Branding and Brand Loyalty in Fast Food

Posted: January 4th, 2023

Branding and Brand Loyalty in Fast Food

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Basic Understanding of Branding Concepts………………………….……………………………3

Brand Personality and its Dimensions…………………………………………………………….5

Brand Loyalty……………………………………………………………………………………..8

Relationship between Brand Personality and Brand Loyalty…………………………………….12

Branding and Brand Loyalty in Fast Food

Basic Understanding of Branding Concepts

Branding is a way of identifying the business. It refers to how consumers identify and perceive the enterprise. A stable company understands that branding is more than creating a logo. It incorporates every aspect, including customer service approaches, staff ethics, and uniform, business color, quality, business environment, and promotion, among others (Mudambi 2002). Balmer (2001a) inform that brands are usually perceived as the trademark or company’s name, and are often quite essential to the organization. Branding is important because it represent the buyers’ perception of the company itself (Balmer 2001b). Proper branding should show what the firm stands for, and what distinguishes it from the competitors. The brand should express the personalities, strengths, and qualities of the business and can be a design or symbol that is easily recognizable as belonging to the organization (Mudambi 2002). A brand should give an accurate perception of what the company does and how it wishes to develop itself. Business managers must understand that forming a strong brand is a venture that should take place over time, in order to achieve the buyers’ respect and trust (Elliot & Wattanasuwan 1998). The firm must identify and apply certain feature and characteristics that should be recognized to form a strong brand, including the cultural views of the company as a whole, as businesses often have strong cultural ties within the firm, as well as engaging in numerous researches.

It is imperative to realize that developing a strong brand entails adequate market research to establish why consumers should be attracted to the business. Research is essential in creating a well-built brand to help buyers remember the company and feel confident that the service or product meets their expectations (Simoes & Dibb 2001). Developing a thriving brand requires the management to engage in in-depth market research at the early stages of the business because this will increase the chances of success. Ukaj (2016) supports the notion that in the case of marketing researches, all operative undertakings should rely on consumer analysis. He feels the report is vital because gathering data from the purchasers is the crucial task of marketing within a firm. In other words, the buyers are an essential component of the market, and all the initiatives and attention should be directed to them through adequate research (Banham 2008). While conducting the study, the marketers should focus on the buyers because they serve as the reference point to create the goals of marketing, the plans, activities, and strategies (Hoeffler & Keller 2003). Due to their importance, it is essential to know the consumers’ experiences, behaviors, needs, motivations, and desires during consumption and the environmental elements that impact social groups. 

Also, branding is essential to a business because of the overall effect it makes on the organization. Ukaj (2016) believes that strong brands and effective branding practices have a significant impact on marketing and advertisement. They refer to branding as being the same as an economic venture because the act is oriented as a way by which a business can distinguish its goods and services from rivals. Ukaj (2016) performs a qualitative analysis among small and medium enterprises (SMEs) in some big cities in the Republic of Kosovo and concludes that stable brands provide a set of unique benefits to the firm. The researcher who used questionnaires with closed questions learned that creating strong brands has become a marketing priority for many businesses because buyers decide what to buy depending on the factors they find essential or appealing in the brand. Ukaj (2016) finds that a critical reason branding is essential to a business is because of how the firm gets recognition and gets acknowledged by its buyers. The positive effects of developing a strong brand should encourage business leaders to dedicate more time and resources in creating branding practices that keep the firm ahead of others. 

Apparently, the operators in the UAE fast-food sector acknowledge the importance of branding and are fast embracing the concept to improve the output of their activities. For example, Baskin Robbins, an American multinational firm, was ranked the best fast food company in branding in the UAE (Arabian Bridge 2019). Baskin Robbins rose to the first position in 2019 for brand intimacy after securing the 7th position in 2018, which means that it gained six spots within a year (Arabian Bridge 2019). Other UAE fast food companies such as Pizza Hut, Shake Shack, KFC, Starbucks, and Burger King fall within the top ten positions in terms of branding (Arabian Bridge 2019). Even though branding in the industry has revealed a wide discrepancy in performance among different demographics, it is apparent that fast food brands have increasingly turned their attention to improving their branding practices to attract young and older buyers, and are fast embracing the concept of brand personality.

Brand Personality

Many variables are determining why one buyer chooses to relate with a particular brand over another. For example, some buyers are primarily impacted by social media branding, reflecting a brand or branding practice that matches their self-perception and concept. Brand personality refers to the set of human behaviors and characteristics linked to a particular brand name (Akin 2017). The brand personality is something that buyers can relate with, and acts as qualitative values that a brand gets and the other benefits of branding (Srivastava & Shocker 1991). The notion of brand personality implies that the connection between buyers and brands is sometimes dependent on their preferred self-concepts and desires rather than the actual image (Akin 2017). Operators in the UAE’s fast-food sector regard brand personality as an essential structure that helps the firm structure how people perceive the products, services, or organizational mission. The companies want to monitor how brand personality evokes an emotional reaction in a particular customer segment and introduce or enact positive changes that benefit the business. Therefore, companies should strive to create a brand personality among buyers that encourage them to attach themselves with the company or organization, particularly by considering its dimensions.

Dimensions

A vital factor to consider is that developing a strong brand personality among buyers requires the company to consider the five essential dimensions of brand personality, which helps improve individual association with the brand and increase how marketing happens. The first dimension is sincerity, which requires the business to be down-to-earth, honest, cheerful, and authentic to attract buyers and build a brand personality that appeals to most consumers (Akin 2017). The second dimension is excitement, which requires the business to develop marketing practices that appeal to buyers. For example, creating excitement requires the company to embrace energetic marketing and advertising, celebrity endorsements, and appealing designs. Building a brand personality using the dimension of excitement requires the company to consider the fresh, modern, imaginative, and colorful brands. The third dimension of brand personality is competence, which requires the firm to develop brands that restore confidence among buyers, trustworthiness, reliability, and a sense of responsibility. A competent company manages to build brand personality quickly compared with an organization that lacks the core aspects of a qualified organization (Akin 2017). The fourth dimension of brand personality is sophistication, which requires the firm to incorporate features that make buyers feel elevated, different, and unique. For example, the fast-food companies in the UAE can achieve sophistication by developing charming and luxurious stores to build brand personality. Equally, the stores or products should make buyers feel they belong to the upper class and should be glamorous to be more appealing (Akin 2017). The fifth and final dimension of brand personality is ruggedness, which refers to the brands created to last despite the hurdles it may encounter. Companies that achieve ruggedness try to develop high-quality products and position their brands as authentic and reliable. Developing ruggedness requires the company first to consider its space and identify how the rivals align themselves. This offers the chance to know where to begin and how to approach buyers.

Furthermore, the concept of brand personality is vital to businesses and should receive more attention to create a situation where buyers stick with the brand. More research must happen in the area because although a substantial amount of studies in psychology have been carried out to understand human personality, know the dimensions of the big five traits, and assess the meaning of each aspect, no parallel researches have been carried out to understand better the concept of buyer behavior on brand personality (Aaker 2007). Nonetheless, failing to conduct more investigations into the area may affect how fast food companies build brand personality among consumers, and may not enjoy the benefits of applying the concept.

Benefits of Brand Personality

The benefits the companies in the UAE fast-food sector are likely to acquire from enhancing brand personality should encourage business leaders to increase focus in the area. Balmer and Gray (2003) write that brand personality not only serves an important function in enlacing customer retention, but also has substantial impact on organizational performance. Business managers seem to understand that a prosperous brand requires the formation of a unique brand personality, and are increasingly using marketing approaches to relay their brand personalities to buyers (Balmer and Greyser 2003). For example, Starbucks in the UAE strive to have buyers of different personality traits trust and appreciate the restaurant’s brand personality, thus, customers may establish some form of attachment with the brand, which will further boost brand loyalty (Starbucks 2020). In addition, the company can establish strong relationship with its buyers through its brand personality, and can establish brand loyalty.

Brand Loyalty

Businesses in the UAE fast-food sector that engage in more branding activities pay considerable attention to achieving brand loyalty. Maheshwari, Jacobsen, and Lodorfos (2014) describe brand loyalty as the behavior by buyers to continuously buy a particular brand over another. Supphellen & Grinhaug (2003) describe brand loyalty as a habitual purchase of services and products made by customers and unwavering buying behaviors despite emerging reasons due to any factors in the macro environment. Brand loyalty could also refer to the positive attitude buyers have towards a brand, their inner perception towards the brand, and their desire to continue buying in the future (Kwong & Candinegara, 2014; Sherry 2005). Brand loyalty implies to the behavior, interest, and actions of innate and non-randomized buying in which the consumer engages a particular firm, goods, services, or vendor in a market place where the customer can choose from multiple options (Gobe 2010). Business leaders should understand the meaning of brand loyalty and work towards retaining buyers. 

Besides, consumer behavior patterns show that buyers will continue to purchase products from an organization that seeks to create a long-lasting, trusting relationship. These loyal purchases have identified a product or brand that meets their requirements, and do not have the interest to try with other brands (Maheshwari, Jacobsen & Lodorfos 2014). Businesses must consider various ways of achieving brand loyalty. The initiative is significant as it results in repeat purchases by customers and increases the chances of generating more revenue and achieving customer satisfaction. Leading operators in the UAE fast-food sector already understand that developing a loyal customer base can help the firm push past its rivals and give it the competitive advantage it requires to excel in the market (Maheshwari, Jacobsen & Lodorfos 2014). Organizations with effective brand loyalty will witness their buyers continuously purchasing products or services, despite alterations, inconvenience, or price (Knowles 2003). Loyal buyers of a particular firm are not likely to be manipulated by the marketing approaches and messages of competing firms, thus widening the possibilities that those buyers will continue to do business with that organization. 

It is evident businesses that have appropriately developed a loyal consumer base can experience an expanding consumer base and better sales than those with weak brand loyalty. Faithful buyers can turn into brand ambassadors and advocates for the organization, especially if they put enough effort into implementing the dimensions of brand personality (Ong, Ramayah & Lee 2018). Satisfaction with a product, service, or brand will encourage them to spread the message about the brand and refer new purchasers, effectively offering a firm with less costly marketing and promotion (Ong, Ramayah & Lee 2018). The firm leaders must identify suitable ways of nurturing brand loyalty to make considerable strides in this area (Tiwari 2010). The business can cultivate brand loyalty by creating an appropriate reward program or initiating other aspects that appeal to consumers (Ong, Ramayah & Lee 2018). For example, many businesses in the UAE’s fast-food sector and other areas also entice consumers to buy by offering appealing prices or by creating points that buyers can redeem and get a product instead of cash. 

Apparently, most prominent brands operate in highly competitive markets filled with new and old competing items, some of which are hardly distinguishable. Consequently, these firms use many tactics to form and sustain brand loyalty. Companies try to excel in creating brand loyalty by dedicating a considerable portion of their advertising budget on messages aimed at the market segments that have loyal buyers and the like-minded individual who could potentially become loyal consumers (Ong, Ramayah & Lee 2018). Firms engage in continuous monitoring, research, and development to quantify the utility of products and services and identify adjustments that will give additional buyer benefits to the level of contentment customers get from the product (Ong, Ramayah & Lee 2018). Leading operators in the UAE fast-food sector acknowledge that when a business ignores the buyer trends, they might not effectively form brand loyalty, which could result in inadequate profit generation and erosion of the organization’s share of the market. For example, Starbuck restaurants in the UAE continue their promotional activities using electronic and print media, telling buyers how they are likely to gain by being loyal customers at the company (Starbucks 2020). The firm informs buyers how they are likely to get what they want at the fast-food joints, and how they will experience exceptional quality by eating at the restaurants spread across various cities in the UAE. The tactics vary, and those that manage to implement the most appealing factors have little problem building customer loyalty. 

An important factor to consider is that enhancing brand loyalty has many other benefits to a business. An evident benefit is the fast-food company is likely to witness an increase in its revenue because buyers already have trust in the brand, and can spend more on the goods and services. A study by Stillwagon (2014) reveals that elevating retention by only 5% through customer loyalty initiatives can increase revenue by nearly 25 to 95%. Firms in the fast-food sector in the UAE should focus on developing brand loyalty because customer loyalty provides the chance to save so much money (Hollebeek 2011a). The company is at a higher chance of saving more money by embracing suitable customer retention techniques that are usually less costly than attracting new buyers. The company can use the money it saves to improve operations in other important areas, an investment that can improve the company’s overall performance (Verhoef, Reinartz & Krafft 2010). Another reason why the companies operating in the fast-food sector need to increase their attention to brand loyalty is the firm stands a chance of attracting new buyers (Hollebeek 2011a). For example, the company will automatically attract new purchasers if the old ones stick with the organization because of its appealing discounts and great quality. New buyers are likely to try the brand when they see how the loyal customers enjoy other rewards, and have an easy time relating with the brand (Keller 2001). Also, a company in the UAE fast-food sector may gain competitive advantage by strengthening brand loyalty (Hollebeek 2011b). It would be easier to compete when the brand has more loyal buyers, than when only a few customers appreciate the firm or a specific product. The many benefits that come with brand loyalty should encourage the companies in the UAE fast-food sector to develop ways of creating customer retention strategies that impact on brand loyalty. 

Factors that Promote Brand Loyalty

The fast-food companies in the UAE that aspire to improve their brand loyalty must consider the factors that build or enhance customer satisfaction, and pay adequate attention to developing the elements. Uddin (2019) performs a qualitative research with the objective of identifying the factors influencing customer satisfaction and consumer loyalty in the fast-food restaurant sector. Uddin (2019) who assembles data using the convenient sampling approach from 204 participants, and who utilizes the structural equation model and principle component analysis to analyze the data discovers that more buyers are likely to develop brand loyalty when they get food items of high quality. The findings show that other factors such as service quality and prices also determine the level of brand loyalty (Uddin 2019). In addition, operators of the fast-food should understand how the environment and location of the restaurant impact on brand loyalty because while the loyalty is likely to be strong when the restaurant is strategically placed, the loyalty may not be as strong as expected when the location or environment is not conducive or easily reachable (Raut 2006). The leaders and owners of fast-food restaurants should acquire valuable information from such researches to improve customer satisfaction and brand loyalty. The leaders should not relent in their attempts to enhance brand loyalty because with loyal buyers it is easier to sustain and grow the business. Besides, managers in the fast-food sector acquire valuable information from the study, which may help to come up with appropriate business strategies in the UAE where the market is increasingly becoming competitive.

Relationship between Brand Personality and Brand Loyalty

Business leaders in the fast-food sector must understand that brand personality and brand loyalty have some significant connections, which require managers to consider the nature of the link to make significant steps in achieving the desired outcome in these two fundamental areas. Organizations that pay substantial attention to implementing the aspects that build brand personality are highly likely to gain brand loyalty. Lin (2020) performs qualitative research to assess brand loyalty, brand personality, and consumer personality trait and discover a great relationship in the three aspects. The researcher who interviews 400 adult buyers in Taipei City using a set of questionnaires finds that a unique and appealing brand personality can foster brand loyalty (Lin 2020). The article highlights the importance of brand personality that benefits the business and shows the values of brand loyalty for a business. It shows how businesses that practice sincerity, or which show generosity, friendship, and a sense of care giving, are likely to develop strong consumer loyalty instead of companies that pay little attention to this aspect of brand personality (Lin 2020). Also, the study informs how building on the excitement as a dimension of brand personality increases the chance of achieving customer loyalty (Lin 2020). For example, a company that tries to be unique in its forms of production and embraces imaginative ways of development is likely to build customer loyalty compared to a business that pays little attention to this area. Equally, fast food restaurants or selling points that are daring and use contemporary approaches to conduct their activities have higher chances of achieving consumer loyalty. 

Using Dimensions of Brand Personality to relate with Brand Loyalty

All businesses in the UAE fast-food sector must consider other ways in which brand personality relates to consumer loyalty to develop mechanisms that make the firm successful in its ventures. Considering the dimensions of brand personality may help to understand the concept relates to brand loyalty. The restaurants and other selling points must understand that being competent increases the likelihood of strengthening brand loyalty and the chances of making considerable growth (Kerin & Sethuraman 2008). For example, McDonald’s in the UAE tries to achieve reliability and trustworthiness in its operations, which significantly influences brand loyalty. The other aspect of brand personality that could help to achieve brand loyalty is sincerity because buyers would want to associate with a brand that is down-to-earth, sincere, joyful, and real (Malhotra, Malhotra & See 2013). Buyers would not to show loyalty to an organization that takes pride in its operations at the expense of its buyers, and would not want to associate with a firm that is not sincere in its dealings (Malhotra, Malhotra & See 2013). It is easier for buyers to show loyalty to brand when the firm shows excitement, which is the act of developing marketing practices that appeal to the customers (Malhotra & Birks 2006). The buyer is more likely to be loyal to a brand when following the guidelines of excitement the company uses appealing marketing and advertising approaches, including the use of celebrity endorsements and attractive designs (Bairrada, Coelho & Lizanets 2019). Customers in the fast-food sector are likely to be loyal when the company uses the dimension of excitement to produce fresh foods, use modern technology, and use colorful packaging materials.

In addition, whether it is organizational or product brand, the brand personality features should be easy to understand. Because, buyer’s view of the brand develops from how the brand positions itself and the image it forms and the picture it creates on the minds of the purchasers (Bekk, Skatulla, Posl & Natter 2009; Czerniawski 2009). Perhaps the most indispensable consideration when building brand personality is whether or not a close connection exists between the personalities traits of the targeted buyers and the brand personality the group seeks to establish (Bekk, Skatulla, Posl & Natter 2009). It is vital to recognize the connection because brand loyalty and the buying patterns mostly rely on the magnitude to which brand personality relates to the consumer nature or those who relate with the consumers (Bekk, Skatulla, Posl & Natter 2009). Making buyers feel important, different, and exceptional using the brand personality dimension of sophistication is likely to increase brand loyalty, and the firm stands a chance of generating more revenue (Etemad-Sajadi & Rizzuto 2013). Brand personality relates to brand loyalty because while adhering to the dimension of ruggedness, the companies operating in the UAE fast-food sector can produce goods or food items of high quality. Producing foodstuffs of high quality strengthens brand loyalty, and the firm is likely to benefit from the high returns it will get from its activities, as well as from the good reputation it will develop.

Brand Personality as a Strategic Tool for Enhancing Brand Loyalty

Furthermore, brand personality serves as a strategic tool impacting on the way the brand communicates with buyers. Brands can communicate and reflect their activities through their unique personalities in the mind of buyers (Etemad-Sajadi & Rizzuto 2013). The brand personality is a vital aspect at this stage to create closer and more loyal connection with the buyers or to be differentiated in the minds of buyers (Todor 2014). Brand personality includes the attitudes and styles that the brand would utilize for relaying its message (Farhat & Khan 2011). Brand personality in this case is a fundamental factor in creating emotional attachment with buyers. However, achieving consumer loyalty while forming the brand loyalty requires the firm to consider how buyers like or perceive the brand based on the prevailing situations, and to determine the suitable emotional state (archetypes) and image (Schau, Muniz & Arnould 2009). Operators in the fast-food sector in the UAE should remember that the brand personality happens to be more recognizable when it relies on the archetype, and it occupies the central position in the buyers’ mind.

Seemingly, a branding strategy many operators in the UAE fast-food sector use is the incorporation of the halal logo. Quoquab, Mohammad and Sadom (2019) perform a study to assess the impact effect of the halal logo towards attaining brand loyalty in the fast-food sector. More precisely, the aims of the study are; to examine the direct and indirect impact of the halal logo on brand loyalty, to assess the effects of the halal logo on perceived reputation and trust, and to evaluate the impact of the halal logo and perceived reputation and brand loyalty. Quoquab, Mohammad and Sadom (2019) gather data using self-administered questionnaires from more than one hundred Muslim fast-food consumers. The survey shows that the halal logo has direct and indirect impact on brand loyalty. The findings from the survey may help marketers in the UAE fast-food sector who target the Muslim consumer segment, and also foreign firms that operate their franchise business in Islamic countries (Quoquab, Mohammad & Sadom 2019). The outcome shows that the halal logo helps operators to establish affirmative perceived reputation and to strengthen trust among buyers, which ultimately boost brand loyalty. The findings from the survey will help operators in the fast-food sector to effectively strategize their marketing approaches in retaining the Muslim customer base (Quoquab, Mohammad & Sadom 2019). The survey provides additional insight into how brand personality relates with brand loyalty.

Summary

Overall, the literature shows how forming loyal buyers is one of the most essential objectives businesses in the fast-food sector have. Nonetheless, most marketing teams try to establish loyal buyers by relying on customer loyalty initiatives only. Managers in the fast-food sector should know that furnishing an organization’s brand with an effective image is a suitable way of forming loyal buyers. The literature describes how the brand image, in turn, can best be described as a set of human behavior related to a brand. Leaders in the fast-food sector should not forget some other factors that contribute towards brand loyalty if they want to record impressive outcome from their activities, including the buyers’ conscientiousness and past purchases. Business leaders in the fast-food sector should acquire practical lessons from the analysis and make adjustments that will improve their brand personality and how it impacts on brand loyalty.

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