You are on page 1of 63

Pamantasan ng Lungsod ng Pasig

Alkalde Jose St. Kapasigan, Pasig City


College of Business and Accountancy

Impact of Brand image to Customers Loyalty of Starbucks


Company Among Business Administration Students of
Pamantasan ng Lungsod ng Pasig

A Thesis
Presented to the
Faculty of the Graduate School
Pamantasan ng Lungsod ng Pasig

In partial Fulfillment
of the Requirements for the Degree
Master of Arts in Education
Major in Educational Administration

By
Angeline Ramos
Ashley Samson
Angelo Santiago
Ahlea Subere
Angela Torres
Nemia Valdemoro

JUNE 2022
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

i
APPROVAL SHEET

This thesis entitled “Impact of Brand image to Customers Loyalty of

Starbucks Company Among Business Administration Students of Pamantasan ng

Lungsod ng Pasig”, prepared and submitted by Jerome P. Calleja, Catherine

Kate D. Nicavera, Eliza Mel A. Oconer, Michelle Miguelli M. Olaloy, and

Courtney Love T. Santos in partial fulfillment of the requirements for the

degree, Bachelor of Science in Business Administration major in Marketing

Management, has been examined and is hereby recommended for oral

examination.

__________________ DR. JESSIE F. SERGOTE, LFT,

PH.D(c.)

Date Research Adviser

PANEL OF EXAMINERS

Approved by the Oral Examination Committee with a grade of _____, on


______________.

_____________________
Chairman

___________________ __________________
Member Member

Accepted in partial fulfillment of the requirements for the degree,

Bachelor of Science in Business Administration major in Marketing Management.


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Dean, College of Business and

Entrepreneurial

ii

ACKNOWLEDGEMENT

The researchers would like to express their deep gratitude and

sincerely extend their thanks to all persons who guide and teach them in

order to produce an adequate and effective

thesis.

To our Almighty God that give us talents, skills, patience, and the

right attitude to make

this study reality.

To our professor in this thesis, Doc. Jessie Sergote, thank you for

helping and guiding us to complete at least half of this chapter. Your

presence is really a big help to make this thesis possible.

To our friends who corrected our grammar and to the advice on what is

the better way that we should do.

To our beloved parent, whom always there to support us and give us

financial support.

Finally, individuals who offered and exhibited emotional support to

the researchers in order for them to successfully complete the study's

objectives will always be acknowledged and appreciated by the researchers.

Thank you so much, and Glory be to God!


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

ABSTRACT

Nowadays, businesses are seeking for a ways to maintain their

consumers. According to brandsdesign.com, Brand image plays a huge role in

shaping the perception of its consumers. It could be conceived as negative

or positive based on their insights. In addition, brand image created in

customers' thoughts by brand personality is an essential component in

establishing brand loyalty. There is a saying that right before you

introduce your product to the market, there are already 9times out of 10

competitors out there. Indeed, that the better way to differentiate your

product is by having a strong brand image.

Furthermore, Sondoh et al. (2007) has studied about the effect of

brand image on overall satisfaction and loyalty intention in the context of

color cosmetic by distributing questionnaires to 97 female respondents in

Malaysia. They used customer satisfaction as a mediating variable. It is

found that positive brand image could influence customer loyalty so that

they would repurchase more product or service and recommend others to buy

as much as 41.8%. This study also shows that there was positive

relationship between brand image and customer loyalty as much as 35.8%. In

addition, customer satisfaction could also lead to customer loyalty as much

as 21.1%

Overall, the purpose of this study is, therefore, to examine how brand

image can influence customer loyalty as well as impact on customer

commitment to market offering in the market. Additionally, to reach the

iv
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

purpose of this research which is to determine the link between brand

personality and consumer loyalty, with brand image acting as a mediator.

TABLE OF CONTENTS

TITLE PAGE........................................................i

APPROVAL SHEET...................................................ii

ACKNOWLEDGEMENTS.................... ............................iii

ABSTRACT.........................................................iv

TABLE OF CONTENTS.................................................v

LIST OF TABLES...................................................vi

CHAPTER I.THE PROBLEM AND ITS BACKGROUND

Introduction.....................................................3

Theoretical Framework............................................6

Conceptual Framework.......................................... ..8

Statement of the Problem........................................11

Hypothesis Tested...............................................12

Significance of the Study.......................................12

Scope and Delimitation of the Study.............................13

Significance of the Study.......................................13

Definition of Terms.............................................14

CHAPTER II. REVIEW OF RELATED LITERATURE

Brand Distinctivenes............................................16
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Brand Recognition...............................................18

Brand Personality...............................................20

Customer Satisfaction...........................................21

Branding Consistency............................................22

Synthesis.......................................................23

CHAPTER III.RESEARCH METHODOLOGY

Research Method.................................................24

Population or Sample............................................26

Sampling Technique..............................................27

Stratified Computation..........................................29

Instrumentation.................................................30

Data Gathering Procedure........................................31

Statistical Treatment of Data...................................35

CHAPTER IV. PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

Demographic Profile............................................36

Identifying the assessment of Starbucks’ Brand Image...........42

Respondents’ extent of Brand Loyalty...........................46

Respondents’ degree of Brand Loyalty...........................47

Test of Significant Influence of Starbucks’ brand Image........48

CHAPTER V. SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

Summary of Findings.............................................50
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Conclusions.....................................................51

Recommendations.................................................53

APPENDICES

Appendix A. Survey Questionnaire…...............................54

Appendix B. Letter to Respondents...............................55

REFERENCES.......................................................56

Chapter I

THE PROBLEM AND ITS BACKGROUND

Introduction
In the present times, competitive firms rarely use tangible strategies

to stay on top of the business industry's competitive side. Hence, they


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

rely on intangible factors such as brand image to boost customer

satisfaction and strengthen customer loyalty. Brand image is one of a

company's competitive tendencies that plays an important role in promoting

sustainable relationship with the customer. It represents the company’s

product that influence the customers’ perception and loyalty. According to

Zhang (2015), brand image is the primary driver of brand equity, which

refers to a consumer's general impression and feelings about a brand and

influences consumer behavior. Therefore, customers associate the product

through their own representation based on their ideas, beliefs and

impression. The way they perceive the brand influences their purchasing

behavior, which may or may not cause them to keep purchasing. Since the

first thing that the customer will see is the brand, it will generate an

impression to consumers along with the qualities that associated with the

product. It could leave a positive impact and connection to them,

increasing their trust in the brand. In result, it is possible to sell

products without putting too much persuading on customers using different

marketing strategies.

In most business, they hire famous personalities to advertise their

product because it helps them to build strong brand image to make it

remarkable to the potential customers. This strategy is frequently used by

businesses that is new to the competitive side of the industry, as well as

existing companies that wanted to promote new products. For instance,

Starbucks is one of world's largest coffee company in the Philippines. They

already have more than 200 branch in the country and known for their
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

sophisticated vibe as a coffee shop. Also, they are known for their

expensive coffee that have a lot of varieties for their target market.

Starbucks distinguishes itself by supporting these small, locally owned

farms that would otherwise go unnoticed. Even though they have a lot of

competitors, they still manage to build a strong brand loyalty and brand

image of their company. According to Krumay & Brandtweiner (2010), customer

loyalty is regarded as a critical factor in a company's success, and one

necessary premise for gaining customer loyalty, which is how customers

perceive customer service. Customers who are brand loyal purchase the

preferred brand repeatedly and rarely use alternatives. They are less

vulnerable to price fluctuations and are willing to pay higher price. Since

retaining customers is much less expensive than acquiring new customers,

the characteristics of brand-loyal customers allow businesses to increase

revenues while decreasing marketing expenses.

Furthermore, they extend into new product categories but still the

same brand, and even persuade their peers to buy as well. (Neupane, 2015)

Consumers have various choices in choosing a brand, either local or

international, and how they perceive the products affects their buying

behavior, that is why business position themselves in accordance of

customer’s perceptions. Moreover, when implementing the positioning

strategy, it makes no changes to the main product but instead focuses on

the product's elements. For example, a company may decide to change its

pricing strategy, product name, or packaging. All of these changes are


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

external to the product and are made to ensure that the desired position in

the minds of the customers is maintained.

These factors establish connections in having a good brand image, which

considers by businesses in order to attract new customers, or gain

customers’ loyalty. Loyal customers tend to stay to one specific brand if

it satisfies them, and if it has a good image.

Therefore, the purpose of the study is to evaluate how brand image

affect customers’ loyalty in purchasing a product.

Theoretical Framework

The brand image is one of the important factors to achieve customer

loyalty. Customers' attitudes and behaviors toward a brand, company, or

service are influenced by the brand image (Chen & Myagmarsuren,2011). This

proves by the brand loyalty compound theory, wherein loyalty is an inherent

trait that is directly related to clients, and it is not always permanent

because customers

may be disappointed (Wu, Liu, & Lu , 2009).The relationship between brand

image and customer loyalty is coherent, hence, it must be compatible and

parallel with each other to achieve consistency of the continuous purchase

of the consumers.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Once Starbucks has effectively ingrained their brand image in the

minds of their customers, the next thing they have to do is to provide

positive experiences, build trust, meet consumers satisfaction, and

communicate their message which is to inspire and nurture the human

spirit. As a result, they will be able to gain brand loyalty if all of

these aspects come together and are appropriately provided to their

customers.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Conceptual Framework

Statement of the Problem

The research will look into the influence of brand image on consumer

loyalty at Starbucks. The goal of the study is to discover if the elements

that impact a customer's loyalty to a brand image are related. By

identifying the components that influence the degree of a customer's

loyalty to a brand, the researchers will be able to evaluate how

significant brand image is in the process of gaining target customers'


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

trust. Customers may become loyal to a brand if they have positive customer

experiences, their demands are met, and they understand the brand message.

Specifically, it aims to address the following questions:

1. What is the Profile of Marketing students’ respondents in terms

of:

1.1. Sex;

1.2. Age;

1.3. Year level;

1.4. Section; and

1.5. Place of Origin;

2. What is the assessment of choosing Starbucks brand

image in terms of:

2.1. Brand Distinctiveness;

2.2. Brand Recognition;

2.3. Brand Personality;

2.4. Customer Satisfaction; and

2.5. Competitive Advantage;

3.What is the extent of brand loyalty exhibited by the


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

respondents?

4. What is degree of brand loyalty exhibited by Starbucks

Customers?

5. Is there a significant relationship between brand image and

customer loyalty?

Hypothesis of the study

The hypothesis is tested a .05 level of significance to with: There is

no significance influence of brand image to customer’s loyalty.

Significance of the study

The study is significant because of the various benefits that can help

to the following sectors:

To the Company/Business, the result of this study would help them to

know the effects of brand image on customer satisfaction and loyalty

intention.

To the customers, the study will help them to understand the brand image

of the business, not just only to the business itself but also the impact

to the customer satisfaction and loyalty intention. It would help them more

about the business brand image.


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

To the future researchers, this research study will be a useful

reference for them who would plan to make any related study. They could

utilize the result of this study as basis for further research.

Scope and Delimitation

The general intent of this study is to know the Impact of brand Image

in Customer Loyalty with the focus on Pamantasan ng Lungsod ng Pasig second

year student from Marketing strand 2A to 2D on why they consistently buy

through brand image of the product.

This study is delimited to selected 25 Pamantasan ng Lungsod ng Pasig

second year student from Marketing strand ranging from 2A to 2D. From each

section, students who are consistently buying the brand image of the

product are randomly selected to fill out survey questionnaires.

Definition of terms

Brand image- The brand image includes intangible and tangible brand

implications. Such as value, convenience and quality including the brand

characteristics

Brand loyalty - Customers that display brand loyalty are committed to

a product or service, as evidenced by their repeated purchases despite

competitors' attempts to entice them away. Companies invest a lot of money


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

on customer service and marketing to generate and maintain brand loyalty

for an established product.

Sophisticated vibe- meaning clever and knowledgeable about a wide

number of subjects, helping them to comprehend complex situations.

Mediator- mediator describes how an independent variable influences a

dependent variable. It's part of an effect's causal chain, and it explains

how or why an effect occurs. The independent variable causes anything to be

a mediator. The dependent variable is influenced by it.

Ingrained- that has existed for a long period and is therefore

difficult to modify.

Rapport- Rapport is the degree of comfort between the researcher and

the research participants. The quality of the interactions built by the

researcher on the field is referred to as rapport in participant

observation.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the related literature in connection to the

studies. The chapter will serve as a guide and reference in completing

the research and to contribute prior knowledge to the researchers and

future readers. In addition, Thematic approach is the method being used

in organizing the data in this chapter. This strategy is to categorize

and classify various literature sources according to their topic and

theoretical concept. This will include academic journal articles and

books which will be helpful in the development of the study.

Brand Distinctiveness

Brand Distinctiveness is a uniqueness of the brand’s identity from

its competitor that stands out to customer perceptions. It can also be

defined as the pursuit of individual uniqueness in comparison to others,

which is accomplished through the acquisition, use, and disposal of

consumer goods with the purpose of strengthening and developing one's

personal and social identity (Sauer & Ratneshwar, 2012). Hence, brand

distinctiveness builds a strong impression to consumers that they can

differentiate the brand to other by its distinctive assets; logos,

tagline, color, characters, symbols and advertising styles. According to

Byron Sharp (2010), a distinctive asset is anything that shows people

what brand is being offered for sale. The stronger and fresher the links
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

between these distinctive elements and the brand name, the easier it is

for the consumer to identify the brand. In an instance, Starbucks logo is

recognizable despite only it’s character because of the distinctive

assets like its color and logo which the customers can easily recall and

associates to its brand image. The first thing that comes to the mind of

consumers when they see the distinct elements of the brand reflects on

their perceptions of the brand image of the company. Furthermore,

According to Thi Lan (2018) Identifying the distinctive, unique

characteristics of a destination is necessary for tourism development and

management. After exploring the concept of destination distinctiveness,

this article presents a standardized method for identifying unique and

distinctive place-based attributes of a tourist destination, by comparing

supply and demand views. Using Dalat, a mountain city in Vietnam, as a

case study, this research combines qualitative and quantitative data in

an identification grid that comprises natural, human, infrastructure and

facility factors to reveal the most distinctive attributes of the

destination, which differ depending on the segment of tourists and can

explain tourists’ satisfaction and behaviors. The combination of the most

distinctive attributes with a strong emotional component is important to

the destination's positioning strategy.

Moreover, brand distinctiveness helps to lessen the time of the

consumers to research the proper product and reduces the number of options

they have. In addition, According to Shanker K. (2010) Consumer exposure to

new brand names can occur in contexts with or without brand information
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

being present. Whereas previous research has examined the effects of brand

name characteristics (association set size and word frequency) on memory in

the presence of brand information, this paper also assesses brand name

effects in contexts without brand related information and extends it to

brand consideration and choice. Two different processes are found to be

operating as consumers retrieve brands and make a choice. Recall seems to

benefit from a distinctiveness-based route, which also guides consideration

and choice. In contrast, implicit memory is influenced by familiarity, with

corresponding consideration and choice effects. The implications are that

firms’ choice of brand names and media needs to consider the combination of

brand name characteristics that will lead to desired outcomes vis-à-vis

distinctiveness or familiarity based processes.

Recognition

One of the most well-known brands in the world is Starbucks. Because

of the quality of their marketing and their dedication to maintaining

brand consistency, their brand recognition has reached epic heights.

According to Toni-Matti K. (2010). The present paper examines how

companies strategically employ design to create visual recognition of

their brands' core values. To address this question, an explorative in-

depth case study was carried out concerning the strategic design efforts

of two companies: Nokia (mobile phones) and Volvo (passenger cars). It was

found that these two companies fostered design philosophies that lay out
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

which approach to design and which design features are expressive of the

core brand values. The communication of value through design was modeled

as a process of semantic transformation. This process specifies how

meaning is created by design in a three-way relation among design

features, brand values, and the interpretation by a potential customer.

Another result is that the embodiment of brand values in a design can be

strategically organized around lead products. Such products serve as

reference points for what the brand stands for and can be used as such

during subsequent new product development (NPD) projects for other

products in the brand portfolio. It therefore had to apply its design

features more flexibly over its product portfolio, and in many of its

designs the relation between design features and brand values was more

implicit. Six key drivers for the differences between the two companies

were derived from the data. Two external drivers were identified that

relate to the product category, and four internal drivers were found to

stem from the companies' past and present brand management strategies.

These drivers show that the design of visual recognition for the brand

depends on the particular circumstances of the company and that it is

tightly connected to strategic decision making on branding. These results

are relevant for brand, product, and design managers, because they provide

two good examples of companies that have organized their design efforts in

such a way that they communicate the core values of their brands. Other

companies can learn from these examples by considering why these two

companies acted as they did and how their communication goals of product
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

design were aligned to those of brand management.

Brand Personality

Brand personality offers purchasers something with which they could

relate to which effectively will increase brand awareness, reputation and

brand loyalty. By setting up a brand personality, businesses can form

emotional bonds with their purchasers. Starbucks states that they believe

a coffeehouse should be a welcoming, inviting and familiar place for

people to connect (Starbucks Coffee Company,2014). Starbucks has designed

their stores to reflect these unique characteristics. When a purchaser

views Starbucks logo personality as having strong stages of favorability,

originality and clarity, they are much more likely to buy from their

brand. This study explored brand personality dimensions and examined the

effects of brand personality on repurchase intentions. Starbucks and 85

Degrees, the two largest branded coffee chains in the Taiwanese

hospitality market, were taken as examples. The results indicated the

existence of a five-factor model of brand personality for both Starbucks

and 85 Degrees. Starbucks was perceived as being exciting, sophisticated,

and sincere; 85 Degrees was perceived as being exciting. More

importantly, the perceived personality traits of Starbucks and 85 Degrees

can positively influence repurchase intentions. Finally, this study

provides specific suggestions for practitioners in developing appropriate

strategies for hospitality brands.


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Customer Satisfaction

Brand image is the modern perception of the customers regarding the

product. It can be defined as exclusive package in the minds of targeted

customers. It gives the positioning to the product in the market. Brand

image is basically set of beliefs and faith of the customer, and it

basically generated when the customer has complete knowledge regarding

their product/ service. When the customer is completely aware of the pros

and cons of the product then it emotionally attached with them but it’s a

mental game because it is very important to tackle your targeted audience

through marketing strategies. It serves the company mission and vision

statement and helps the organization to complete its all goals and

objectives effectively. Company’s artifacts express organization’s

reputation, motto relating organization’s business objectives and in

streamline with the prime values of organizations which are core elements

of positive brand image. So images can be evaluated beside the several

orientation points like brand image, social perspective and public image to

influence the consumer of the product in order to trigger the brand

awareness and brand loyalty. Hard hitting brand war facing by several

companies with each other in Pakistan for getting maximum market share.

Affordable prices with best quality product or brand can help the company

to get maximum share. Organizations may be able to obtain positive brand

image and brand positioning by providing best quality brand through

advertisement. Brand image is one of the most influential factors for the

succession rate of the business (Nasar et al., 2012). Brand image is the
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

overall impact in the customer minds that is developed through different

sources. Public relation, social networking creates positive brand image of

the product and its major chunk depend upon the community perception

regarding the product/ services. The personal perception of association’s

bundle a reputation is built of the organization through it enhances its

portfolio by maximizing its profitability. In Pakistan few research has

been conducted on the brand image regarding the different outcomes’

customer retention, customer satisfaction, loyalty and turnover. But the

purpose of this study is to examine the mediating relationship of customer

satisfaction between brand image and customer retention. In the previous

literature the link has already been discussed that customer satisfaction

has significant relationship with the brand image and customer retention.

On the basis of previous literature following hypothesis were developed. 

Branding Consistency

The brand image occupies an important position in the minds of

consumers and refers to consumers’ knowledge and evaluation of a brand

(Wu, Chao, & Yen, 2015). Therefore, brand’s Image consistency is one of

the most important components of managing the consumer-brand relationship.

This ensures that the brand is easily recognizable across marketing

platforms. Thus, Brand consistency is a must for any company that wants to

build brand recognition and foster trust among their target audience, and

that means that brand consistency is essential for every business ("Brand
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Consistency", n.d).Consumers tend to easily discern the product by its

brand image if it is consistent and coherent. In addition, Supriyono

(2010:102) address that the logo is like the face and character of the

company. It is something that a consumer will always remember. Moreover,

Kusrianto(2007:233) conveys the logo can create strong belief which later

can build trust and ownership. Hence, Starbucks' logo despite the

alterations the have made throughout the year, they maintained it as a

circular shape and its iconic twin tailed siren logo that has been

ingrained in the minds of consumers. Starbucks' consistency to their

branding and their content is what puts their marketing strategy over the

top (Bergstrom, 2021). Thereby, Starbucks' brand image is considered as

being the most iconic logo design seen in the history.

Synthesis

In today's highly competitive business markets, a consumer's loyalty

to a brand often adds reassurance to the company's stable and lasting

position in the marketing world. In today's fast-changing world, brands

must maintain strong marketing strategies in order to keep their current

buyers interested as well as capture the eye of new buyers. Brand loyalty

after all, is the consumer's conscious and unconscious decision, expressed

through intention or behavior, to repurchase products from a brand

continually. This study increased the priority placed on branding by

marketers in recent years and offers an opportunity for consumer

researchers to provide valuable insights and guidance. In particular, in


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

highly competitive marketplaces, marketers often must link their brands to

other entities, for example, people, places, things, or other brands, as a

means to improve the impact of brand image to customers loyalty in

Starbucks. It is essential here in developing strong brand equity and

therefore competing successfully in the market. Getting the brand fused

into customers’ minds, it will raise the barrier to other future

researchers. It can achieve similar results through more informal

discussions where organizations can gauge the general beliefs and attitudes

towards a brand image, and from there, gain an understanding of the overall

strength and nature of the brand image.

CHAPTER III

RESEARCH METHODOLOGY

This chapter reveals the methods of research to be employed by the

researchers in conducting the study which includes the research

methodology, sampling technique, research instrument, and its development

establishing its validity and reliability, as well as data gathering

procedures.

Research Methodology

Descriptive research covers some subtypes of research methods such as

survey, correlation study, qualitative study, or content analysis. These

subtypes are different not in the data availability, but in their


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

procedures of data collection and/or analysis. (Atmos Wardoyo, Haryanto.

2010).

The data set is the collection of responses to the survey. Descriptive

statistics to find out the overall frequency of each activity distribution,

the averages for each activity central tendency, and the spread of

responses for each activity variability. To describe characteristics of the

responses, such as the average of one variable (e.g., age), or the relation

between two variables (e.g., age and year level).

Population or sample

In this study, the researchers will use stratified sampling technique

to obtain the sample. According to Fink, 1995 and Henry, 1990, stratified

sampling was used as the sampling method as preferred method to reduce

biasness. This technique divides a certain population into small sub-groups

of sub-categories since our research consists of a large amount of

population, it is possible for this study since it is convenient to use,

and this method can divide the population into smaller groups. The

researchers can use the natural dividers in all marketing college students

in Pamantasan ng Lungsod ng Pasig per year level to easily allocate the

participants. In addition, stratified sampling has its major advantages

that allows the researchers to fulfill the needs of the research by

choosing stratified sampling that can lower the chances of sampling bias.

Furthermore, it can improve the quality of data collected from research


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

participants.

In order for the researchers to compute possible respondents, they

must first define the population size and subgroups. It will begin by

choosing characteristics that can be used since the population size can

only be placed in one group. Hence, in this research, it concludes that

the year levels will be the subgroup. Due to safety precautions and

restrictions the researcher decided to have total of 100 respondents from

first to fourth year marketing students of Pamantasan ng Lungsod ng Pasig.

Sampling Technique

In this study, the researchers will use stratified sampling technique

to obtain the sample. According to Fink, 1995 and Henry, 1990, stratified

sampling was used as the sampling method as preferred method to reduce

biasness. This technique divides a certain population into small sub-groups

of sub-categories since our research consists of a large amount of

population, it is possible for this study since it is convenient to use and

this method can divide the population into smaller groups. The researchers

can use the natural dividers in all marketing college students in

Pamantasan ng Lungsod ng Pasig per year level to easily allocate the

participants. In addition, stratified sampling has its major advantages

that allows the researchers to fulfill the needs of the research by

choosing stratified sampling that can lower the chances of sampling bias.

Furthermore, it can improve the quality of data collected from research


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

participants.

In order for the researchers to compute possible respondents, they

must first define the population size and subgroups. It will begin by

choosing characteristics that can be used since the population size can

only be placed in one group. Hence, in this research, it concludes that

the year levels will be the subgroup. The population size is equivalent to

880 students and a margin error of.05. Using the slovins formula, a total

of 275 students, from the first to fourth year of marketing, are the sample

size. From first to fourth year, the researchers estimated the numbers of

students as 260, 240, 200, and 180, respectively, to be potential

respondents. To include the researchers, they assumed that the higher-level

grade is less because there are instances when students drop out.

Moreover, to get the exact proportion of respondents for every year,

researchers came up with the solution for the first year, which is 260

divided by 880 multiplied by 275, which is 81. In the second year, 240

divided by 880 multiplied by 275 is 75. In the third year, 200 divided by

880 multiplied by 275 is 63. Lastly, the fourth year, which has a

population of 180, is divided by 880, then multiplied by 275, which equals

56.

STRATIFIED SAMPLING COMPUTATION:


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Instrumentation

The research instrument used in the study is survey forms (Likert

questionnaire). It is constructed in such a way that it can accurately

measure the target data under inquiry and ensure that the study findings

are relevant. This would considerably improve the research findings'

creditability, particularly if the study is replicated by different

investigators under the same circumstances.

Survey forms are systematically prepared forms that contain a series

of questions that are intended to get and produce answers from respondents.

The questions used are related to the statement of the problem of the study

to gather answers accurately. At the first part of the survey form, the

questions are all about the respondent’s demographic profile. Including

their age, sex, year level, and section. These questions are also related

to the statement of the problem and are highly relevant. At the second

part, Likert scale is used. A Likert scale is commonly used to measure

attitudes, knowledge, perceptions, values, and behavioral changes. A


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Likert-type scale involves a series of statements that respondents may

choose from in order to rate their responses to evaluative questions (Vogt,

1999). In the Likert scale inside the survey, there’s a 4 Likert items

(strongly agree, agree, disagree, strongly disagree) in the column that

corresponds to every variable that relates to assessment of choosing brand

Starbucks image. These are Brand Distinctiveness, Recognition, Competitive

Advantage, Brand Personality and Customer Satisfaction. It can be seen on

the researcher’s statement of the problem. The validity of the survey

questionnaire has been tested by consulting the opinions of 5 specialists

in the field of marketing. This is to ensure that the data needed is

credible and aligned with the study.

Part 2 would be quantified using the following relative values:

SCALE RANGE VERBAL INTERPRETATION

4 3.50-4.00 Strongly Agree (SA)

3 2.50-3.49 Agree (A)

2 1.50-2.49 Disagree (D)

1 1.00-1.49 Strongly Disagree (SD)

Part 3 would be quantified using the following relative values:

SCALE RANGE VERBAL INTERPRETATION


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

4 3.50-4.00 Very Likely (VL)

3 2.50-3.49 Likely (L)

2 1.50-2.49 Unlikely (U)

1 1.00-1.49 Very Unlikely (VU)

Data Gathering Procedure

Researchers of this study allotted our time, efforts, and cooperation

to developing questionnaires with explicit words so as to serve the

researcher's intended respondents. The survey being implemented was done

using suitable questions modified from related research and individual

questions formed by the researchers. The survey questionnaire design

consists of two types of survey questions, such as closed-ended questions

for demographic profiling and 4-point Liker scale questions. Most of them

are constructed questions to which the respondents are able to respond. The

researcher chose forced Likert scale to require respondents in providing

specific answers. This rating system that does not have an Undecided,

Neutral, doesn't know, or No opinion choices to get the most specific

responses.

After our professor has approved the questions to ask, questionnaires

will be distributed to 81 marketing students from the first year, 75 from

the second year, 63 for the third year, and 56 for the fourth year, for a
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

total of 275 respondents. The participants had also allotted their valuable

time to answer the questions that the researchers asked.

The data gathered from this research instrument was collected and

organized according to the answers responded to by the participants.

Statistical Treatment of Data

The data gathered was properly organized for statistical treatment

using the following statistical tools:

1. Frequency. This was employed in the first and second part of the

questionnaire to guide in the responses of the respondents in SOP1 and

SOP2. This was used in presenting the profile of the respondents in terms

of gender, age, marital status, employment status, monthly

income/allowance,

and degree of factors affecting impulse behavior of the respondents.

Relative frequency will be computed using the following formula:

Where:

RF = relative frequency

F = frequency

N = total number of respondents


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

2. Weighted Mean. This was utilized for the measurement of the respondents’

assessment on the second part of the questionnaire in assessing the

respondents’ degree of impulse buying behavior.

Weighted Mean was computed using the formula below:

Where:

WM = Weighted Mean

= summation

f = frequency

x = weight

n = total number of respondents

3. T-test (One-way ANOVA). This was used to determine if there is a

significant difference on the impulse buying behavior exhibited by the

respondents when grouped according to age and gender. All scores were

tabulated into the Excel sheet and the data was analyzed using the data

analysis tool.

The formula is shown below:

Level of Significance: α = 0.05

df = 2 and 104

CHAPTER IV

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

This chapter discusses the outcomes and interpretations of the data

acquired in accordance with the research problems are covered in this

chapter. These are presented in tables following the sequence of the

specific research problems are in accordance with the order being stated

in the Statement of the Problem.

1. Demographic Profile

1.1 Sex

TABLE 1. Sex of the Respondents

Sex Frequency Percentage


24%
Male 36

Female 114 76%

TOTAL 150 100%


This study assesses the Impact of Brand Image to Customers

Loyalty of Starbucks Company Among Business Administration Major in

Marketing Students of Pamantasan ng Lungsod ng Pasig. The table 1

shows percentage distribution of gender in survey participants. The

116 respondents which is equivalent to 76% of the participants were

female and the remaining 24% of the participants were male. Among

the participants the majority respondents are female.

1.2 Age
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

TABLE 2. Age of the Respondents

Age Frequency Percentage


18 years old 4.7%
7
and below
19 to 21
101 67.3%
years old
22 to 24 18.7%
28
years old
25 to 27 2%
3
years old
28 years old
11 7.3%
and above
TOTAL 150 100%

Table 2 shows the percentage distribution of age in

survey participants, were we have five dimensions of age

level, 18 years old and below, 19-21 years old, 22-24 years

old, 25-27 years old and 28 years old and above. The 67.3%

of the participants were 19-21 years old, 18.7% of the

participants were 22-24 years old and 7.3% of the

participants were 28 years old and above. Among all the

participants the majority respondents are in the age of 19-

21 years old.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

1.3 Year Level

TABLE 3. Year Level of the Respondents

Year Level Frequency Percentage


14.7%
1st year 22
Table
2nd year 53 35.3%
3
3rd year 55 36.7%
shows
4th year 20 13.3%
the

TOTAL 150 100%


percentage distribution of year level, 1st year up to 4th year

which has four dimensions of year level. For the 1st year it is

equivalent to 14.7%, 2nd year has 35.3%, 3rd year 36.7% and 4th

year has 13.3%. In conclusion most of the respondents are from 3rd

year level.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

1.4 Course and Section

TABLE 4. Course and Section of the Respondents

Course and Frequency Percentage


Section
BSBA 23.3%
35
MARKETING A
BSBA
33 22%
MARKETING B
BSBA 18.7%
28
MARKETING C
BSBA 28.7%
43
MARKETING D

BSBA 7.3%
11
MARKETING E
TOTAL 150 100%
Table 4 is divided up to five dimensions of course and section.

BSBA marketing A has 23.3% in total BSBA marketing B has 22%, BSBA

marketing C has 18.8% BSBA Marketing D has 28.7% and lastly BSBA

marketing E has 7.3%. In conclusion above all the participants

majority are from BSBA marketing D which has 28.7% in total.

2. Identifying the assessment of Starbucks' brand image

2.1 In terms of Brand Distinctiveness

TABLE 6. Respondent’s Assessment on Choosing Starbucks’

Brand Image in terms of Brand Distinctiveness

Brand Distinctiveness Mean Interpretation Rank


1. I can distinctly 3.52 Strongly Agree 3
identify Starbucks’
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

brand.
2. I can easily identify
3.75 Strongly Agree 1
the logo of Starbucks
3. I usually distinguish
Starbucks
3.21 Agree 5
when I see the color
green.
4. I can easily recognize
Starbucks’
3.55 Strongly Agree 2
packaging among the
competitors
5. I can easily remember
Starbucks’ 3.28 Agree 4
tagline.
Overall Weighted Mean 3.46 AGREE

Table 6 presents the respondents assessment of Starbucks’ Brand

Image for Brand Distinctiveness. Data Reveals that the majority of the

respondents strongly agree with item number 2 with the mean of 3.75,

item number 4 with a mean of 3.54, with item 1 with the mean 3.52 and

item number 5 with a mean of 3.28 as the highest strategies used by

Starbucks’ brand image. The lowest rank is item number 3 with a mean of

3.20 which indicates that the respondents usually distinguish Starbucks

when they see the color green.

According to Klopper & North, (2011) a relevant example in the

retail sector in South Africa is where consumers who are loyal to the

brands within the JD Group are not aware that such brands belong to one

brand-oriented organization. This study will be useful in assessing if

such brands are sufficiently distinctive in order to achieve the

branding strategy objectives of the JD Group as this organization has


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

opted for brand orientation as a strategic option. This study intends

to positively contribute to the scholarship of brand orientation and

brand distinctiveness in South Africa as an emerging market. It also

aims to provide a scholarly view on the relationships between the three

constructs, and how they relate to brand distinctiveness

2.2 In terms of Brand Recognition

TABLE 7. Respondent’s Assessment on Choosing Starbucks’ Brand

Image in terms of Brand Recognition

Brand Recognition Mean Interpretation Rank


1. I am always aware
of Starbucks 3.54 Strongly Agree 2
brand
2. I am aware of the
characteristics 3.27 Agree 4
of the Starbucks
3. I can always
remember the logo 3.61 Strongly Agree 1
of the Starbucks
4. I am well informed
of Starbucks’ 2.65 Agree 5
mission and vision
5. I can recognize
Starbucks among its 3.43 Agree 3
competitors
Overall Weighted Mean 3.33 AGREE

Table 7 presents the respondents assessment of Starbucks’ Brand

Image for Brand Recognition. Data Reveals that the majority of the

respondents agree with item number 3 with the mean of 3.61, item number 1
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

with a mean of 3.54, item number 5 with a mean of 3.42 and item number

2 with a mean 3.27 as the highest strategies used by Starbucks’ brand

image. The lowest rank is item number 4 with a mean of 2.65 which

indicates that the respondents are well informed of Starbucks’ mission

and vision.

According to Ovidiu M. (2015) Brand awareness, as one of the

fundamental dimensions of brand equity, is often considered to be a

prerequisite of consumers’ buying decision, as it represents the main

factor for including a brand in the consideration set. Brand awareness

can also influence consumers’ perceived risk assessment and their

confidence in the purchase decision, due to familiarity with the brand

and its characteristics. On the other hand, brand awareness can be

depicted into at least two facets unaided (brand recall) and aided

(brand recognition) each of the two facets having its more or less

effective influence on buying decision and perceived risk assessment.

This paper tries to reveal, on one hand, the importance of unaided

brand awareness when it comes to consumers’ buying decision and, on the

other hand, the importance of aided brand awareness when assessing the

perceived risk associated with the purchase. The analysis is conducted

in a comparative manner, considering the case of durable versus

nondurable products, and with focus on urban Romanian consumers.

2.3 In terms of Brand Personality

TABLE 8. Respondent’s Assessment on Choosing Starbucks’ Brand


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Image in terms of Brand Personality

Brand Personality Mean Interpretation Rank


1. Starbucks is honest
3.31 Agree 5
towards its clients
2. Starbucks is
sincere towards its 3.32 Agree 4
consumers
3. Starbucks is
3.33 Agree 3
customer centered.
4. Starbucks is
stylish, trendy and 3.53 Strongly Agree 1
quality-orientated.
5. Starbucks embodies
its sophisticated 3.51 Strongly Agree 2
image
Overall Weighted Mean 3.4 AGREE

Table 8 presents the respondents assessment of Starbucks’ Brand

Image for Brand Personality. Data Reveals that the majority of the

respondents agree with item number 4 with the mean of 3.53, item number

5 with a mean of 3.51, item number 3 with a mean of 3.33 and item

number 2 with a mean 3.32 as the highest strategies used by Starbucks’

brand image. The lowest rank is item number 1 with a mean of 3.30 which

indicates that the respondents Starbucks is honest towards its clients.

According to Reshma K.(2011) The study findings suggest a

conceptual model that combines the theories of brand personality with

the necessary dispositional variables to explain the customer’s loyalty

processes. This model also rises to the marketing challenge of building

long-term consumer relationships. Customer’s loyalty, therefore, might


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

be strengthened or retained by keeping in consideration various other

factors through communicating a good brand relationship by involving

the concept of brand personality, thus enhancing the customer

relationship building with social and resource exchanges and thus

positively affecting the satisfaction of the customer.

2.4 In terms of Customer Satisfaction

TABLE 9. Respondent’s Assessment on Choosing Starbucks’

Brand Image in terms of Customer Satisfaction

Customer Satisfaction Mean Interpretation Rank


1. I trust the quality
of the products of 3.47 Agree 1
this brand
2. I feel satisfied
with the products of 3.38 Agree 3
Starbucks
3. I prefer Starbucks
over other brands in 3.05 Agree 5
the same category
4. I consider
Starbucks as an
elegant brand that I 3.39 Agree 2
would recommend to
friends
5. I would recommend
Starbucks to others to
my relatives and 3.35 Agree 4
friends for its
sophisticated image
Overall Weighted Mean 3.29 AGREE

Table 9 presents the respondents assessment of Starbucks' Brand

Image for Customers Satisfaction. The data Reveals that the majority of
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

the respondents strongly agree with item number 1 with the mean of

3.47, item number 4 with a mean of 3.39, item number 2 with a mean of

3.38 and item 5 with mean of 3.34 as the highest strategies used by

Starbucks' brand image. The lowest rank is the item number 3 with a

mean of 3.05 which indicates that they trust the quality of the

Starbucks.

According to Tao, (2014). Customer loyalty, extending the life

cycle of a consumer, extending the life of items purchased by the

customer, and positive word of mouth communication are all benefits of

increased customer satisfaction. When a customer is pleased with a

company's product or service, they are more likely to buy from them

again and to suggest their products or services to others. It is

impossible for a firm to grow if it ignores, or disregards client

wants.

2.5 In terms of Competitive Advantage

TABLE 10. Respondent’s Assessment on Choosing Starbucks’

Brand Image in terms of Competitive Advantage

Competitive Advantage Mean Interpretation Rank


1. Starbucks has a
unique selling 3.44 Agree 4
proposition
2. Starbucks is my
first choice for my
food and beverages in 2.85 Agree 5
comparison with the
other brand.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

3. Starbucks coffee and


drinks have
always been premium
products, and customers 3.36 Agree 3
are generally willing
to pay higher prices
for quality.
4. Starbucks has
constantly innovated
3.47 Agree 5
its menu of coffees,
drinks and food.
5. Starbucks has used
new internet technology
to connect with 3.29 Agree 4
customers in a very
direct way.
Overall Weighted Mean 3.28 AGREE

Table 10 presents the respondents assessment of Starbucks'

Brand Image for Competitive Advantage. The data Reveals that the

majority of the respondents strongly agree with item number 1 with the

mean of 3.44, item number 3 with a mean of 3.36, item number 4 with a

mean of 3.35 and item 5 with mean of 3.29 as the highest strategies

used by Starbucks' brand image. The lowest rank is the item number 2

with a mean of 2.85 which indicates that the Starbucks has a unique

selling proposition.

According to Zacca, Dayan, and Ahrens (2015), Small firms

failed because of a lack of commodity marketing and an inability to

react to the changes required to sustain a competitive advantage.

According to Bigliardi (2013) stated that innovation has become a key

means for businesses to achieve a competitive advantage in the economy.


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

The author demonstrated through empirical evidence that increasing a

company's level of innovation leads to increased financial performance.

3. Respondents’ Extent of Brand Loyalty

TABLE 11. Extent of brand loyalty exhibited by the respondents

Extent of Brand Loyalty Mean Interpretation Rank

1. Starbucks is a
3.44 Likely 1
premium cup of coffee

2. Starbucks’ food and


beverages are actually 3.36 Likely 3
tasted delicious.
3. Starbucks’ packaging
are
3.39 Likely 2
very convenient to use
and take-away.
4. Starbucks’ menu is
3.25 Likely 5
reasonable
5. Starbucks label is
attractive 3.36 Likely 4
and user-friendly
Overall Weighted Mean 3.36 LIKELY

Table 11 shows the respondents’ extent of brand Loyalty to Starbucks.

Data reveals respondents likely agreed that indicates the extent of the

brand loyalty in terms of Premiumness (Likely), Appetite for the product

(Likely), Convenience of the Packaging (Likely), Starbucks’ menu (Likely),

and Attractiveness of the label (Likely). There were no respondents who

disagreed with these terms by overall weighted mean 3.36 which implies that
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

the perceived quality and overall significant factors has to do with they

loyalty of the consumer.

According to Mahmud & Gope (2012), Brand Loyalty is the consumer's

conscious or unconscious decision, expressed through intention or behavior,

to repurchase a brand continually. It occurs because the consumer perceives

that the brand offers the right product features, image, or level of

quality at the right price. Hence, in order to create brand loyalty,

advertisers must break consumer habits, help them acquire new habits, and

reinforce those habits by reminding consumers of the value of their

purchase and encourage them to continue purchasing.

4. Respondents’ degree of Brand Loyalty

TABLE 12. Degree of brand loyalty exhibited by Starbuck

Customers

Degree of Brand Mean Interpretation Rank


Loyalty
1. How likely are you
to recommend 3.31 Likely 2
Starbucks’ services?
2. How likely are you
with overall product 3.4 Likely 1
performance?
3. How likely are you
to keep patronizing 3.12 Likely 5
Starbucks?
4. How likely are you
to convince others to 3.13 Likely 4
patronize Starbucks?
5. How likely are you
3.14 Likely 3
to switch to a
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

competing
organization?
Overall Weighted Mean 3.22 LIKELY

Table 12 presents that respondents’ degree of brand loyalty to

Starbucks. Data reveals that majority of the respondents likely agreed upon

the degree of Brand Loyalty with all of the items in overall weighted mean

3.22 which indicated that the respondents are willing to recommend the

product and convince other to also patronize it given its product

performance.

According to Sasmita and Suki (2015), that the characteristic of loyal

customer is preference and consistency to purchase a product or service

while the importance of loyal customer also thought to act as information

channels, informally linking networks of friends, relatives and other

potential customers to the product. Thus, quality service creates

satisfactions for customers and keeps them continually committed and loyal

customers, which is a driving force behind its customers advocacy behavior;

by telling friends, colleagues and relatives about the value embedded in

the product.

5. Test of Significant Influence of Starbucks’ brand image Agreed by

the Respondents to customer’s loyalty

TABLE 13. Test of Significance

INDEPENDENT VAR DEPENDENT VAR PEARSON CORR PVALUE INTERPRE


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Brand Extent of NOT


0.498741192 0.2617508
Distinctiveness Brand Loyalty SIGNIFICANT

Degree of NOT
0.386362295 0.7715360
Brand Loyalty SIGNIFICANT

Competitive Extent of NOT


0.54644846 0.9844204
Advantage Brand Loyalty SIGNIFICANT

Degree of NOT
0.524914089 0.5059524
Brand Loyalty SIGNIFICANT

Brand Extent of
0.74343055 0.0000258 SIGNIFICANT
Personality Brand Loyalty

Degree of NOT
0.59165693 0.6004959
Brand Loyalty SIGNIFICANT

Customer Extent of
0.730787044 0.0022041 SIGNIFICANT
Satisfaction Brand Loyalty

Degree of
0.667845978 0.0482676 SIGNIFICANT
Brand Loyalty

Competitive Extent of NOT


0.682658981 0.3044204
Advantage Brand Loyalty SIGNIFICANT

Degree of
0.713189753 0.0000524 SIGNIFICANT
Brand Loyalty

Brand loyalty plays a fundamental role in enhancing the consumer brand


extension attitude. Consumer brand loyalty mediates the relationship of
brand affect, brand trust and brand image to customers brand extension
attitude (Anwar et. Al, 2011).
Table 13 shows if Starbucks’ Brand Image has a significant
relationship in the extent and degree of brand loyalty. Data reveals that
brand distinctiveness is not significant when it comes to the extent of
brand loyalty since the P-value of the dependent variable is 0.26, greater
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

than .05, It only means that Brand distinctiveness doesn’t effects on how
willingly the consumers are loyal in purchasing the product repeatedly. On
the contrary, data depicts that there’s no significant relationship when it
comes to the degree of brand loyalty which has a 0.77 P-value (<.05) which
means that it doesn’t significantly affect the degree of brand loyalty.
A study by Soyon et al (2012), shows that packaging or product
appearance information, as well as user and usage imagery, are attributes
that reflect what a consumer thinks the product or service is or has and
what is involved with its purchase or consumption. It is one of the reasons
why consumers keep purchasing the product because of its distinct
packaging, taste, and vibe. However, consumers do not purchase it from to
time because it only a have selected target market.
The Data reveals that brand recognition is not significant when it
comes to the Extent of Brand Loyalty since the P-value of the variable is
0.98. It only means that Brand Recognition do not affects how willing the
customer is to be loyal to the brand in purchasing the product repeatedly.
On the side, data shows that there is no significant relationship when it
comes to the degree of brand loyalty which has 0.50 P-value.
According to Byron S. (2019) competition is largely about competitive
matching rather than avoiding competitors by delivering differences. In
fact, his study shows that “most of the successful brands in the world have
very low perceived differentiation, yet they have loyal customers, they
earn profits, and many of them have done so for many decades. And will
continue to do so, and with low perceived differentiation.
In Brand Personality, it reveals that there is significant when it
comes to the extent of Brand Loyalty since the P-value of the variable is
0.00. It only means that Brand Personality affects how willing the customer
is to purchase the product repeatedly. On the contrary, data depicts that
there is no significant relationship when it comes to the degree of brand
loyalty which has 0.06 p-value which means it does not affect the degree of
brand loyalty.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

According to Eun L. (2015) the congruence between brand personality


and self-image increases not only consumer satisfaction but also the
consumer-brand relationship. For high involvement products the consumer-
brand relationship quality mediates the effect of satisfaction on
consumers’ brand loyalties, but for low involvement products satisfaction
directly influences brand loyalty.
The P-value for Customer Satisfaction reveals that there’s significant
relationship in terms of extent and degree of Brand Loyalty. Customer
satisfaction in the extent of brand loyalty has the P-value of 0.00. While
P-value of Customer Satisfaction in degree of brand loyalty is .04, which
indicates that Customer Satisfaction is possibly affects the extent and
degree of brand loyalty. According Zohaib et al (2014), brand loyalty can
be increased by the satisfaction of customer and repeat the purchase of the
same product services. Products repurchase and consumption result in two
types of loyalty: loyalty to purchase and loyalty to attitude or conduct.
It may be assessed whether consumers will acquire those services or switch
to others that are more desirable. In a very competitive market, any
organization may advance to a higher degree of advantage by obtaining
customer happiness. It is a sensation that any buyer experiences after
purchasing and using a product, regardless of whether the goods and
services satisfy their expectations.
In addition, the data shows that Competitive Advantage has a
significant effect in terms of the degree of brand Loyalty with the value
of 0.00. It only means that competition in the same industry, which is
coffee shop has an effect on consumers purchasing the product repeatedly.
While the extent of loyalty has no significant effect on Competitive
Advantage with a p-value of 0.30. It is a significant note that the
majority of the respondents agreed on valuing the retention of products and
recommending it to others which strengthens the brand loyalty of consumers.
A study from Arslan (2020) shows that the idea of customer loyalty
covers all efforts to develop personal connection with current customers,
customer loyalty programs, and customer loyalty to achieve long-term
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

profitability. Because of the effects of global competition, firms have


placed a greater emphasis on client loyalty. It is vital to build a long-
term one-to-one relationship with clients in order to create customer
loyalty. Businesses may generate customer loyalty by implementing a
customer-oriented corporate culture, forming connections with consumers
based on trust and value sharing, and delivering bespoke goods tailored to
each customer.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

CHAPTER V

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMEENDATIONS

This chapter presents the conclusions derived from the findings of


this study on the Impact of Brand Image to Customers Loyalty of Starbucks
Company Among Business Administration Students of Pamantasan ng Lungsod ng
Pasig. The conclusions were based on the purpose, research questions and
results of the study.
The implications of these findings and the resultant recommendations
will also be explained. Recommendations were based on the conclusions and
purpose of the study.

Summary of Findings
Based on the research conducted, the following findings are specified
as follows:

1. Demographic Profile
1.1 Sex
The majority of the respondents are Females and only females
responded. Hence, it only means that the survey results has no
significant impact in brand image to customers brand loyalty.
1.2 Age
The respondents are mainly 19-21 years old. It only means that no
matter what the age of the respondents, it doesn’t affect the
relationship between brand image and customers’ brand loyalty.
1.3 Year Level
Most of the respondents are from 3rd year level in the
Pamantasan.In conclusion, it shows that there are no significant
relationship in brand image and brand loyalty in the year level of
respondents.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

1.4 Course and Section


Respondents in BSBA Marketing D is the majority out of all
section. It only means that the course and section of the respondents
has no significant relationship in brand loyalty and brand image.

2. Identifying the assessment of Starbucks' Brand Image

2.1 In terms of Brand Distinctiveness

Branding has emerged as a top management priority in the last

decade due to the growing realization that brands are one of the most

valuable intangible assets that firms have. Driven in part by this

intense industry interest, academic researchers have explored a

number of different brand-related topics in recent years, generating

scores of papers, articles, research reports, and books. This paper

identifies some of the influential work in the branding area,

highlighting what has been learned from an academic perspective on

important topics of Brand Distinctiveness.

2.2 In terms of Brand Recognition

In terms of Brand Recognition good logos are essential for

creating brand awareness and brand equity, the effects of logo design

features have not been tested empirically. Extending previous

findings regarding the effects of design complexity and exposure in

advertising to the field of brand logos, two experiments tested the

effects of logo complexity and exposure on brand recognition and

brand attitude.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

2.3 In terms of Brand Personality

The analysis identifies five underlying dimensions of brand

personality stimuli: excitement, sophistication, affection,

popularity, and competence. The principal forms of online

communications consist of stakeholder relations, direct/indirect

sales, choice functions, connectedness, orientation, and product

positioning. Multiple regression analyses confirm that there are

modest but consistent associations between the intended brand

personality dimensions and the forms of online communications.

2.4 In terms of Customer Satisfaction

Customer satisfaction is an important issue for marketing

managers, particularly those in services industries. However, it

appears that achieving customer satisfaction is often the end goal,

as evidenced by the emphasis on customer satisfaction surveys. This

paper proposes that this focus is due to the assumption that

satisfied customers are loyal customers and thus high levels of

satisfaction will lead to increased sales. As a result of this

assumption, customer satisfaction is often used as a proxy for

loyalty and other outcomes.

2.5 In terms of Competitive Advantage

In terms competitive strategy is the attainment of competitive


Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

advantages. Recently, there has been a growing recognition that such

advantages may reside in the boundaries of a firm via its

relationships with outside organizations. However, there is little

understanding regarding how such advantages are created, eroded, and

preserved in such relationships. In this paper it summarizes the

findings around competitive advantages.

3. Test of Significant Influence of Starbucks’ brand image Agreed by the

Respondents to customer’s loyalty

Conclusion

Recommendation
Based on the findings and conclusions, the following recommendations
are hereby presented:
1. Starbucks must-see complaints as criticism because a customer
complaint gives the business an opportunity to improve their products and
services.

2. It is important to be consistent in terms of the quality and brand


image of the business, hence, Starbucks must strengthen their perceived
quality product, brand recognition, brand personality, and customer
satisfaction.

3. Starbucks should put an effort in developing their brand image in


order to provide a positive impact on consumer so that consumer will deign
to repeat their orders.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

SURVEY QUESTIONNAIRE

Impact of Brand image to Customers Loyalty of Starbucks Company


Among Business Administration Students of Pamantasan ng Lungsod
ng Pasig

Greetings!

We are First year College of Business Administration Major in

Marketing from Pamantasan ng Lungsod ng Pasig (PLP) and we are conducting a

survey for our Marketing Research.

Your participation for this survey will be highly appreciated!

I. Demographic Profile

Name:(optional) _____________________

Sex: ( )Female ( )Male

Age: What is your age?

( ) 18 and below

( ) 19 -21 years old

( ) 22 -24 years old

( ) 25 -27 years old

( ) 28 and above

Year Level
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

( ) 1st Year ( ) 3rd Year

( ) 2nd Year ( ) 4th Year

Course & Section: ________

( ) BSBA MARKETING A ( ) BSBA MARKETING C

( ) BSBA MARKETING B ( ) BSBA MARKETING D

II. What is the assessment of choosing Starbucks brand image in terms of:

Please indicate in a four-point scale to which extent to which you

agree or disagree which the following statements.

[4] [3] [2] [1]

Strongly-agree, Agree, disagree, Strongly-disagree

1. Brand Distinctiveness

Brand Distinctiveness is the brand's identity that distinguishes itself


from its competitors that relates to its distinctive assets; logos,
tagline, color, and symbols.

Strongly Agree Strongly


Disagree
Statements Agree
(3) (2)
Disagree
(4) (1)

1. I can distinctly identify


Starbucks’ brand.

2. I can easily identify the logo


of Starbucks

3. I usually distinguish Starbucks


when I see the color green.

4. I can easily recognize Starbucks’


packaging among the competitors

5. I can easily remember Starbucks’


tagline.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

2. Brand Recognition

Brand recognition is a concept used in advertising and marketing. It is


the ability of consumers to recognize an identifying characteristic of
one company versus a competitor.

Strongly Agree Disagree Strongly


Statements Agree
(3) (2)
Disagree
(4) (1)

1. I am always aware of Starbucks


brand

2. I am aware of the characteristics


of the Starbucks

3. I can always remember the logo


of the Starbucks

4. I am well informed of Starbucks’


mission and vision

5. I can recognize Starbucks among its


competitors

3. Brand Personality

Brand personality refers to the personification of a brand. It is the


collection of emotional, intellectual, and behavioral patterns unique to
a brand and consistent over time.

Strongly Strongly
Agree Agree Disagree Disagree
Statements (3) (2)
(4) (1)

1. Starbucks is honest towards


its clients

2. Starbucks is sincere towards


its consumers

3. Starbucks is customer centered.

4. Starbucks is stylish, trendy and


quality-orientated.

5. Starbucks embodies its


sophisticated image
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

4. Customer Satisfaction

Customer satisfaction is defined as a measurement that determines how


happy customers are with a company's products, services, and
capabilities.

Strongly Agree Strongly


Disagree
Statements Agree
(3) (2)
Disagree
(4) (1)

1. I trust the quality of the


products of this brand

2. I feel satisfied with the


products of Starbucks

3. I prefer Starbucks over other


brands in the same category

4. I consider Starbucks as an
elegant brand that I would
recommend to friends

5. I would recommend Starbucks


to others to my relatives and
friends for its sophisticated
image

5. Competitive Advantage

Competitive advantage is an attribute that enables a company to


outperform its competitors. It is what sets your business apart from
your competition.
Strongly Agree Strongly
Disagree
Statements Agree
(3) (2)
Disagree
(4) (1)

1. Starbucks has a unique selling


proposition

2. Starbucks is my first choice for


my food and beverages in comparison
with the other brand.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

3. Starbucks coffee and drinks have


always been premium products, and
customers are generally willing to
pay higher prices for quality.

4. Starbucks has constantly


innovated its menu of coffees,
drinks and food.

5. Starbucks has used new internet


technology to connect with customers
in a very direct way.

III. What is the extent of brand loyalty exhibited by the respondents?

Please indicate in a four-point scale to which extent to how likely or

unlikely of you with the following statements.

[4] [3] [2] [1]

Very Likely, Likely, Unlikely, Very Unlikely

Brand loyalty is determined by several distinct psychological processes


of the consumers and entails multivariate measurements. Product features
is one of the most important factors that affects brand loyalty.
Very Very
Likely Unlikel
Statements likely
(3) y (2) Unlikely
(4) (1)

1. Starbucks is a premium cup of


coffee

2. Starbucks’ food and beverages


are actually tasted delicious.

3. Starbucks’ packaging are


very convenient to use and
take-away.

4. Starbucks’ menu is
reasonable

5. Starbucks label is attractive


and user-friendly
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

IV. What is degree of brand loyalty exhibited by Starbucks Customers?

Degree of brand loyalty can be measure based on retention and repeat


customers, and also in numerical value based on data and/or customer
feedback.
Very Very
Likely Unlikely
Statements likely (3) (2) Unlikely
(4) (1)

1. How likely are you to


recommend Starbucks’ services?

2. How likely are you with


overall product performance?

3. How likely are you to keep


patronizing Starbucks?

4. How likely are you to convince


others to patronize Starbucks?

5. How likely are you to switch to


a competing organization?
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

REFERENCES:

Arslan, I. K. (2020). The importance of creating customer loyalty in


achieving sustainable competitive advantage. Eurasian Journal of Business
and Management, 8(1), 11-20.

Bergstrom, B. (2021, October 5). Starbucks MarketingStrategy: How to


Create a Remarkable Brand.
Retrievedfromhttps://coschedule.com/blog/starbucks-marketing-strategy

Hagos, S. (2017, June). THE CASE OF ETHIOPIANINSURANCECORPORATION. THE


EFFECT OF BRAND IMAGE ON CUSTOMERSATISFACTION AND LOYATY, 21.

N.Stokburger-Sauer, S. Ratneshwar, S. Sen, International journal of


research in marketing, 29, 4, (2012)

O’Cass, A. and K. Lim(2001), “The Influence of Brand Association on Brand


Preference and Purchase Intention: An Asian Perspective on Brand
Associations,” Journal of International Consumer Marketing, 14(2/3), 41-
71.

Romaniuk, J., Sharp,B & Ehrenberg, A. (2007). Evidence concerning the


importance of perceived brand differentiation. Australasian Marketing
Journal 15(2)

Tu, Y. T., & . H. C. C. (2012). Corporate Brand Image and Customer


Satisfaction on Loyalty: An Empirical Study of Starbucks Coffee in
Taiwan. Journal of Social and Development Sciences, 3(1), 24-32.

Upamannyu, N. K. (2014). EFFECT OF BRAND IMAGE ON CUSTOMERSATISFACTION &


LOYALTY INTENTION AND THE ROLE OF CUSTOMERSATISFACTION BETWEEN BRAND
IMAGE AND LOYALTY INTENTION:ASTUDY IN CONTEXT OF COSMETIC PRODUCT.
JOURNAL OF SOCIALSCIENCE RESEARCH, 3(2), 274–285.
Pamantasan ng Lungsod ng Pasig
Alkalde Jose St. Kapasigan, Pasig City
College of Business and Accountancy

Van Haaften, R. (n.d.). Brand awareness. Retrieved from


https://www.van-haaften.nl/branding/corporatebranding/114-
brand-awareness
Arslan, I. K. (2020). The importance of creating customer loyalty in
achieving sustainable competitive advantage. Eurasian Journal of Business
and Management, 8(1), 11-20.

You might also like