Factors Influencing Brand Loyalty

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This chapter represents the review on related studies and literatures’ regarding the topic about factors that influencing brand loyalty on creative industry. These literatures gathered have provided the researcher insights and information to support the research. 2.1 Brand Loyalty Brand loyalty is a component of behavior as well as attitudes (Sharma, Bhola, Malyan, & Patni, 2013). When a customer should choose particular brand among product group, brand loyalty makes the customer choose specific brand at the first time. It happens when consumers perceive that the brand offers the right product features, image or level of quality at the right cost at the ideal time. In general brand loyalty can be defined as the force of enjoying for a brand…show more content…
From a consumer perspective, brand loyalty characterized as the extent to which a consumer consistently purchased the same brand within a product class (Sriram, Balachander, & Kalwani, 2007). In accordance with Reichheld and Sasser (1990), brand loyalty truly exists when customers have a high relative attitude towards one brand, and it can be seen from repurchase behavior. That true brand loyalty can be a big asset for the company because customers have a willingness to pay higher prices, less cost to serve and bring new customers to the firm. Brand loyalty gives a major impact on the financial performances (Park and Bai, 2014). The increment of brand loyalty is a method of increasing the inelasticity of demand (O'Guinn, Allen, & Semenik, 2000). Customer satisfaction is one of the requirement of loyalty, but not all satisfied customer become loyal customers (Bowen & Shoemaker, 1998). Loyal customers are more valuable than satisfied customer because a satisfied customer who does not repurchase and spread positive words has no net present value to the company. On the contrary, loyal customers can help to attract new customers. Therefore, Reichheld and Sasser (1990) stated that brand loyalty has been stated to be the ultimate goal of…show more content…
Behavioral measures could help in estimating customer lifetime value, improve forecast of purchase probabilities, and help in developing cost-effective promotions (Day, 1969). This result is important for the development of marketing strategies, including product development and promotion strategy. Moreover, the behavioral measurement is easier to be collected compared to the collection of customer perceptual data. This research concentrated on behavioral loyalty, rather on measures of attitudinal loyalty. 2.2 Factors influencing Brand Loyalty Research has found that there were significant factors that influenced brand loyalty. Table 2.1 describes previous researches that have been discovered that there were seven factors that influenced consumers’ brand loyalty towards certain brands. The factors are brand name, product quality, price, design, store environment, promotion and service

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