Relationship between brand strength and customer loyalty at different levels of engagement
One of the first references in the field of branding was presented by Robinson (1933), who argued that it is possible to sell a variety of brands of the same product that are similar to each other to different target audiences. The reason is that they are of different quality, have different names, and carry different labels. From this historical reference, the brand has become an important marketing domain. In recent years, branding has been transformed from a means of identifying merchandise to a main element in the strategy of organizations. Changes in brand perception and recognition of the importance of the new perspective were slow. Until recently, many organizations around the world tended to look at marketing problems from a broad perspective of product perception. However, today the business point of view has changed and is more focused than in the past, and is guided by the perception of the brand. The recognition of the importance of the brand in the field of marketing management has become very significant in recent years.
The objective of this article is to explore the relationships between brand equity and the loyalty of young customers at different levels of participation. The present investigation initiates an integration of the multiple existing currents of investigation on the value of the brand, the loyalty of the consumer and the participation in the purchase of products. It proposes the incorporation of consumer loyalty theories into brand value measurement models and the analysis of the target group that is most affected by the brand, namely young people. The goal of the research is to enable marketers to better understand the parameters that affect the repurchase decision and to assess whether the level of engagement factor changes previous research results.
The research used a correlational research design. The type of sample used in this research was a convenience sample. The research population consisted of young men and women ages 18-25 who were considered the target audience influenced by brand strength. The researcher located the sample population through the distribution of questionnaires in shopping centers (where there are concentrations of population). The sample was chosen in such a way that it adequately represented the research population in the different demographic aspects.
The research examined the level of loyalty, engagement, and relationship to brand strength across three product categories:
Low level of participation – Deodorant a leading brand in the deodorant category in Israel.
Medium level of participation – fashion clothing the strongest fashion brand among youth and adolescents in Israel
High level of involvement – Mobile Phone Brand designed for young people.
The present investigation expanded the information on the different factors that influence the decision-making of consumers in the young age group, in the purchase of products/brands and on how it is possible to influence young consumers and transform them into loyal consumers of the brand to understand the influence of brand equity on their willingness to buy.
The research examined the different variables and the degree of influence of the level of consumer involvement, the level of loyalty and the relationship with the strength of the brand in the three product categories. The results show that:
1. At low levels of involvement, consumer loyalty is not significantly influenced by the perceived quality of the product and the purchase decision process is influenced by other parameters.
2. As the consumer better evaluates the value and strength of the brand, his loyalty increases. This relationship weakens as the level of participation in the product increases.
3. In brands with a low level of purchase implication, there is a strong influence between brand strength and loyalty and purchase and in products with a high level of implication the consumer will not necessarily demonstrate brand loyalty. In other words, the impact of brand strength on loyalty weakens as the level of engagement increases.
Practical result:
A set of assets that adds to the value provided by a product or service:
1. Brand value
2. Perceived quality
3. Brand loyalty
4. Product category
The aforementioned aspects of branding are powerful sources for companies to create and maintain competitive advantages.
The more successful a company is when it comes to brand loyalty, the greater the impact on marketing spend. Since a powerful brand enjoys a high level of consumer brand recognition and loyalty, the company will incur lower marketing costs relative to revenue.