
percent of customer satisfaction.
4.4. Fourth hypothesis
As we can observe from the results of Table 4, t-student maintains a meaningful ratio for the test
leading us to conclude that brand identity influences brand trust. The path ratio also demonstrates that
an increase of one unit in brand identity will increase brand trust for 0.62 with the probability of 0.99.
The ratio of r2 we can understand that brand identity can describe 69 percent of brand trust.
4.5. Fifth hypothesis
As we can observe from the results of Table 4, t-student maintains a meaningful ratio for the test
leading us to conclude that perception value influences brand trust. The path ratio also demonstrates
that an increase of one unit in brand trust will increase perception value for 0.097 with the probability
of 0.99. From the ratio of r2, we can understand that perception value can describe 69 percent of
brand trust.
4.6. Sixth hypothesis
As we can observe from the results of Table 4, t-student maintains a meaningful ratio for the test
leading us to conclude that customer satisfaction influences brand trust. The path ratio also
demonstrates that an increase of one unit in brand trust will increase customer satisfaction for 0.60
with the probability of 0.99. The ratio of r2 implies that perception value can describe 69 percent of
brand trust.
4.7. Seventh hypothesis
As we can observe from the results of Table 4, t-student maintains a meaningful ratio for the test
leading us to conclude that brand trust influences customer loyalty. The path ratio also demonstrates
that an increase of one unit in brand trust will increase customer loyalty for 0.74 with the probability
of 0.99. The ratio of r2 implies that trust value can describe 62 percent of brand loyalty.
4.8. Eighth hypothesis
As we can observe from the results of Table 4, t-student maintains a meaningful ratio for the test
leading us to conclude that brand identity indirectly influences customer loyalty. The path ratio also
demonstrates that an increase of one unit in brand identity will increase customer loyalty for 0.54
with the probability of 0.99. The ratio of r2 implies that brand identity can describe 33 percent of
brand loyalty.
1432
5. Conclusion
In this study, we have considered the impact of brand identity on increasing product loyalty in one of
Iranian dairy products. The proposed study has implemented in city of Tehran by choosing 475
people and it was analyzed using structural equation model and factor analysis. The results indicated
that there was a direct positive relationship between brand and loyalty and a powerful brand could
help setup a long-term relationship between customer and firm, which leads to brand loyalty. In other
words, brand identity influences perception value, customer satisfaction, brand trust while perception
value influences customer satisfaction and brand trust. In addition, customer satisfaction influences
brand trust, brand trust influences customer loyalty and finally brand identity indirectly influences
customer loyalty.
References
Aaker, D.A. (1996). Building Strong Brands. The Free Press, New York, NY, 35, 71.
Aaker, D.A. & Joachimsthaler, E. (2000). Brand Leadership. The Free Press, New York, NY.
Agustin, C. & Singh J. (2005). Curvilinear effects of consumer loyalty determinants in relational
exchanges. Journal of Marketing Research, 42(1), 96-108.
Allen, N.J. & Meyer, J.P. (1990). The measurement of and antecedents of affective, continuance, and
normative commitment to the organization. Journal of Occupational Psychology, 63, 1–18.
Ambler, T. (1997). How much of brand equity is explained by trust?, Management Decision, 35(4),
283 - 292.
Anderson, E.W., Fornell, C. & Mazvancheryl, S.K. (2004). Customer satisfaction and shareholder
value. Journal of Marketing, 68(4), 172–85.
Anderson C. J., & Narus, A. J. (1990). A model of distributor firm and manufacturer firm working
partnerships. Journal of Marketing, 54, 42-58.
Anderson, R. E., & Srinivasan, S. S. (2003). E-satisfaction and E-loyalty: A contingency framework.
Psychology and Marketing, 20(2), 99–121.
Ashley, C., & Leonard, H. A. (2009). Betrayed by The Buzz? Covert content and consumer-brand
relationships. Journal of Public Policy and Marketing, 28(2), 212-220.
Bagozzi, R. P., & Todd F. H. (1994). A general approach to representing multifaceted personality
constructs, Application to state self-esteem. Structural Equation Modeling, 1(1), 35-47.
Bennet, R., Hartel, C.J.H, & Mccoll-Kennedy, J.R. (2005). Experience as a moderator of involvement
and satisfaction on brand loyalty in a business-to-business settings. Industrial Marketing
Management, 34, 97-107.
Bhattacharya, CB, & Sen, S. (2003). Consumer–company identification: a framework for
understanding consumers' relationships with companies. Journal of Marketing, 67(2), 76–88.
Bitner, M. J., & Hubbert, A. R. (1994). Encounter satisfaction versus overall satisfaction versus
quality. In R. T. Rust & R. L. Oliver (Eds.). Service quality: New directions in theory and practice
(72–94). London: Sage.
Burmann, C., Jost-Benz, M. & Riley, N. (2009). Towards an identity-based brand equity model.
Journal of Business Research, 62, 390–397.
Chaudhuri, A. & Holbrook, B. M. (2001). The chain of effects from brand trust and brand affects to
brand performance: The role of brand loyalty. Journal of Marketing, 65, 81-93.
Chiou, J.S., & Shen, C.C. (2006). The effects of satisfaction, Opportunism, and asset specificity on
consumers' loyalty intention toward internet portal sites. International Journal Service Industry
Management, 17(1), 7-22.
Chun, R. & Davies, G. (2006). The influence of corporate character on customers and employees:
exploring similarities and differences. Journal of Academic Marketing Science, 34(2), 138–146.
Da Silveira, C., Lages, C. & Simoes, C. (2011). Reconceptualizing brand identity in a dynamic
environment. Journal of Business Research, doi:10.1016/ j.jbusres.2011.07.020.
Z. Dehdashti et al. / Management Science Letters 2 (2012)
1433
Dick, A., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal
of the Academy of Marketing Science, 22, 99–113.
Doney, P.M. & Cannon, J.P. (1997). An examination of the nature of trust in buyer–seller
relationships. Journal of Marking, 61(2), 35–51.
Elliott, R. & Yannopoulou, N. (2007). The nature of trust in brands: a psychosocial model. European
Journal of Marketing, 41(9/10), 988-998.
Evanschitzky, H., Gopalkrishnan, R. I., Plassmann, H., Niessing, J., & Meffert, H. (2006). The
relative strength of affective commitment in securing loyalty in service relationships. Journal of
Business Research, 59, 1207–1213.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable
variables and measurement error. Journal of Marketing Research, 18, 39–50.
Fournier, S. & Mick Glen, D. (1999). Rediscounting satisfaction. Journal of Marketing, 63, 5-23.
Gabay, G., Moskowitz, H. R., Beckley, J. & Ashman, H. (2009). Consumer centered “brand value” of
foods: drivers and segmentation. Journal of Product & Brand Management, 18(1), 4-16.
Ghodeswar, B. M. (2008). Building brand identity in competitive markets: a conceptual model.
Journal of Product & Brand Management, 17(1), 4-12.
Gurviez, P. and Korchia, M. (2002). Proposition d’unee´chelle de mesuremultidimensionnelle de la
confiancedans la marquee. Rechercheet Applications en Marketing, 17(3), 41-59.
Harris, L. C., & Goode, M. M. H. (2004). The four levels of loyalty and the pivotal role of trust: A
study of online services dynamics. Journal of Retailing, 80, 139–158.
Hansen H., Samuelsen B.M., Silseth, P.R. (2008). Customer perceived value in B-2-B service
relationships: investigating the importance of corporate reputation. Industrial Marketing
Management, 37(2), 206–17.
He, H., Li, Y. & Harris, L. (2011). Social identity perspective on brand loyalty. Journal of Business
Research, doi:10.1016/j.jbusres.03.007.
He, H. & Li, Y. (2010). CSR and service brand: the mediating effect of brand identification and
moderating effect of service quality. Journal of Business Ethics, 100(4), 673-688.
Joachimsthaler, E. & Aaker D. A. (1999). Building brands without mass media. Harvard Business
Review on Brand Management, 1–22.
Kapferer, J-N. (2008). The new strategic brand management, creating and sustaining brand equity
long term. London: Kogan Page
Keller, K.L. (2008). Strategic brand management, building, measuring and managing brand equity.
Upper Saddle River, NJ: Prentice Hall.
Keller, K. L. (2008). Strategic Brand Management-Building, Measuring, and Managing Brand
Equity. 3rd ed., United States: PEARSON - Prentice Hall.
Keller, K. L. (2003). Understanding Brands, Branding and Brand Equity. Interactive Marketing, 5
(1), 7-20.
Keller, K.L. (2003) Strategic Brand Management: Building, Measuring and Managing Brand Equity.
2nd ed., Prentice-Hall, Englewood Cliffs, NJ.
Khalifa, A.S. (2004). Customer value: a review of recent literature and an integrative configuration.
Management Decision, 42(12), 645-66.
Krishnan, H. S. (1996). Characteristics of memory associations: a consumer-based brand equity
perspective. International Journal of Research in Marketing, 13, 389–405.
Lam, S. Y., Venkatesh, S., Krishna Erramilli, M., & Murthy, B. (2004). Customer value, satisfaction,
loyalty, and switching costs: An illustration from a business-to-business service context. Journal
of the Academy of Marketing Science, 32(3), 293–311.
Lau, G. T., & Lee, S. H. (1999). Consumers’ trust in a brand and the link to brand loyalty. Journal of
Market Focused Management, 4, 341–370.
Lee, J. S. & Back, K. J. (2008). Attendee-based brand equity. Tourism Management, 29, 331–344.
Marin, L., Ruiz, S., & Rubio, A. (2009). The role of identity salience in the effects of corporate social
responsibility on consumer behavior. Journal of Business Ethics, 84(1), 65–78.
1434
Matzler, K. (2008). Risk aversion and brand loyalty: the mediating role of brand trust and brand
effect, 17(3), 154– 162.
Mazodier, M. & Merunka, D. (2011). Achieving brand loyalty through sponsorship: the role of fit and
self-congruity. Academy of Marketing Science, DOI 10.1007/s11747-011-0285-y
Morgan, R.M. & Hunt, S.D. (1994). The commitment-trust theory of relationship marketing? Journal
of Marketing, 58(3), 20-38.
Nam, J., Ekinci, Y. & Whyatt, G. (2011). Brand equity, brand loyalty and consumer satisfaction.
Annals of Tourism Research, doi: 10.1016/j.annals.
Nunnally, J. C. (1978). Psychometric Theory. New York, NY: McGraw-Hill, Inc.
Oliver, R. L. (1999). Whence customer loyalty. Journal of Marketing, 63, 33–44.
O’Shaughnessy, J. (1992). Explaining Buyer Behavior. UK: Oxford University Press.
Orth, U. R. & Green, M. T. (2009). Consumer loyalty to family versus non-family business: The roles
of store image, trust and satisfaction. Journal of Retailing and Consumer Services, 16, 248–259.
Parasuraman, A., & Grewal, D. (2000). The impact of technology on the quality-value-loyalty chain:
A research agenda. Journal of the Academy of Marketing Science, 28(1). 168–174.
Sahin, A., Zehir, C. & Kitapaci, H. (2011). The Effects of Brand Experiences, Trust and Satisfaction
on Building Brand Loyalty; An Empirical Research On Global Brands. Procedia Social and
Behavioral Sciences, 24, 1288–1301.
Sichtmann, C. (2007). Buyer-Seller relationships and the economics of information. Journal of
Business Management, 1, 59-78.
Sichtmann, C. (2007). An analysis of antecedents and consequences of trust in a corporate brand.
European Journal of Marketing, 41(9/10), 999-1015.
Simoes, C., Dibb, S. & Fisk, P.R. (2005). Managing corporate identity: an internal perspective.
Journal of Academic Marketing Science, 33(2), 153–168.
Singh, J., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in consumer satisfaction and
loyalty judgments. Journal of the Academy of Marketing Science, 28(1), 150–168.
Sirdeshmukh, D., Singh, J., & Sabol, B. (2002). Consumer trust, value, and loyalty in relational
exchanges. Journal of Marketing, 66, 15–37.
Sirohi, N., McLaughlin, E. W., & Wittink, D. R. (1998). A model of consumer perceptions an store
loyalty intentions for a supermarket retailer. Journal of Retailing, 74(2), 223–245.
Sweeney, J. C., Soutar, G. N., & Johnson, L. W. (1999). The role of perceived risk in the quality-
value relationship: A study in a retail environment. Journal of Retailing, 75(1), 77–105.
Sweeney, J. & Swait, J. (2008). The effects of brand credibility on customer loyalty. Journal of
Retailing and Consumer Services 15, 179–193.
Tam, J.L.M. (2004). Customer satisfaction, service quality and perceived value: An integrative
model. Journal of Marketing Management, 20(7/8), 897–917.
Tong, X. & Hawley, J. M. (2009). Measuring customer-based brand equity: empirical evidence from
the sportswear market in China. Journal of Product & Brand Management, 18(4), 262-271.
Tsai, S-P. (2011). Fostering international brand loyalty through committed and attached relationships,
International Business Review, 20(5), 5521-534.
Ulaga, W. (2003). Capturing value creation in business relationships: a customer perspective.
Industrial Marketing Management, 23(8), 677-693.
Walsh, G., Mitchell, V.-W., Jackson, P.R. & Beatty, S.E. (2009). Examining the antecedents and
consequences of corporate reputation: a customer perspective. British Journal of Management,
20(2), 187–203.
Ward, S., Larry, L., & Goldstine, J. (1999). What high-tech managers need to know about brands.
Harvard Business Review, July-August, 85-95.
Washburn, J.H., Till, B.D., Priluck, R. (2004). Brand alliance and customer-based brand-equity
effects. Psychology Marketing, 21(7), 487–508.
Woodside, A.G., Golfetto, F., & Gibbert, M. (2008). Customer value: theory, research, and practice,
in Woodside, A.G., Golfetto, F. and Gibbert, M. (Eds). Creating and Managing Superior Customer
Value. Advances in Business Marketing and Purchasing, 14, 3-25.
... The items measuring ethical sales behaviour and trust were adapted from Rom an and Ruiz (2005). Customer satisfaction was measured with four items adapted from Dehdashti et al. (2012) and Rom an and Ruiz (2005). On the other hand, customer loyalty was adapted from Sirdeshmukh et al. (2002), with minor modifications to reflect the sportswear context. ...
... We have also thoroughly described the positive elements of ethical behaviour, trust and customer satisfaction in customer loyalty, specifically in sports retail stores. Most researchers, including Sirdeshmukh et al., 2002;Rom an and Ruiz, 2005;Edward and Sahadev, 2011;Dehdashti et al., 2012;Watson et al., 2015, conducted their studies on the nonsports fields. On the other hand, this study focused on the sports product customers. ...
Article
Full-text available
Purpose This study aims to examine the relationship between sellers’ ethical behaviour and customer loyalty. The mediating effect of trust and satisfaction in the relationship between ethical behaviour and loyalty was also assessed in the sportswear industry. Design/methodology/approach Data were collected from 265 consumers. Ten hypotheses were developed and tested by applying structural equation modelling. Findings There is a significant influence between sellers’ ethical behaviour and consumers’ loyalty. Also, satisfaction and trust mediate the relationship between sellers’ ethical behaviour and consumers’ loyalty. Trust is also found as the most proximal antecedent to customer loyalty. Originality/value This study empirically justifies the relationship between sellers’ ethical behaviour towards customer satisfaction and trust. This study also provides insight into the relationships between customer satisfaction, trust and loyalty in an integrated model.
... Lebih lanjut, Gen Z juga dikarenakan generasi ini lebih eksplor dalam menggunakan produk terutama produk fashion yang salah satunya adalah pakaian. Lebih lanjut, hasil ini sejalan dengan penelitian [11] serta [30] bahwa perceived value berpengaruh terhadap variabel trust atau kepercayaan. ...
Article
Full-text available
Belanja online pada saat ini merupakan aktivitas yang sering dilakukan terutama penggunanya mengalami peningkatan sejak pendemi Covid-19. Belanja secara online bisa alternatif yang memudahkan pola perilaku belanja yang menawarkan kebutuhan sehari-hari tanpa harus meninggalkan rumah. Generasi Z merupakan Generasi yang dekat dengan dunia digital. Umumnya di daerah cenderung kelengkapan produknya lebih sedikit dibandingkan di provinsi yang menyediakan kebutuhan produk yang bervariasi karena banyak beridiriya mall. Data dikumpulkan terhadap 270 responden melalui kuesioner dengan teknik analisa menggunakan structural equation model – Amos. Hasil penelitian menunjukan tidak terdapat pengaruh perceived risk terhadap kepercayaan, terdapat pengaruh perceived value dan online consumer review terhadap kepercayaan, terdapat pengaruh ( perceived risk, perceived value dan online consumer review ) terhadap online repurchase intention , kepercayaan mempengaruhi online repurchase intention , kepercayaan mampu memoderasi ( perceived value dan online consumer review terhadap online repurchase intention sedangkan perceived risk tidak. Penelitian selanjutnya diharapkan mampu memperluas cakupan yang mampu membahas online repurchase intention seperti perilaku impulse buying .
... Brand loyalty is also defined as the degree of consumer's attachment to a specific brand (Lee & Kang, 2012). However, Ali and Muqadas (2015) defined brand loyalty as a concept related to re-purchase intention and psychological commitment while Dehdashti et al. (2012) defined brand loyalty as a long-term relationship grounded on a customer's re-purchase intention and continuous commitment towards a brand. In this regard Wulandari (2016) adopted Oliver's (2010) definition of brand loyalty in which the concept identified as a variable with two sub-factors: a customer commitment to re-purchase and to re-patronize a good or a service. ...
Chapter
This descriptive study determines the level of customers’ and visitors’ awareness regarding the green marketing mix activities and applications in green five-stars hotels in Jordan. The study population consisted of the visitors of 16 green labeled five-stars hotels in Jordanian cities and tourism locations (Amman, Dead Sea, Petra and Aqaba). Non-random (purposive) sample was used to collect data and a structured questionnaire was distributed to (460) hotel customers, (412) of which were retrieved and (367) were valid for analysis with a response rate of (79.78%). A set of statistical methods were used through the (SPSS v23) program and results showed only two of the dimensions of green marketing mix had a high level of customer awareness. These dimensions were green product and green price. The overall level of customers’ environmental concern was moderate along with the rest of the green marketing dimensions (promotion, place, process, people, and physical evidence). Based on results, it is recommended that hotel managers and marketers carefully design their business and marketing plans to truly develop credible green hotel image, avoid misrepresentation and green washing, and encourage customers to participate in protecting the environment.
... Brand loyalty is also defined as the degree of consumer's attachment to a specific brand (Lee & Kang, 2012). However, Ali and Muqadas (2015) defined brand loyalty as a concept related to re-purchase intention and psychological commitment while Dehdashti et al. (2012) defined brand loyalty as a long-term relationship grounded on a customer's re-purchase intention and continuous commitment towards a brand. In this regard Wulandari (2016) adopted Oliver's (2010) definition of brand loyalty in which the concept identified as a variable with two sub-factors: a customer commitment to re-purchase and to re-patronize a good or a service. ...
Chapter
This Study aims to investigate the determinants of brand loyalty (Customer satisfaction, Price sensitivity and word of mouth) affecting tourists’ choice of five stars hotels on Jordan. The population of the study consisted of people who frequent select these hotels to stay. The researcher study data were collected using the non-random sampling method, where (400) questionnaires were distributed to people who visited five-star hotels in Amman, Aqaba and the Dead Sea. To achieve the objective of the study, and to test hypotheses, the researcher used statistical program of social Sciences (SPSS) and (AMOS). The study results revealed that there is a statistical significant impact of brand loyalty determinants on tourists’ choice in five stars hotel in Jordan, based on the study results the researchers recommends managers and decision makers should provide a superior service quality also training the staff and every person who would contact the tourists, finally they should undertake promotional and informational marketing activities. Thus, the guest has wonderful experience which will ultimately lead customer to be loyalty to the brand and repeat their visits to the same hotel.
... Consumers who trust a brand are more likely to maintain their reuse intention and trust the brand's word of mouth. Many scholars have also reviewed the link between brand trust and behavioral intention Dehdashti et al., 2012), and they revealed that the most important antecedent of behavior intention was trust. ...
Article
Full-text available
Because of the COVID-19, the tourism industry has been greatly affected, especially the occupancy rate of hotel companies. This study analyzes the effects of customer engagement and service evaluation on brand trust and customer behavioral intention based on 437 valid questionnaires from Chinese economy hotel companies using SPSS and AMOS. The components of customer engagement are subdivided into five dimensions: identification, enthusiasm, attention, absorption and interaction, and the impact of these five dimensions on brand trust in the COVID- 19 is investigated. Finally, it verifies the influence of trust on customers’ word-of-mouth (WOM) intention and customers’ reuse intention. The results of this study not only enrich the research on customer engagement and service evaluation in marketing circles but also give some advice to hotel companies in the COVID-19 customer engagement and service evaluation that can enhance the trust of enterprises and promote the behavior intention of customers, which has certain practical reference value.
... Referring to the research of Dehdashti et al. (2012) proved that brand identity has a significant positive effect on loyalty, while the research of Fariza et al. (2018) found that brand identity does not significantly affect brand loyalty. Cha & Seo's research (2019) shows that brand image has a significant positive effect on brand satisfaction, while the results of Chakraborty's (2019) research show the opposite. ...
Article
Full-text available
This study aims to analyze the effect of brand identity and brand image on brand satisfaction and brand loyalty of silverqueen chocolate products in Samarinda City. A quantitative approach using path analysis processed with IBM SPSS 23 software and Structural Equation Modeling (SEM) with IBM AMOS 5 software. A total of 132 respondents who had consumed Silverqueen chocolate in Samarinda were the samples in this study. The measurement scale uses a Likert scale with a score of 1 - 5. In the beginning, validity and reliability tests are carried out on the research instrument, then estimation tests and structural model fit tests are conducted. The results showed that brand identity and brand image had a significant effect on brand satisfaction and had no significant effect on brand loyalty. Likewise, brand satisfaction has no significant effect on brand loyalty. The results of this study state that brand variables that affect brand satisfaction will not automatically encourage brand loyalty.
Article
Full-text available
Bu çalışma, bir şehrin sakinlerinin, şehirlerine duydukları güven, bağlılık ve şehrin kişiliğine olan algıları arasındaki yapısal ilişkileri belirlemek amacı ile gerçekleştirilmiştir. Bu amaçla marka kişiliğinin, marka bağlığı üzerindeki etkisinde, marka güveninin aracılık rolünün olup olmadığına ilişkin bir Yapısal Eşitlik Modeli (YEM) oluşturulmuştur. 400 gönüllü ile gerçekleştirilen çalışmanın verilerinin analizi SPSS 22.0 ve AMOS 24 programları ile gerçekleştirilmiştir. Oluşturulan YEM önerisinde modelin uygunluğunun sınanması, farklı uyum ölçüleri göz önünde bulundurularak gerçekleştirilmiştir. Çalışma sonucunda, Aydın şehrinin sakinlerinin, şehirlerine güven ve bağlılık duydukları belirlenmiştir. Şehrin marka güveninin ilk sıralardaki boyutları; şehre duyulan güven, şehrin isminin şehrin garantisi olarak algılanışı, şehrin halkına en iyi imkânları sunmak için çalışması, halkının mutluluğuna uğraşması, temel ilgisinin sadece halkının menfaati oluşu ve halkını hayâl kırıklığına uğratmayacağına olan inanç olarak özetlenebilir. Şehrin marka bağlılığının ilk sıralardaki boyutları da; Halkının her zaman övgüyle bahsettiği şehir oluşu, tüm tanıdıklarına tatilleri ve yaşamaları için Aydın’ın tavsiye edilmesidir. Aydın’da yaşadıkları için kendilerini ayrıcalıklı/özel hissetmeleridir. Bir kere hayal kırıklığına uğratsa da, bir daha bunu tekrarlamayacağı bilinerek yine onun lehine tercihte bulunulması ve bir imkân daha olsa yine Aydın’da yaşamanın tercih edilmesi şeklinde özetlenebilir. Şehrin yaşayanları, şehrin kişiliğini öncelikli olarak; gerçekçi, istikrarlı, dinamik/aktif, sorumluluk sahibi, yenilikçi ve duygusal/romantik olarak algılamaktadırlar. Algılanan kişiliğin, marka bağımlılığının oluşmasını sağlamaya ve markaya yönelik güven oluşturmaya olumlu yönde etkisinin olduğu ve bu değişkenler arasında bir köprü görevi oluşturduğu belirlenmiştir. Çalışmanın, şehir marka bağımlılığı oluşumunun sağlanmasına, marka güveni ve marka kişiliği bağlamında teorik bir yaklaşım geliştirerek katkıda bulunabileceği düşünülmektedir.
Article
Full-text available
The objective of this research is to identify and analyze the effect of Brand Awareness, Brand Association and Corporate Image on Brand Loyalty using a quantitative descriptive approach. The data in this study were obtained from 156 respondents who are Tokopedia users. Data analysis used multiple linear regression and path analysis. The first stage in this study was to test the validity for each variable along with its reliability. The second stage examines the relationship between variables, namely Brand Awareness, Brand Association and Corporate Image with Brand Loyalty. The results of this study is variable Brand Awareness has an effect on Brand Loyalty, Brand Association has an effect on Brand Loyalty, Corporate Image has an effect on Tokopedia Brand Loyalty
Article
Full-text available
Marka deneyimi müşterilerin ilgi çekici, keyifli duygularla marka ile etkileşim içinde olmasını ifade eden bir kavramdır. Pazar ortamlarında rekabetçi bir strateji geliştirmek isleyen işletmeler açısından marka deneyiminin önemli bir farklılaşma aracı olduğu söylenebilir. Bu çalışmada hizmet kalitesi algılamalarının marka sadakati üzerine etkisinde marka deneyiminin aracılık rolü analiz edilmektedir. Araştırma amacı doğrultusunda anket yöntemi kullanılarak Van ilinde yaşayan 417 banka müşterisine ulaşılmıştır. Yapılan analizler sonucunda marka deneyiminin hizmet kalitesinin marka sadakati üzerinde etkisinde kısmi aracılık etkisi olduğu sonucuna varılmıştır. Ayrıca hizmet kalitesinin marka deneyimi ve marka sadakati üzerinde etkisi bulunurken marka deneyiminin de marka sadakati üzerinde etkisi olduğu sonucuna ulaşılmıştır.
Article
Full-text available
Actualmente las empresas están reactivando su economía durante la pandemia, todo gracias al levantamiento gradual de las restricciones, vacunas, distanciamiento, el uso de cubrebocas y demás normas de bioseguridad, por tal razón las empresas están en busca de estrategias que les ayude a mantener y cumplir con las necesidades y requisitos de los consumidores, esta investigación analiza de manera estadística a la gestión de marca como factor de reactivación económica dentro de las PYMES del sector textil de la Provincia de Tungurahua. Mediante una encuesta de enfoque cuantitativo para saber la relación de las variables mencionadas, se aplicó el instrumento a 164 consumidores, para luego analizar de forma estadística, ocupando el coeficiente de correlación de Pearson, para relacionar las variables de estudio. Los resultados confirmaron que la gestión de marca ayuda a posicionar a las empresas, disminuye el margen de competencia, reactiva las ventas, aumenta clientes leales. Por tal motivo, es importante que las empresas trabajen la gestión de la marca ya que es una inversión y no un gasto, que conlleva aspectos positivos en corto, mediano y largo plazo, así mismo ayuda a saber las nuevas necesidades del cliente ya que tras la crisis sanitaria los hábitos de compra cambiaron y las empresas deberán adaptarse a las mismas.
Article
Full-text available
Managers increasingly seek to develop brand loyalty through sponsorship activities, though this relationship has not been solidly established. This article models and demonstrates the impact of sponsorship on brand loyalty. The studied concepts and relationships emerge from both the sponsorship and consumer-brand relationship literature. The experimental design relies on before and after measurements and multiple exposures to the sponsorship. Thus this study demonstrates that sponsorship exposure has a positive impact on brand affect, brand trust, and brand loyalty. The change in brand loyalty from before to after sponsorship exposure reflects two persuasion processes. First, self-congruity with an event enhances brand loyalty through event and brand affect. Second, perceived fit between the event and the brand has a positive effect on brand affect, through attitude toward the sponsorship, and on brand trust, such that it ultimately influences brand loyalty. Brand affect is identified as an important mediator of sponsorship effects.
Article
Full-text available
The authors propose a framework for understanding key mechanisms that shape satisfaction in individual encounters, and loyalty across ongoing exchanges. In particular, the framework draws together two distinct approaches: (1) agency theory, rooted in the economic approach, that views relational exchanges as encounters between principals (consumers) and agents (service providers) and (2) trust research that adopts a psychological approach toward consumer-provider relationships. In so doing, the authors specify how trust mechanisms cooperate and compete with agency mechanisms to affect satisfaction in individual encounters and influence loyalty in the long run. Because a multidimensional conceptualization of trust is used, the hypothesized framework offers a fine-grained understanding of the interrelated mechanisms. The high level of specificity allows extraction of multiple propositions, facilitates empirical testing, and encourages theoretical development of the proposed model. Several directions to guide future research are provided.
Article
Full-text available
Marketing academics and practitioners have acknowledged that consumers look for brands that provide them with unique and memorable experiences. As a result, the concept of brand experience has become of great interest to marketers. The present field study, conducted with actual consumers, addresses the question whether different consumers prefer different experiential appeals and whether experiential types create the relationships between brand experiences, satisfaction, trust and loyalty. Brand experience is conceptualized as sensations, feelings, cognitions, and behavioral responses evoked by brand-related stimuli that are part of a brand's design and identity, packaging, communications, and environments. Brand experience affects satisfaction, trust and loyalty. From the customer viewpoint, brands are relationship builders. In this present research, we propose the effects of brand experiences to build long-lasting brand and customer relationship with brand trust, satisfaction, and loyalty. The study was conducted on 258 respondents. As a result of this study, brand experiences, satisfaction, trust have positively effects brand loyalty.
Article
Relationship marketing—establishing, developing, and maintaining successful relational exchanges—constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
Article
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
Article
A model of distributor firm and manufacturer firm working partnerships is presented and is assessed empirically on a sample of distributor firms and a sample of manufacturer firms. A multiple-informant research method is employed. Support is found for a number of the hypothesized construct relations and, in both manufacturer firm and distributor firm models, for the respecification of cooperation as an antecedent rather than a consequence of trust. Some implications for marketing practice are discussed briefly.
Article
The authors integrate theory developed in several disciplines to determine five cognitive processes through which industrial buyers can develop trust of a supplier firm and its salesperson. These processes provide a theoretical framework used to identify antecedents of trust. The authors also examine the impact of supplier firm and salesperson trust on a buying firm's current supplier choice and future purchase intentions. The theoretical model is tested on data collected from more than 200 purchasing managers. The authors find that several variables influence the development of supplier firm and salesperson trust. Trust of the supplier firm and trust of the salesperson (operating indirectly through supplier firm trust) influence a buyer's anticipated future interaction with the supplier. However, after controlling for previous experience and supplier performance, neither trust of the selling firm nor its salesperson influence the current supplier selection decision.
Article
What makes for success in high-tech markets! Many managers believe it's offering products with the best performance at the lowest price. Yet most would also acknowledge that price and performance are just the ante to get into the game, that they don't make the difference between a successful hightech venture and an unsuccessful one. One factor that can make the difference, the authors argue, is brand management. The problem is, most hightech managers think of branding only as an advertising campaign or a slogan. Developing and maintaining a strong brand in the fullest sense requires much more - it's conceiving of a promise of value for customers and then ensuring that the promise is kept. The Gateway Computer brand, for example, is a promise of friendly service that's backed by efficient help lines and effective order and service fulfillment. Building a powerful brand requires fives steps. The first two steps involve determining the tangible characteristics of the offerings that carry the brand name and the benefits the customers accrue from those benefits. In the remaining steps, high-tech managers consider the psychological or emotional benefits of the products; what "value" means to a typical loyal customer; and what, ultimately, is the essential nature and character of the brand over time. Like the Apple brand - which has been consistently synonymous with easy-to-use, reliable computers- and the IBM brand-which promises value built on its long tradition of superior service and support-a successful brand commands enduring premium profits that can help a high-tech company get off the price-performance roller coaster.
Article
Brands are increasingly sponsoring online communications that do not identify their commercial source as a way to break through advertising clutter and to circumvent consumer cynicism toward traditional advertising. The results of lab studies indicate that these covert actions decrease trust in and commitment to brand users and that this effect is strongest when the brand user's emotional connection to the brand is threatened. Thus, use of covert marketing campaigns to overcome challenges with advertising may be done at the expense of the strongest consumer–brand relationships. Given the potential for loss of trust in and commitment to a brand in an environment in which brand relationships hold high value, brand marketers may have an incentive to discontinue covert marketing efforts without policy intervention. Alternatively, marketers could go to greater lengths to cover their tracks, which could have important implications for policy and consumer welfare.