Comparison of brand loyalty and customer satisfaction ofBrand A & Brand B Brand A: Brand B: Toyota (Indus Motors Co) Honda (Atlas Cars Pakistan Ltd) Name Yasser Raza ID mc090206156 Virtual University of Pakistan Date of Submission 2014 May 09, It is also depends on the importance of brand as well as the cost.g. dayout around 200. In Pakistan the automobile components manufacturing industry consists of mainly units producing original components for assembly under deletion program and units are producing reconditioned and original components for local use. Day-in. they are engaged in the manufacturing of original components for the assembly operation under the deletion program as well as producing reconditioned and original components for sale in the local market. It is the major driver of economic growth and business activities. It puts multiplier impacts on the economy. Former Ford vice president Basil Coughlan estimates that every percentage point of loyalty is worth $100 million in profits to his firm (Serafin and Horton (1994). Automobile Sector is one of the largest segments. Moreover. it is critical for the survival of a company to retain its current customers. low and no expectation. There are more than 800 vendors in the country with a total investment of over eight billion rupees. The customer might have high.1. If the expectation for brand/product performance is high. . In the world trade. In particular. Brand loyal consumers reduce the marketing costs of the firm as the costs of attracting a new customer has been found to be about six times higher than the costs of retaining an old one (Rosenberg and Czepiel(1983)). post purchase experience will determines customer satisfaction even if the customers are low cost conscious. IO-ishnamurthi and Raj (1991).000 vehicles roll off the world’s assembly lines with car as the dominant segment of the industry. and to make them loyal to the brand. brand loyal consumers are willing to pay higher prices and are less price sensitive (see e.0 Introduction The success of a firm depends largely on its capability to attract consumers towards its brands. Reichheld and Sasser (1990) Customer satisfaction is the result of purchase expectation and post purchase experience comparison with incurred cost Serkan & Gökhan (2005). (b) behavioral response. 1.The models of Toyota Corolla and Honda City 1300cc car has been able to achieve the popularity level among car lovers in Pakistan as the company expected before its import. performance. According to this definition. we are going to find out that “is Toyota has more sales because of brand loyalty and customer satisfaction”? or there are any other reasons? . (c) represented over time. p. Various researches have been conducted in the past to find out the reasons of this problem statement concluding that customer satisfaction and brand loyalty has an effect on the sales of cars. The theory state that customer evaluation of product/brand is based on comparison between expected performances with actual performance. 1. the Toyota Company has completely vanished its most popular brand Corolla. 85) states that customer satisfaction is “customer’s psychological response to his/her or her positive evaluation of the consumption outcome in relation to his/her expectation". Before introducing Toyota Corolla/ Honda City 1300cc cars. The argument is based on disconfirmation satisfaction theory. Disconfirmation theory of satisfaction has conceptualized as expectation.1 The Concept Of Brand Loyalty Perhaps the most elaborate conceptual definition of brand loyalty was presented by Jacoby and Chestnut (1978). p.80))". (c) with respect to one or more alternative brands out of set of such brands(f)i s a psychological Processes (Jacoby and Chestnut (1978. 1. and Honda vanished by Civic whose demand was up throughout the country. disconfirmation and satisfaction Gilbert & Carol Surprenant (1982).3 Problem Statement Customers are more loyal and satisfied towards the automobiles of Toyota then Honda. the companies source told that "The sales of Toyota Corolla and Honda City vehicle have Raised. Satisfaction is a subjective evaluation of the consumption experience.2 The Concept Of Customer Satisfaction Paurav Shukla (2004. bland loyalty is: The (a) biased. The demand for old Corolla cars is still moving up in the second-hand car markets. (d) by some decision making unit. So. 1. This research will help us to assess the strengths and weaknesses of both the companies It will also analyze the customer satisfaction and brand loyalty impact on the sales volume of the company. 1. To find out the reason for the brand loyalty of the customers towards Toyota more than Honda Atlas Car Company To find out the opinion on promotional strategies of both the companies. This study will enable us to understand how a brand can improve its sales by raising the level of customer satisfaction.5 Significance of the Project This study will be a contribution in literature.4 Objectives of the Study To find out the level of customer satisfaction towards the product features provided by the Indus Motor Company (Toyota) and Honda Atlas Company.0 Literature Review Brand loyalty has been the center of attention among academicians and practitioners for many decades Jan Møller & Torben Hansen (2006). Behavioral loyalty considers proportional purchase. purchase sequence and probability of purchase Dick and Basu (1994). 2. Behavioral brand loyalty cannot explain why customers who made a repetitive . In their attempt to conceptualize brand loyalty. The attitudinal aspect has gotten more attention when they notice behavioral brand loyalty couldn’t give them a comprehensive picture of loyalty. most academicians and practitioners focused on the behavioral aspect. less emphasis on the attitudinal brand loyalty. Härtel. Bennett & Bove 2001. p. &McColl-Kennedy 2005 and Jones & Suh 2000). attitude used to evaluate an object/ brand position on a continuum favorable. L. The performance criteria are highly based on tangible and intangible's brand attributes. software. Expectation indicates the customers anticipated performance. meet or below expectation. consequently. Feick. Brand specific performance attributes include hardware. The more the customer satisfied with the brand the more they are willing to use the same brand in the future. stylishness or other attributes. It is highly influenced by customer expectation.. Brand performance might exceed. There are various expectation indicators that customers might expect from brand performance. Customers might expect brand provide functional or other expectation. J. (1994). but that depends on customer's interest. (2001) stated that high level satisfaction strongly correlated with increase brand loyalty.purchase. Brand satisfaction is one factor that influences brand loyalty (Youl & John 2010. An individual customer may have a positive or negative attitude toward a brand." Dick& Basu (1994) developed a conceptual framework of brand loyalty based on relative attitude and repeated patronage. Lee. According to them. Performance is how the product or brand carries out the intended purpose or operating character Gilbert & Carol Surprenant (1982). so brand attitude range from high to low. but in rare situation customers may patronize a brand for which they have negative attitude Dick & Basu. 3. Dick and Basu (1994. Brand performance is a baseline for comparison with the customer expectation. Although all customers might not be able to list out the entire possible brand benefits due to the fact that customers might have little awareness or motivation to do so Joss & Hans (1995).0 Methodology . and Lee. sometime switch away and buy other competitive brands Allan & Joel Bubinson (1996). 100) also state that “the behavioral definition is. Bennett. Their brand performance rating is based on the attributes' that they are familiar with or the attributes that customers want to have from the brand. insufficient to explain how and why brand loyalty developed and modified up. J. estimate the quantitative effect of the causal variables upon the variable that they influence. The independent variables are customer satisfaction. switching costs and customer product involvement. Multiple regression models will be used to analyze the causal relationship between dependant and independent variables. which is influenced by the independent variables. brand experience. Brand loyalty is the dependant variable. Which vehicle company you like more Honda Toyota None of them 3. Sample Questioner Reasons for higher customer satisfaction about Toyota Name: __________________ Female Gender M Age: _____________________ 1. Correlation and Pair T test will be used to compare and analyze the relationship between two brands. Which vehicle is more attractive Honda Toyota None of them Male . brand image. Which vehicle you have for yourself Honda Toyota None of them 2.Quantitative method will be used to meet the purpose of this study. Data will be collected by using questionnaire. A sample of 300 respondent will be taken to conduct the survey. brand quality. SPSS 17 will be used. Which vehicle you have more seen on roads Honda Toyota None of them 6.4. Which vehicle is economical regarding parts Honda Toyota None of them . Which vehicle luxurious Honda Toyota None of them 5. Which vehicle has best performance Honda Toyota None of them 7. Which vehicle has good market value Honda Toyota None of them 8.
Report "Comparison of Brand Loyalty and Customer Satisfation of Brand A"