Professional Documents
Culture Documents
Chapter–VI
INTRODUCTION
For decades now building brand loyalty has been propounded as the
panacea for all organizations to combat the increasing competition in the market
place. Various studies have been carried out to understand what constitutes
measure of loyalty towards a brand. This singular focus on repeat buying as the
only indicator of customer loyalty towards a brand meant that it was assumed that
21
big brands in terms of market share were the ones that had the most brand loyal
customers. This created the “Double Jeopardy” phenomenon for smaller brands,
i.e. not only do they have fewer users but their users buy/use them less frequently.
But from early 1970s a debate has been going on these lines when Driver
repurchase. In recent times, researchers like Dick and Basu (1994)2 have also
questioned this assumption by pointing out that this approach confuses the
“number of a brand‟s devotees with the degree of their devotion to it”. This
approach only leads to the conclusion that the big brands will continue to remain
big with no hope for smaller brands to ever capture greater market shares.
recent times. These studies have pointed out that repurchase behaviour may be
more of a result of the constraints facing the customers like the brand being the
only one available at the store near their home, rather than because of a conscious
effort on their part to stick with one particular brand. Thus researchers in recent
1. Driver, L., (1996), “What is loyalty in customer loyalty: The issues for the
90s”, The Researcher, 1 (1), pp.2-5.
2. Dide, A.S., and Basu, C., (1994), “Customer Loyalty: Toward an integrated
framework”, Journal of the Academy of Marketing Science, 22 (2), pp.99-
113.
22
repurchases a product looks at the consumer‟s perception of the brand. Now stress
The results of their study rebut the arguments from which the various
benefits of brand loyalty are derived. It costs less to serve loyal customers i.e.,
customer acquisition costs are spread over more number of transactions. Also
long term customers are used to the processes requiring less „hand-holding‟. The
result of the study. No direct cost benefits can be seen accruing form loyalty. The
benefits are likely to be industry specific with certain industries showing service
cost reduction for loyal customers. Loyal Customers pay higher prices for the
same bundle of goods i.e. Long Term customer will have higher switching costs.
The result of the study-Loyal customers are more price sensitive than an
occasional customer as they know the real worth of the product. The same is also
evident from institutional sales where huge discounts are offered to gain a long-
term contract. Loyal customers market the company. The result of the study-Only
behavioural measures (as shown by purchase behaviour) are not enough to assume
that the customers are promoting the company through WOM. Attitudinal loyalty
(as measured by their opinions about the company and the service) in more critical
The link between customer satisfaction and customer loyalty has also been
and Sasser 1995)4. They argue that even in markets with little competition,
providing with outstanding value is the only reliable way to achieve sustained
4. Jones, M.A., and Sasser, J., (1995), “Linkage between Customer Satisfaction
and Loyalty”, Journal of Services Marketing, 14 (1), pp.147-159.
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Studies have also been carried out to identify intergenerational influence for
products and brands to measure the extent of transfer of brand equity and brand
loyalty from one generation to another (East, et al., 1995 5; Feltham, 19986; Lin et
and not all brands within a product category are equally likely to benefit from
intergenerational influences.
building brand loyalty with the costs of various loyalty programs being compared
5. East, R., Harris, P. Willson, G. and Hammond, K., (1995), “Correlates of first-
brand loyalty”, Journal of Marketing Management, 11 (5), pp.487-497.
This rethink has led to suggestions that there is need for „smarter‟ loyalty
building programs (Yim and Kannan, 1999)8. Company‟s loyalty strategy should
differentiate between customers who are likely to be more brand loyal than those
who are not, based on the fit between their needs and attitudes and the company‟s
offerings. The focus should be on building long term relationship with the former
while the company should look to milk the latter till they stick with the brand.
Studies have also been carried out to look at the impact of the different
incentives offered in loyalty programs (Wood, 2004) 9 have found that more the
incentive is compatible with the brand and the less tangible it is, greater is the
McKinsey in a recent report by Tim Gokey and Harold Yin suggests that
Marketer should analyse the customer profile and decide which customers to
retain, upgrade or let go off. The focus of this approach is the economic value
added by the customer. They suggest segmenting customers into six „Loyalty
FMCG are products that have a quick shelf turnover, at relatively low cost
and don‟t require a lot of thought, time and financial investment to purchase. The
margin of profit on every individual FMCG product is less. However the huge
number of goods sold is what makes the difference. Hence profit in FMCGs
glassware, bulbs, batteries, paper products and plastic goods such as buckets.
Three of the largest and best known examples of FMCGs companies are nestle,
unilever and procter and gamble. Examples of FMCG are soft drinks, tissue paper
and chocolate bars. Examples of FMCGs brands are coca-cola, Kleenex, Pepsi and
Believe.
The FMCG sector represents consumer goods required for daily or frequent
use. The main segments of this sector are personal care (Oral Care, Hair Care,
cleaners), branded and packaged food, beverages (health beverages, soft drinks,
Domestic Product. It is the fourth longest sector in the economy and is responsible
for five per cent of the total factory employment in India. The industries creates an
disbursed in small towns and rural India. The low-middle income group accounts
for over 60 per cent of the sectors sales. Rural markets account for 56 per cent of
the total domestic FMCG demand. Many of the global FMCG majors been present
in India for many decades. But in the last ten years, many of the smaller Indian
In India companies like ITC, HLL, Cadbury and nestle have been a
dominant force in the FMCG sector well supported by relatively less competition
and high entry barriers. As per the consumer survey by KSA-Technopark of the
total consumption expenditure, almost 40 per cent and 8 per cent was accounted
increased literacy and rising per capital income are the key growth drivers for the
sector. Around 45 per cent of the population in India is below 20 years of age and
the proportion of the young population is expected to increase in the next five
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years. The companies like HCL and ITC have dedicated initiatives targeted at the
rural market, these are still at a relatively nascent stage. Currently, organized
retailing accounts for just 3 per cent of total retail sales and is likely to touch 10
per cent over the next 3 to 5 years. Given the aggressive expansion plans of
players like Pantaloon, Trent shoppers‟ shop and shoprite, the FMCG sector has a
bright future.
brand name. For example, the Nestle India produced Milk products, beverages,
prepared dishes, cholates and confectionaries and others under the brand names of
nestle everyday dairy whitner, nestle everyday ghee, nestle curds, nestle cerenal,
Nestly milk, Nescafe Classic, Nescafe Sunrise, Maggi – 2 minute Noodles, Nestle
Kit Kat, Nestle Munch, Nestle Milky Bar, Nestle Bar-one, Polo, Nestle Éclairs etc.
The HLL (Hindustan Lever Limited) produces personal care, fabric care,
beverages and foods under the brand names of Lux, Pears, Lifebuoy, Liril,
Hamam, Breeze, Dove, Rexona, Ponds, Fair and Lovely, Sunsilk, Clinic,
Pepsodent, Close-up, Axe, Rexona, Lakme, Aysh, Surf Excel, Rin, Wheel, Brooke
The Glaxo Smithleline produces the Aquafresh, Eno and Horlicks. The
Colgate Pamolive India Limited produces oral care products namely Colgate tooth
paste, Tooth powder, Whitening products, Palmolive Shower Gel, Shower Cream,
Bar Soap, Liquid hand wash, skin care and household care namely Axion Surface
Clean. The Britania company produces Britania Treat, Tiger, Good Day, Marie
Gold, Milk Bikies, Little Hearts and Nice Time in the FMCGs sector in India. The
Dabour India deals with Personal Care Product range namely Amla hair oil, Amla
lite hair oil; Health care product range namely Dabur Masla, Dabur Lal Tail,
Glucose D. etc., and foods product range namely Pure natural honey and a fiery
red–pepper sauce.
The Godfey Philips deals with cigarettes namely four square, jaisalmer,
Red & White, Tipper, North Pole, Prince, etc. and cigar brands namely Don
Diego, Har-a-tampa, etc. The Godrej company manufactures and markets edible
oils, Vanaspathi, fruit drinks, fruit nectar and bakery fats. The Nirma company
deals with the bath, detergent soap and powder, idozied salt, dish wash bar under
the brand name of Nirma. The ITC is the market leader in cigarettes in India. Its
highly popular portfolio of brands includes Wills, Insignia, India Kings, Gold
Flake, Navy cut, Scissors, Capstan, Berkeley, Bristole and Flake. ITC made its
entry into the branded and packaged foods business in 2001. It launched so many
Building a base of loyal customers, who would prefer the brand in all
conditions, is one of the most important ways in which a marketer can secure his
brand from the fierce competition in the market place today. At the same time any
marketer who looks at loyalty as just repeated purchases of his brand, is being
sustainable proposition. Thus, the need is to build a sense of attachment with the
brand, which goes beyond the inducements and directly links the customer to the
brand.
Brand Personality is one such important construct that a marketer can use to
develop that crucial link with the customer. If a marketer can make the brand
appeal as a person, someone that the customer identifies with and is attracted to
then there be a greater likelihood of the customer being loyal to the brand than by
This study will attempt to understand how a marketer can use the Brand
Personality construct to build sustainable loyalty towards his brand. For this the
How to choose the right customers and right industry for building
loyalty?
Given that the product is a low involvement product, how likely is it that
an intangible incentive will prompt the customer repeat buy the product?
The brand loyalty is an assent to the company. In fact, the cost of acquiring
new customers is higher than the cost of retaining existing customers. Hence, all
companies are trying to retain their existing customers. This is possible only when
32
there is a brand loyalty among the customers. But it is a difficult task. In the case
of Fast Moving Consumer Goods Market, there is a frequent entry of new brand
and new companies. The consumers are also using and buying the FMCGs at
frequent interval. They are having so many alternatives, choices and brands.
Hence, it is very difficult to establish the brand loyalty among them in FMCGs
market. But some companies have achieved it, while some others are trying to
achieve it. In order to achieve it, there is a higher need for a detailed analysis on
the level of brand loyalty, factors influencing brand loyalty, the various type of
brand loyalty and the linkage between them. The companies who have done all the
above said works continuously, they achieve the brand loyalty but others‟ are
struggling. Hence the researcher has made an attempt to focus this problem to
Related Reviews
Bloemer and Kasper (1995)10 stated that brand loyalty implies a deep-
purchases and actual brand loyalty. They asserted that a repeat purchase behaviour
10. Bloemer, J.M.M., and Kasper, J.D.P., (1995), “The Complex Relationship
between Consumer Satisfaction and Brand Loyalty”, Journal of Economic
Psychology, 16(2), pp.66-71.
33
Fred and Paul (2000)11 found that the power distance is the willingness to
accept that those power are entitled to it and those without power ought to accept
the way things are and just go along. This is an Asian Cultural Tendency. Big
Market share brands are the Kings of their brand world and consumer from
Kurt et al., (2008)12 found that the customers‟ risk aversion is significantly
related to the two forms of loyalty. When brand affect and brand trust are
introduced into the model, the previously highly significant relationship between
the risk aversion repurchase relationship becomes much weaker, while risk
11. Fred Palumbo and Paul Herbeg (2000), “The multicultural context of brand
loyalty”, European Journal of Innovation Management, 3(3), pp.116-124.
12. Kurt-Mat-zler, Sonja Grabner and Sunja Ridmon (2008), Risk aversion and
brand loyalty: the medicating role of brand affect”, Journal of Product and
Brand Management, 17(3), pp.154-162.
34
Yang et al., (2005)13 analysed the brand choice behaviour with the help of
domestic preference. The only aspect of brand choice behaviour seemingly to give
practical implication to foreign companies that have already been operating are
domestic brand between the older and the younger consumers in China.
Malcom Wright (2002)14 showed that the retail payment instruments have a
significant positive impact on the purchase loyalty on FMCG goods. The use of
suggesting that retail payment methods one a mass market, rather than one that is
Ica Rojsek (2001)15 revealed that glovence consumers are more loyal to
local than foreign products and are thus similar to other Eastern European
13. Yang, Z., Zhou, N. and Chen, J., (2005), “Brand choice of older Chinese
consumers”, Journal of International Consumer Marketing, 17(4), pp.65-
81.
14. Malcom Wright (2002), Patterns of purchase loyalty for retail payment
methods, International Journal of Bank Marketing, 20(7), pp.311-316.
the quality of the product. Gloreve consumers of FMCG are less price sensitive
than other Eastern European Consumers, although price elasticity would need
closer examination.
Radhika (2002)16 found the linkage between the shopping habits and brand
loyalty in FMCGs market. The changing composition of consideration set, and the
changing contexts against which the decisions are being made, could keep the
relative position of the brands within the set, making a subtle but proposed impact
Shelty (2010)17 found that brand loyalty is extent in younger age groups as
well as older generations, although their intensity of loyalty varies. The brand
with the affective commitment/emotional attachment for the brand. The brand
loyalty for this product reflects that loyal behaviour is purely based on choice and
preference for the brand, rather than being based on high switching costs or
16. Radhika Chadha (2002), “Of shopping habits and brand loyalty”, Business
Line, Thursday, October 10th, p.8.
Jose and Hans (2001)18 identified the linkage between customer satisfaction
and brand loyalty. The manifest satisfaction is positively related to brand loyalty.
It is stronger than the positive relation between latest satisfaction and brand
loyalty. The manifest satisfaction is the outcome of explicit evaluation whereas the
Elif et al., (2005)19 found that the important reasons for women‟s brand
capacity of the product, reasonable pricing, popularity of the products, brand name
Nadin et al., (2009)20 to indicated that brand affect, brand quality and
18. Jose, M., Blovemer, and Hans P.P.Kasper (2001), “The impact of satisfaction
on brand loyalty: Using on classifying satisfaction and brand loyalty”,
Journal of Consumer Satisfaction, Dissatisfaction and Complaining
Behaviour, 14(1), pp.106-117.
19. Elif Akagun Engin, H.Ozdenur and Nurethin, P., (2005), “Brand loyalty in the
cosmetics industry: A field study on Turkish women‟s brand loyalty among
cosmetics products”, Journal of Business and Economics Research, 7(5),
pp.5-16.
Reast (2005)21 stated that when the extended brand is launched the expected
loyalty factor will drive trail if the consumer is loyal to the parent brand there is a
suppose that the level of quality associated with intrinsic attributes may rise in the
Chaudhri and Holbrook (2001)23 found that the brand attitude can be
measured via brand trust and brand affect. Brand attitude is the highest level of
21. Reast, J.D. (2005), “Brand trust and brand extension acceptance: the
relationship”, Journal of product and brand management, 14(1), pp.4-13.
22. Fandos, and Flavian (2006), “Intrinsic and extrinsic quality attributes, loyalty
and buying intention: an analysis for a PDO product”, British Food Journal,
108(8), pp.117-126.
23. Chaudhri, A. and Holbrook, M.B., (2001), “The chain of effects from brand
trust and band affect to brand preference: the role of brand loyalty”, Journal
of Marketing, 65(2), pp.81-93.
38
Ali et al., (2010)25 found that the innovation has a significant positive
correlation and impact on customer satisfaction among the mobile phone users.
But the innovation has no significant correlation and impact on the brand loyalty.
Javadein et al., (2008)26 confirmed that the relation between loyalty and
product satisfaction.
24. Mortinz, Polo and Cherrantony (2004), “Effect of brand extension strategies
on brand image”, International Marketing Review, 25(1), pp.66-79.
25. Ali Raza Nemati, Khurnam Khan and Miozram Ittikkar (2010), “Impact of
innovation in customer satisfaction and brand loyalty: A study of mobile
phone users in Pakistan”, European Journal of Social Sciences, 16(2), pp.299-
306.
26. Java Beans Khanlari Estiri (2008), “Customer loyalty in the sport services
industry : the role of service quality; customer satisfaction, commitment and
trust”, Journal of Management, 5(2), pp.1303-1342.
Goode et al., (2005)28 mentioned that the customer satisfaction plays a key
moderating role for the relationship between price increases and repurchase
intentions.
Chu and Desai (2001)29 revealed that nature and degree of customer based
brand equity is noticed through the strength and uniqueness of brand associations
stored in memory.
equity for Malaysian brands with the help of factor analysis. They identified that
these are perceived quality, brand association, brand loyalty and brand awareness.
The brand awareness, brand associations, perceived quality and brand loyalty has
29. Chu, H. and Desai, Z., (2001), “Channel co-ordination mechanisms for
customer satisfaction”, Management Sciences Journal, 14(4), pp.343-359.
30. Goi Chai Lee and Fayrene Chieng Yew Lea (2010), “Dimensions of Customer
based equity: A study on Malaysian brands”, Journal of Marketing
Research and case studies, 8(2), pp.1-10.
40
findings confirmed the role of product quality on consumer behaviour, and lead to
the identification of the effects that different levels of perceived quality have on
costs of customer loyalty though both satisfaction and perceived value measures.
They found that the moderating effects of switching costs. On the association of
customer loyalty and customer satisfaction and perceived value are significant
only when the level of customer satisfaction or perceived value is above average.
Arvind Sabay and Sharma (2010)33 found that the younger age group loves
their brands and is more passionate about their while the older group develops
strong brand relationship. But is relatively more rational about their relationship
31. Rodoula Tsiotsun, (2005), “Perceived quality levels and their relation to
involvement, satisfaction and purchase intentions”, Marketing Bulletin,
16(4), pp.1 to 10.
32. Zhilin Yang and Robin T. Peterson, (2004), “Customer perceived value
satisfaction, and loyalty: The role of switching costs”, Psychology and
Marketing, 21(10), pp.799-822.
33. Arvind Sabay and Nivedita Sharma (2010), “Brand Relationship and
Switching behaviour for highly used products in young customers”, Vikalpa,
35(1), January-March, 15-30.
41
with the brands profitable to various factors like maternity, financial constraints,
Simon and Walker (2001)34 classified the customers into loyals, habituals,
variety seekers and switchers based on brand commitment and brand support in
grocery brands. The risks associated with moving out of a brand and into an
alternative are key to developing brands, the customers of which are loyals in any
ending sense.
Hsin, et al., (2009)35 identified that the relations among the brand
awareness, perceived quality and brand loyalty for purchase intention are having a
significant and positive effect. The perceived quality has a positive effect on brand
loyalty whereas perceived quality will mediate the effects between brand
awareness and purchase intention. The trend loyalty will mediate the effects
34. Simm Knox and David Walker (2001), “Measuring and Managing brand
loyalty”, Journal of Strategic Marketing, 9(1), pp.111-128.J
35. Hsin Kuang Chi, H.R.Y., Shih and Y.T.Yang (2009), “The impact of brand
awareness on consumer purchase intention: the mediating effect of perceived
quality and brand loyalty”, The Journal of International Management
Studies, (1), February, pp.135-144.
42
Wang and Sidek (2008)36 measured the brand loyalty with the help of its
factors namely product quality, style, brand name, store environment, service
these factors with sports wear brand loyalty. They noted that the Malaysians prefer
brand name, product quality, price promotion, store environment and service
relationship will generally result in long term orientation of consumers towards the
store or brand. Trust in sales people appears to relate to overall perception of the
stores service quality, and result in the consumer being totally satisfied with the
Experience and evaluation of service, and inturn, affects the brand loyalty of
consumers.
36. Wong Food Yee and Yahyah Sidex (2008), “Influence of brand loyalty on
consumer sports wear”, The Journal of Economics and Management , 2(2),
pp.221-236.
Allen et al., (2011)38 identified that customers‟ loyalty to retail brand(s) has
also revealed that attitude towards store brands directly influences one‟s
promoting their own store brands for the purpose of increasing the loyalty of their
Mininni (2007)40 indicated that retail brands are being offered as part of the
total retail shopping experience environments. He further noted that the added
38. Allen Broyles, Robert, H. Ross, “Donnap Davis and T.Leingfitul (2011),
“Customer‟s Comparative loyalty to retail and manufacture brand”, Journal
of Product and Brand Management, 20 (3), pp.205-215.
40. Mininni, T., (2007), “Packaging that works for the Planet”, Brand Week,
48(1), pp.1-20.
44
brand management strategies some forms have the potential to steadily increase
Hanf and Belaya (2008)42 mentioned that retailers began to recognize that
people are loyal to brands, because brands add value to their purchase. Such a
unique personality added to the image of the branded product. This personality
could also be reflected in the retailer itself, and in the retailers‟ branded product(s).
have their own brands, as well as carrying manufacturer brands because, at least in
part, the manufacturing firm typically provides the advertising. This makes it
unnecessary for the retailer to spend funds to market their own branded products,
in that the manufacturers‟ advertising will draw customers into the retailers‟
store(s).
41. Davis, S.M., (2000), “Does brand asset management strategy matter?”, Brand
asset management:Driving profitable growth through your brands, Jossey-
Bass, San Francisco, CA, p.3.
42. Hanf, J.H. and Belaya, V. (2008), “Retail internationalization and its impact
on the Russian Agri-food business”, Journal for East European
Management Studies, 13 (3), pp.239-252.
43. Hu, F. and Chuang, C., (2009), “How can different trend strategies lead to
retailers success? Comparing manufacturers brand for coca-cola and private
brand for Costco”, Journal of Global Business Issues, 3 (1), pp.129-135.
45
Choi and Coughlan (2006)44 noted that store brand products in 77 of 250
super market product categories have greater market share than the strongest
manufacturer brand.
toward a brand by stating that such loyalty reduces a firm‟s cost of serving
Paswan et al., (2007)46 revealed that consumers who do manage to get their
preferred service brand tend to be satisfied with the features of the obtained brand
and exhibit higher levels of brand loyalty towards that brand. In comparison,
consumers who end up with a service brand that is not their first choice seen to
have lower levels of satisfaction with and loyalty towards the obtained brand.
44. Choi, S.C. and Coughlan, A.T., (2006), “Retail trend positioning: quality
versus feature differentiation from the major brand”, Journal of Retailing, 82
(2), pp.79-93.
45. Anisimora, T.A., (2007), “The effects of corporate brand attributes on
attitudinal and behavioural consumer loyalty”, The Journal of Consumer
Marketing, 24 (7), pp.395-405.
46. Audhesh K. Paswan, Nancy Spears and Goapala Ganesh (2007), “The effects
of obtaining one‟s preferred service brand on consumer satisfaction and brand
loyalty”, Journal of services marketing, 21(2), pp.75-87.
46
Hong et al., (2009)47 revealed that the perceived quality was found to
The power of satisfaction significantly lies in its ability to reinforce brand loyalty
Yong (2008)48 identified that Chinese single woman with fashion self
consumer.
significant preference for black owned goods and services. Additionally, it was
47. HongYoul Ha, Sunder Janda and Sang-Kyu Park (2009), “Role of satisfaction
in an integrative model of brand loyalty”, International Marketing Review,
26 (2), pp.198-220.
48. Yong Tae Bang (2008), “How female consumers think of themselves, make
consumption and show loyalty to a brand”, International Review of Business
Research Papers, 4 (3), June, pp.56-63.
49. Feffrey Stevan Podoben (2008), “The African American consumer revisited:
brand loyalty, word-of-mouth and the effects of the black experience”,
Journal of Consumer Marketing, 25 (4), pp.211-222.
47
found that while a majority of African American consumers believe the most
American firms have ties to slavery, this does not act as a factor in the purchase
decision.
Eventhough, there are so many studies related to the brand loyalty, its
FMCGs especially in Indian context. Hence the present study has made an
attempt to fill up the research gap with the help of proposed research model.
Antecedents of
Brand Loyalty Brand specific
Behaviour loyalty
Profile of the
Customers
Propensity to be
Loyal
Personality of
the Customers Level of Brand
Loyalty on
FMCGs Retail Brand
Loyalty
Brand
Personality of
the Customers Manufacturers
Brand Loyalty
48
Based on the proposed research model, the objectives of the study are
drawn.
iii) to analyse the various antecedents of brand loyalty behaviour among the
customers;
iv) to examine the level of brand loyalty factor on the level of various brand
implications.
The FMCGs are varying from customer non durables to consumer durables.
Since the present study has made an attempt to explore the brand loyalty
behaviour in the FMCGs, a special care was taken to limit the number of products
for the study. The choice of the product was made by keeping the following in
minds.
2. The categories should have enough players so that the customer has
options;
3. Switching costs should not be two high so that loyalty is not forced upon
the customers;
purchase frequency.
Hence, the product undivided into the present study are toiletries,
cosmetics, teeth cleaning products, shaving products, soft drinks, health drinks
chocolates, and fabric wash. The consumer durables are excluded from the
analysis and the cigarettes are also excluded because the usage may be seen
RESEARCH DESIGN
Research design is the blue print of the various methods for conducting the
research projects. It includes the procedures for obtaining the information needed,
the way in which they are processed and the method of presentation of the result to
solve the research problems. Eventhough, the research designs are too many, the
Since the present study has made an attempt to explain the level of brand
loyalty behaviour among the customers in FMCGs market and also its causes
antecedents and types of loyalty, it is descriptive in nature. Since, the study also
focuses on the cause and effect relationship between the various determinants of
brand loyalty behaviour and the level of brand loyalty in FMCG market, it is also
diagnostic in nature. Hence, the applied research design of the study is descriptive
divided into seven important taluks namely Madurai North, Madurai South, Melur,
TABLE 1.1
Number of population
Sl.No. Name of the taluk Total
Male Female
The total population in this district is 25.62 lakhs out of which 12.95 lakhs
are male whereas 12.67 are female population. The higher population of 11.96
lakh is seen in the Madurai South Taluk followed by 3.47 lakhs in Madurai North
and 2.5 lakhs in Melur Taluk. The higher number male and female population is
In order to have an equal representation from each taluk of the district, the
sample size derived from each taluk is arbitrarily determined as 200 which
consists of 100 male and 100 female population. The sample are were purposively
selected by the researcher. The distribution of sample in each taluk and the fully
TABLE 1.2
Number of population
Sl.No. Name of the taluk Total
Male Female
1. Madurai North 53 36 89
3. Melur 42 32 74
4. Vadipatti 39 33 72
5. Usilampatti 32 29 61
6. Paraiyur 34 32 66
7. Thirumangalam 42 37 79
The total number of sample drawn from each taluk of Madurai district is
200 which consists of 100 male and 100 female population. In total, the
responded samples are 547 which shows the response rate of 39.07 per cent. The
53
response rate among the male and female population is 43.71 and 34.42 per cent to
its total 700 respectively. The higher response rate is identified among the male
and female population at Madurai South which indicates 64.00 and 42.00 per cent
to the total of male and female respondents. The lesser response rate is identified
in Usilampatti Taluk which consists of 32 and 29 per cent to the total male and
female respectively.
COLLECTION OF DATA
The required data for the research work have been collected with the help
The first part covers the background of the customers whereas the second part
includes the personality traits and brand personality among the customers. The
third part of the schedule includes the various antecedents of brand loyalty
behaviour among the customers whereas the fourth part covers the various
behaviour among the customers. The relevant variables were drawn from the
review of previous studies and also the view of experts in the marketing of
FMCGs.
city. Based on the pre-test, certain modifications, additions and deletions were
54
carried out. The final draft of the schedule was prepared to collect the primary
FRAMEWORK OF ANALYSIS
The statistical analysis has been selected and used to process the collected
data according to the requirements of the study. The analysis is selected according
to the scale of data and the objectives of the study. The included statistical analysis
1. T-test
The „t‟ test is one of parametric tests to analyse the significant difference
among the two group of samples. It is applied when the criterion variable is in
X1 -X 2
t
(n 1 - 1) (n - 1)
2 2
1 1
s1 2 s2
x
n1 n 2
-2 n1 n 2
2
s1
= variance in the first sample
56
2
s2
= variance in the second sample
The „t‟ test has been applied to test the significant difference among the
rural, semi-urban and urban customers regarding the various aspects related to
The one way analysis of variance is applied when the criterion variable is in
interval scale and the number of group of samples included for the study is more
The one way ANOVA has been applied to examine the significant
difference among the three of customers regarding various aspects related to the
The exploratory factor analysis is used when the researcher wants to narrate
the variable into handsome factors and also find the relationship between the
variables and narrated factors. It is also called as narration analysis. Whenever the
interval scale, the factor analysis has to be executed to narrate these variables into
factors. Before applying the factor analysis, the validity of data for factor analysis
square value is upto 0.05 per cent level. In the present study, the factor analysis
has been executed to identify the important factors in brand loyalty and
The Confirmatory Factor Analysis have been executed with the help of
LISREL 8 software package. It is applied to test the reliability and validity of the
variables included in each construct. In the present study, the CFA has been
58
applied to test the reliability and validity of variables in all concepts generated in
scale and the independent variable are in interval scale. It is used to identify the
important discriminate variables among the two group formulated in the study.
Whereas
Z = Discriminant criterion
I j K j (X j1 -X j2 )
Whereas
Ij
R j
n
Ij
j1
In the present study, the two group discriminant analysis has been
the rural vs urban customers regarding various aspects related to brand loyalty
behaviour.
a = intercept and
e = error term
60
In the present study, the multiple regression analysis has been administered
loyalty and components of brand loyalty on the level of brand loyalty among the
customers.
1) No scientific sampling procedure has been applied to fix the sample size;
2) For equal representation from each taluk of Madurai District, 100 each
male and female customers were purposively selected for the study.
3) Eventhough, the products related to FMCGs are too many, the present
shaving products, soft drinks, health drinks, chocolates and fabric wash.
loyalty, level of brand loyalty and type of brand loyalty were drawn from
5) The data collected from the customers are subjected with the limitation of
assumed.
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CHAPTERISATION
The present study is classified into six chapters for neat and clear
presentation.
The first chapter explains the introduction of the study, need for the study,
personality.
behaviour among the customers, association between the profile of customers and
their view on various antecedents and the discriminant antecedents among the
The fifth chapter explain the measurement of the level of brand loyalty,
various types of brand loyalty, linkage between the personality traits, brand
personality, antecedents of brand loyalty behaviour and the level of brand loyalty
CHAPTER-II
In order to fulfill the objectives of the study, various concepts have been
included to measure the concept before discussing the concepts. In the present
chapter, the conceptual framework of the study have been presented in a detailed
manner.
Personality traits are generated by nature and are stable (Sternberg, 2000)51.
Catrell (1957)52 divided personality traits into surface trait and source trait. Mc