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1 Journal home page: INTERNATIONAL JOURNAL OF INNOVATIVE AND APPLIED RESEARCH RESEARCH ARTICLE A STUDY OF INFLUENCE OF BRAND LOYALTY TOWARDS CUSTOMER RETENTION WITH THE SPECIAL REFERENCE TO TVS BIKES IN TRICHY DISTRICT, TAMIL NADU *Rakesh M 1, Prof. Beena Joice. M 2 and Dr. Ananth A Student, Master of Business Administration, Gnanam School of Business, Thanjavur, Tamilnadu, India. 2. Assistant Professor, Gnanam School of Business, Thanjavur, Tamilnadu, India. 3. Professor, Gnanam School of Business, Thanjavur, Tamilnadu, India. *Corresponding Author Abstract: Customers are always been important for the business. With the high rate of competition in every market, it is critical to retain the loyal customers. The purpose of this study is to find out the relationship between brand loyalty and customer retention. This study mainly focuses on the factors like brand loyalty, brand image, customer trust, perceived value, service, brand addiction and habit which were experienced by customers in TVS motor bikes. Brand loyalty is receiving great deal of attention in TVS bikes. The paper focuses on understanding the customer retention and brand loyalty, their importance to the business. After analyzing the importance of benefits, we will understand the approach of how to increase customer retention and customer loyalty towards the business. In this study, Primary data are collected from 157 customers through questionnaire, 25 samples are selected using simple random sampling. 25 customers were interviewed and their personal opinion was collected. This questionnaire was collected from the people located in Trichy. Key Words: Brand Loyalty, Brand Image, Customer Satisfaction Introduction:- Brand loyalty is considered to be important to businesses as loyal customers spend more money than non-loyal customers (O'Brien and Jones 1995) and act as advocates for the brand by engaging in positive word of mouth (Oliver 1999). Thus loyal customers are at the heart of a company's most valuable customer group. Brand loyalty as a concept has its origins in the 1920s. Conceptual research explored the benefits of branding for convenience goods, a marketing activity that was relatively new at the time. It introduced the notion of brand identification as a prepurchase attitude with three levels, brand recognition, preference, and insistence (Copeland 1923). This paper operationalises both attitudinal and behavioural brand loyalty with freely available methodologies in a business-tobusiness services context. Literature Reviews:- Whitepaper by Bob Thompson (2005):- In this research paper, author has reviewed why customer loyalty is so crucial to business success. But more importantly, he discusses four steps to improve loyalty and retention. Martenson, Rita (2007) focused on studying the impact of the corporate store image on customer satisfaction and store loyalty in grocery retailing. Customers are satisfied when the store is neat and pleasant and when they feel that the store understands their needs. Mulugeta Z Forsido(2012):- In this study author Mulugeta Z Forsido done a research to examine causal antecedent factors leading to brand loyalty in the Swedish Smartphone market and the variables based on the proposed theoretical model that delineates the relationships between dependant variable brand loyalty and the independent variables customer satisfaction, perceived quality, brand experience, brand image, brand switching cost and product involvement. The analysis suggest brand image, product involvement and customer satisfaction determined brand loyalty in Apple brand, whereas customer satisfaction was the only determinate factor in Sony Ericsson brand. 11
2 Susanna Dahlgren(2011):- In this research paper author Susanna Dahlgren (2011) done a study on brand loyalty and involvement in different customer levels of a service concept brand. The findings of the cluster analysis suggest that making a distinction between behavioural and attitudinal loyalty is an effective segmentation and target marketing too. Nadine Walter(2013) conducted a study on brand experience and brand loyalty. Consumers nowadays no longer buy products and services in order to fulfill a functional need but instead purchase the emotional experiences around it (Morrison and Grane, 2007;). 30 years ago Holbrook and Hirschman (1982) published their iconic paper (Tynan and McKechnie, 2009) The Experiential Aspects of Consumption: Consumer Fantasies, Feelings, and Fun. Building loyalty with key customers has become a core marketing objective shared by key players in all industries catering to business customers. Customer loyalty leads to increase Sales. Noor-Ul-Ain Nawaz done a study on brand loyalty in service sector. Service quality is consider as the most important factor for brand loyalty. Brand loyalty is of paramount importance for marketers and consumer researchers (Aaker, 1991; Reichheld, 1996). In services context, many scholars focused on importance and significance of brand loyalty (Asuncian et al., 2004; Bloamer et al., 1999; Caruana, 2002). Objectives:- The main objectives of the study are To analyze the brand loyalty of the customer towards the TVS bikes. To find out the satisfaction of customers on purchasing the products and services in TVS bikes. To find out the delivery services of products in TVS bikes. Research Methodology:- Scale Measurement of Variables:- A questionnaire comprising 43 questions relating to participants, demographical information, and Brand loyalty variables was developed. The demographical section (Gender, Age, Education, Occupation, Yearly income, Type of Family, Years of usage) were collected using a nominal scale with pre-coded options. The customer choice variables were measured used in a five-point scales rating instrument. Sampling method:- The survey questionnaire was designed for the consumers. It uses convenient sampling. It includes sample size and sample techniques. Each variable was coded as Brand image, Brand addiction, Habit, Customer trust, Services, Perceived value and Brand loyalty. The responses were treated as strongly disagree, disagree, neutral, agree, strongly agree and its rating are 1, 2, 3, 4, 5. The survey has been conducted among the consumers. The observation study was carried out in different demographic areas. The place were purposively chosen for the study is trichy in order to know the satisfactory level of the consumers in terms of their choice and decision making. Respondents were randomly selected 157 consumers for my research. A self-administered questionnaire was given to each participant to complete, with a specified time period of one day. A total of 180 filled questionnaires were collected after the specified time limit of one day. After excluding the questionnaires that had missing data and outliers, a total of 157 useable questionnaires were finally obtained for the research, yielding an overall response rate of 88 percent. Questionnaire tool:- 1. Frank Huber(2006) - Brand image and brand loyalty 2. Martenson, Rita (2007) - Customer satisfaction and customer loyalty 3. Mulugeta Z Forsido(2012)- Quality and perceived value 4. Roopasingh(2012) - Brand addiction and habit Hypothesis Testing:- Hypothesis is used to interpret the values from the results. H 0 : There is no significance difference among the variables. H 1 : There is significance difference among the variables. 12
3 Data collection:- Correlation Analysis:- The data is analyzed between the dependent and independent variable. The first tool used was correlation in order to find is there any relationship between the variables. The resulted is formulated in the table. Table 1:- Correlations B H BI C P S Bl B Pearson Correlation **.620 **.373 **.338 **.415 **.349 ** Sig. (2-tailed) ª H Pearson Correlation.273 ** **.279 **.196 * ** Sig. (2-tailed) ª BI Pearson Correlation.620 **.482 ** **.303 **.294 **.351 ** Sig. (2-tailed) ª C Pearson Correlation.373 **.279 **.343 ** ** ** Sig. (2-tailed) P Pearson Correlation.338 **.196 *.303 **.291 ** **.288 ** Sig. (2-tailed) S Pearson Correlation.415 ** ** ** * Sig. (2-tailed) ª Bl Pearson Correlation.349 **.276 **.351 **.773 **.288 **.170 * 1 Sig. (2-tailed) **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed). Data Analysis and The above table shows that relationship between the variables and the P values are less than So the result interpret that there is a significant relationship exist in between the variable and they are positively correlated. This shows that there is a relationship among brand image, habit, brand addiction, perceived value, customer trust, services and brand loyalty. Brand addiction and Brand loyalty:- The value is positively correlated which gives the value of which shows that there is a relationship between brand addiction and brand loyalty. The significance value is less than 0.05 it shows that there is significant difference between brand addiction and brand loyalty.so H 0 is accepted and H 1 is rejected. Habit and Brand loyalty:- The value is positively correlated which gives the value of which shows that there is a relationship between habit and brand loyalty. The significance value is less than 0.05 it shows that there is significant difference between habit and brand loyalty. So H 0 is accepted and H 1 is rejected. Brand image and Brand loyalty:- The value is positively correlated which gives the value of which shows that there is a relationship between brand image and brand loyalty. 13
4 The significance value is less than 0.05 it shows that there is significant difference between brand image and brand loyalty. So H 0 is accepted and H 1 is rejected. Customer trust and Brand loyalty:- The value is positively correlated which gives the value of which shows that there is a relationship between customer trust and brand loyalty. The significance value is less than 0.05 it shows that there is significant difference between customer trust and brand loyalty. So H 0 is accepted and H 1 is rejected. Perceived value and Brand loyalty:- The value is positively correlated which gives the value of which shows that there is a relationship between perceived value and brand loyalty. The significance value is less than 0.05 it shows that there is significant difference between perceived value and brand loyalty. So H 0 is accepted and H 1 is rejected. Service and Brand loyalty:- The value is positively correlated which gives the value of which shows that there is a relationship between service and brand loyalty. The significance value is less than 0.05 it shows that there is significant difference between service and brand loyalty. So H 0 is accepted and H 1 is rejected. One way Anova Analysis:- It is been analyzed between two items i.e. one factor and the variable. This is also interpreted using the significance value. Gender and Brand image Table 1:- ANOVA B Sum of Squares Df Mean Square F Sig. Between Groups Within Groups Total The results shows that The significance value is which is less than It shows that there is a significance difference between them. So, hypothesis H 0 is rejected and H 1 is accepted. Brand image vary with male and female. It is been given without bias. Yearly income and Brand image:- Table 2:- ANOVA Sum of Squares Df Mean Square F Sig. Between Groups Within Groups Total The results shows that The significance value is which is less than It shows that there is a significance difference between them 14
5 So, hypothesis H 0 is rejected and H 1 is accepted. Brand image does not vary with male and female. It is been given without bias. Regression Analysis:- Regression is the tool which is used to analyze the impact of monetary rewards (independent variable) on job satisfaction (dependent variable). Model Summary Model R R Square Adjusted Std. Error of Statistics R Square the Estimate R Square F a a. Predictors: (Constant), S, H, C, P, B, BI df1 df2 Sig. F The R 2 value is and P value is less than It says that independent variable has impact on dependent variable i.e. brand loyalty and these independent variables are explaining the dependent variable brand loyalty about 60.8%. Implications:- Thus the research study about customer retention on brand loyalty among the people gives positive results towards the brand loyalty. In order to gain a wide understanding of the topic, research questions have been set to gain an insight on brand loyalty and customer retention. From the data collected and analyzed, it was realized that majority of the participants with regards to this work were males in the age group of Conclusion:- From the study, it was found that the brand loyalty of the company is at an excellent position because of the high level product satisfaction, perceived value, and the customer satisfaction. Though there is a good position in the market, there are some factors that may affect the satisfaction level of customers. If the company takes pain to sort out those factors and take sufficient measures to improve the level of satisfaction, it can further improve its position in the current market status. Reference:- 1. Alhabeeb, M. J. (2007). On consumer trust and product loyalty, International Journal of Consumer Studies, Vol. 31, Iss. 6, pp Biljana Angelova, Jusuf Zekiri (2011 ), Measuring Customer Satisfaction with Service Quality Using American Customer Satisfaction Model (ACSI Model) International Journal of Academic Research in Business and Social Sciences, ISSN: Donald R. Cooper & Pamela S. Schindler (2006), Business Research Methods 9 th Edition, Tata McGraw Hill,. 4. Harkiranpal Singh (2006), The Importance of Customer Satisfaction in Relation to Customer Loyalty and Retention, UCTI Working Paper, WP LaBarbera, Priscilla A. and David. Mazursky A Longitudinal Assessment of Consumer Satisfaction/Dissatisfaction: The Dynamic Aspect of the Cognitive Process. Journal of Marketing Research 20 (November): Philip Kotler & Keller Lane Kevin (2006), Marketing Management 12th Edition, Pearson Education. 7. R.I. & Rubin D.S (2001), Statistics for Management 7th Edition, Prentice Hall of India Pvt. Ltd., NewDelhi,. 8. S.L.Gupta & Sumitra Pal, Consumer Behavior - An Indian Perspective Sultan Chand, New Delhi. 9. Vikas Kumar, Luciano Batista & Roger Maull (2010), The Impact of Operations Performance on Customer Loyalty The Impact of Operations Performance on Customer Loyalty Service Science 3(2), pp V.S. Ramaswamy & S. Namakumari (2009) Marketing Management 4th Edition, Macmillan, Delhi, Levin 15
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