ABSTRACT

The study indicates the impact of Brand Image on Customer Loyalty

with the Mediating Role of Customer satisfaction and Brand
Awareness. A questionnaire is filled by the 300 respondents that are
selected through non-probability to measure customer satisfaction and
their loyalty to their favorite Brand. The respondent filed the
questionnaire according to their favorite brand. In the study 22
statements and 5 points, Likert Scaled survey questionnaire was filled
by the 300 respondents. The results were made by using different
methods. The result is based on the statistics test which displays that
the Image of the brand and customer Loyalty is very significant with
Customer Satisfaction and Brand Awareness, but Brand Image is
insignificant with Brand Awareness. The result is analyzed through
SPSS software for statistical analysis. The study was conducted within
a short time and within the limited resources due to the pandemic
attack of the COVID-19. In the future study, the major topic is
recommended due to the current situation in the world due to the
pandemic attack of the COVID-19 impact of any pandemic diseases on
customer loyalty.
 INTRODUCTION
A strong Brand Image helps to keep the organization in the mind
of potential consumers Customer loyalty is one of the main factors
or ownership of the organization that is the major result of brand
image and the services level that they are providing to the
customers. Therefore, if the company wants to compete with its
competitor. They should provide quality products and services to
make the customer loyal to their products and services. Awareness
and satisfaction of the product increase the overall image of the
brand. The satisfaction of the customer is the concept of marketing.
The satisfaction of the customer shows how products are delivered
to customers. The customer is more satisfied when he gets good
quality products at low prices. And when the customer is more
satisfied it builds the image of the brand and makes the
customer loyal to that product.
Brand awareness is something about the product, quality,
and price in the mind of the customer. How much the customer
knew about the feature of that brand? However, the customer
usually purchases those products that have a decent image in the
mind of consumers. The purchasing behavior of the customer is
influence through the Awareness of the brand. Brand Awareness is
the determinant of business success; many of the researches on
the awareness of the brands show that it influences the image of
the brand and loyalty of the customer. Brand Image if created meet
the expectation from the brand will be leading to satisfaction.
 Background Study
Now a day the competition between the companies is too high. It is
very difficult for them to maintain their competitive advantage.
From previous few days, the consumers' needs are found that are
changing rapidly and which leads to the high pressure on the firms.
The purpose of this research is to continue with the existing
research on brand image and buyer loyalty. The need for this
research is arising as the issue of the brand image buyers loyalty
with the mediating role of the satisfaction of the consumers and the
awareness about the brand. But the past studies on these variables
show that the connection between brand image and the loyalty of
the buyers is in the form of high impact. Based on the past studies
it is found that the customers highly aware about the product have
the greatest loyalty. If the customers are satisfied with the brand
they will show loyalty to that product. While the brand image
creates more value in the minds of the customers based on some
emotions. According to the concepts given above the research, we
are going to conduct will concern to explore the influence of brand
image on buyers loyalty. Many of the brands are working in
Pakistan via this study we will emphasize the measurement for the
brands and their influence on the buyers and also the consumers.
 Purpose of Study
The study is designed to check the Impact of a Brand image on the
loyalty of the customer with the mediating effect of satisfaction of
the customer and brand awareness. Hence the research has the
following objectives:
 Check different factors that affect the loyalty of the customer.
 Examine the impact of consumer Satisfaction on the loyalty of
customers.
Analyze the act of Brand Awareness in the satisfaction and loyalty of the
customer.

Process of Buying Decision

This process is based on five stages. Most customers go through
these stages and some skip these stages. The stages of the buying
decision are some of the following.

Stages of Buying Decision

Identify the problem

Search information about that problem

Evaluate its alternatives

Select the best and purchase

Post-purchase behavior

Scope of the Study

The study is concentrated on peoples who are customers of specific
brands. This research provided helpful information about brand
preferences to customers.
Limitations of the Study
The study is focused on different aspects of the loyalty of
customers to the Brand Image because of Customer satisfaction
and Awareness of the brand. This study is conducted for all brands,
not for a specific brand. All cities of Pakistan are not included in
the study.

Research Questions
Some questions about the study are as follows:
 How Image of the Brand affects customer loyalty?
 In what ways consumer satisfaction and brand awareness
are mediating the impact of Brand image on the loyalty of
the customer?
 What is the relation between the brand and the behavior
of customers in the buying decision process?

LITERATURE REVIEW
Brand Image
In the marketing field Brand Image is one of the important
concepts (Keller, 1998). As the study of (Mao, 2010) in the
promotion of a brand, the image of the brands plays a vital role.
The image of the Brand is a composite of consumer perception and
faith about the brands (Aaker & Equity, 1991). The image of the
Brand is the set of perceptions for a specific brand. This set
of perceptions plays a vital role in the consumer decision process
of purchase when he/she is looking for an alternative brand.
(Mishra & Datta, 2011) Brand image has an optimistic influence on
the brand image. On loyalty of the buyer image of the brand has a
positive impact. When a customer is satisfied the image of the
brand becomes strong. That's way on customer satisfaction Image
of the Brand has a positive impact (Johanudin, Nur, & Shelle,
2016).
Brand Image is not found in the technical characteristics of
the original product. But Brand Image is something that brings out
by promotions, advertisement. When a customer uses the product
and expresses his/her feelings about the product in front of others.
That is building a brand image of that product. The image of the
 brand is something about product features, design, packaging, and
the characteristics of that brand or product that make them different
and unique from other products.
Brand Image contains how consumers respond to the
benefits of its different features which the brand provides to the
consumer. Brands can be built through a different process. In the
first step make the strategy of the brand and combine it with the
business goals. In the second step, we use all our tools to inform
the consumer about our brand or the product and services. And the
third step to make changes in the brand from time to time with new
features and technology which benefit the consumer. The Image of
the Brand varies with the perception of the customer. Its example is
some consumer-like low price and good quality this low price and
high quality make the Image of the Brand. Some consumers like
the best and unique quality at any cost. These consumers also think
the Brand has a good image and we also advise others to use the
products of that brand. Image of the Brand shows the quality of the
organization not the colors, name, and logo of that brand. The
Image of the Brand becomes stronger when the organization
updates its brand faster than rivals. The key role of a Brand is to
help the consumer to differentiate the products and services
foundations, manufacturing, and differentiate the products and
services from rivals/competitors. The image of the brand can
become stronger when the brand satisfies the needs and demands
of the consumers. If the brand image is positive which will lead to
understanding the consumers about the business and the brands?
Brand image in terms shows the purpose of your businesses and
attracts buyers.

Customer Loyalty
Is the purchase behavior of the buyer in which he/she buy
again and again the same brand product and services in the future
regardless of rival efforts? Loyalty can be something about the
customer thinking about the product. None of the scholar ye gives
the proper definition to the customer loyalty but there are different
concepts about it (Jacoby & Robert, 1978). The organization is
focused on customer commitment, which produces a benefit for the
consumers that is why they purchase the products of the same
 brand repeatedly (Sriram, Balachander, & Kalwani, 2007). The
loyalty of the brand is when the consumer buys the products of the
same brand again and again. Not all loyal customers look at the
price of that brand some of them act as a follower of the company,
which contribute to pulling in the customer. The loyalty of the
brand can also affect the buying choices of the customer (Wahid &
Ahmed, 2011).
Mostly, there are two viewpoints of brand loyalty. One is
behavioral loyalty. Besides the other is attitudinal Loyalty.
Behavioral Loyalty is the repurchase of the customer from a
similar brand. Attitudinal Loyalty in which the customer
repurchases the product without essentially purchase behavior.
According to (Chaudhuri & Holbrook, 2001) stated that there is a
direct connection between brand loyalty and the price premium of
the brand. The price of the brand is the signal of loyalty (Aaker,
1996). The price of the product is paid instead of the other product
with the same benefits that may be low or high is known as the
price premium.

Customer Satisfaction
When the goods and services fulfill the need and demands of the
customer at an extreme level the customer is said to be satisfied.
Services and product attributes and the product itself give pleasure
and satisfaction to the customer, the customer is said to be
satisfied (Oliver, 1997). In the same way, declared that previous
studies on consumer satisfaction highlight mostly on influence of
the hopes, performance, and affect in addition to equity on
satisfaction. Satisfaction on the product is like service or product
excellence, service or product hospitality, practice design,
perceived value, and customer relationship advantages. Customer
Satisfaction is something that how the firm product performance is
according to the requirement of the customer. In the same way,
some other researchers said that the loyalty of the customer and
customer Satisfaction is separate from each other. Satisfaction is
something that people say about the product. And Loyalty is what
people do. The customer becomes loyal when he is satisfied with
the product and services of that brand. From the Loyal customer,
 the organization makes more profit because the loyal customer
purchases the same Brand products again and again and commends
others to purchase the same products and services. Loyal
Customers cannot switch to other brand products and sincere with
their brand's product. In different market situations and marketing
efforts, customers will not switch to rival and other brands. Loyal
customers are an asset for the organization and valuable in making
profit and sustainability. According to (Bowen & Shoemaker,
2003) if the customers are satisfied with a brand they will show a
positive image and have positive words about the brand. The
consumers' are not satisfied the major consequences are that firm is
not able to deliver according to the expectations of the consumers'
(Roig, Garcia, Tena, & Monzonis, 2006).

Brand Awareness
It is something that customer ever watches and heard about the
brand we can say that he/she is aware of the brand and know the
brand effectively (Brewer & Zhao, 2010). Also, the name of the
brand is the most significant. In decision-making Brand, awareness
helps the customer. By knowing well about the Brand and have
awareness about the Brand the customer made buying decisions
easily. Customers gain brand awareness through the internet,
newspaper, radio, and other media of information. When the
customer is aware of the merit and demerits of the brand this
awareness reduces the threat in product selection. Brand awareness
links the customer with the brand they aspire to possess (Pouromid
& Iranzadeh, 2012). The best awareness about the brand comes
when the consumer uses the products of the brand. The consumer
is aware of the brand when he saw the brand and sees a different
advertisement on the media. Through the media, he becomes aware
of the feature and working of the brand products.
When the consumer is aware of the brand's features and
thinks this brand can fulfill its needs then he decides to purchase
that brand. (Tong & Hawley, 2009) Brand Awareness is the
characteristic of the consumer when he is going to purchase the
product of the brand.
Brand Image and Customer Satisfaction
The positive image of the brands improves the satisfaction of the
customer. When a customer is aware of the brand and uses that
brand if a customer is satisfied with the brand it builds the image
of the brand. A positive brand image improves customer
satisfaction. Customer satisfaction helps to construct the image of
the brand. (Hess & Story, 2006) The image of the brand is
important for an organization that moves towards Customer
satisfaction. Through Image of the Brand and customer satisfaction
organization improve their effectiveness. When applying this
concept to the store. This concept shows that the effects of store
image are linked with store Satisfaction. The good relationship
between the corporation and the customer shows the connection
between brand image and consumer satisfaction. The researcher
says there is no important relationship between loyalty and
satisfaction (Zins, 2001). However, the image of the organization is
linked to customer satisfaction (Kandampully & Suhartanto, 2000).
Loyalty improves the image of the brand. And the image of the
brand is a good consumer is more satisfied to purchase that brand.
When an organization provide quality at a low price and fulfill the
needs and demands of consumer the consumer is more satisfied
which help to improve the image of the brand. By improving the
image of the brand, the organization enjoys more profit and
goodwill.

H1: Image of the brand and customer satisfaction is directly

proportional to each other. As the customer is satisfied, more the
image of your brand will be made.

Customer Satisfaction and Customer Loyalty

Different studies show that when the customer is satisfied with the
brands, he becomes loyal to that brand (Ismail, Ibrahim, & Mohd,
2006). It shows a direct connection between the satisfaction of the
buyer and customer loyalty. If the buyer is gratified with the brand
products and services. Customers do praise that brand in front of
others. Due to high satisfaction from the brand, a customer has less
chance to move toward another brand (Bennet & Rundle-Thiele,
 2004). Many studies confirmed that the satisfaction of the customer
has a positive effect on customer Loyalty. It includes different
intents of the customer. Intent to purchase again and again the
same brand. Intent to suggest the same brand to others which he
uses (Kandampully & Suhartanto, 2000). Intent to visit the same
store again and again (Bloemer, Deruyter, & Peeters, 1998).
Studies show that the satisfaction of the customer is the key factor
of buyer loyalty (Szware, 2005). Some studies are not satisfying on
this point (Gommans, Krishman, & Sheffold, 2001) some
Customer who is loyal but not satisfied from the brand and some
are the customer who is satisfied but not loyal with that brand.
When the brand is satisfying the need and demands of the
consumer he becomes more satisfied with the brand. And when
the consumer is satisfied he becomes loyal which is beneficial for
the organization. For making customers loyal to the brand
organization needs to develop a strong brand to know their target
audience and make strategies according to their target audience.
Make their products according to the needs of the consumer and
low prices than the rival. Provide good quality at a low price also
makes the customer loyal to that brand.

H2: Customer satisfaction also Customer Loyalty are directly

proportional to each other. As the buyer is satisfied, the more
he/she became loyal.

Brand Image and Brand Awareness

Many hypothetical and the applied indications from the recent
learning show the direct connection between the image of the
brand and brand awareness. According to (Aaker & Equity, 1991)
that the brand image and awareness about the brand have a solid
connection among each other as awareness about the brand is an
important matter that supports a brand to persist in the awareness
of the consumer. Whereas, according to (Aaker, 1996) that from
the study is found that brand image and brand awareness have to
get in the justification. By the study to (Tong & Hawley, 2009),
brand awareness is the basic part of a consumer brand. Awareness
of the brand is tended to build the image of the brand in the
 approach to the consumer awareness of the brand has some impact
on the observation and behavior of the consumer. Many
researchers show that the awareness of the brand can build the
image of the brand. When a customer is aware of the features and
characteristics of the brand he/she feels no reluctance to purchase
that brand. Because he is known about the brand and purchases it
because he is satisfied it will help to improve the image of the
brand. Brand awareness is necessary to maintain the brand image
in buyer’s perception of the brand is already known in the market
and the buyers know about the brand it will create the easy
association in the minds of customers. If the awareness about the
brand is high the buyers will adopt the brand easily with less time.

H3: Awareness of the brand has some connection with the image of the
brand.

Brand Awareness and Customer loyalty

From the satisfaction of the consumer, we can predict the future
purchase of the consumer. The consumers that are more satisfied
with the product will purchase more next time according to the
(Zeithaml, Berry, & Parasuraman, 1996) are recommended that the
customers try to have the satisfaction about the services and the
goods and also give the less response towards the competitors’
products that they are offering in the market. Mostly, loyalty has
been found as an important part of brand awareness according to
(Zeithaml, Berry, & Parasuraman, 1996). At the same time,
awareness and loyalty about the product are most of the time linked
by many of the researchers’ study. Many of the others have
considered it as the relation between the competitors' products
whereas some of the others even did not get any of the direction
and are unidirectional. Brand awareness tends to the customers that
are product satisfied or is not complete without the other variables
that are mediating. They mostly tend to be used as the most
important purpose of the repurchase and to devote the name of the
brand for their connection (Zeithaml, Berry, & Parasuraman,
1996).

H4: Brand awareness has a significant positive connection with the loyalty
 of the customer.

Brand Image, Brand Awareness, and Customer Loyalty

How the customer recognizes the image of the brand in their minds
and has great significance besides the real one. Definition of brand
image is how buyer takes the specific brand, and the uniqueness of
the brand is the criteria via which most of the companies introduce
their new brands in the market and what they are hoping and doing
for the awareness of the product to the customers to purchase their
new product. It is a possibility that the customers can have a
different brand image and they are firm in offering the difference
(Bian & Moutinho, 2011). During the previous few years due to
scientific improvement, the buyers have become more aware of
products and they just purchase that product about which they
know a lot and have clear information about the features and are
also according to their requirements. Each of the companies has the
wish to compete with their competitors and for this purpose, they
can do any of the actions and which possible if the customers
purchase their product instead of their competitors. According to
(Macdonald & Sharp, 2000) that although the customer wants to
purchase his favorite product still you have the chance to
convince him to change the buying behavior of the customer. As
the consumer is introduced by any of the products mostly their
focus is on the title of the brand that shows the awareness of the
brand. The consumer’s decision to purchase any of the products
cannot be changed if the customer about the brand has high
awareness. The discussion shows that those products have a high
level of shares and better value in the market that have a higher
level of awareness about the brand. Rather than this, when the
customer purchases any of the products in the market he
considered or focus on brand awareness and its value in the market
at that time. According to Aaker (Aaker & Equity, 1991) if the
customer focuses on the value of the product at the time of
purchase it will help him to decide on the product and the product
has the best features and becomes a good brand in the minds of the
customers. Now a day, companies have to focus on the loyalty of
the customers. The cost now a day is five-time higher than before.
 Awareness about the brand helps the consumer to purchase the
product. If the consumer is satisfied with the product of that brand
he becomes loyal that improves the overall image of the brand and
vice versa.

H5: There is always a direct connection between brand image,

brand awareness and loyalty of the customers and the brand image
is affecting the customer loyalty and brand awareness is playing
the role of mediator.

Brand Image, Customer Satisfaction, and Customer Loyalty

The image of the brand always remains one of the important assets
for the satisfaction of the customers and their loyalty to the
product. Customer loyalty and brand image have an impact on each
other. Got that the image of the brand harms the loyalty of the
customers according to the satisfaction of the customers. The
satisfaction of the customer is one of the very major drivers of
customer loyalty and in any of the business growth. As recent
studies show according to (Davies, Chun, DaSilva, & Roper, 2003)
that there is a direct connection between the customer's satisfaction
and brand image and the favor of the brand image creates loyalty
about the product. Many of the researchers showed that there is a
good result in between the direct connection of the satisfaction of
the customer and the again purchase which is loyalty-based. Many
of the studies shown that the flaw is shown by the satisfaction of
the customers (Dimitriades, 2006) When the consumers say the
product has satisfied them, they will still purchase the product from
somewhere else elsewhere (Jones, 1996). The learning has shown
that there is a positive connection between consumer satisfaction,
buyer loyalty, and repurchase (Bloemer & Odekerken- Schroder,
2002). Many of learning’s stated that the customers which are
satisfied can decrease their purchases (Dimitriades, 2006). As,
most of the consumers' reply is that they are satisfied with the
products but at that time they are purchasing some other brand
(Jones, 1996).

H6: There is a significant direct connection between brand image, the

satisfaction of the customers, and the loyalty of the customers. Image of the
brand is affecting consumer loyalty and consumer satisfaction is playing the
role of mediator.

RESULT AND DISCUSSION

Image of the brand and consumer loyalty are taken as the
determinant's consumer choosing related to any of the products and
it considers the competitor situation for the definite firm to defeat
in the market. The current learning was under reserved with the
situation that what the specific issues help towards the loyalty of
the consumers and their satisfaction.
All of the brands were taken as case studies as domestic consumers
consider for purchasing the specific brand have to discuss in the
sense of brand image and buyer loyalty. In this section, the
outcome is given and discussed. Brand image and loyalty of
the buyer are decided as the possession of the company and it can
appeal to the consumers towards the brand. In this study, the brand
image and loyalty of the buyer and their relation with the
satisfaction of the consumer and awareness of the brand are
decided through the research.

Demographic Characteristics
To measure the dimensions of all of the customers the data
gathered from 300 respondents that were the users of the different
brands. From all of these respondents there are 166 (55%) male
respondents and 134 (45%) are female respondents. The majority
 of the responders are under the age of 19-23 years.

Reliability Analysis
The data which was gathered was calculated and the result shows
that the value of Cronbach's alpha of brand image is .620, the
loyalty of the brand value is .530, customer satisfaction measure is
.622, and awareness of the brand is .618. Therefore, the reliability
of the data that is given in the learning is in the normal range.

Table 1.Reliability of Statistics

Cronbach. Alpha Numbers of the

items
.666 4.00

Table 2. The item Total Statistic

Scale Scale Modified Cronbach

means if variance Item alpha if the
the Item if Item
Removed the Total Removed
Correlatio
Item n
Removed
Brand Image 6.5469 1.761 .418 .620
Brand Loyalty 6.2409 1.470 .545 .530
Customer 6.4251 1.662 .412 .622
Satisfaction
Brand Awareness 6.2698 1.481 .428 .618

Exploratory Analysis
In the table below all of the findings show that the distribution of
the variables according to the skewness is normal values that
fluctuated between -1.0 to + 1.0. Standard deviation also means are
given in the table below:

Table 3. Descriptive Statistics

 Number Maximu Mean Standard Variance Skewness Kurtosis
m Deviatio
n
Statistic Statistic Statisti Std. Statistic Statistic Sta Std. Statistic Std.
c Erro t Err Error
r isti o r
c
Brand 300.00 3.40 1.947 .02840 .49183 .242 .74 .141 .115 .281
3

Image 6
Brand. 300.00 4.33 2.2533 . .57046 .325 .77 . .540 .281
Loyalty 03294 2 141
Custo 300.00 4.25 2.0692 . .55055 .303 1.0 . 1.628 .281
m er. 03179 03 141
Satisfa
c tion
Brand. 300.00 4.33 2.2244 . .63643 .405 .59 . .168 .281
Aware 03674 0 141
n ess
Valid 300.00
.N
(least
wi se)

Table 4. Descriptive Statistic

Mean Standard Deviation Number

Brand Image 1.947 .49183 300
3
Brand Loyalty 2.253 .57046 300
3
Customer 2.069 .55055 300
Satisfaction 2
Brand Awareness 2.224 .63643 300
4
Correlation Analysis
In this analysis, the test which is used is the Pearson correlation test
shows the association between the variables. The table which is
given below shows the correlation is + with brand loyalty. Image
of the brand is (r = 0.7590) loyalty of the brand (r =.3410),
customer satisfaction (r=.213), brand awareness (r= .000). The
correlation of the coefficients between the variables that stay
independent is not more than the value of 0.9, which removes
the multicollinearity issue.

Table 5. Correlation

Brand Brand Customer Brand

Image Loyalty Satisfaction Awareness
Brand Image Pearson. 1 .406** .341** .213**
Correlation.
Sig..2 - tailed 0.0000 0.0000 0.0000
Number 300.00 300.00 300.00 300.00
Brand Loyalty Pearson. .406** 1 .315** .452**
Correlation
Sig..2 - tailed 0.0000 0.0000 0.0000
Number 300.00 300.00 300.00 300.00
Pearson. .341** .315** 1 .288**
Customers Correlation

satisfaction Sig..2 - tailed 0.0000 0.0000 0.0000

Number 300.00 300.00 300.00 300.00
Brand Awareness Pearson. .213** .452** .288** 1
Correlation
Sig..2 - tailed 0.0000 0.0000 0.0000
Number 300.00 300.00 300.00 300.00
**. Correlation is important at the 0.01 level (2 - 2-tailed).

CONCLUSION
This research studied the connection between brand image and
loyalty of the buyer with the mediating role of the satisfaction of
the customer and awareness of the brand. All of the brands were
taken as the object for the research study. In light of the research is
concluded that brand image has an important impact on customer
loyalty. Although, brand awareness and consumer satisfaction
influence the brand image and customer loyalty according to the
results. As a large part of the responders were youngsters and were
qualified.
This research also emphasized that responders were mostly
influenced by the favorites related to their choices of the brand and
quality and which built a strong + correlation with brand image and
customer loyalty of product.
In the end, it is the satisfaction of the consumer and creates
interest of the consumer to the use of the product and specific
brand. Brand awareness also plays a significant part in the relation
of brand image with customer loyalty. If the product will be unique
the customers will prefer that.

LIMITATIONS AND THE FUTURE STUDY

The study was conducted within a short time and within the limited
resources due to the pandemic attack of the COVID-19. The
respondents were only from the single culture of the Multan. The
questionnaire includes statements about all brands not about a
specific brand and the questionnaire that is used in the research
were close-ended. Some of the difficulties found during the
research that there was a language difference responders mostly not
able to understand English and most of them were Urdu speaking.
In the future study, the major topic is recommended due to the
current situation in the world due to the pandemic attack of the
COVID- 19 impact of any pandemic diseases on customer loyalty.

RECOMMENDATIONS
The companies should provide attention to the customers they have
to give them the products as affordable and have to provide rapid
services. The companies can attract the customers when they are
launching the new product by giving them gifts through this they
can promote their products. The high brand image can lead to
customer loyalty and satisfaction the companies should provide the
packages of the goods at a cheap price.
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

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)
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

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 in-depth 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.

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.

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.