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Essay

The Impact Of Branding On

Customer Loyalty Marketing Essay
Published: 23, March 2015

Branding is a promise of satisfaction which creates a relationship

between consumer and producer. A branding's success depends on how
the product has been perceived by its audience. The method and mode
of delivery also plays a crucial role in reaching its audience. Branding
has established itself to become an important instrument in ensuring the
successful growth of a product. The continuous fierce competition
among brands has seen a progress in Branding concepts over the
decades has made it a relevant part of any product. Numerous studies
focused on branding activities and their impact on retention, attainment
and loyalty of customers across industries within western countries
already exist. (Michael, 2009) It is therefore relevant to research the
impact Branding has on customers' loyalty in a specific industry in
Singapore. This study focuses ultimately on the fast food industry in
Singapore. The benefits of applying Branding in the fast food industry
are customer loyalty, Consumer trust and perceived risk to its reputation
in-times of crisis (Ko, 2006). This study recommends that fast food
outlets in Singapore should concentrate in their branding strategies and
rejuvenate their branding activities in order to retain and keep their
customers loyal towards a fast food brand, as well as attract new ones.
Via an in-depth research of literature and analyzing the perception
customers have towards Branding; this paper aims to study the impact of
Branding on customers' loyalty within the fast food industry in Singapore.
Deductive approach and a quantitative methodology of analysis will be
used. A set of research questions and objectives were established. The

primary sources of data were collected through a physical questionnaire

performed in person and online. By evaluating the results, one can
understand customers' perception towards Branding of a Fast Food
name. A total of 200 individuals were approached to participate in the
survey, out of which a total of 100 customers responded. After the
collection of data the SPSS software was used to evaluate the results of
the survey. The dimensions that are considered for this study are: 4Ps of
Marketing Mix (Product, Place, Pricing and Promotion), customers'
expectation towards a brand of a fast food outlet which would lead to the
customer's loyalty towards the fast food outlet.

Background of Research
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The world has evolved so much that both men and women are equally
competing in all fields. This is due to the development of technology and
globalisation. This does not just apply to technology but also the food
industry. Everything is fast moving and demand has populated almost
every industry to have products instantly. The food industry is also a
victim of such demand that 'Fast Food' has taken over the world by
storm back in early 90s in Singapore and has been a ever growing
industry in Singapore. Such fast food is sought after in a country where
78% is working population. (Ministry of Manpower, Singapore Workforce,
2011)The younger generation of Singapore has also fallen prey to the
fast food culture in Singapore. There are over 376 household fast food
franchises operating successfully in Singapore (Economies Survey
Series, 2011). This also brings about the fierce competition between the
fast food giants in gaining market shares. Brands of such fast food
outlets have become popular and competing against each other to be
the No. 1 brand for fast food in Singapore. Fast food industry is
dominated by foreign brands (Local Fast Food in Singapore, 2012)

It requires the fast food giants to look for strategies to better compete
with their competitors and attract customers on a consistent basis.
Maintaining and upholding their brand image to retain customers are the
main challenges the industry is facing. One of the only ways to
differentiate one another is to brand themselves uniquely to attract and
retain customers. Branding has influence and have a perceived value
towards customers. Timeline has also created such Branding image on
products. (Tanja, 2008) Authenticity and tradition of a Brand is also
considered when timeline comes in. If a fast food brand is able to survive
the period with new brands popping day in, day out; then the brand is
looked upon as sustainable on its own as it has already built upon its
original grounds and managed to communicate it to the customers.
(Michael, 2009)

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Branding has created a competitive atmosphere among fast food names

in the world. All names trying to gain recognition has turned their
attention to Branding strategies in order to improve sales. (Steve, 2003)
Typically, consistent promotion and updating customers of their latest
product via mass media has been the way fast food industry has been
embarking on and in attracting its customers. This has been one of their
strategies in pulling customers towards them. However the industry's
players have realized that not only keeping the customers updated about

their products is important but winning customers' loyalty is equally

important.
Mark and Glynn (2010) have claimed that brand quality and reputation
influences customer value and customer loyalty. Businesses should
deliver a brand image that customers want as a tool to differentiate their
products.
Laurence (2012) has mentioned that repetition and consistency are the
ingredients of brands that win the memory game. Those who ignore
these rules will end up being ignored by customers as well. Therefore
branding has been a vital factor that has determine a company doing
successful business in the food industry, Thus many of Singapore's fast
food franchises has turned their attentions to branding which has impact
on customer loyalty.
Branding effects spread out positively aiding organisations in terms of
donations. Fast food outlets have adopted certain societies which run on
voluntary funding. Recognition is also gained through this manner where
customers identify the respective fast food brand to be society
conscious. (Giep and Moriarty, 2008)
Supporting environmental friendly campaigns has also made audience
have a second look at such fast food brands. To think that fast food
names are usually unhealthy but franchisers have made a point by
embedding that health factors are also being looked into while their
products are being produced with less harm done to surroundings. Such
efforts are made known to the customers via their Branding strategies.
(Eric, 2012)
The marketing mix which consists of Product, Place, Price and
Promotion has a very crucial role in what is perceived by customers.
Being the product it is supposed to satisfy the customer needs. But the
product should be beyond satisfaction which should create trust and
loyalty develops. Subsequently the place where items are acquired
should be reachable to its audience making it friendly. Any item which is
beyond reach is considered unfriendly. (Evert, 2002)
In Singapore Fast Food outlets have their own strategies in reaching out
to its targeted audience. Although the mentioned fast food outlets has
already well established in their country of origin, they are circumstances
it is not necessary to be the same in Singapore. Asian countries had

realised the power of branding rather late and country such as

Singapore which depends on foreign investments have also jumped onto
the bandwagon to support Branding. For example, A & W restaurant
which was introduced in Singapore in 1991 ceased from operations in
2003. It was indicated that it was unable to sustain and keep up
competition with its rivals within Singapore. (Andrew, 2007)
Fierce competition in terms of branding strategies has swallowed its
victim in Singapore. The other players were able to create the loyalty in
their brand was the factor which A & W restaurant was unable to
replicate. Other fast food names such as Wendy's and Dominos Pizza
has re-entered the competition realising the marketing strategies of
successful fast food outlets in Singapore. This means that there is space
for competitors and the competition is gaining rivalry among the fast food
chains. The strategies concerned concentrated on retaining customers
and developing a bond between the brand and the customer. At the
same time consistent communication with its audience via promotion lets
the customers know that the brand keeps in touch with its customers.
The bond is deemed as service quality towards its customers.
As a result, this type of branding strategies directly influences the
perception of customers towards service quality which in turn ensures
loyalty.
However, just knowing only branding as a crucial factor for doing
successful business is not going to be enough for the fast food industry.
Before building a successful brand image and increasing the
advantages, it is important for fast food businesses to know and
understand how the customer evaluates their brand as a base for
improving their sales, encouraging people to buy frequency and gaining
customer loyalty.

Research Philosophy
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My philosophy in this dissertation is to state the impact of branding which

influences customer's loyalty to a certain fast food brand in Singapore
and how the loyalty towards a brand contributes to the expectations of
customers. At the same time how marketing elements create the brand's
image among customers. I will be also stating the importance of
Marketing where trust is born on a brand. Marketing is part of Branding
strategy whereby it is the base for building a name and trust. It creates
demand for such items where there is competition.

Research Objectives
The first objective is to explore how marketing elements influence
Branding and further stamp out the importance of marketing which has a
vital role on Branding. A look at the marketing mix against Branding will
give us a clearer picture on how the image of branding is built through
time. Not all marketing approaches turns out to be positive for a Brand
and to emphasize on the direction of marketing which will eventually built
a positive image instead of a negative one as marketing done without
any research will lead to disastrous results. Examining the marketing
elements lets us learn the direct impact it has on Branding.
Another objective of this research is to realise the factors of customers'
expectations which affect Branding. A study of the factors which
influences customers' expectation will allow us to extract these factors
and study its perks which have direct impact on the way a customer
perceives a Brand. This factors comes in any form which will be further
siphoned as in which factors are the major stakeholders of customers'
expectations. From the factors identified, emphasis can be placed on
ratings as most important and less important factors which contribute to
customers' expectations.
The last objective of this research is to examine the relationship between
Branding and loyalty. The study should give us a macro level and micro
level image of the relationship between Branding and customer loyalty.
By looking at the Branding image which creates loyalty towards a Brand
will let us discover if loyalty towards a Brand is of perception or due to

pure Branding effects which creates loyalty. On the other hand if it is the
taste of the food made which creates the loyalty towards a fast food
brand. This also indirectly reads out if loyalty is imposed by Branding
statements or level of satisfaction gained by customers.

Research Question
The following research questions were raised to guide the research;
Q1: Is service quality important than Branding to customers of fast food
outlets in Singapore?
Q2: What are the benefits to fast food chains applying Branding in
Singapore?
Q3: Do Branding strategies influence the loyalty of customers towards
their favourite fast food name?
Q4: Do customers support all the branding tactics of fast food outlets in
Singapore?
Q5: How effective are fast food branding methods in retaining their
customers?

Research Structure
The study attempts to gather specific information on Fast Food outlets in
Singapore and their Branding policies. The collection of data will be
carried out through a quantitative methodology approach. From the
research questions we crack down on the facts that give importance
leading to the objective. Once the objectives are recognised, it creates a
flow of deep literature review. The hypothesis will be derived after an indepth study of the literature materials. Specific tools for analysis will be
utilised during the course of the study. Various calculable variables
should be identified by utilising the quantitative method. A survey form
consisting of multiple questions will be created after a look at literature
review. The survey will be in the form of a web-questionnaire. The
internet will be used as the basic form of data collection once the
questionnaire is tabulated. A review of the data collected will be
undertaken with the SPSS software package.

Summary
Most of the studies on Branding strategies are created and in place with
western nations generally. Thus this study has focused on a Asian region
which is Singapore. The study relates widely on Branding in the Fast
Food industry in Singapore and its impact on customer loyalty. The study
looks at the current trends being practiced in the industry and at the
same time pointing out the increase of such knowledge in the industry.
This also shows the importance being given by the stakeholders to the
concept. Branding has become essential to fast food brands.

This essay is an example of a student's

work
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This essay has been submitted to us by a student. This is not an example of the
work written by our professional essay writers.
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In this study the main objective was to find the relationship between
Branding and customer loyalty and how Branding has an impact on
customer's loyalty in the fast food industry in Singapore. Through the use
of the 4 Ps, the study attempts to identify the best way to retain a
customer in the fast food industry. Apart from contributing to Branding
and customer loyalty from a theoretical point of view the paper also
highlights the dimensions of Branding, which becomes a criterion for
customers to evaluate how efficient a fast food name is with its Branding
outcome.

Chapter Two:
Literature Review
2.1 Introduction

Rapid growth of population has increased the number of patrons turning

to fast food outlets to fulfil their daily hunger needs as mentioned. This
has intensified the need to differentiate and attract customers in order to
sustain and gain market share for fast food outlets hovering in
Singapore. Such outlets have to turn to Branding strategies in order to
gain a foothold in the market. Thus the design and implementation of
Branding methods create trust as well as build a bonding between the
fast food name and customers. Bonding in turn creates trust between
both.
This chapter emphasises on the 3 main literature aspects of the
research which are; Concept of Branding, Dimensions of Branding and
Customer Loyalty. To start off, Branding history and Branding in
Singapore will be analyzed theoretically. At the same time the current
progress of Branding trends in Singapore will be highlighted.
Subsequently Branding and Fast food industry will be studied.
Information of customer loyalty in Singapore will be also discussed.
Finally understanding the relation between Branding and the impact on
customer loyalty will be looked upon.

2.2 Concept of Branding

Geoffrey (2000) has mentioned that Branding is differentiated by
providing perceived quality and an ability to perform to changes in
customer taste. Rita and Sameena (2009) had identified that Brands are
tricky. They are the most important concept which almost all CEOs are
very worried about or having difficulty in delivering the actual meaning of
Brand. Branding has become hard to tackle.
Dunn (2010) has argued that Branding is a complex idea which is
demanding and not understood by many businesses. Branding has no
time limitations and can be built within a short or a long period. However
when it comes to today context, building it in a short time is the target of
fast food brands.
Successful branding understands the needs and wants of customers and
prospects. In order to achieve this, integration of brand strategies
through the company at every point of public contact is needed. Brand is
something that stays within the hearts and minds of customers, clients
and prospects. Some can be influenced whereas some are not possible.

Brand is a source of a promise to every customer. Branding is the

foundation marketing communication (Laura, 2012)

Brand identity is part of Branding. Brand

identity needs to be identified before
Brand Image is developed. Brand image
and Brand identity will shift according to
times. Brand image will definitely change
due to time and it needs to be refreshed
according to time to maintain the image.
(Wilson and Ira, 2008). Kapferer (2012)
has quoted that 'brand identity is not
based on the latest advertisements
seen: it is the sum of all previous
contacts with the brand-its inertia'. We
can understand that brand image is built
on time and does not happen overnight.
The perception of the product carries
weight of the brand image concerning its
age and quality as well.
2.3 Dimensions of Branding
Brand Actualization has 5 interlinked dimensions. Brand Experience,
Brand Community, Brand Culture, Brand Communication and Brand
Innovations (Brandxpress, 2005, 5 dimensions in Branding)
Figure 1.1: 7 Dimensions of Branding
image3374.jpg

Muyiwa (2011) has concentrated on the 7 dimensions which he deems

important to branding which are Brand Vision, Brand Value Proposition,
Brand Positioning, Brand Identity, Brand Behaviour, Brand
Communications and Brand Economics. He has mentioned that
managers at times discover that branding strategies needs to be
evolving in order to be successful. The 7 dimensions examine the
principals of Branding from the perspective of an economy.
Figure 1.2: Burnett Model
This model consists of 4 dimensions with 'essence 'which is the brand
factor at the centre.

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The functions describe what the Brand is and what does it carry along
with it in terms of the product.
The Personality/Image describes the form of imagery people have upon
the Brand and affective deposition to the Brand
The Source represents what the company is about and their objectives.
Lastly the Differences portion explains how different the brand is from
the rest and what makes it different from the rest of the competitors.

2.4 Marketing Mix (4Ps)

Marketing Mix is considered as a strategy and is a model framework.
Marketing mix can be broke down into the 4 Ps which are Product, Price,
Place and Promotion.
Figure 1.3: 4Ps of Market Mix, (McCarthy, 1960)
marketing-mix.gif

2.4.1 Product
Rustler (2012) has mentioned that creativity is product. Product is more
than just developing ideas. Dogra (2012) had defined that product
means anything that is capable or can be provided to achieve a need or
a want. It can be either tangible or intangible. She also has mentioned
that being a product it must deliver minimum level of performance. If it
fails, the other aspects of the marketing mix will not be of any good
.Hong, Kotler and Nancy, (2007) have stated that a core product
includes the benefits that the target audience will reap. Harsch (2012)
had classified product of more to a physical item that a service rendered
by firms as Product does not gain any currency in service business. It
can be considered as functionality, quality, appearance, packaging,
brand, service, support and warranty.

2.4.2 Price
Peter and Kerzner (1997) have argued that price is the easiest aspect a
competitor can battle on during competition. However they also clarified
that business with a significant cost advantage and reserves can never
be easily matched. Don and Beth (2009) have also argued that Price has
become increasingly irrelevant as markets are becoming very
aggressive and in turn makes pricing attractive but no longer a profit
statement. This is also aided by consumers who have more choice and
resistant to prices. Shay and Cynthia (2009) mentioned that price can be
defined as the value on audience member pays for to experience the
brand. Price can be considered as an investment on the certain item or
product a customer is willing to pay. Price can be considered as list
price, discounts, financing, leasing options and allowances.

2.4.3 Promotion
Allan (2009) has indicated that promotion is talking about the different
ways a product can be marketed. He further mentioned that promotion is
the communicating tool to reach audience other than pricing. Promotion
adds value to product being marketed. One of the primary goals of
promotion is to escalate the perception of the product, firm or brand.
Michael, Fredile and Terry (2010) defined promotion as a key pillar to the
4Ps which is referred to terms such as promotions and promotion

activities which can be confusing. Both are different but relates to getting
to the general targeted audience. And in turn gain audience trust which
builds loyalty between the products to customer. Promotion can be also
considered as advertising, public relations, message, direct sales, sales
media and budget

2.4.4 Place
Place refers to products being available where ever and when ever
customers need them. Place also refers to the physical distribution of the
product concerned including storing and transportation. (Charles, Hair
and Carl, 2011)Place is at times referred to as Distribution which is also
carries the same terms as Place. Distribution decides the quantity to be
produced for the place according to geographic location. (Gitman and
Carl, 2008)The product needs to define its needs in order to fulfil as a
product which a place or person requires. Once this is established, the
Place can be determined. (Phil Stone, 2001)Distribution is essential in
Place marketing. Distribution activities should be programmed within the
choice of marketing channel. The distribution activities are programmed
primarily consisting of activities aimed at development and maintenance
of the relationship with retailing organizations and physical distribution.
This ensures that products are available at point of purchase. (Herbert
and MacFie, 1996). Place can be referred to as locations, logistics,
channel members, channel motivation, market coverage, service levels,
internet and mobile.

2.5 Fast Food Branding

According to Ed Pendrys (2011) fast food has matured since the days it
has started to travel globally. Reaching out to the audience was not of a
priority initially when fast food outlets were introduced. However as Fast
food names were becoming dominant restaurants, branding was given a
second look in order to gain or attract customers in creative manners. In
times to come, it turned into business competition to retain and maintain
profit through Branding mediums. Richard R. Wilki (2006) has stated that
the competition has reached its levels that fast food names are toying
with emotions to reach out to audience. Such methods create
relationships among customers and the Brands concerned. According to
S.Ramesh Kumar (2009) consumer behaviour is influenced by Branding

strategies. Whether a fast food brand is able to retain its customers

solely depends on how it reaches out to its audience It develops a
relationship with customers which will have a everlasting bonding as
long as the Brand is able to continue its efforts in building on its current
relationship.

2.6 Customers Expectation

Customer expectations are related to Customer satisfaction. As
satisfactions are fulfilled, expectations rise on the specific brand of
product. However customers do still switch brands when they are
satisfied as at times future products of the same brand or product might
not meet their requirements, in other word expectations. Numerous
studies have resulted that 60 to 85 percent of satisfied customers do
switch brands. So it does not necessarily mean that customers
expectations are met when sales are high.(Timothy and Terry, 2001)A
customer does patronizes a brand without any expectations. When
competitors in the market are scarce for the certain product, customers
assume that their expectation is fulfilled as their having the best. By
fulfilling the customers' expectations, a certain degree of trust is gained.
This can be considered as a motivation factor for customers to select a
brand (Ziglar and Hayes,2001)
According to Neal, Quester and Hawkin, (2002) the customer's
expectations are matched to the performance of a product, is the main of
marketing as it is important to achieve customer loyalty. However at the
same time always a satisfied customer does not mean to be necessarily
a loyal customer (Shrake, 1999)
Figure 1.4: Caresoft Model
ececutionModel1.jpg
Source: Caresoft Global (2012)
The 'Caresoft' model consists of three major aspects which are;
Efficiency, effectiveness and Flexibility. This model was created just for
the meeting and exceeding customers' expectations. The model
emphasises on no backtracking and does not believe in service recovery
as expectations are to be fulfilled at the first contact. Although service
recovery option is definitely available, Caresoft are minimising the

options to be used in order to stamp out the need to have the first
impression. The model is named as an engagement model. The aim of
the model is to provide quality service with or without a product at
optimum levels to customers. At the same time to fine tune the
commitment level and control. The level of investment required is also to
be controlled via the model which will look at capitalising on maximum
satisfaction fulfilled with cost savings initiatives. (Caresoft, 2012)

2.7 Customer Loyalty in Singapore

Many researches have been done worldwide for the dimensions of
determining customer loyalty. David (2002) have argued that most
studies have generalised customer loyalty as a single factorial construct
without differentiating between repurchases, additional purchases and
referrals. Richard (2010) has created a Matrix which looks into 2
dimensions of customer loyalty which are the value of a customer
expressed in terms of Economic profit and customer loyalty elements
that are most important to a company's customer. Oliver (1997) also
came up with a framework that breaks down Customer loyalty into 4
phases which are cognition-affect-conation-action. This phase describes
the customers' attitude towards a certain product until the last phase
where the customer reaches loyalty to the product.
Moreover E.Hayes (2008) has indicated that customer loyalty can be
conceptualised into three distinct types which are, Advocacy loyalty,
purchasing loyalty and retention loyalty. Ruijian of Oklahoma State
University (2007) has elaborated the customer loyalty into 2 dimensions
as well which are attitudinal loyalty (antecedent) and behavioural loyalty.
He has further broken it down into 4 segments which are true, latent,
spurious and low loyalty.
Esther (2004) has stated loyalty is the regular repurchase of a brand or
from a store based on commitment towards the specific brand or store.
Clopton, Stoddard and Clay (2001) have mentioned that customer
loyalty makes an enormous difference between the costs of retaining a
loyal customer and winning new customers.
Singapore has a population which has about 91.6% consuming fast food
and the numbers are ever growing. This is also partially due to the
increase of population in recent years. At the same time fast food

franchises have also grown in numbers throughout the years. The

numbers of fast food outlets have exceeded the amount of primary
schools in Singapore. This trend creates easy access to fast food where
the findings were done on consumption of fast food (Health Promotion
Board, 2010).The percentage of Singaporeans eating at fast food
restaurants are rated at about 2 to 5 times a week by Lew and Barlow
(2005). In 2010 the fast food industry has grown about 3.8% compared
to 2009(Economics Survey Series, 2010) Industry experts expect that
this trend will be increased and carried on in the next following years.
Even though customers are spoilt for choices, they do return back to the
very same product due to certain factors. It includes quality, service,
taste, brand image, promotion, price and accessibility.
In Singapore, Naleeza and Yaw (2007) has claimed that customer loyalty
at times depends on small factors like the chilli sauce provided by the
fast food industries. In November 2011, McDonald's fast food restaurant
withdrew their 'curry sauce' temporarily due to supply issues (Jessica,
2011). It also caused an uproar of Singapore McDonald's customers
showing their grief over social networking websites over the lack of curry
sauce availability.

Chapter Three:
Research Methodology
3.1 Introduction
Branding is defined by Kotler and Armstrong as a combination of name,
term sign or design developed to identify a product or service provided
by a seller or a group of sellers. At the same time it helps to differentiate
them from each other to compete and excel in a market. There are
studies which have been conducted to learn and analyze the relationship
between Branding and its success. But there are also evidences that this
fact could be contradicting. Kapferer (2008) has mentioned that Branding
alone has no immediate effect as mentioned by Kotler and Armstrong.
Just Branding without emotions leads to lesser effect of Branding is their
argument. Thus we can determine that Branding has mixed reviews from
its users. And there is a need for certain elements to be present for

Branding to be a full success. Kumar (2009) had also listed that

Branding is not a factor for loyalty of a customer but the customer's
experience in utilising a Brand plays a vital role when comes to
customer's loyalty towards a Brand. He has further mentioned that a
customer will still consider all options available for a product before
ultimately setting upon a Brand and loyalty has no place when branding
is concerned. A limited few researches have been done pitting Branding
being affected by emotions. And at the same time, experience of a Brand
influences the decision of customer instead of the other factors.
Experience of a Brand is targeted towards service received by
customers from a Brand. So service quality is the main part of
experience.
Hereby a framework will be structured to analyse the relationship among
experience and emotional attachment towards a Branding which impacts
the customer loyalty in Fast Food Industry in Singapore. It will also
examine to what level a customer is willing to go with emotion as a factor
towards a Brand and experience as a factor towards a Brand. We can
also look at if Brandings of fast food given importance to emotional
values when considering reaching out to customers.

3.2 Hypotheses
Hereby, the research is going to hypothesize that there is positive effect
of Branding which does have impact on customer loyalty therefore
emphasizing for a fast food Brand to be more Branding conscious in
order to achieve customer loyalty. Such emphasis should lead to
Branding as their core business strategy.
Hypothesis - Branding positively affects the customer's loyalty in Fast
food names in Singapore
Parsa and Francis (2002) have underlined that quality service has been
undertaken by fast food outlets since the time it was introduced in
Singapore as entrepreneurs followed up on the success it gained in the
western countries. And in no time it was appreciated in Asian countries
such as Singapore. Quality service has not just been a differentiator but
also a aggressive tool to attract and retain customers.

Findings revealed that there is a positive relation between the quality

service offered between the fast food outlets in Singapore and Customer
Loyalty.
Fast food industry is ever evolving and new fast food chains are seen
daily. In such an environment, Branding strategies are the most
important route to build loyalty between a customer and a Brand. Only
based on repeated purchases from a certain Brand do not mean loyalty
is present but a person's self belief about a brand's service, brand or
product. (Oliver, 1999) Customers become indirect promoters of a brand
when loyalty is developed between the brand and customer. This
illustrates how a customer is bonded towards a brand and gives a sense
of belonging to the brand. (William and Ferrell, 2011)
Findings revealed that there is a positive relation between Branding of
the fast food outlets in Singapore and Customer Loyalty.
It has been constantly reviewed and revealed according to Dan (2009)
that a Brand and its strategies creates customers. A brand even though
with efficient use and value has not hit the cords right in order to be
popular in the market. However with proper branding strategies this can
be achieved. Customers tend to 'blindly' choose products or services
which have reached out to them efficiently.
Findings revealed that there is a positive relation between Branding
strategies leading to customer retention in fast food outlets in Singapore.

3.3 Research Methodology

It is a process of obtaining Information through a wide range of
procedures. It can be via Literature, people, interview and surveys. A
wide range of research methods are available and used. Methods used
vary due to the sources of information obtained. Methods also vary
according to the way they are collected, Qualitative or Quantitative.
These methods have been further narrowed down to Chronicle,
Explanatory Biography, Ethnography and Liberal Feminist Study for
Qualitative. And Survey, Experiment, Correlation Study and Content
Analysis for Quantitative methods. (Thomas, 2003) Research is also
based on explanation and descriptions. It is seen as a part of circular
model of research which works in 2 ways, inductively and deductively. A
systematic research strategy needs to be drawn out to identify the

correct tools and path for the ultimate results. Such plan or strategy
leads research proper.

Research Design
A structured approach to data collection that nearly and economically
addresses the research question, answering the hypothesis or resolving
the argument involved

Exploratory
Information-gathering
Critical Incident assembly

Descriptive
Market Research
Case Study
Systematic examination of mode of operations

Casual
Survey
Time-sampling
Before-after
Controlled Experiment

Choice of Method
A particular, systematic and orderly approach for the collection and
analysis of data, so that information can be derived

Approach to Generalization
Sampling

(Associated with Survey method)

Replication
(Associated with Case Study Method)

Choice of Technique
Figure 1.5: Elements of the Research
Design Process
3.3.1 Qualitative Research
Qualitative research is beyond issues of subjective meaning and towards
issues of language, representation social organization. A method to build
links between social sciences traditions. (David,2004) Norman and
Yvonna (2011) have stated that 'the open ended nature of the qualitative
research leads to a perpetual resistance against attempts to impose a
single, umbrella like paradigm over the entire project' . Such methods
are used for theory building instead of theory testing. It's a collection of
data or information from observation, informal, unstructured and in-depth
interviewing, and participant observation. David (2009) has emphasized
that interest in subjectivity and the authenticity of human experience is a
exemplary of Qualitative research.

3.3.2 Quantitative Research

Quantitative research in other words can
be considered as the opposite of
Qualitative research. Quantitative
research is about gathering hard facts
and statistics as a guide by asking
opinions of people in a structured way. It

focuses on gathering numerical data and

generalizing it across groups of people.
Such research can be used to generalize
concepts more widely, predict future
results or investigate casual
relationships. Statistical analysis of the
results can lead to a comprehensive
answer. These experiments can also
eliminate external factors. (Experimentresources, 2012)Measurement and
statistics are vital to quantitative
research because it connects empirical
observations and mathematical
expressions of relations.(Hoy,2009)
3.3.3 Choosing a Research Method
During the selection of a method to
perform research, there is much
emphasis given to collection and
analysis of data when it comes to the
particular 2 frameworks which are
qualitative and quantitative approach.
Both frameworks are not inferior to one
another but possessing advantages and

disadvantages of its own. Researchers

spent a reasonable time on choosing the
right method for their subject. There are
certain obstacles which researchers fall
prey when selecting a method. This is
influenced by the outside forces which
ultimately impact the objective of the
study. Reliability, validity and replication
are the three important criteria's for the
evaluation of a research. (Lawrence,
2007) Before choosing the appropriate
qualitative and quantitative research
method, a lot of other factors must be
taken into consideration. Money,
accessibility, ethics, feasibility and time
constraints should be considered as
important aspects as these factors are
used to record occurrences precisely and
nature of research.
There are certain conditions which will apply when choosing a
quantitative method such as whether the concept being measured is on
a proportion scale. There is only one way to measure a concept and
there is no uncertainty of the concepts being measured. A phenomenon
is being measured via this method. The research are towards optimism
rather than empirical. (Mark and Peter, 2001)These conditions are not
applicable when it comes to qualitative methods. The chosen topic does
not carry any or very little data. The uncertainty of the most applicable

unit of measurement arises. The evaluation of the concept is done on a

minimal scale with no clear distinction points. The causes of why people
do or believe in something are examined in this research method.
Researchers tend to use both the methods, quantitative and qualitative
methods to stamp out the validation of their point of study. This way they
are able to study and analyze different forms of data. Adding onto it,
biases inherent in a specific method is erased due to the mixture of
methods, thus enhancing authentication of the study.(Huberman and
Miles, 1994)

3.3.4 Research Method Chosen

Qualitative method of research is utilized in this paper through the aid of
a self administered web questionnaire to acquire data regarding
Branding and the impact it has on customer loyalty in fast food brands in
Singapore. The general population of Singapore is taken as a sample for
the survey and the questionnaire is distributed to random participants
with no criteria or requirement.

3.3.5 Research Framework

A framework is created on the backdrop of research questions, research
objective, literature review and hypothesis. Branding and customer
retention in a fast food name routes to the discussion of the relationship
between the Branding strategies and customer loyalty.
ServicesFigure 1.6: Research Framework
Branding
Improved Branding Strategy
Customer Loyalty
Customer Retention

3.4 Research Variables

The mentioned research variables are drawn out to measure the
relationship between Branding and customer loyalty. Only three
dimensions are listed which are Service, Branding and Customer

Retention. The model was created to measure quality and importance of

Branding Strategies and their impacts on customers and their loyalty in
fast food outlets in Singapore. The questionnaire will bear statements
relating to the three dimensions. The statements of the three dimensions
are as follows.

3.4.1 Services
When it comes to service, the fast food outlet should be able to provide
adequate information on their services provided. Satisfaction of
customer should be always met by the fast food outlet. Customers tend
to patronise other fast food brands when their regular fast food outlet
lacks in the service they require. Bad experience has never come across
when first choice fast food outlet is visited. Change of outlet for in the
name of convenience sake. Regular updates via mass media by the
outlet.

3.4.2 Branding
Branding strategies by the outlet is satisfactory. Ideas by patrons with
regards to Branding should be taken into consideration. Fast food outlet
should show responsibility by making its health facts public. Choice of
outlet has good branding strategies. Choice of fast food outlet
accessibility concerns. Price of product is competitive. The promotion
efforts are attractive. The end product has met its needs.

3.4.3 Customer Retention

Branding is an important factor when opting to patronise a fast food
outlet. Change of patronisation comes along due to price and promotion.
Quality has its place when it comes to customer retention. Overall brand
image is one of the most important criteria for customers.

3.4.4 Customer Loyalty

Former expectations of overall quality of service are used as a base for
valuation of customer loyalty rather than actual service received. Loyalty
towards a service increases when service rendered has exceeded the
expectations of a customer. Loyalty is a commitment to repeatedly using

or revisiting a specific product or service currently or on the future. Such

purchasing of the same brand or service creates repetitive pattern of
purchase. Such feat can be achieved in a market where situational
influences and marketing efforts are a potential threat to customer
loyalty. (Kristen, 2008) Customers are one of the best brand
ambassadors. Their loyalty leads to word of mouth communication in
favour of a brand. Thus branding strategies must prioritise customer
loyalty. Branding strategies have a positive impact on customers'
attitude. Branding strategies plays a big role in retaining customers.
Customers will or prefer to promote their fast food brands whenever
possible. Recommendation of fast food brands increase due to branding
strategies leading to customer loyalty. Customers prefer to be associated
with the fast food brand.

3.5 Research Design

Cross sectional research design is applied in this study. Gathering of all
relevant information of variables is described as cross sectional
methodology by Rassel and O'Sullivan (1999).Gathering information on
behaviours and attitudes of vast geographical diverse populations is the
forte of the mentioned method. The relationship of the different
dimensions mentioned can be examined via this study.

3.5.1 Survey Design

This study aims to examine the connection between 2 variables which
are Branding and Customer Loyalty. A cross sectional self administered
web survey is used to achieve this. Gathering of data is done and
collected from the general public of Singapore who would have directly
or indirectly came across Fast Food restaurant at least once in their life.
The method of survey is considered as the most suitable research
design for quantitative research to analyse the participants' response in
this study.

3.5.2 Structure of Answers and

Questions

The questionnaire is dissected into three categories to make it a breeze

for participants. The first category will be based on demographics of
respondents and further ease provided by answering multiple choice
questions. The next category will be with statements which will be about
quality, Branding and customer retention. Respondents just need to
answer if they agree or disagree using the Likert scale. The last category
will have statements regarding customer loyalty in the form of Likert
scale as well. All Likert scale provided have only 5 options which are,
Strongly Agree, Agree, Neutral, Disagree and Strongly Disagree.

3.6 Selection of Respondents

A researcher is only able to churn out statistics by studying a group of
population of interest where the research applies. Subsequently fair
results are generated and produced to the same population. No
demographic barriers are practiced for this study. To further reach out to
a larger population of participants, the internet is used as a medium to
communicate the web based questionnaire.(Vaus, 2002) The
respondents as mentioned will be the general public who have internet
access as population visiting Fast Food outlet in Singapore is at least
twice a week according to Susan (2012). Internet access is highest in
Singapore compared to the whole of South East Asia according to Kwek
(2011). Thus this is deemed the most appropriate method to conduct the
survey.

3.7 Secondary Data

Secondary data is information which has already been consolidated and
readily available via numerous sources. Such data is easily obtained
compared to primary data which may at times be more costly than
secondary data. Secondary data can play a pivotal role in any research
process, importantly in a design of a project. The research undertaken
becomes clearer as secondary data provides background information to
aid researchers. Validity and reliability is ensured with the use of
secondary data in a research. Decisively, secondary data will be used in
this study.

3.7.1 Primary Data

Primary data are information collected

for the very first time and are original.
Such data collection is usually done by
an authorized source. (Jha, 2009)
Primary data is usually more expensive
and longer to obtain however it contains
more detailed or richer information
compared to secondary data. (Louis and
Kurtz, 2011). The most common method
in obtaining such data is focus groups,
surveys and interviews.
Sample size of project has to be
identified as it is vital and important. The
accuracy of the research depends on the
amount of sample sizes being acquired.
Medium scale of primary data is to be
collected for this research whereby 100
survey respondents will participate.
Survey respondents will be consumers.
Questionnaires are to be provided
personally for the first 100 survey
respondents who will be required to fill in
the questionnaires. The rest of the 100
survey respondents will be reached via

e-mails requesting them to perform it

online. The data collected will be
statically analyzed and to verify if the
hypotheses that were created have been
supported. The SPSS (Statiscal Package
for Social Science) will be utilized to
conduct the data analysis.
3.8 Data Analysis
Calculation of the data analysis in the quantitative method is the
summation of measures and at the same time finding patterns of
relations that co-exist among the information groups. The analysis
process may result in, dissimilarities or cohesion, differing or supporting
with new or original hypothesis may be put through a round of significant
statistical test in order to determine any conclusions with valid findings.
The results obtained from the questionnaire of the participant are noted
down in a spreadsheet and checked. The Statistical Package for Social
Sciences (SPSS) is used to tabulate the information gathered from the
questionnaire.

3.9 Authenticity and Reliability

Authenticity in other words which means validity of a statement given or
created. It is a determinant in terms of a quantitative research. It stamps
out the whether if the intended measures were met or how pure the
results are. (Patrick and Oliver, 2010)We can also decipher this
statement as if the exact objective of the research was met by utilising
the research tool. A series of questions aids the validity of a research.
The ultimate objective is of the researcher is determined by gathering
the information collected using the questionnaire as a tool. Reliability can
be also referred to as meticulous study of the overall population under
study and results recorded over a constant period of time. (Patrick,
2010) In the event, such results can be replicated using a similar method

as a tool, then the research system is considered as reliable. Two factors

are revealed with regards to validity and reliability respectively. First is, if
instrument of measurement is accurate enough and is the intended
measurements are recorded with the measures. The second is the
measurement instrument has measured results which can be replicated
with other modes of measure.
A lot of effort and scrutinising was done to identify the series of questions
and the selection sample to meet the criteria of validity and reliability.
Varieties of sources were searched and looked upon for literature and
was reviewed to validate contents. Reliable sources were sought after to
ensure legitimacy of data gathered. Previous professional researches
had provided instruments to measure information. A sample
questionnaire was sent out to supervisor for his opinion on the relation
between the questions and research objective to check the authenticity
of the survey.

3.10 Research Limitations

Definitely limitations are present in any research and so does this. The
focus is quite narrow towards Branding and only has been discussed in
terms of impact on customer loyalty. In dept general information of
Branding has not been sought after due to the focus on the impact of
customer's loyalty. There are limited tools to be used to measure service
quality. Some important points might have been disregarded due to the
limited measurement dimensions. I have only given a choice of 5 point
scale and this might be not adequate for a respondent to reflect their
views. Only 70 respondents' response was studied due to shortage of
time and this does not represent the total population who visits fast food
outlets which may lead to inaccurate data. Therefore careful attention
must be given when responses are examined.

Chapter Four: Findings and Analysis

4.1 Introduction
A discussion of the findings and analysis of the questionnaire will be
done in this chapter. This includes the answers of the research questions
as well. A test will be performed on the hypotheses and will be

presented. The SPSS method will be used to compile all data and
information which will be presented and analyzed.

4.2 Profile of Respondents

The socio demographic features of all respondents are showcased in the
table below as data. The table has comprised of the respondents who
have participated in the survey. The 100 responses received were
mandatory for all participants which is the first part of the questionnaire.
The percentage and frequency are the characteristics. Each variable's
majority is presented at the column indicated as Mode.
Table 1.1: Respondents' Data

Variables
Frequency
Percentage
Mode
Gender
Female
31
47%
Male
Male
39
53%
Total
70
100%

Variables
Frequency
Percentage
Mode
Age
>60
4
6%
18-30 Years
18-30
41
58%
31-60
25
38%
Total
70
100%

Variables
Frequency
Percentage

Mode
Nationality
Foreign National
7
10%
Singaporean
Permanent Resident
13
20%
Singaporean
50
70%
Total
70
100%

Variables
Frequency
Percentage
Mode
Status
Student
20
29%

Corporate
Self Employed
4
6%
Government
5
7%
Corporate
27
39%
Other
13
19%
Total
70
100%

Variables
Frequency
Percentage
Mode
Education
Post Graduate
5
7%

Diploma
Undergraduate
13
19%
Diploma
44
64%
Secondary
7
9%
Primary and Below
1
1%
Total
70
100%

Variables
Frequency
Percentage
Mode
Annual Income
(SGD)
>80k
6

8%
50K - 70K
11
16%
30K-50K
24
29%
>30K
18
26%
Others
11
20%
Total
70
100%

Variables
Frequency
Percentage
Mode
Fast Food Names
MacDonald's
13
17%

MacDonald's
KFC
11
15%
Long John Silver's
10
13%
Burger King
9
14%
MOS Burger
2
4%
Texas Chicken
6
9%
Subway
8
11%
Popeye's
7
10%
Wendy's
4
7%
Total
70

100%
Source: Result Summary of SPSS used for the purpose study

4.2.1 Findings and Analysis

The table 1.1 consists of a total number of 70 respondents whereby out
of the 70, 53% are made up of male population and the rest which is
47% is made up of the female gender. The numbers of the most
participants of the survey fall into the age category of 18 to 30 years
which is 58%. The next in line is 31 to 60 years which is 36%. The
majority of participants are Singaporeans which is 70%. The survey was
done with mostly people who are in the working class which makes up to
39% and followed by 29% which are the students. This statement gives
us an idea of the largest social group patronising fast food outlets for
their needs. The educational status of the respondents tells us that most
of the patronisers of fast food outlets are diploma holders which makes
up 64% and followed by undergrads which makes up 19% the rest of the
classes such as post graduates, secondary and below makes up the rest
of the population. The majority of the patronisers of fast food outlets do
have a steady income of about 30k-50k (SGD) which makes up 29% of
the respondents. Followed by this stats belongs to the next highest
which will be a salary range of 30k and below which is 26%. The fast
food brand patronised widely by the respondents points to MacDonald's
restaurant and followed by Kentucky Fried Chicken. The percentage is
17% and 15% respectively. Even though it shows the majority visiting
MacDonald's, most do have a second choice when they feel a need to
savour different items or just not happy with the services provided by
their preferred fast food outlet.

4.3 Perceptions of customers of Branding

Strategies of Fast Food Outlet
A tabulation of how customers feel towards the efforts made by their
respective fast food outlets with regards to branding strategies was also
taken. This will tell us more how closely are customers observing the fast
food outlets tactics and improvement in their food, service and quality. At
the same time how customers are being enticed by these brands and
how successful the Brand is.

Figure 1.7
Statement: You feel your Fast Food Brand takes health of customers' as
priority

4.3.1 Findings and Analysis

The pie chart in figure 1.7 shows the response from participants with
regards to on how much effort have been imposed on preparing and
serving the food as healthy as possible even though it is a fast food
where most of the food is processed food. 60% feel that measures have
been taken however 17% disagree with the statement. We can analyze
that majority have faith in fast food brands of maintaining their hygiene
level and as much as possible giving importance to health in order to
attract and retain customers.

4.4 Customers response to Branding

Strategies performed by Fast Food
Brands.
Currently customers are aware of their favourite Brands' branding
strategies and effects. Some do acknowledge it and some support it by
word of mouth. However there are others who just goes for the taste and
not interested in being part of any Branding strategy or call themselves
'victims' of Branding. There are also people who totally disagree with
Branding and feels that it inflates the product values. But this group of
people are actually 'loyal' to a fast food Brand they want to be associated
with.
Figure 1.8
Statement: You support the Branding initiatives undertaken by your Fast
Food Brand

4.4.1Findings and Analysis

The pie chart above indicates that 44% of the participants support the
Branding strategies undertaken by their fast food brands including by
word of mouth. 42% were not interested but were patronising the fast

food names for convenience sake or taste. Indirectly this percentage had
aided Branding in a way as they revisit the same fast food name for
'taste' and visit the same name in the name of convenience. Branding
has still prevailed.

4.5 Descriptive Statistics for each

dimension
Descriptive statistics are the presentation of manageable form of
quantitative descriptions. This aids to describe the single variable and
the associations that links one variable to other (Babbie, 2010). Likewise
descriptive statistics are utilised in this study to explain this in numbers.
SPSS was used to tabulate the numbers such as minimum, maximum,
mean, sum and standard deviation. The results are as follows:
Table 1.2: Descriptive statistics

Variables
N
Minimum
Maximum
Mean
Std.
Deviation
Services
70

1
5
3.35
0.95
1) All Services
provided with
70
1
5
3.64
1.014
respondents brand
2) Happy with Brand
70
1
5
3.61
.752
services
3) Another brand
70
1
5
3.16

1.080
services are used
4) Problem with
services of first choice brand
70
1
4
3.04
1.006
5) Brands are
responsible towards
70
1
5
3.51
.816
society and
environment
6) Change the brand
70
1
5
2.96
1.049
if it was convenient
7)You receive regular
70

1
5
3.55
.963
updates/newsletters
from your bank

Branding
70
1
5
3.19
0.85
1) Your brand
undertakes branding
70
2
5
3.74
.634
activities
2) You support your
70

2
5
3.38
.688
Brands' activities
3) You would like to
be more involved in
70
2
5
3.41
.773
the brands' activities
4) You have
aided in your
70
1
5
3.04
1.077
brands branding activities
5) You have
70
1
5
3.20
.994

supported in other Brands' branding initiative

6) An update of all
Branding initiatives taken is let known to you
70
1
4
2.64
.985
7) You do not support any branding
70
1
4
2.35
.888
initiatives
8) You support only
Branding initiatives you think is useful
70
1
5
3.80
.815

Customer
70
1

5
3.82
0.73
Retention
1) Branding is an
important criteria
70
2
5
3.36
.785
2)
Prices are an
important criteria
70
1
5
4.23
.710
when choosing a
brand
3) Quality of service
is an important
70

1
5
4.17
.663
criteria
4) Image of brand is
70
1
5
3.52
.779
an important criteria

Customer Loyalty
70
1
5
3.79
0.65
1) You would
continue with your
brands as they
70

2
5
3.58
.651
Enhance Branding
activities
2)
You would
publicise your brand
70
1
5
3.86
.670
for their Branding
3) You are proud of
your brand for
70
3
5
3.96
.527
Performing Branding
Activities
4) You would
recommend your
70

2
5
3.77
.789
brands to others due
its Branding success
Source: Summarised from results of the SPSS test for the purpose of
this study

4.5.1 Findings and Analysis

The dimensions which we were looking at have been given and derived
in a numerical form to understand it better. The table 1.2 has described
and given the mean and standard deviation for a better understanding.
All the information were taken and input directly from the set of questions
from the survey. The value of each tabulated the point form answers
from the questionnaire. Thus Branding and the impact on its customer of
a fast food brand can be meticulously expressed ina a statistical format.
The total numbers of participants are 70. The average or mean is used
to describe the central tendency of all samples.
As per the results shown in table 2.1, the average value on the
dimensions is Mean = 3.45 and the average SD = 0.83. The values for
the dimensions measure a minimum of 1 (strongly disagree) and a
maximum of 5 (strongly agree). Among the 4 dimensions, customer
retention receives the top score with its Mean = 3.82 and its standard
deviation is 0.73. The lowest rating in the 4 dimensions is the dimension
with its mean at 3.19 and SD = 0.85. The customer loyalty dimension
comes second with its average Mean = 3.79 and its SD = 0.86. Coming
in at third place is the services dimension with its average Mean at 3.35
and SD at 0.95.
From the answers tabulated we can see there is influence of Branding
strategies on retaining customer. How it is not the top influencer in doing
so. The data reads and deciphers that customers should be aware of a
brand's branding strategies and activities in order to choosing to be loyal
to a certain brand. As the Branding dimension showcases low Mean, we

can come to such statement. Branding strategies should be improved

and more communication with its customers will contribute to dramatic
results. Communication via improved Branding strategies will prove vital.

4.6 Results of Research Questions

The research questions which were raised in section 1 will be extracted
with answers and presented below
Q1: Is service quality important than Branding to customers of fast food
outlets in Singapore?
Answer to Q1: Yes service quality is more important than Branding
Strategy to customers of a fast food industry in Singapore.
Explanation: As shown in table 1.2 the service dimension have an
average Mean = 3.35 and with 5 for its top score. This dimension
presents the average p
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