Dr.

Gaur Hari Singhania Institute of Management & Research, Kamla

Nagar, Kanpur

Final Research Project

On
Factor affecting brand loyalty: Do
different factor have various
influence on level of loyalty for
FMCG sector

UNDER THE GUIDANCE OF

Mr. Puneet Rai
Assistant Professor

SUBMITTED BY:

ANKIT SHUKLA
Sec-A
Roll no. 1160
Pgdm 15th batch
1
 Acknowledgement

First of all I would like to express my regards and thank wholeheartedly to Prof. Dr. Prithvi
Yadav, Director, Dr. Gaur Hari Singhania Institute of Management and Research-Kanpur,)
for granting me an opportunity to do my Final research project.

With a deep sense of gratitude and humble submission I would like to express my heartiest
gratefulness to my Faculty Guide Prof. Puneet Rai for guiding me throughout my Final research
project. I feel motivated and encouraged every time I attend his class. Without his
encouragement and guidance this project would not have materialized.

I am also obliged to all the staff members of Institute. And lastly I give my heartiest thanks to
all my faculty members and all my classmates for supporting me throughout my project.

Date: signature

CONTENT
2
• Acknowledgement 2
• Declaration 3
• Introduction 4
• Research on Brand Loyalty 5
• Importance of Research Issues 7
• Questionnaire Design 11
• Questionnaire 13
• Research objective 15
• Finding & observation 17
• Factor analysis & interpretation 17
• Factors 23
• Discriminant Analysis 25
• Implication of research 30
• Conclusion 32
• Recommendation 33
• Refrences 34

INTRODUCTION
3
Recent years have shown a growing interest in customer loyalty. The globalisation
of competition, saturation of markets, and development of information technology
have enhanced customer awareness and created a situation where long-term success
is no longer achieved through optimised product price and qualities. Instead,
companies build their success on a long-term customer relationship. According to
former studies, it can cost as much as 6 times more to win a new customer than it
does to keep an existing one. (Rosenberg et al. 1984: 45) Depending on the
particular industry, it is possible to increase profit by up to 60% after reducing
potential migration by 5%. (Reichheld 1993: 65) Hence we can see that the increase
and retention of loyal customers has become a key factor for long-term success of
the companies. The main emphasis in marketing has shifted from winning new
customers to the retention of existing ones.
Traditionally there are two approaches to treat customer loyalty. Some researchers
have investigated the nature of different levels of loyalty, others have explored the
influence of individual factors on loyalty. In this article both treatments are
combined. The starting point of the paper is to test whether the list of most
important factors affecting customer loyalty is dependent on the levels of loyalty of
costumers. More specifically the current paper is going to estimate which specific
factors in telecommunication sector
Influence the loyalty rate of the various customers segmented by loyalty.
The potential for establishing loyalty depends on the object (i.e. product or vendor),
on the subject (customer) or on the environment (market, other suppliers etc.). This
paper focuses on the analysis of object-related factors that are subject to direct
impact by companies.

Research on Brand Loyalty

A major objective of any marketing strategy for most product categories is the
4
facilitation of consumers to repurchase the brand through preference or
involvement. Therefore, the topic of repeat purchase or brand loyalty has received
considerable attention both by academicians and practitioners. Brand loyalty refers
to the consumer’s behaviour of repeatedly purchasing a specific brand over a
certain period of time. This is based on the past behaviour and the brand loyal
consumer is likely to purchase the products of a specific brand currently and in the
future (Lin, Wu and Wang 2000). However, a debate that has been going on in this
field since the seventies is whether brand loyalty involves more than a behavioural
measure of repurchase (Day 1969). Therefore, researchers have focused on another
dimension of brand loyalty ,namely attitudinal loyalty (Werner and Kumar 2002).
This debate has not reached any consensus, but the fact remains that brand loyalty is
believed to be a powerful tool to combat increasing competition in the
marketplace (Amine 1998).Brand loyalty is important for marketers because it
helps in retaining customers and often requires less marketing resources than
acquiring new ones (Reichheld and Sasser 1990). It also has positive
implications brand

equity (Aaker 1991; Uncles and Laurent 1997; Chaudhri 1999). The purchase
behaviour of consumers is greatly influenced by increasing competition
reflected in the proliferation of brands in the packaged product categories, and
in the consumer’s thirst for variety (Choong 1998). Further, it has also been
pointed out that not all consumers are created equal (Hallberg 1995) and their
relationships with brands are also not alike either in strength or character
(Fournier and Yao 1997). The concept of “Double Jeopardy” advocated that
smaller brands experience the double jeopardy effect. This effect established
that smaller brands have lesser market share and also have fewer consumers
loyal to them as compared to larger brands that have higher market shares and
higher degrees of brand loyalty (Ehenberg, Goodhardt and Barwise 1990). This
may be very applicable to emerging markets because there may be a number of
smaller brands. It is therefore important to understand factors influencing brand
loyalty of consumers so that marketers can accordingly formulate the marketing

5
mix of their brands to target appropriate segments. This study is an attempt to
understand key factors influencing brand loyalty in a changing environment.
A number of studies have focused on understanding the concept of brand
loyalty and the factors influencing it. Product attributes, after sales
service/usage, marketing capabilities, perceived quality/aesthetics, depth of
product line and brand popularity are key differentiating factors influencing the
behaviour of repeat purchasers and brand switchers in case of consumer
durables (Lin, Wu and Wang 2000). Studies have also found that brand
commitment is a necessary condition for true brand loyalty to occur(Bloemer
and Kasper 1995; Amine 1998). This was supported by the findings of Knox
and Walker (2001), wherein they found that a number of factors like packaging,
new product trial, price, store location, product quality/features, vouchers, free
gift, variety, children’s influence and advertisements discriminate switching
motivations of heterogeneous consumer segments like brand loyals, habitual
loyals, variety seekers and switchers. Consumer’s demographic characteristics
like age and household income are also associated with high levels of brand
loyalty (East, Gill, Hammond and Hammond 1995). The study also found that
brand loyal consumers are more concerned with quality than price, are heavy
spenders and are slightly more store loyal also. Brand loyalty is also influenced
by market structure (Lin, Wu and Wang 2000; Sharyn and Rebekah 2001),
positioning and marketing mix strategies (Bhattacharya 1997). It was also found
that brands which cater to niche markets are bought in higher quantities, have
lower prices, are promoted to a lesser extent, have shallower price cuts and
enjoy more than expected loyalty levels. Recently, Knox and Walker (2003)
found a weak but significant relationship between level of involvement and
brand loyalty in the grocery market. Further, it is also recommended that while
brands explore the possibility of exploiting the benefits of retail environment,
brands should fully exploit the ability to communicate with all the senses and
should specifically focus on sonic branding, which can be a powerful tool in the
development of brand loyalty (Fulberg 2003).

6
While several factors influencing brand loyalty have been studied in the extant
literature, the authors opine that brand loyalty has to be studied from the
viewpoint of certain recent developments in academic research without losing
the useful insights gained from traditional research studies. This study therefore
attempts to investigate empirically the influence of key factors viz. brand
functional benefits, price consciousness, brand trust, brand symbolism and
genetic influence on brand loyalty. These factors represent traditional and
emerging dimensions influencing brand loyalty and could help practitioners of
marketing in designing suitable marketing strategies.

Importance of Research Issues

7
Brand loyalty has been researched for the last several decades. As discussed in the
literature survey the traditional aspects of loyalty are undergoing a change in a changing
environment. Researching any aspect of marketing, especially a concept like brand loyalty,
which is topical and contextual requires exploring a new dimension associated with it .The
authors have
attempted this aspect in this research study. Researching the basic aspects and moving into
recent developments is a well-accepted practice in research (Baker 2000). This paper
makes an attempt to explore certain topical aspects of the concept in an emerging market.
Recent literature on the concept suggests that brand loyalty could be an offshoot of
attachment towards the brand and consumers could develop attachment towards a brand on
a number of counts. These aspects associated with the brand relationship could be could be
hedonism, personal gratification, self image, pleasure of the relationship, development of
consumer’s family and the brand’s association with people with whom the consumer has
emotional connections (Kapferer 2004). This study attempts to provide some of the
dimensions in the backdrop of brand loyalty.
Another aspect of the research which warrants a study of this nature is that in the
developing markets such studies on brand loyalty have not been published and this would
be an opportunity to address issues which are not only relevant for academic research but
which could also be useful to practitioners of marketing. The Indian context is witnessing
the entry of
multinational brands in the fast moving consumer goods categories. In the category of
toothpastes for example, LG the Korean company is a new entrant and SmithKline
Beecham launched its Aquafresh a few years Other multinationals like Proctor & Gamble
(which also launched a number of its global brands in India in the detergent category) may
also launch its brands in India. This dimension of competition is a marked part of the
scenario in an emerging market like India.
What is more interesting and distinguishing about the Indian market is that apart from
competition from multinational brands, there is a huge Unorganised market in the country
in a number of categories. An Unorganised market is one which caters to the local market
in terms of geographical boundaries, has an offering which may have a slightly sub
Standard offering in terms of quality, uses small “pop and mom” shops for Distribution and
uses unconventional advertising like wall painting (Advertisements of the offering may be
painted on the walls of buildings). These offerings priced much below the branded
offerings appeal to the Masses who use them before they upgrade to branded offerings
over a Period of time as their purchasing power gets enhanced. These markets may Be
found in categories like biscuits, detergents, foot wear, tea, edible oil, hair Oil, cassettes
8
and mineral water. Besides multinational brands and the unorganised market, there have
been a new breed of brands which could be referred to as regional brands and these brands
have been giving the larger brands a difficult time in the market at the lower end. In the
category of toothpastes, Anchor is a brand, which is posing a threat to a brand like Colgate.
Tea, detergents, edible oil, coffee, watches, men’s apparel, toilet soaps and fast foods are
some of the other categories in which regional brands have started making their presence
in a significant manner. The regional brands (distributed in a much wider Geographical
area than a typical offering from the unorganised sector) offer a Quality which could be
comparable to that offered by multinational brands; Advertise in conventional media
though selectively within the region of their Operations and they use the distribution
channels which are used by large Brands. They are priced below the multinational brand
but a bit above the Unorganised offerings. The challenge of the marketer of a strongly
entrenched brand and a regional brand is to upgrade the consumer from the Unorganised
sector and also to build loyalty in a variety of ways. Hence apart From the topicality of the
concept, brand loyalty concepts in an emerging Market could have a profound impact on
practice-oriented strategies, which Are focused on loyalty and repeat purchase.The study
attempts to work around a traditional set of dimensions associated with brand loyalty
(functional benefits and pric consciousness) and combine them with contemporary
developments in brand loyalty
(symbolism, brand trust and genetic influence). The objective of the study is to address
academic issues which also have practical significance in the management of loyalty in
packaged product categories which are strongly Prone to brand switching due to price
sensitivity and sales promotion. The study also takes into consideration the shifting brand
proposition in consumer product categories where brands make an attempt to create
bonding with emotional and self-concept oriented appeals. The aims of the study was to
study the mix of issues associated with brand loyalty and provide a framework for
marketers who would be able to derive insights from the framework to retain consumers in
the respective categories.

9
Questionnaire Design, Pre-Testing and Final Administration
The questionnaire was constructed in simple language reflecting the various aspects of brand
loyalty to ensure that respondents would not have problems understanding what kind of
responses were expected from them. Though the respondents chosen were familiar with the
product category, in the context in which research was conducted consumers do not frequently
fill in questionnaires and hence may not understand a complex questionnaire.
Besides, it was also necessary to make the questionnaire short without sacrificing the content
required, to ensure that respondents respond to the questionnaire. Long questionnaires generally
result in low return rates. The sequence of the questions in the questionnaire was selected based
on consumer familiarity of brand loyalty dimensions. For example price as a
factor affecting repeat purchase is relatively easier for respondents to comprehend (than
probably brand trust). The dimensions they may be relatively familiar with, namely price and
functional benefit aspects, were listed in the first phase of the questionnaire. After this sequence
which would have ensured their initial interest, they were exposed to dimensions of repeat
purchase, which would have made them think about their repeat purchase behaviour. The
complex aspects of brand loyalty, namely brand trust and genetic influence on brand loyalty,
were covered later in the questionnaire after repeat purchase aspects. The idea of the sequence
reflected in the questionnaire design was to progress from simple to complex aspects involved
with the research issue with the introduction of repeat purchase in the middle to enable the
respondents to think about their repurchase after going through some simpler dimensions of it.
Based on the dimensions identified from the literature and the hypotheses
that were proposed subsequently, a questionnaire was formulated using thescales available in
the literature to collect data from a large number of respondents. The questionnaire was pre-
tested on a random sample of forty consumers who represented the target respondents for the
final questionnaire. The sample had various kinds of consumers viz. male, female married,
unmarried, student, employed, and self-employed. Brand symbolism, brand trust, price
consciousness, brand functional benefits, genetic influence and brand loyalty were measured
using multi- item five-point Likert scale. Price consciousness was measured using a three-item
scale developed by Lichtenstein, Bloch and Black (1988). Brand trust was measured using a
four-item scale and was adopted from Chaudhuri and Holbrook (2001). Brand loyalty was
measured using a four-item scale (Jacoby and Chestnut 1978) consisting of purchase loyalty
and attitudinal loyalty. No scale for brand functional benefits is available in the literature, and it
was also found difficult to develop a general scale of brand benefits, which would be applicable
to all FMCG product categories. Therefore, a six-item scale for
brand functional benefits was developed specifically for this particular study based on inputs
from personal interviewing of consumers. A three-item brand symbolism scale was adopted
after minor modification of different scales of brand symbolism, product sign and brand sign
from Bhat and Reddy (1998) and Knox and Walker (2001). A two-item genetic influence
measure was developed for this study based on personal interviewing of consumers. Although,
most of the scales were adopted directly from the literature, except brand functional benefits
and genetic influence, some of the items from existing scales were modified based on the inputs
after pre- testing of the questionnaire from a sample of forty consumers. The final items used in
the questionnaire are provided in Appendix-1. The hypotheses generated above were tested on a
random sample of 444 customers from a metropolitan city in India. The mean age of the sample
respondents was 27 years and standard deviation was 9 years.
The questionnaire was administered in the field through an investigator who explained any
doubts the respondents may have had with regard to the items mentioned in the questionnaire.
The questionnaire was collected back by the field investigator after the respondents had filled in
the responses

QUESTIONNAIRE

1:- From last three months, no. of brands of soaps you have experienced or purchased.
1) 1 2) 2 3) 3 4) 4 5) more than 4

2) I usually buy bathing soap, which is on discount.

1) Highly Agree 2) Agree 3) Neutral 4) Disagree 5) Highly Disagree

3) I buy the lowest priced bathing soap that suits my needs.

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

4) When it comes to choosing bathing soap for me, I rely heavily on price

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

5) I trust my regular brand of bathing soap for my skin related problems

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

6) I am likely to use my regular brand of bathing soap even if there is a scam surrounding it

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

7) My regular brand of bathing soap is a reliable brand.

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

8) Using my regular brand of bathing soap helps me express my personality.

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

9) My regular brand of bathing soap is the same as what my parents had used for many years

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

 10) My regular brand of bathing soap is the one I had used since my childhood

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

11) I feel that use of my regular brand of bathing soap provides me freshness throughout the
day.
1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

12) I feel my regular brand of bathing soap help me to save from skin related problems.

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

13) I feel that prolonged use of my regular brand of bathing soap helps in fairness of skin.

1) Highly Agree 2)Agree 3) Neutral 4) Disagree 5) Highly Disagree

Personal details:
NAME:

AGE: SEX:

MARITAL STATUS:

OCCUPATION MOBILE:

ADDRESS:

RESEARCH OBJECTIVE
Brand loyalty is a topic of interest both to academicians and practitioners involved with
marketing. The concept of relationship marketing has its underpinnings in brand loyalty. . In
consumer products, typically fast moving consumer goods (FMCG), there are a host of
complexities that affect brand loyalty. This study examines the combined effects of brand
benefits, brand symbolism, brand trust, genetic influence and price consciousness of consumers
on brand loyalty for bathing soap product category.
A major objective of any marketing strategy for most product categories is the facilitation of
consumers to repurchase the brand through preference or involvement. Therefore, the topic of
repeat purchase or brand loyalty has received considerable attention both by academicians and
practitioners. Brand loyalty refers to the consumer’s behaviour of repeatedly purchasing a
specific brand over a certain period of time.

A number of studies have focused on understanding the concept of brand loyalty and the factors
influencing it. Product attributes, after sales service/usage, marketing capabilities, perceived
quality/aesthetics, depth of product line and brand popularity are key differentiating factors
influencing the behaviour of repeat purchasers and brand switchers in case of consumer
durables

The current paper studies the influence of various factors on customer loyalty. The main
hypothesis of the study insists that the list of most important factors affecting loyalty is
dependent on the level of loyalty of costumers.

Level of Loyalty
There is large variety of customer in the market they consume according to their requirement,
there limited resources available to them and by their attitude toward purchasing the product.
Consumer are consider as the king of the market we make product for which suit to their
personality and need.there are customers who purchase product continuously, some may switch
sometime to another brand which gave them similar brand feeling and some are continuously
switching to different brand by attracting toward the positioning done by the marketers. Then
we have Categorise loyalty in three different categories like as:-

• Highly loyal customers,

• Moderate customers,

• Low loyalty customers

Highly loyal Customers:- Highly loyal customer are define as per their purchases has
done in for soap product for last three months. The person will be called highly loyal if the
person is fixed to one brand from last three months and he is not switch to any brand among the
available brands. It may be happen only when the customer feel attached with the brand and
have some functional benefits of the product without any pricing problem.

Moderate Customers:- we have define moderate customers as the person who

consuming the product but in between he or she may change the product one or two times in
period of three months. It may be happen in the situation of non availability of the product in
the market and shop keeper suggest other brand in place of the preferred brand

Low level of loyalty:-Low loyalty of customer is defined as per the purchasing attitude of
the customer, as we mention the time limit of three years where the person purchase brand of
soaps more than three or four brands in the period of three years. This may be happen because
customer more focuses on low price, discounts, attitude of shifting to other brands easily,
attracted by market promotional strategies.

FACTOR ANLYSIS

To check effectiveness of the variable we have taken 11 variables in to consideration to check

the no correlation between the variables. Variables which are used for the analysis are discount
which means that the consumer are willing to buy the product which are on discount. Another
variable is low price product which satisfied their need and the price sensitive people who want
to buy that product which are cheapest available in the market. Skin related problems they are
more rely on their regular brand of bathing soaps, person used their preferred brand of bathing
soap whenever there is scam around it about the bathing soaps, they are more reliable on their
regular brand of bathing soap, customer may use those product which are help to them their
personality in the society, there may be some type of genetic influence in buying the bathing
soap like they use the brand which their parent are using or used from their childhood, some
take care of the product function benefit related to the bathing soap like freshness, fairness,
fragrance in the product.

For that purpose we make the questionnaire to get detail of the 100 respondents. And collecting
the data we put the factor analysis to factorize variable into factor or used factor analysis to
reduce the data.

Descriptive Statistics

Mean Std. Deviation Analysis N

Discount 3.92 .761 100
Lowprice 4.28 .805 100
Pricesensetive 3.97 .937 100
Skinproblem 2.25 .757 100
Scams 2.52 .689 100
Reliability 2.14 .569 100
Personality 2.68 .530 100
Genetic 3.59 .793 100
Childhood 3.61 .875 100
Freshness 2.61 .803 100
Fairness 2.85 .730 100

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of
Sampling Adequacy. .690

Bartlett's Test of Approx. Chi- 1423.98

Sphericity Square 0
Df 55
Sig. .000
Interpretation
This KMO and Bartlett's Test box show adequacy of the model which is .690. significance level
is .000

Communalities

Initial Extraction
discount 1.000 .750
lowprice 1.000 .858
pricesensetive 1.000 .745
skinproblem 1.000 .646
scams 1.000 .873
reliability 1.000 .707
personality 1.000 .884
genetic 1.000 .834
childhood 1.000 .785
freshness 1.000 .815
fairness 1.000 .808
Extraction Method: Principal Component Analysis.

Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Component Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.945 26.774 26.774 2.945 26.774 26.774 2.098 19.076 19.076
2 1.780 16.182 42.956 1.780 16.182 42.956 1.927 17.521 36.597
3 1.520 13.817 56.773 1.520 13.817 56.773 1.835 16.680 53.277
4 1.459 13.260 70.033 1.459 13.260 70.033 1.582 14.379 67.657
5 1.001 9.104 79.137 1.001 9.104 79.137 1.263 11.481 79.137
6 .747 6.790 85.927
7 .636 5.781 91.708
8 .308 2.799 94.507
9 .263 2.390 96.897
10 .234 2.124 99.021
11 .108 .979 100.000
Extraction Method: Principal Component Analysis.

Interpretation

This is total variance explained table show the initial eigen value which show value more
than 1or equal 1.if the initial egein value is more than 1 it consider as a factor and like
that there are five factor get extracted. First one, is having the value 2.946 which means
is that more than 2 variable work in this factor. and %age of variance for this factor is
20.774,which means 20.77 percent of total variable classified in this factor. As in second
one eigenvalue is 1.780 and %age of variance is 16.187 and commulative % is
42.958.and in 3rd one the eigen vaue is 1.520 there two variable working in this factor
and the %age 13.817 and commulative %is 56.773 total of variableget classified in
factors like all five factor get extracted by factor analysis which commulative % 79.137%
of variable are classified correctly.

Component Matrix a

Component
1 2 3 4 5
pricesensetive .733 .246 .068 -.280 -.251
discount .708 -.072 .183 -.426 .167
lowprice .686 -.017 -.018 -.429 .451
freshness .606 -.312 -.412 .347 -.245
fairness .591 -.497 -.451 -.030 -.085
personality .401 .804 -.077 -.069 -.259
reliability .221 .718 .227 .297 .062
genetic .104 -.387 .816 .084 -.034
childhood .453 -.235 .604 .208 -.342
skinproblem .412 .030 -.127 .674 -.073
scams .351 .053 .069 .544 .668
Extraction Method: Principal Component Analysis.
a. 5 components extracted.

It classify variable in factor it is help to analyze that in which factor which variable comes
it show that variable whose highest correlation score exists in which factor group. In
factor 1 the price sensitive, discount and low price are having highest correlation value
in factor 1 so comes in factor 1. In factor 2, reliability having the highest value in column
2 so it comes in factor 2. Like that all the 5 factor having having more than contribution
of 2 variables. But this thing is more from
 Rotated Component Matrix a

Component
1 2 3 4 5
lowprice .902 .070 .024 -.062 .188
discount .828 .104 .091 .215 -.004
pricesensetive .578 .272 .516 .176 -.198
freshness .103 .892 .023 .038 .085
fairness .394 .765 -.245 -.062 -.058
skinproblem -.176 .576 .265 .139 .440
personality .176 .043 .904 -.159 -.094
reliability -.039 -.158 .739 .060 .361
genetic .074 -.178 -.210 .864 .086
childhood .104 .235 .137 .837 -.004
scams .143 .110 .033 .037 .915
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.

Interpretation

Rotated matrix clearly show the picture which factor have combination of
variables in factor 1 there are3 variable working on it low price , discount, price
sensitive.
In factor 2, there are variable three variable working freshness, fairness, skin
related problem,.
In factor 4, there are 2variable working, personality and reliability.
In factor 5 there is only 1 variable contributing,scams.

Component Transformation Matrix

Component 1 2 3 4 5
1 .686 .563 .345 .242 .187
2 -.055 -.361 .871 -.315 .092
3 .057 -.516 .086 .846 .091
4 -.627 .389 .127 .199 .632
5 .362 -.367 -.314 -.296 .741
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
 Component Score Coefficient Matrix

Component
1 2 3 4 5
discount .417 -.087 -.031 .065 -.009
lowprice .507 -.139 -.108 -.142 .189
pricesensetive .195 .085 .265 .090 -.244
skinproblem -.226 .323 .137 .072 .258
scams .090 -.066 -.091 -.065 .759
reliability -.067 -.124 .396 .040 .239
personality .002 .016 .511 -.085 -.159
genetic .018 -.144 -.113 .552 .047
childhood -.078 .110 .098 .544 -.110
freshness -.102 .501 .002 -.005 -.033
fairness .118 .390 -.176 -.093 -.091
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Component Scores.

Component Score Covariance Matrix

Component 1 2 3 4 5
1 1.000 .000 .000 .000 .000
2 .000 1.000 .000 .000 .000
3 .000 .000 1.000 .000 .000
4 .000 .000 .000 1.000 .000
5 .000 .000 .000 .000 1.000

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
Component Scores.
 Component Plot in Rotated Space

1.0 freshness
fairness
skinproblem
Component 2

0.5
scams
childhood pricesensetive
personality genetic lowprice
0.0
discount
reliability
-0.5

-1.0
-1.0
-1.0 -0.5
-0.5 0.0 0.0
0.5 0.5
1.0 1.0 3
t
Compone onen
nt 1 Comp

FACTORS

Factor which are extracted from the factor analysis

• BRAND FUNCTIONAL BENEFIFTS

• CONSUMER’S PRICE CONSCIUOSNESS

• BRAND TRUST

• BRAND SYMBOLISM

• GENETIC INFLUENCE

Relation to Research:
• BRAND FUNCTIONAL BENEFIFTS: It has long been emphasised that product
attributes have a significant influence on brand loyalty. In fact the messages to which
consumers are exposed, often stress product benefits. The attributes of the brand have
been considered as necessary for consumers to like the brand and purchase it repeatedly
(Lin, Wu and Wang 2000, 2000; Knox and Walker 2001). It is therefore expected that if
consumers get certain functional benefits from a brand, they are likely to be more brand
loyal to that brand.

• CONSUMER’S PRICE CONSCIUOSNESS: Price Consciousness is defined as the

degree to which the consumer focuses exclusively on paying a low price. A price
conscious consumer is more concerned with price, seeks out lower price, and sees such a
search as worthwhile. Several studies have found price promotion to be negatively related
to brand loyalty. It has been found that high price conscious consumers look for better
price and have lower buying intentions. Therefore, it is expected that consumers who
continuously look for price before purchasing a brand will not purchase the same brand
repeatedly until the brand is offered at the cheapest price continuously vis-à-vis other
competitive brands in the market. Most of the brands in the market place introduce
discounts/sales promotion on a regular basis in most fast moving consumer categories
and price conscious consumers will keep on switching brands continuously as and when
the brand is offered on sale.

• BRAND TRUST: Past research has proposed that brand trust is a calculative process
based on the ability of the brand to continuously meet its obligations, and on an
estimation of the costs versus rewards of staying in the relationship. wherein brand trust
is defined as ‘the confident expectations of the brand’s reliability and intentions in
situations entailing risk to the customer’. We adopt this definition because we feel that
trust is based not just on cost estimation but the confidence a consumer has in a brand.
This definition has been conceptualised by considering literature from social psychology,
sociology, management and marketing, which supports our view of brand trust. We
propose that brand trust positively influences brand loyalty as has been suggested in
previous research. This is because high confidence or trust in a brand will help customers
to reduce perceived risk and facilitate in purchasing the brand repeatedly.

• BRAND SYMBOLISM: Brands have been considered important in creating individual

identity related to consumers psychological needs associated with status, exclusivity and
prestige. It has also been found that marketers do not necessarily have to position a brand
as a prestige brand with its associations of expensiveness and exclusivity to tap the
symbolic needs of the customer. One way to approach a brand’s marketing strategy is to
 investigate if symbolism could be used to nurture brand loyalty. A marketing strategy that
shows how the brand can be used to express a consumer’s personality is an effective
strategy for influencing the customer to exhibit loyalty towards the brand. We propose to
investigate the influence of brand symbolism as reflected by the self-concept of
consumers. We propose a positive relationship between brand symbolism and brand
loyalty. In an emerging market like India, consumers in a changing context, full of
lifestyle orientation, could use a brand for expressing their personality or self-concept and
hence are more likely to be loyal to the brand.

• GENETIC INFLUENCES: Several studies have identified intergenerational influence or

lineage as key factor influencing brand loyalty. Reference group influence on the
purchase behaviour of a consumer can be from friends, colleagues, peer group, family
etc. This study proposes that intergenerational influence or genetic influence can be a key
factor influencing brand loyalty. This is because consumer socialisation research
emphasises that adult consumer habits are formulated during childhood and during
adolescence. Therefore, reference groups could influence childhood preferences in an
environment, where choices are not available and hence may have had an impact on
brand loyalty. It is therefore expected that consumer preferences are formed towards
certain brands early in childhood and result in adult loyalty. This is especially relevant in
a market scenario like that of the Indian market where there were only a few brands
before the markets were opened up for competition about fifteen years ago.
DISCRIMINANT ANALYSIS

The null hypothesis that the variance/covariance matrices are equal in the population

Log Determinants

Log
bpp Rank Determinant
1.00 5 -5.568
2.00 5 -4.584
3.00 4 .a
Pooled within-groups 5 -4.247
The ranks and natural logarithms of determinants
printed are those of the group covariance matrices.
a. Singular

Tests of Equality of Group Means

Wilks'
Lambda F df1 df2 Sig.
priceconciuosness .771 13.659 2 92 .000
brandtrust .947 2.578 2 92 .081
brandsymbolism .884 6.059 2 92 .003
brandbenefit .931 3.391 2 92 .038
geneticinfluence .988 .568 2 92 .569

The significance value for factor shows that these factor responsible for the
discrimination of level of loyalty. These function are as follows:
1) Price consciousness
2) Brand symbolism
3) Brand benefit

Test Resultsa
Box's M 65.203
F Approx. 4.023
df1 15
df2 14719.066
Sig. .000
Tests null hypothesis of equal population covariance matrices.
a. Some covariance matrices are singular and the usual
procedure will not work. The non-singular groups will
be tested against their own pooled within-groups
covariance matrix. The log of its determinant is -4.132.

(Box's M = 65203, p = 0.000)

The null hypothesis that the variance/covariance matrices are equal in the population is not
accepted.

This show that discrimination of the level of loyalty because the significance value is less
than .05.

Eigenvalues

Canonical
Function Eigenvalue % of Variance Cumulative % Correlation
1 .671a 82.3 82.3 .634
2 .144a 17.7 100.0 .355
a. First 2 canonical discriminant functions were used in the
analysis.

For each discriminant function, the eigen value is is the ratio of between
group to with-in group sum of square . larger eigen value emply superior
function.
 Wilks' Lambda

Wilks'
Test of Function(s) Lambda Chi-square df Sig.
1 through 2 .523 58.304 10 .000
2 .874 12.122 4 .016

The wilks lambda value for 1 is showing the value .523 and function is significant
The wilks lambda value for 2 is showing the value ..874 and function is significant

Standardized Canonical Discriminant Function Coefficients

Function
1 2
priceconciuosness -.963 .394
brandtrust -.313 -.368
brandsymbolism .866 .608
brandbenefit -.171 .334
geneticinfluence .592 .435

Standardised conanical discriminant function coefficient value for function

1 shows highest correlation of brand symbolism .866 and genetic influence .
592

Standardised conanical discriminant function coefficient value for function

1 shows highest correlation of brand symbolism.608 and pruce
concoiusness .394 andgenetic influence is .435.

The discriminant function coefficient unstandardised are the multiple of of

variable , when the variable are in original unit of measurement.
Canonical correlation measure the the extent of association between the
discriminant score and the group. It is a measure of association between the
single discriminant function and the set of dummy variable that define the
group membership.

Structure Matrix

Function
1 2
priceconciuosness -.572 .733*
brandsymbolism .348 .593*
brandbenefit -.283 .372*
geneticinfluence .032 .285*
brandtrust -.258 -.280*
Pooled within-groups correlations between discriminating
variables and standardized canonical discriminant functions
Variables ordered by absolute size of correlation within function.
*. Largest absolute correlation between each variable and
any discriminant function

Interpretations :
Structure matrix is the largest absolute correlation with one of the canonical functions. Within
each variable, values are ordered by size. The second function seems to be very useful since 5
factors e.g. price consciousness(.733), brand symbolism(.593), brand benefit (..372), genetic
influence(.285) and brand trust (.280) have very high correlation.
 a
Classification Results

Predicted Group Membership

bpp 1.00 2.00 3.00 Total
Original Count 1.00 21 9 0 30
2.00 3 45 5 53
3.00 2 7 3 12
Ungrouped cases 0 5 0 5
% 1.00 70.0 30.0 .0 100.0
2.00 5.7 84.9 9.4 100.0
3.00 16.7 58.3 25.0 100.0
Ungrouped cases .0 100.0 .0 100.0
a. 72.6% of original grouped cases correctly classified.

Interpretation
1 for highly loyal is showing the result 70% correctly classified and
2moderator is showing the result 84.9% correctly classified and 3low loyal is
showing the result 25.0% correctly classified.

Implications of the study to Marketing Practice –

Developing a framework for Contemporary Brand Loyalty
 The study established that the concept of loyalty is expressed in terms of their linkages with
brand benefits, brand trust, genetic influence, and brand price consciousness. The study also
probed into the significance of brand benefits, brand trust, price consciousness, symbolism and
genetic influence of brand selection, on brand loyalty. These factors were found to have varying
degrees of influence on brand loyalty. Loyalty is an important and topical marketing issue. The
linkages of loyalty with the factors studied become important to avoid mismanagement of
loyalty and to ensure that loyalty management programs are not wasted through indiscriminate
sales promotion. Brand associations form an important aspect of branding. In an environment
full of advertising clutter, managing brand associations is important. There is a need to manage
brand associations in a manner that would appeal to consumers with different degrees of loyalty
to the brand, and at the same time ensure that consistency of brand associations is maintained.
Several brands in FMCG categories build themselves with symbolism (linked to self-concept
or reference group aspects). The impact of symbolism on brand loyalty poses interesting
challenges to marketers. Finally a framework that involves `Brand benefit set’ (involving
brand’s functional benefits and trust) and loyalty that could be used by marketers to explore
several marketing strategies is suggested. The following framework shown in Figure 1 involves
two dimensions `Brand benefit set’ (concerned with, both brand’s functional benefits and brand
rust) and brand loyalty. This would give rise to form different categories of consumers who
could be approached through different kinds of marketing strategies (as appropriate to FMCG
categories).
Figure: 1 Developing Contemporary Brand Loyalty - A Framework
Brand
Loyalty
Low High

High `MYSTERY’ `VITALS’

Brand
Benefit Set

Low `FLOATERS’ `SHAKERS’

`Brand benefit set’ means brand benefits and brand trust. While price consciousness may
have an impact on loyalty, a consumer, who perceives a brand high on `Brand benefit set’,
may experience less price consciousness.Consumers who could be categorised as `high’ on
`Brand benefit set’ and loyalty are Vitals. These consumers are the core consumers of the
brand and they not only perceive the brand `high’ on benefits but also feel that they could
rely on the brand even when the brand is going through a troubledphase. A brand should
reward such consumers, and reinforce the goodwill, that they have in the brand. A database
of such consumers with specific criteria endorsing their high degree of loyalty should enable
the company to plan promotional programs for such consumers. Besides specific discounts
on the brand (clearly communicating that the benefit is a result of their loyalty), frequent
updates on the brand and its benefits could hold the involvement of these consumers. For
example, a leading brand could offer its new variant exclusively for these consumers during
the initial period of launch. The brand could also update the consumers on efforts taken by
the company to improve its offerings. Depending on the type of brand
association/positioning, innovative sales promotions that enhance the perception of these
consumers on brand benefits could be formulated. For example, a brand like Colgate Total
positioned on functional attributes (with a premium price) could offer dental check-ups (as a
sales promotional effort) with a leading dentist in a specific town/city. Besides being
rewarded, consumers would also have an
 CONCLUSION
1. Initially there were 11 important variables found to be more
effective to brand loyalty by analysing previous researches
2. All variables are extracted in 5 factors from factor analysis
because the covariance existing among them name be
formed as factor are price consciousness, brand
benefit, brand symbolism, genetic influence and brand
trust.
3. All these factors have various influence towards the level of
loyalty .
4. Price consciousness, brand symbolism, and brand trust play
an important role in discriminating the level of loyalty.
5. Highly loyal customers are more conscious about the
functional benefit of brand.
6. Price consciousness and brand benefit play important role in
moderate category.

RECOMMENDATIONS
 • Marketer should make functional benefit oriented
advertisement
• Marketer should regularly check the fluctuation in the
price of the competitor product and additional benefit
provided by them.
• Marketer should target low loyal customer.

• Marketer should be more concern about existing

customers
• Marketer should launch different type of product for
different category of buyer.
• Brand benefit set’ (involving brand’s functional
benefits and trust) and loyalty that could be used by
marketers to explore several marketing strategies is
suggested.

References
www.google.com
www.scribed.com
Research paper of S.kumar & Yashwant adwani
Tartu University Press www.tyk.ee
Indian general of marketing 2001-02
Advance marketing research by Naresh malhotra
Kenblack book of statistics
Marking book kotler