BRAND LOYALTY,CUSTOMER CHARACTERISTICS ON CUSTOMER LOYALTY OF SAVINGS AND CREDIT COOPERATIVE SOCIETIES IN EMBU COUNTY,KENYA
Abstract
Meagre profits, shrinking market share and deteriorating customer loyalty among savings and credit cooperative societies in Kenya not only make management to review marketing strategies but also to rethink on brand equity in order to enhance customer loyalty. This study aimed at investigating the effect of brand equity dimensions on customer loyalty of savings and cooperative societies in Embu County, Kenya. The specific objectives of the study were to determine the effect of brand loyalty on customer loyalty of Sacco’s in Embu County. Further, the study sought to determine the moderating effect of customer characteristics on the relationship between brand equity dimensions and customer loyalty of Sacco’s in Embu County. The study was anchored on brand equity theory. The study adopted cross-section research. The target population of the study comprised of 4,014 customers from 30 Sacco’s operating in Embu. Simple random sampling technique was adopted to select respondents of the study. Israel formula was used to calculate the ideal sample of 364 respondents. Primary data was collected from respondents by the use of structured questionnaires with open and closed ended questions. Secondary data was collected from published materials such as financial statements and marketing plans. Data was analysed using descriptive and regression analysis methods with the help of Statistical Package for Social Sciences (SPSS) software version 24. Descriptive statistics such as mean scores, standard deviations, distribution tables and percentages were used to summarize the responses and to show the magnitude of similarities and differences while R-square was used to determine the predictive power of each individual variable on the dependent. The analysed data was presented in form of Tables. The results revealed that there exist a positive relationship between brand loyalty and customer loyalty. Brand loyalty was significant (r = .616, p < 0.023). This study concluded that Sacco’s were experiencing deteriorating performance in terms of customer loyalty due to inability to improve and develop new products, add-value addition, conduct customer satisfaction survey, enhance customer relationships and provide extended service. This study recommended that top marketing managers of Sacco’s to ensure that policies that promote quality customer service delivery are implemented in order to increase profits and market share. Sacco’s should increase marketing budgets in order to promote product innovation and diversification in new areas of businesses thus enhanced customer loyalty.
Key Words: Brand Loyalty, Customer Characteristics, Customer Loyalty
CITATION: Ndege, J., & Kegoro, H. O. (2019). Brand loyalty, customer characteristics on customer loyalty of savings and credit cooperative societies in Embu County, Kenya. The Strategic Journal of Business & Change Management, 6 (4), 588 – 600
Full Text:
PDFReferences
Aaker, D. (1996).Measuring Brand Equity across Products and Markets. California Management Review, Vol. 38, No. 3, pp. 102-120.
Ahmad, F., & Sherwani1, N. U. (2015). An Empirical Study on the effect of Brand Equity of Mobile Phones on Customer Satisfaction. International Journal of Marketing Studies.
Ahmed, Z. (2014). Effect of brand trust and customer satisfaction on brand loyalty in Bahawalpur. Journal of Sociological Research.
Asamoah, E. S. (2014). Customer based brand equity (CBBE) and the competitive performance of SMEs in Ghana. Journal of Small Business and Enterprise Development, Vol. 21 Iss 1 pp. 117 – 131
Balbaki, S, S. (2012). Consumer Perception of Brand Equity Measurement: A New Scale. University of North Texas
Black, K. (2010). Business Statistics: Contemporary Decision Making; 6th edition, John Wiley & Son
Bilal, A., & Malik, F. M. (2014). Impact of Brand Equity & Brand Awareness on Customers Satisfaction. International Journal of Modern Management & Foresight.
Bijuna, C. Mohan & A.H. Sequeira (2016). The impact of customer-based brand equity on the operational performance of FMCG companies in India. IIMB Management Review (2016) 28, 13–19
Bravo R, Montaner T, & Pina J M. (2012). Corporate Brand Image of Financial Institutions. Journal of Product & Management.
Brengman, M., & Willems, K. (2009). Determinants of fashion store personality: A consumer perspective. Journal of Product & Brand Management, 18(5), 346–355.
CalvoDopico, D., &CalvoPorral, C. (2012). Sources of equity in fashion markets. Journal of Product & Brand Management, 21(6), 391–403.
Collis, J. & Hussey, R. (2014). Business Research: A Practical Guide for Undergraduate and Postgraduate Students. 4th edition, Palgrave Macmillan
De Chernatony, L. (2006).From Brand Vision to Brand Evaluation: The Strategic Process of Growing and Strengthening Brands, 2nd Edition. Oxford: Butterworth – Heinemann.
Elena Villar, M., Ai, D., &Segev, S. (2012). Chinese and American perceptions of foreign‐name brands. Journal of Product & Brand Management, 21(5), 341–349.
Evangelos, K., Areti, K., Efthimios, T. & Konstantinos, T. (2016). Applying brand equity theory to understand consumer opinion in social media. Journal of Universal Computer Science
Fianto, A. Y. (2014). The Influence ofBrand Image on Purchase Behaviour Through Brand Trust. Business Management and Strategy. Journal of Product & Brand Management, 1(5), 02–7.
Fisher, C. M. (2010). Researching and Writing a Dissertation: An Essential Guide For Business Students. 3rd ed. Harlow: Financial Times Prentice Hall:808.066658 FIS & e-book.
Ghafoor, M. M., Iqbal, H. K., Murtaza, F., & Tariq, U. (2012). Impact of Customer Satisfaction and Brand Image on Brand Loyalty. Progress in Business Innovation & Technology Management. The International Journal of Management, 1(2), 1-9
Godey, B., & Lai, C. (2011). Construction of international brand portfolios: impact on local brands. Journal of Product & Brand Management, 20(5), 402–407.
Guest, G. (2012). Applied thematic analysis. Thousand Oaks, California: Sage. P. 11
Hooley, G. Piercy N. &Nicoulaud, B. (2008). Marketing Strategy and Competitive Positioning, 4th Edition. Harlow: FT Prentice-Hall.
Huang, R. &Sarigollu, E. (2014). Assessment of brand equity measures. International Journal of Market Research, 56 (6), pp. 783-806.
Karuku, E. (2010). Cultivating brand loyalty in Kenya. Business Community.
Kapferer, J. (2008).The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term, 4th Edition. London: Kogan Page.
Keller, K. (2008). Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 3rd Edition. Upper Saddle River, NJ: Prentice Hall.
Keller. K., Aperia, T. & Georgson, M. (2008). Strategic Brand Management: A European Perspective. Harlow: Pearson Education.
Keller, K. (2008).Strategic Brand Management: Building, Measuring, and Managing Brand Equity, 3rd Edition. Upper Saddle River, NJ: Prentice Hall.
Keller, K. (2010). Brand Equity Management in a Multichannel, Multimedia Retail Environment. Special Issue, Journal of Interactive Marketing, 24 (2), 58-70.
Keller. K., Aperia, T. &Georgson, M. (2008).Strategic Brand Management: A European Perspective. Harlow: Pearson Education.
Kerri-Ann L. Kuhn Frank Alpert Nigel K.& Ll. Pope, (2008).An application of Keller's brand equity model in aB2B context”, Qualitative Market Research: An International Journal, 11 I (1), 40 - 58
King, C. & Grace, D. (2009). Employee based brand equity: A third perspective. Services Marketing Quarterly, 30(2), 122-147.
Kipkosgei, B. and Njeru, A. (2014). Effects of New Product Development on Customer Attraction by Saccos in Baringo County Kenya. International Journal of Business and Commerce 3, (8), 112-119
Kotler, P. &Keller, K. (2009).Marketing Management, 13th Edition. Upper Saddle River, NJ: Prentice-Hall.
Lehmann, D.R., Keller, K.L. & Farley, J.U. (2008). The structure of survey-based brand metrics.International Marketing Review, 16(4) 29-56.
Makena, M. L (2014). Rebranding strategy and performance of savings and credit co-operatives in meru county, Kenya. MBA Thesis. University of Nairobi. Retrieved from Google Scholar on 17th May 2018.
Martinez, S. &Pina J.M. (2009).Modeling the brand Extentions' influence on brand image.Journal of Business Research 62 (2009) 50–60
Martens, T. & Hilbert, A. (2011). Customer-value-based revenue management. Journal of Revenue and Pricing Management, 10 (1), 87–98.
Mishra, P. &Datta. B.(2011). Perpetual Asset Management of Customer-Based Brand Equity-The PAM Evaluator, India, Journal of Social Sciences 3(1):34-43
Mzungu, S., Merrilees, B. & Miller, D. (2010). Brand management to protect brand equity: A conceptual model. Journal of Brand Management, 17 (8), 605–617.
Mohan, L. &Sequeira, P. (2012). Customer-Based Brand Equity in the Fast Moving Consumer Goods Industry in India” The International Journal of Management, 1(4), 1-19
Mishra. Pallabi, Datta & Biplab, (2011). Perpetual Asset Management of Customer-Based Brand Equity-The PAM Evaluator, India, Journal of Social Sciences 3(1):34-43
Mizik, N. (2014). Assessing the total financial performance impact of brand equity with limited time-series data. Journal of Marketing Research, 51 (6), 691-706.
Munyao, K. P. (2017). Role of Customer Based Brand Equity on brand Market Performance in the Banking Service Sector in Kenya. PhD Thesis.Jomo Kenyatta University of Agriculture and Technology
Nedelea&Alexandru, M. (2009). Basics of marketing, SedcomLibris Publishing.
Neupane, R. (2015). The Effects of Brand Image on Customer Satisfaction and Loyalty Intention in Retail Super Market Chain UK. International Journal of Social Sciences and Management.
Novikov, A.M. &Novikov, D.A. (2013). Research Methodology: From Philosophy of Science to Research Design. CRC Press
Nyambura, A. W. (2009). The perceived influence of marketing promotion on brand equity: a case of Kenya commercial bank. Nairobi: University of Nairobi.
Ogonje, W. O. (2010).Factors influencing Perceptions of Brand Equity of Liquid Food Packages among Consumers in Nairobi’s Buruburu Estate: A Case Study of Tetra Park Limited. MBA Thesis. University of Nairobi, Retrieved from Google Scholar on 25th May 2018.
Parasuraman, A., Zeithaml, V. A. & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing,49 (4), 41-50.
Pike, S., Bianchi, C., Kerr, G. & Patti, C. (2010). “Consumer-based brand equity for Australia as a longhaul tourism destination in an emerging market”, International Marketing Review, 27 (4), 434-49
Saunders, M.N.K., Lewis, P., & Thornhill, A. (2015). Research Methods for Business Students (7th Edition). Gloucestershire: Pearson Education.
Sang-Lin Han &Hyung-Suk Sung (2008). “Industrial brand value and relationship performance in business markets- a general structural equation model”. Industrial Marketing Management. 37, 807-818
SASRA Annual Report (2017). Performance of Sacco’s in Kenya. Free Press
Sutherland, Max Szlvester &Alice K. (2008). From advertising to consumer. What "goes" what "not working"and especially why, Polirom.
Schiffman G.L., & Kanuk, L. (2009) Consumer Behaviour, Ninth Edition, Pearson Prentice
Srivastava, R. & Gregory, T. (2010). Managing Brand Performance: Aligning Positioning, Execution and Experience. Journal of Brand Management, 3 (17) 465–471.
Strizhakova, Y., Coulter, R. &Price, L. (2008). The Meanings of Branded Products: A Cross-National Scale Development and Meaning Assessment. International Journal of Research in Marketing, 25(2), 82-93.
Toit, J. (2013). Brand loyalty: The sad reality for marketers. Leading Company Newsletter.
Tser-Yieth Chen1, Tsai-Lien Yeh & Wun-Sin Jheng (2013). Factors influencing brand association. African Journal of Business Management, 7(19), 1914-1926
Vazifedust, H., Saeed, N., Hamidreza, S. K. (2009). An Analysis of the Effect of Brand Extension Strategies on Mental Status of the Service Companies. Journal of Management. Sixth Year, No 1
Verbeeten, F. &Vijn, P. (2010). Are Brand-Equity Measures Associated with Business-Unit Financial Performance? Empirical Evidence from the Netherlands. Journal of Accounting, Auditing & Finance, vol. 25 no. 4, pp. 645-671
Wallace, E., Buil, I. & de Chernatony, L. (2013). Brand orientation and brand values in retail banking. Journal of Marketing Management, 29, (9–10), 1007–1029.
Weber, D. (2012). Many channels but one brand voice. Finextra
Yeung, M. & Ramasamy, B. (2008). Brand value and firm performance nexus: Further empirical evidence. Journal of Brand Management, 15 (5), 322-335.
DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1401
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.