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Brand Loyalty and Customer Satisfaction (2006)

Brand Loyalty and Customer Satisfaction Dissertation – In today’s world, the rise in the number of brands has increased the availability of choice for customers. As a result, companies have tried to counteract this trend by adopting strategies that are much more customer focused, through establishing customer loyalty programs. Examples of these schemes can be found in many industries, such as in the UK clothing sectors, Airlines, Hotels and Supermarkets. Most companies that establish loyalty programs have two aims in mind, which are 1) to increase sales by raising usage levels and increasing the range of products bought by customers, and 2) maintaining its current customer base and ensuring that they are not lost to other competitors, as it is normally cheaper to retain old customers than attracting new ones.

Effective brand loyalty schemes can help companies to achieve competitive advantages, as they allow companies to do a number of things. Firstly, they allow companies to reward repeat purchasing through a combination of discounts and coupons. Secondly, they allow companies to generate information on their customers, such as their purchasing behavior, amounts spent per trip etc. Thirdly they help companies influence consumer behavior, whereby incentives and coupons can be individually targeted, in order to encourage customers to try out new products, and finally they are seen as a defensive measure to combat competitor’s offerings.

In addition, having a base of loyal customers can let companies capitalize on strategies such as brand extension and market penetration. Brand equity has become a very influential aspect in today’s world, due to the drastic increase in value of brands, and having a large number of loyal customers is considered a major determinant of band equity..

The dissertation concludes that there is a relationship between brand loyalty and product involvement, and that brand loyalty tends to be higher for high involvement products compared to low involvement products. In addition, the amount of time spent by consumers searching for information on the brand is an indicator of brand loyalty, in which the more time spent searching for information, the more likely consumers will be loyal to the brand. Furthermore, customer satisfaction levels are positively correlated to brand loyalty, thus showing that customers have to be satisfied with the product before brand loyalty can be formed.


  • 10,000 words – 44 pages in length
  • Excellent use of marketing models
  • Excellent use of literature
  • Includes full questionnaire
  • Ideal for marketing students

1: Introduction
Objectives
Structure of the dissertation

2: Industry and literature background
Review of product involvement
Review of Brand loyalty
Review of Customer Satisfaction
Market types

3: Research Methodology
Classifying high and low involvement products
Research Hypothesis
Measurement of Brand Loyalty
Primary Research Approaches
Quantitative techniques
Sampling

4: Results
Brand loyalty for watches and shampoo
Correlation between Customer satisfaction and brand loyalty
Analysis

5: Conclusion
Implications for managers
Research Limitations
Research Recommendations

Bibliography

Appendix Section
Questionnaire

Brand Loyalty and Customer Satisfaction Dissertation
Brand Loyalty and Customer Satisfaction Dissertation

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