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Chapter 2 REVIEW OF RELATED LITERATUREThis chapter presents the literature and studies, which are significant to present the study. A synthesis of review of literature and Gaps Bridge by the present study was also included in this chapter. State of the Art The literature and studies that were review...

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Chapter 2 REVIEW OF RELATED LITERATURE

This chapter presents the literature and studies, which are significant to present the study. A synthesis of review of literature and Gaps Bridge by the present study was also included in this chapter. State of the Art The literature and studies that were reviewed were found to have bearing on the present study. They served as bases for the conceptualization the study’s problem, research design and methodology. Basic Beliefs about Brand Image 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 have 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. Brand image is the 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 (Nazir, Ali and Jamil, 2016). Brand image is the key driver of brand equity, which refers to consumer’s general perception and feeling about a brand and has an influence on consumer behavior (Zhang, 2015). Different marketing strategies were being used by corporations. Its purpose is to get the attention of every possible customer and make them purchase. Even though the consumption decision of a customer will be influenced by qualities of the brand, it can be also concluded by the customer’s perception. Regardless of the inevitable change of consumers’ life style and way of information processing, brand image remains its primal impact factor of consumption decisions. Therefore, the root and foundation of brand equity are brand image and brand awareness. The concept also talked about linking unique and strong brand association with consumers’ memories about the brand through marketing campaigns can result to a positive brand image. Successful Brand Image as Perceived According to Hsieh, Pan, and Setiono (2006), a successful brand image enables consumers to identify the needs that the brand satisfies and to differentiate the brand from its competitors, and consequently increases the likelihood that consumers will purchase the brand. Brand image is indispensable for marketing where customers infer the quality of products by the brand image and are further stirred up the behavior of purchasing.

Brand image is indispensable for marketing where customers infer the quality of products by the brand image and are further stirred up the behavior of purchasing. Ballantyne, et al. (2005) as mentioned by Lin (2011) defined brand image as the material property associated with the brand, such as the product name and the packing, which could make profits or sense for customers and help or increase describing the characteristics. The important point of brand image in catering industry is the customer benefit brought by the brand that the brand essence is delivered to the customers. Based on the process to gradually establish the brand image in catering industry, studies on customer satisfaction and the integration of brand image could be applied to the establishment of brand image to thoroughly meet customer satisfaction. The brand image in catering industry presents comprehensiveness that deeper key point of brand image, the connotation of the brand image, would be ignored when simply considering the superficial images of name and mark. Consequently, the establishment of brand image in catering industry is to firmly establish a brand image basis. It is crucial to internalize the spirit of the brand to brand image so as to meet customer satisfaction. The meaning that a brand holds for a long period of time lies in its value, from which the foundation of a brand is confirmed and the connotation of brand image is originated. To speak more concretely, the connotation of the brand image in catering industry consists of customer satisfaction. Integrated promulgation is important to establish brand in catering industry as it establishes a connection between customers and brand image. If only the core value of the catering business is delivered to the target customer and achieved customer satisfaction, the directivity of brand image in the catering business would be more explicit. That is, only when the core value of brand image spreads to a customer will the brand image in the catering business be clearly established in the brain of the customer (Lin, 2011). Necessity of Brand Image

Brand is a strategic necessity which helps companies to create more value to customers and also to develop sustainable competitive advantages. Successful brands will increase trust in products and intangible services, and customer will be able to better visualize and identify their services. As well as, it will increase high rate of brand equity, customer satisfaction, reacquisition intention, and the level of loyalty.The impact of a particular brand image on the customer's mind, and the amount of his/her satisfaction toward buying product can affect customer being loyal, therefore, the intention of loyalty, and customer satisfaction are widely accepted as an important issue among all manufacturers (Naimi and Shahroudi, 2014). Also, Saeed, et al. (2013) defined brand image helps the companies to make a distinct place for their brands in the minds of the consumers and it is believed to have an immense influence on consumer satisfaction and brand loyalty. Satisfaction as Conceptualized by the Customers Customer satisfaction is the overall assessment of a customer regarding his experience in consuming a product or receiving the service. According to Oliver (2000) as mentioned by Zhang (2015), customers’ performance-specific expectation and expectation disconfirmation are the key indicators of customer satisfaction. In detail, the customer satisfaction upsurges when the expectation outdoes its projected performance. As the product performance is a significant component of brand image, corporations could conclude the potential influence of brand image on customer satisfaction by ascertaining the perceptual dissimilarity toward a brand between the existing customers and non-users of the brand. There are many noteworthy impact on customer satisfaction specifically the across E-banking, landline, mobile phone, bank and supermarket industries. Chang et al. (2005), as mention by Zhang (2015), identified store infrastructure, convenience, store service and sales activities as the four components of store image, and they all

impact customer satisfaction directly. Kapferer (2011) also noted that there were many dimensions in measuring customer satisfaction, including price of goods, service efficiency, attendant attitude, overall performance of the company, and the closeness to the ideal company. Customer Satisfaction is a comparison of expectations versus perceptions of experience. Customer satisfaction (CS) is a measure of the degree to which a product or service meets the customer's expectations. Customer Satisfaction is a measurement or an indicator of the degree to which customers or users of an organization’s product or services are pleased with those products or services. Customer satisfaction differs depending on the situation and the product or service. A customer may be satisfied with a product or service, an experience, a purchase decision, a salesperson, store, service provider, or an attribute or any of these three (Upamannyu and Sankpal, 2014). Other researchers defined customer satisfaction as an evaluation after purchasing the products or services as it meets or exceeds their expectations ant it cannot be limited into after consumption evaluation but it could be their overall experiences of purchasing and consuming experiences (Ray, 2009); also pointed out that customer satisfaction resulted from the measurement of products and service according to the customer's previous experiences as well as the overall evaluation on the consuming experience and also believed that a company giving a worthy service quality would satisfy the needs of customers (Wan and Schell, 2013). Customers’ Expectations According to Baig and Batavia (2014), when the product matched with the expectation of the customer then it boosts its satisfaction which leads to profitability. But this kind of customer satisfaction is not easy to frequently receive and achieve by just doing the total quality management as it also allied with minor components. It was said that it is simple to evaluate products when it has low expectations. High satisfaction also proves harmful sometimes as it becomes essential to

ensure that level every time and moreover it also put impact on customer repurchase intention. It was mentioned this study that the dissatisfaction came out whenever there were sensitivity and anticipation about the product and its performance. In case of durable goods not only the expectation but also the actual performance played important role in satisfaction or dissatisfaction. Dissatisfaction can be only arises in non-durable goods when it did not meet with expectations. As a main factor in corporation’s success, customer satisfaction sometimes gives corporation a competitive edge in this matter. Customer satisfaction ensures an increased life time value of the customers by retaining them for a long time through superior quality and satisfaction. It also stated that service value, quality and satisfaction mutually show a vital part on consumer buying and behavioral phenomenon. Value and customer satisfaction which are thoroughly linked elements add a lot to keep the customer’s buying intention on the product. It is normal to invest money to boost the customer satisfaction elements as it is a crucial foundation of customer loyalty and retention. A satisfied customer will save our cost of attracting a new customer which will further lead to profitability and greater market share due to the words of mouth of a contented customer. Customer satisfaction itself plays a role of moderator between service quality and the purchase intention as it is a key element to generate future perceptions about the product. Satisfaction levels will less harm by the service failure when the customers will get the desired remedies in exchange. Customers’ Brand Loyalty Customer loyalty could be recognized as the extension of customer satisfaction. Earlier studies define customer loyalty as repeated purchasing behaviors in a narrow sense. Generally, customer loyalty stems from customers’ approval of a brand, which leads to their continuously purchasing behavior of the brand and thus generates profits for the company. In the brand image literature, brand image is perceived as an important driving force of customer loyalty. For the

supermarket industry, favorable store image is very helpful to foster customer loyalty (Zhang, 2015). Loyalty toward a product will create over time. The concentration of formation and development of loyalty, initially, have been on products related to services, and then, according to concrete and tangible commodities has concentrated on brand loyalty (Naimi and Shahroudi, 2014). It was also stated that loyalty is keenness to the brand that the customers continually buy. Naimi and Shahroudi (2014) conclude that there was no direct relationship between brand image and customer loyalty intention, rather the brand image due to customer satisfaction will affect customer loyalty intention; and customers are satisfied as a result of using hygiene products with a strong brand image, and prefer continue buying that product. According to the Lau et al. as mentioned in the study of Baig and Batavia (2014), the marketers should emphasize to develop trust in the consumer’s mind as it will basically leads toward the brand loyalty. This trust can only be gained by providing quality services, superior values and ultimate satisfaction. Baig and Batavia (2014) also believed that loyal customers are more sensitive choosing the brand but when the times come of quantity selection rather that the price. Price elasticity has its impact on brand loyalty which means that when a brand will go to exploit its customers more than they can bear then the loyalty will diminish. Baig and Batavia (2014) agreed to the study of Chaudhuri, et al.that when the product has been controlled to create brand trust and for positive brand effect then the loyalty emerged. Loyalty can be in two dimensions either the purchase or attitudinal. Purchase loyalty helps to give better market share while attitudinal loyalty tends to set high prices.

Customers’ Loyalty as a Paradigm According to Cronin and Taylor (2007) as quoted by Otaibi and Yasmee (2014), customer loyalty as a construct is comprised of both customer’s attitude and behavior. Customers’ attitudinal component represents notions like: repurchase intention or purchasing additional products or services from the same company, willingness of recommending the company to others, demonstration of such commitment to the company by exhibiting a resistance to switching to another competitor and willingness to pay a price premium. Brand loyalty is a dedication of the customer to the brand to purchase it over and over again despite the influence of different marketing efforts of the competitors or other brands that may cause switching behavior. According to a researcher with loyal customers companies can increase profits because loyal customers are willing to purchase more often, pay out money on trying fresh products, recommend products and services to others and give companies sincere suggestions. There has also been a lot of work in classifying customer’s behavioral loyalty in different categories e.g. According to a study three measures of loyalty could be used to segment according to loyalty. These are Customer’s Primary Behavior- regularity and quantity of purchase, Customer’s Secondary Behavior- customer’s word of mouth and Customer’s Intent to Repurchaseis the customer eagerness to buy again in future (Saeed, et al., 2013). Measuring Customers’ Loyalty Bondesson (2012) as quoted by Nazir, Ali and Jamil (2016) confirmed that various methods can be used to measure the loyalty. He also stated that with the assist of measuring purchase intension and commendation the Brand Loyalty can be measured. Moreover, the researchers experimented that brand equity has two kinds of brand strength which are mostly focused. Brand loyalty is one of them that are empirically captured via such actions as proposal,

partiality, and customer intention of purchasing. Second factor is the willingness of a customer to pay a particular price for a particular product. In order to develop and sustain loyalty among the customers, it is important to find out what drives loyalty in a particular market. The factors which lead to loyalty need to be uncovered and understood before designing and implementing the strategies for customer retention and loyalty. Literature proposes relationships between customer loyalty and various other business constructs such as quality, satisfaction, trust and so on. These relationships need to be investigated and understanding the effect of these constructs on loyalty will surely provide an insight into customer loyalty formation. Loyal customers tend to stay with the company for an elongated duration which results in higher buying frequency as well as larger volumes of purchases over a period of time saving advertising and other promotional costs that generally occur in case of attracting new customers. Companies with steady customer loyalty enjoy better financial results triggered from higher and more frequent purchases, shorter sales cycles, positive word-of-mouth and a strongly favorable attitude. The factors leading to loyalty and their consequences in terms of loyalty behaviors are worth discussing as a clear understanding of these factors can lead to effective loyalty practices for they provide a concrete base for designing efficient loyalty programs. Moreover, awareness about the various manifestations or outcomes of customer loyalty can pave the way for customizing these loyalty programs and bring out tangible results in terms of cost efficiency, wide reach and increased profitability (Rai and Srivastava, 2012).

Influence of Service Quality, Brand Image, and Customer Satisfaction on Customer Loyalty In the study of Chao, Wu and Yen (2015), The Influence of Service Quality, Brand Image, and Customer Satisfaction on Customer Loyalty for Private Karaoke Rooms in Taiwan, there was a positive relationship between both brand image and service quality as well as brand image and customer loyalty, demonstrating the increasing importance of brand image in the KTV industry. It was also argued that the customer satisfaction is vital for the brand loyalty as it is an important reason to attach someone with a particular brand. High brand loyalty is always followed by the least one. Different levels of customer satisfaction behave differently while creating brand loyalty. Brand loyalty can determine with the occurrence and the consistency which customer express while choosing brand product. Distortion in terms of frequent visits can disturb the brand loyalty up to a great extent as it will make differences between the brand and its loyal customers. According to Delgado-Ballester et al. as cited by Baig and Batavia (2014), trust is a key player in creating brand loyalty as it leads towards repurchase and consumer retention. This trust itself comes from fully achieved expectations and satisfaction. There are studies conducted on general retail industry in Saudi Arabia, but they do not attempt to draw a connection between the service quality perceived by Saudi customers and their loyalty to the store. Although service quality and customer loyalty is linked through mediating the influence of customer satisfaction, as suggested by the literature, this relationship cannot be taken for granted in the context of different countries since culture and background differ across countries. In the previous studies, there is an agreement on the link between perceived service quality, customer satisfaction, and store loyalty. However, there is no consensus among researchers on the nature of the links between these variables particularly on the causal ordering of service quality and customer satisfaction. The non-conclusive findings of the mentioned

relationships show that the impact of service quality and customer satisfaction on customer loyalty is complex, and it merits further investigation. Literatures indicate that studies on perception about quality of the grocery retail environment have been primarily conducted in the Western and Eastern countries, but only a few were conducted in the Middle East, particularly Saudi Arabia. As a result, our interpretation on the service quality perceived by customers and the factors that influence the provision of this service quality is somehow narrow view. This suggests the need for further investigation in Middle East especially (Otaibi and Yasmeen, 2014). Brand image has been viewed as an important instigator of customer satisfaction and brand loyalty. A study affirmed that if the consumers favor the image of a store they would definitely form a loyalty for it too and also authenticated the effe...