CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND TO THE STUDY
According to Gajjar products are made for consumers and consumers are those who buy different
product according to their needs. They consume those products in order to satisfy their needs and
wants. Consumer loyalty is a process that involves differaent steps like the recognition of need,
search for the information, evaluation of alternatives, selection and in the last post purchase
behavior. There are lots of factors which affect the Consumer loyalty and those factors lead him
towards purchasing. IN this research paper we will see the impact of branding on. Consumer
loyalty means the factors of consumer behavior which helps him to choose a particular brand
according to his need and choice. Globalization leads the entire world to become one market.
Whole world led to Becoming single Universal community to serve different cultures. With the
increase in global competition, the national borders and more emphasis on what the consumers
actually demand. From consumers’ point of view, the reaction toward global brands seems
differently among different people. On one hand consumers appraise global brands as their status
symbol and on other hand globally known brands are criticized to threatening national customs
by imposing their preferences and sometimes may be depends on past experiences and their
decisions are directly or indirectly related to these perspectives.
brand model are viewed as the most authentic and value able models that mainly consider the
consumer perceptions and their buying decisions basis on the evaluation of their knowledge
about brand, their association with specific brands and how the purchase will affect them if
they purchase a recognized brand . What is needed for Researchers and practitioners is that
they should develop a complete and brief model of qualitative and quantitative variables at same
time and analyze their connection with each other and how they are playing role in order to
achieve the ultimate goal that is to increase profit. We will discuss how these variables are
connected and how they are affecting people purchase related decisions. Three types of important
variables are discussed quantitative variables are based on people mentality and perceptions
about brand and could be measured through asking questions directly or indirectly to the
people and also in many ways to determine knowledge of brand.
1.2

STATEMENT OF PROBLEM
The major challenges facing current company setting revolves around the effect of branding on
consumer loyalty in fast moving their consumable goods, as consumers are growing more in
knowledge about goods price and quality .The problem identified in this study was huge
expenditure on Branding. Companies spent a lot in the means of communicating the value of their
product to the target audience but if such spending results to inadequate sales it’s a great problem
to such company survival. Wrong selection of communication medium significantly affects
customer loyalty negatively. There are many medium such as treating brands as assets, possessing
a compelling vision, creating new subcategories, generating breakthrough brand building,
achieving integrated marketing communication (IMC), building a digital strategy etc. but wrong
selection of this medium has a drastic effect on customer loyalty. Deceptive information passed
through branding significantly affect customer loyalty
1.3
OBJECTIVES OF THE STUDY
The General objective of this study is to examine the effect of branding on consumer loyalty in
fasting moving consumable goods.
Other specific objectives are:
i.
ii.
iii.
To examine the effect of brand image on consumer responsiveness
To find out if there is significant relationship between brand equity and consumer
retention
To investigate the relationship between brand differentiation and consumer satisfaction
1.4 RESEARCH QUESTIONS
i To what effect does brand image affect consumer responsiveness?
ii To what effect does brand equity affect consumer retention?
iii To what effect does brand differentiation affect consumer satisfaction?
1.5 RESEARCH HYPOTHESIS
H01: brand image does not significantly affect consumer responsiveness
H02: There is no significant relationship between brand equity and consumer retention
H03: There is no significant relationship between brand differentiation and consumer satisfaction
1.6
RATIONAL OF THE HYPOTHESIS
The rationale of the hypothesis formulated for testing is to determine whether there is enough
statistical evidence in favor of the statement about the relationship that exists between the research
variables
1.7
OPERATIONALIZATION OF VARIABLES
The predictor variable in this research is Branding (X), while consumer loyalty is the predicted
variable (Y). From the study of variable, the following mathematical relationship is derived:
Y1 = F(X1,X2,X3,X4,X5)
Where:
Y1= consumer responsiveness
Y2= consumer retention
Y3= consumer satisfaction
AND
X1= Brand image
X2= Brand equity
X3= Brand differentiation
The regression equation that shows the effect of branding on consumer loyalty in fasting moving
consumable goods.Y1+B0=B1x1+ B2x2+B3x3+B4x4+ei…………………..
1.8 SCOPE OF THE STUDY
This study will focus on the effect of branding on consumer loyalty in fasting moving consumable
goods. The scope shall cover customers of Nestle Nigeria Plc Ogun State
1.9 SIGNIFICANCE OF THE STUDY
The study is of benefit to the following:
Management: the study will be significant to the management of the selected organization as it
will help them understand the effect of branding on their consumer patronage by giving adequate
recommendations
General Public: this study will be of significance in increasing the awareness of the general public
about the effect of branding on consumer loyalty. Thereby, it will expand their knowledge and
help them to know the areas Branding is of importance.
Researcher: The researcher will gain better insight and understanding about the relationship
between Branding and consumer loyalty
Other researcher: other researchers who wish to undertake a research work related to this study
will find this study as a reference material
1.10 DEFINTIONS OF TERMS
Marketing: Management Process of identifying, anticipating and satisfying customer
requirements profitably.
Consumer goods: These are goods which are purchased for personal consumption by consumers
Consumer: a person who purchases goods and services for personal use.
Consumer loyalty; Customer loyalty is a customer's willingness to buy from or work with a
brand again and again, and it's the result of a positive customer experience, customer satisfaction,
and the value of the products or services the customer gets from the transaction.
Branding; A brand is a name, term, design, symbol or any other feature that identifies one seller's
good or service as distinct from those of other sellers.
1.11
HISTORICAL BACKGROUND OF NESTLE NIGERIA PLC
Nestle Nigeria Plc is a publicly listed food and beverage specially company headquarter in Lagos.
It is majorly owned by Nestle S.A of Switzerland. The company was founded in 1961 and
conducted trading under the name of Nestle products Nigeria Limited. It has its main factory in
Agbara Industrial Estate Ogun State. The firm manufacturers breakfast cereal baby food seasoning
and hydrolyzed plant protein mix.
The company began business under the trade name of Nestle Products Nigeria in 1969, the name
was changed to food specialties limited. It began trading on the Nigerian Stock Exchange in 1979
following an indigenization promotion decree. In 1991, the company’s name was changed to
Nestle foods Nigeria and ten years later it become Nestle Nigeria Plc At inception the firm’s
operation was in distribution and sales of Nestle Product which has previously been imported into
country by merchants. In 1971 improved demand for its magi seasoning product led to the
establishment of a packaging plant in Lagos. The firm leased land at the newly created Agbara
estate in 1978 and three yars later began manufacturing magi and Milo products. In 1982, cerelac
was produced in Nigeria from Agbara Between 1984 and 1986 the company introduced baby
weaning products with higher local content this include cerelac maize and nutrend with a mixture
of Soy and Maize. It later introduced chocomilo a confectionary item. In 2011 the firm expanded
production of its marquee with the opening of a magi factory in flowergate Ogun State.
CHAPTER TWO
LITERATURE REVIEW
2.0
INTRODUCTION
This chapter comprises of various concepts and theories related to the research variable. They were
explained extensively to foster better understanding about the subject matter of this study
2.1 CONCEPTUAL REVIEW
2.1.1
CONCEPTUAL FRAMEWORK
Branding is a process which involves creating a specific name logo and an image of a particular
product service or company. This is done to attract customer it is usually done through advertising
with a consistent theme.
Branding is also regarded as opinion and consumer confidence in the quality of products produced
by organization and organizational honesty in the products offered to consumers (Aaker 1997;
Canon Perreauth & MC Carthy, 2009). Branding aims to establish a significant and differential
presence in the market that attracts and retains loyal customers. A brand is a name term, symbol
or other feature that distinguishes an organization or product from its rivals in the eyes of the
customer. Brands are used in business marketing and advertising.
2.1.2 Features of Branding
Target ability – Branding should be planned according to the targeted audience. No business firm
can target the entire population. Business owners should identify the type of people who are buying
their products and services. Research should be done on the basis of age, gender, income, the
lifestyle of their customers etc.
Awareness – The percentage of people who are aware of a brand is known as brand awareness.
Well established companies have the benefit of a high level of brand awareness. Brand awareness
can be increase with the help of advertisement on TV, Radio, Newspaper or social media marketing
and advertising.
Loyalty- Brand Loyalty is the highest achievement or apex of any company. A customer who buys
the product of a particular company extensively is known as a brand loyalist.
Consistency- Consistency is necessary for a brand. A brand must remain consistent small business
make remain consistent small business make numerous promises in commercial and ads about
their brands and consumer expect companies to continue living up to these promised.
2.1.3 Importance of Branding
Branding is absolutely critical to a business because of the overall impact it makes on your
company.
-
Branding get recognition: The most important reason branding is important to a business
becsue it is how a company for a brand that is reputable and help in high regard amongst
the public makes working for that company more enjoyable and fulfilling.
-
Branding supports Advertising: Advertising is another component to branding and
advertising strategies will directly reflect the brand and its desired portrayal.
2.1.4 Advantage and Disadvantages of Branding
Advantages of Branding
-
Awareness: The handed a company works on its banding and identifying in most cases the
more awareness it creates.
-
Consistency in the market place: The more often a customer see your brand in the market
place the more often he will consider for purchase. If the brand and identity are truly feel
that the quality is consistent and to become a loyal follower of the brand.
-
Customer Loyalty: Well executed branding helps create customer loyalty by reinforcing
the purchase of merchandise in the consumers mind.
Disadvantage of Branding
-
Can become common place: Many brands strive to be No 1 in the minds of consumer: It is
the goal of branding to become the standard, it is not the goal to become the generic term
gets recognition and becomes known to the consumers. The logo is the most important
element of branding especially where this factor is concerned as it is essentially the face of
the company. This is why a processional logo designed should be powerful and easily
memorable making and impression on a person at first glance.
-
Branding increases business value: Branding is important when trying to generate future
decisions and a strongly established branding increases business value by given the
company more leverage in the industry this makes it more appealing investment
opportunity because of its firmly established place in the market place.
-
Branding generates more customers: A good brand will have no trouble driving up referral
business. Strong branding generally means there is a positive impression of the company
amongst consumers and they are likely to do business with you because of the familiarity
and assumed dependability of using a name they can trust. Once a brand has been well
established. Word of mouth will be the company’s best and most effective advertising
technique.
-
Improves employee pride and satisfaction when an employee works for a strongly branded
company and truly stands behind the brand they will be more satisfied with their job and
have a higher degree of pride in the works that they do.
2.1.5
BRAND IMAGE
Brand Image represents the emotional aspects that identify the brand of a company or its products
and has a powerful impact on consumer buying behavior (Arora & Stoner 2009) consumer select
a product not only for its usefulness but also for the image associated with the product and for the
identification of the brand with users.
Aaker and Kellers define, respectively, brand image as a set of associations usually organized in
some meaningful way (Aaker 1992) and Perception about a brand as reflected by the brand
association held in consumer memory (Keller, 1993) Brand can also be defined as a name, term,
design, symbol or any other feature that identifies one sellers goods or services as distinct from
these of other sellers while branding image is defined as a perception of a brand in the minds of
persons.
2.1.6 Importance of Brand Images
Every company strives to build a strong image as it helps in fulfilling their business motives. A
strong brand image has the following Advantages.
-
More profits as new customers are attracted towards the brand
-
Easy to introduce new product under the same brand
-
Boosts the confidence of existing customers helps in retaining them
-
Better business customer relationship
2.1.7 Advantages of Building a Strong Brand Image
-
The perception of a consumer towards a particular brand is in direct relation to the image
of the brand.
-
Having a strong brand image directly impact the consumer buying behavior and have
premium brands as well as top brands have a target of building a strong and positive image
of the brand.
2.1.8 Disadvantages of a Good Brand Image
-
If an organization is unable to depicts a satisfactory brand image then the consequences
can be felt quickly
-
The main disadvantage of a brand image is that the brand and its product will always be
identified with the image until further changes in the brand image are impelled.
-
If in any circumstances the image is compromised then sales and revenues will also be
hampered and therefore it is necessary to gather a right that will create and regularly
maintain the brand image of a product.
2.1.9 Customer Loyalty
Customer loyalty is positively related to customer satisfaction as happy customers consistently
favour the brand that meet their needs. Loyal customers are purchasing a firm’s products or
services exclusively and they are not wiling to switch their preferences over a competitive firm.
2.1.10 Advantage of Customer Loyalty
-
Improved customer retention: Loyalty programs make customers feel appreciated and
valued which makes them want to continue to do business with you.
-
Brand differentiation: Another benefit of having a customer loyalty program is it can help
to distinguish your business from your competitors
2.1.11 Disadvantages of Consumer Loyalty
-
Cost: Brand loyal consumers typically pay more for their brands. This occurs because
brand loyal consumers do not make their purchase decisions according to how much a
product cost. Rather they will spend whatever is necessary to acquire a particular brand.
-
Lack of variety: Another disadvantages of brand loyalty is reduced variety, because brand
loyal consumers will not purchase from their brands competitors.
-
Lack of convenience: Brand loyalty creates a certain level of inconvenience for consumer
since brand loyal consumers will not accept substitutes for their brand in the product
category. Tribalism: Brand tribalism occurs when brand loyal consumer begin to identify
with fellow brand advocates to the exclusion of other people.
2.1.12 Importance of Customer Loyalty to a business
-
Customer acquisition and retention
-
Repeat business
-
Cross/up selling opportunities
-
Reduce marketing cost
-
Minimize service cost
-
Forecast Accuracy
-
Improve brand image
-
Stand Tall among competitors
-
Honest and Quality Feedback
2.1.13 Customer Responsiveness
Customer responsiveness is about being fast and right. The value of being right is obvious –
Customers get something that meets their needs. But the value also depends critically on their
speed with which the responses is produced.
2.1.14 Advantages of Customer Responsiveness
-
Increase Referrals: The more loyal customers are to business the more likely they are to
rfer the products or services to friends, family and business associates.
-
Celebrated for Customers Services: It become a part of your company’s brand when you
run a customer focused business.
-
Build Loyalty: It helps organization to build a loyal customer base.
2.1.15 Disadvantages of Customer Responsiveness
-
Ever changing Customer Needs: Consumer needs are ever changing which means your
customer focused business needs to have the resources such as financing, staffing and time to
constantly keep up with customer demands.
-
May become self-serving: The purpose of running a customer focused business is totally
focus on creating products and services that are in your customers best interest.
2.1.16 Customer Satisfaction
Customer satisfaction is a term frequently used in marketing. It is a measure of how products and
services supplied by a company meet or surpass customer expectation. Customer satisfaction is a
marketing term that measures how products or services supplied by a company meet or surpass a
customer’s expectation. Customer satisfaction is important because it provides marketers and
business owners with a metric that they can use to manage and improve their businesses the
customer is the judge of quality (Gremler & Brown,2016). Understanding customer needs, both
current and future and keeping pace with changing market require effective strategies for listening
to and learning from customers, measuring their satisfaction relative to competitors and building
relationships. Satisfaction and dissatisfactions information are important because understanding
them leads to the right improvements that can create satisfied customers who reward the company
with loyalty. Satisfaction can be expressed in many ways, like positive word-of-mouth, giving
compliments to the service provider and brand loyalty to the service organization. Quite often it is
assumed that satisfied consumers will be brand loyal. That needs not be the case, especially even
now entrants have come to the satisfied customers will show a higher repurchase rate than
dissatisfactions of customers is an important one. Customer satisfaction leads to repeat purchases
and repeat purchases lead to loyal customers. In turn, customer's loyalty leads to enhanced brand
equity and higher profits. On the other hand the only measure of acceptable quality is customers
satisfaction, which takes into account both objective and subjective interpretations of the needs
and expectations of customers. If the customers are satisfied with the products and services offered,
the organization has not only correctly interpreted customer needs and expectations but it is also
providing products and services of acceptable quality
2.1.17 Advantages of Customer Satisfaction
-
Up to date feedback: gather current customer feedback on various aspect of your
organization
-
Benchmark Results: You can administer the same survey on a regular basis to customers
to gain continued insight into your customer’s needs.
-
Shall that you can: Customer like to be asked for their feedback.
Disadvantages of Customer Satisfaction
-
Too many surveys, so little time: Your customer are flooded with a barrage of online
surveys
-
Privacy issues: We live in a high tech culture filled with daily closes of unwanted Junck
emaim, email solicitors and calls.
2.1.18 Reasons Why Customer Satisfaction is Important
-
Retaining satisfied customer is cheaper than acquiring new ones.
-
Customer satisfaction mattes even more than price.
-
Customer satisfaction keeps your brand ahead of the competitors.
-
Customer satisfaction promotes customers retention.
-
Customer satisfaction promotes customers loyalty
-
Customer satisfaction reduces negative word of mouth
2.2 EMPRICAL REVIEW
Empirical review of brand image and customer responsiveness
According to (Arora & Stonen 2009) defines Brand image as the emotional aspects that identify
the brand of a company or its products and has a powerful impact on consumer buying behavior.
Consumers select a product not only for its usefulness but also for the image associated with the
product and for the identification of the brand with other users WHLE
Another study conducted by (Sean Meechan and Chanlie Dawson 2002) Business strategy review
Article that customer responsiveness is accurately and insightfully giving customers what they
need want or donlt get know they want and doing so more quickly than anyone else
Empirical Review of Brand equity and customer loyalty
According to (Van rekom Jacobs & Verlegh 2006) define brand personality as argued to play an
important role in brand equity. A brand equity is something to which the consumer can relate an
effective brand increases its brand equity by having a consistent set of traits that a specific
consumer segment enjoys. This equity is a qualitative value add that a brand gain. In addition to
its functional benefits.
While Hammond (2002) define customer loyalty is something that consumer may exhibit to brands
services, stores, product category. It is positively related to customer satisfaction as happy
customers consistently.
Empirical Review of Brand differentiation and Customer Satisfaction.
According to (Aaker 1991) defined brand differentiation as “A set of brand assets and liabilities
linked to a brand its name and symbol that add or subtract from the value produced to a firm and
to that firm customers. WHILE
Another study conducted by (Grundese Helde and Olsson 1990) define customer satisfaction as a
post consumption evaluative judgment concerning a specific product or service.
2.3 THEORETICAL REVIEW
The following theories was presented to reinforces the subject matter of the study

Brand equity model

Black Box model
2.3.1
Brand Equity Model
Perceived
Quality
Loyalty
Awreness
Uniqueness
Association
Source: Aaker 1991
Aaker (1991) viewed brand equity as a set of 5 categories of brand assets and liabilities
i.
Perceived Quality: The extent to which a brand is considered to provide quality products
can be measured on the basis of the following criteria.
-
The quality offered by a product/brand
-
Level of differentiation
-
Price
-
Availability in different sales channels
-
Number of line/brand extensions
ii.
Brand Awareness: The extent to which a brand is known among the public measured using
the following.
-
Anchor to which others associations can be derived.
-
Familiarity and liking
-
Signal of substances
-
Brand to be considered during the purchasing process
iii. Brand Association: Associators triggered by a brand can be assessed on the basis of the
five following indicators
-
Help process/ retrieve information
-
Differentiation/position
-
Reason to buy
-
Create positive attitude/feelings
-
Extensions
iv. Brand Loyalty: The extent to which people are loyal to a brand expressed in the following
ways.
-
Reduced marketing costs
-
Trade leverage
-
Attracting new customers
-
Time to respond to competitive threats
v.
Other assets creating competitive advantage/uniqueness such as patent, trademarks, and
channel relationships.
vi. An important concepts for building brand equity is brand identity (the set of brand
associations that represents what the band stands for and promises to customers.
vii. Brand identity consists of 12 dimensions organized into 4 perspectives.
viii. Brand as product (Product attributes e,g, quality and uses)
ix. Brand as organization (organizational attributes e,g, local us global)
x.
Brand as person (brand personality brand customer relationship)
xi. Branch as symbol (visual metaphor heritage)
2.3.2
Black Box Model
STIMULI
EXTERNAL BLACKBOX BUYERS MIND RESPONSES
FACTORS
INTERNAL FACTORS
Marketing mix
Consumer
characteristics Purchase
Beliefs/Attitudes
Product
values
Brand
Knowledge
source
Motives
Amount
Perceptions
method of payment
Lifestyle
Environment
Decision Making Process
Economic
Problem Solving
Technological
Information Search
Political
Alternate Evaluation
Cultural
Purchase
Demography
Post Purchase
Situation
Evaluation
No Purchase
Source: Fillip Kotler
As illustrated in the figure above the external stimuli that consumers respond to include the
marketing mix (the four Ps represent a set of stimuli that are planned and created by the company.
The environmental stimuli are supplied by the economic political an cultural circumstances of a
society. Together these fators represent external circumstances that shape consumer choice.
The internal factors affecting consumers decisions are described as the “black box” This “box”
contains a variety of factors that exist inside the person mind. These include characteristics of the
consumer such as their lifestyle and so forth/. The decision making process is also part of the black
box as consumer come to recognize they have a purchasing decision may solve the problem. As a
consumer responds to external stimuli their “black box” process choice based on internal factors
and determine the consumers response whether to purchase or not to purchase.
2.4
EMPIRICAL REVIEW
Empirical review of brand image and customer responsiveness
According to (Arora & Stonen 2009) defines Brand image as the emotional aspects that identify
the brand of a company or its products and has a powerful impact on consumer buying behavior.
Consumers select a product not only for its usefulness but also for the image associated with the
product and for the identification of the brand with other users WHLE
Another study conducted by (Grundese Helde and Olsson 1990) define customer satisfaction as a
post consumption evaluative judgment concerning a specific product or service.
2.4 SUMMARY OF GAPS IN THE LITERATURE
The literature reviewed in this study covers area related to branding and consumer loyality The
Gap in the literature was that there are various dependent variable in which branding can be
measured on such as Awareness, Target ability, Consistency, Loyalty. Based on the literature
reviewed further research can be placed on all models and methods related to brand
2.5
CONCEPTUAL MODEL
X= Branding



Brand image
Brand equity
Brand differentiation
And
Y= consumer loyalty
Y= consumer responsiveness
Consumer retention
Consumer satisfaction
BRANDING(X)
CONSUMER LOYALTY(Y)
Brand image
Consumer responsiveness
Brand equity
Consumer retention
Brand differentiation
Consumer satisfaction
CHAPTER THREE
METHODOLOGY
3.1
Research Design
Quantitative research method with the aid of Survey research design was used in this study. The
information collected will be analyzed and used to make decisions and generalization about the
characteristics of the population from which the sample is selected.
3.2
Population Of The Study
The target population for which conclusion was drawn from is the Nestle Nig. Plc with a focus on
all potential customers of Nestle Product within the specified scope of study
3.3
Sampling Unit
Sampling unit is a single unit selected to act as a sample for the whole group. This group of units
was used to analyze and draw conclusions on. The sampling units of this study comprises staff and
customers of Nestle Nigeria Plc Ogun State.
3.4
Sampling Frame
The sampling frame of the study will be based on staff and customers Nestle Nigeria Plc Ogun
State.
3.5
Sample Size Determination
Since it was very difficult to cover the whole population of the study, the Taro Yamane Statistical
formular was used to determine the sample size
Formula:
N
=
N
1 + N (e)2
Where:n
N
e
=
=
=
sample size
Population
Allowable error
Substitute number into the formula
n
=
600
1+1000(0.05) 2
n
=
600
1+1000(0.0025)
n
=
600
2.5025
n
=
239.7
n
=
240
After calculating the sample size by substituting the number into the Taro Yamane formula, the
numbers of respondents are 240
3.6
Sampling Techniques
The probability sampling method using the Systematic random techniques will be adopted in this
study. This sampling methods give each members of the population an equal chance of being
selected without bias.
3.7
Method of Data Collection
This research work will obtain information or data from both the primary and secondary source of
data collection. Primary data was obtained through the administration of questionnaire to the
respondents and through interview. While secondary data was obtained by reviewing relevant
journals, past work of other researchers, textbooks, internet.
3.8
Research Instrumentation
The research instrument to be used in this research work is Questionnaire. This questionnaire was
divided into two part. Part A and Part B. Part A comprises questions demanding for the respondents
bio-data, while part B comprises questions related to the research objectives.
3.8.1 Population Study
The total population of the study encompasses the Staff and customers of Nestle Nigeria Plc Ogun
State
3.8.2 Validity Of Research Instrument
Context and face validity was used to validate the instrument of this research work. This was done
by ensuring that all the questions asked in the questionnaire fully exhaust all the research and
hypothesis are submitted to the supervisor who viewed the content objectively to determine their
relevance and level of coverage.
3.8.3 Relationship of research instrument
The relationship of the research instrument was determined by comparing the consistency of the
outcome of the research instrument. Thus the test re-test reliability will be adopted to determine
the degree of dependability and stability of the research instrument by presenting the set of
questions to the same set of respondents repeatedly under similar condition but at different time.
If the same result is obtained that means the instrument is reliable
3.9
Method Of Data Analysis
For the purpose of this research work Information obtained was presented using Statistical Package
for Social Science (SPSS), and the hypothesis formulated will be analyzed and tested using
Correlation method
3.9.1 Conceptual Model
X= Branding



Brand image
Brand equity
Brand differentiation
And
Y= consumer loyalty
Y= consumer responsiveness
Consumer retention
Consumer satisfaction
BRANDING(X)
CONSUMER LOYALTY(Y)
Brand image
Consumer responsiveness
Brand equity
Consumer retention
Brand differentiation
Consumer satisfaction
3.10 Data Treatment
Primary data collected in this study will be treated with the aid of measure of central tendencies
such as mean and standard deviation as a result of the occurrence of Type-I and Type-II errors.
These are the cases of false positives and false negatives that are important to understand and
eliminate in order to make sense from the result of the study.
3.11 Ethical Consideration
The researcher will consider ethical behaviors in conducting this research by ensuring that the
study is not subjected to harm in any ways whatsoever. Also, adequate level of confidentiality of
the research data will also be considered. In addition, any deception or exaggeration about the aims
and objectives of the research will be avoided. Lastly, any type of misleading information, as well
as representation of primary data findings in a biased way will be avoided.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
This chapter covers the analysis and the results. It describes the process of analysis of the data
using information gathered in the administered questionnaires. Data collected becomes
meaningful to the users and the researchers when they are analyzed. The working in the questions
and the study objectives developed and formulated in chapter one were tested and answers is
provided in this chapter.

Questionnaire Administration
Two hundred and Forty (240) questionnaires were distributed to respondents and were properly
filled and returned.
4.1
Section A: Bio Data of the Respondents
4.1.1 Age Distribution of the Respondents
Frequency
Percent
Valid Percent
Cumulative Percent
Valid 20-30yrs
65
27.1
27.1
27.1
31-40yrs
80
33.3
33.3
60.4
41-50yrs
55
22.9
22.9
83.3
51-60 yrs 35
14.6
14.6
97.9
5
2.1
2.1
240
100.0
100.0
60 yrs &
above
Total
100.0
SOURCE: Field survey, 2019.
The table above shows the Age group of the respondents which says that respondents from
year 20-30yrs were 27.1%, 31-40yrs was 33.3%, 41-50yrs were 22.9%, 51-60yrs were
14.6% while 60 yrs above were also 2.1%.
4.1.2 Gender Distribution of Respondents
Cumulative
Frequency
Percent
Valid Percent
Percent
150
62.5
62.5
62.5
Female
90
37.5
37.5
100.0
Total
240
100.0
100.0
Valid Male
SOURCE: Field survey, 2019
The table above shows that 62.5% of the respondents were male while the remaining 37.5%
of the respondents were female.
4.1.3 Marital Status Distribution of the Respondents
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
Single
125
52.1
52.1
52.1
Married
115
47.9
47.9
100.0
Total
240
100.0
100.0
SOURCE: Field survey, 2019.
The table above shows the Marital Status of the respondents which indicates that 52.1% of the
respondents were single, 47.9% of the respondents are married.
4.1.4 Educational Level Distribution of the Respondents
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
WAEC/SSCE 40
16.7
16.7
16.7
OND/NCE
70
29.2
29.2
45.9
HND/BSC
80
33.3
33.3
79.2
MSC/MBA
30
12.5
12.5
91.7
OTHERS
20
8.3
8.3
100.0
Total
240
100.0
100.0
SOURCE: Field survey,2019.
The table above reviews the Educational Qualification of the respondents which says that 16.7%
of the respondent has WAEC/SSCE, 29.2% has ND/NCE, 33.3% has HND/BSc while 122.5%
has MSC/MBA and OTHERS has 8.3%.
4.1.5
Work Experience Distribution of the Respondent
Frequency
Percent
Valid Percent
Cumulative Percent
70
29.2
29.2
29.2
6-10 years
90
37.5
37.5
66.7
11-15years
30
12.5
12.5
79.4
16-20years
40
16.7
16.7
96.1
21years and above 10
4.2
4.2
100
Total
100.0
100.0
Valid Below 5yrs
240
SOURCE: Field survey, 2019.
The table above indicates that 29.2% of the respondents have Below 5yrs work experience, 37.5%
of the respondents have 6-10 years, 12.5% has 11-15years work experience, 16.7% has 16-20years
work experience while the remaining 4.2% of the respondent have 21years and above experience.
4.1.6 Status Distribution of Respondents
Cumulative
Valid Staff
Customer
Total
Frequency
Percent
Valid Percent
Percent
140
58.3
58.3
58.3
100
41.7
41.7
100.0
240
100.0
100.0
SOURCE: Field survey, 2019.
The table above shows that 58.3% of the respondents were Staff while the remaining 41.7% of
the respondents were Customer.
4.2
Section B: Analysis of Research Questions
TABLE 4.2.1
Question 1: Brand Image affects consumer responsiveness
Frequency
Valid Strongly Agree 45
Percent
Valid Percent
Cumulative Percent
168.8
18.8
18.8
Agree
60
25
25
43.8
Undecided
20
8.3
8.3
52.1
75
31.3
31.3
83.4
Disagree
40
16.7
16.7
100.0
Total
240
100.0
100.0
Strongly
Disagree
SOURCE: Field survey,2019.
The table above indicates that 18.8% of the respondents strongly agree with the statement, 25%
agree, 8.3% were undecided, 31.3% strongly disagree with the statement while the remaining
16.7% of the respondents disagree.
TABLE 4.2.2
Question 2: Brand Image influence consumer responsiveness and loyalty
Frequency
Valid Strongly Agree 80
Percent
Valid Percent
Cumulative Percent
33.3
33.3
33.3
Agree
50
20.8
20.8
54.1
Undecided
40
16.7
16.7
70.8
30
12.5
12.5
83.3
Disagree
40
16.7
16.7
100.0
Total
250
100.0
100.0
Strongly
Disagree
SOURCE: Field survey,2019.
The table above indicates that 33.3% of the respondents strongly agree with the statement, 20.8%
agree, 16.7% were undecided, 12.5% strongly disagree with the statement while the remaining
16.7% of the respondents disagree.
TABLE 4.2.3
Question 3: Customer Satisfaction create customer retention and loyalty
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
50
20.8
20.8
20.8
Agree
60
25
25
45.8
Undecided
25
10.4
10.4
56.2
35
14.6
14.6
70.8
Disagree
70
29.2
29.2
100.0
Total
240
100.0
100.0
Strongly
agree
Strongly
Disagree
SOURCE: Field survey, 2019.
The table above indicates that 20.8% of the respondents strongly agree with the statement, 25%
agree, 10.4% were undecided, 14.6% strongly disagree with the statement while the remaining
29.2% of the respondents disagree.
TABLE 4.2.4
Question 4: Wrong branding affects consumer retention
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
70
29.2
29.2
29.2
Agree
40
16.7
16.7
45.9
Undecided
35
14.6
14.6
60.5
60
25
25
82.5
Disagree
35
14.6
14.6
100.0
Total
240
100.0
100.0
Strongly
Agree
Strongly
Disagree
SOURCE: Field survey,2019.
The table above indicates that 29.2% of the respondents strongly agree with the statement, 16.7%
agree, 14.6% were undecided, 25% strongly disagree with the statement while the remaining
14.6% of the respondents disagree.
TABLE 4.2.5
Question 5: Poor branding affects customer retention and loyalty
Frequency
Valid Strongly Agree 60
Percent
Valid Percent
Cumulative Percent
25
25
25
Agree
40
16.7
16.7
41.7
Undecided
30
12.5
12.5
54.2
60
25
25
79.2
Disagree
50
20.8
20.8
100.0
Total
240
100.0
100.0
Strongly
Disagree
SOURCE: Field survey,2019.
The table above indicates that 25% of the respondents strongly agree with the statement, 16.7%
agree, 12.5% were undecided, 25% strongly disagree with the statement while the remaining
20.8% of the respondents disagree.
TABLE 4.2.6
Question 6: Social and technological trends has impact on consumer retention and loyalty
Frequency
Valid Strongly Agree 30
Percent
Valid Percent
Cumulative Percent
12.5
12.5
12.5
Agree
75
31.3
31.3
43.8
undecided
35
14.6
14.6
58.4
40
16.7
16.7
75.1
Disagree
60
25
25
100.0
Total
240
100.0
100.0
Strongly
Disagree
SOURCE: Field survey, 2019.
The table above indicates that 12.5% of the respondents strongly agree with the statement, 31.3%
agree, 14.6% were undecided, 16.7% strongly disagree with the statement while the remaining
25% of the respondents disagree.
TABLE 4.2.7
Question 7: Branding image enhance organization profitability
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
50
20.8
20.8
20.8
Agree
65
27.1
27.1
47.9
Undecided
20
8.3
8.3
56.2
60
25
25
81.2
Disagree
45
18.8
18.8
100.0
Total
240
100.0
100.0
Strongly
Agree
Strongly
Disagree
SOURCE: Field survey,2019.
The table above indicates that 20.8% of the respondents strongly agree with the statement, 27.1%
agree, 8.3% were undecided, 25% strongly disagree with the statement while the remaining 18.8%
of the respondents disagree.
TABLE 4.2.8
Question 8: Branding Image enhance customer satisfaction and loyalty
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
50
20.8
20.8
20.8
Agree
30
12.5
12.5
33.3
Undecided
20
8.3
8.3
41.6
75
31.3
31.3
72.9
Disagree
65
27.1
27.1
100.0
Total
240
100.0
100.0
Strongly
Agree
Strongly
Disagree
SOURCE: Field survey,2019.
The table above indicates that 20.8% of the respondents strongly agree with the statement, 12.5%
agree, 8.3 were undecided, 31.3% strongly disagree with the statement while the remaining 27.1%
of the respondents disagree.
TABLE 4.2.9
Question 9: Brand Differentiation will affect customer satisfaction
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
60
25
25
25
Agree
30
12.5
12.5
37.5
Undecided
30
12.5
12.5
50
65
27.1
27.1
77.1
Disagree
55
22.9
22.9
100.0
Total
240
100.0
100.0
Strongly
Agree
Strongly
Disagree
SOURCE: Field survey,2019.
The table above indicates that 25% of the respondents strongly agree with the statement, 12.5%
agree, 12.5% were undecided, 27.1% strongly disagree with the statement while the remaining
22.9% of the respondents strongly disagree.
TABLE 4.2.10
Question 10: Brand differentiation and customer satisfaction and loyalty are positively
related
Valid
Frequency
Percent
Valid Percent
Cumulative Percent
50
20.8
20.8
20.8
Agree
60
25
25
45.8
Undecided
15
6.3
6.3
52.1
40
16.7
16.7
68.7
Disagree
75
31.3
31.3
100.0
Total
240
100.0
100.0
Strongly
Agree
Strongly
Disagree
SOURCE: Field survey,2019.
The table above indicates that 20.8% of the respondents strongly agree with the statement, 25%
agree, 6.3% were undecided, 16.7% strongly disagree with the statement while the remaining
31.3% of the respondents disagree.
4.3
Test of Hypothesis
Hypothesis One
H01: Brand Image does not significantly affect consumer responsiveness
Brand Image
Pearson
Correlation
Brand Image
Consumer Responsiveness
1
.150**
Sig. (2-tailed)
N
consumer
responsiveness
Pearson
Correlation
.044
240
240
.150**
1
Sig. (2-tailed)
.044
N
240
240
* Correlation is significant at the 0.05 level (2-tailed).
Decision Rule: Reject Ho and accept H1 if correlation calculated value is less than 1, accept Ho
and reject H1 if the calculated value is equal to 1 or greater than 1 at 0.05 level of significant (2
tailed)
Conclusion: Accept H1 and reject Ho since the value calculated is less than 1, which is (0.132), it
shows that Brand Image significantly affects consumer responsiveness
Hypothesis Two
H02: There is no significant relationship between brand equity and consumer retention
Brand Equity
Pearson
Correlation
Brand Equity
Consumer Retention
1
.180**
Sig. (2-tailed)
N
Consumer
Pearson
Retention
Correlation
.044
240
240
.180**
1
Sig. (2-tailed)
.044
N
240
240
* Correlation is significant at the 0.05 level (2-tailed).
Decision Rule: Reject Ho and accept H1 if correlation calculated value is less than 1, accept Ho
and reject H1 if the calculated value is equal to 1 or greater than 1 at 0.05 level of significant (2
tailed)
Conclusion: Accept H1 and reject Ho since the value calculated is less than 1, which is ( 0.150),
it shows that there is a significant relationship between brand equity and consumer retention.
Hypothesis Three
H03: High operative cost does not significantly affect market share of industry
Brand Differentiation
Brand
Pearson Correlation 1
differentiation Sig. (2-tailed)
N
Consumer Satisfaction
.132**
.044
240
Consumer
Pearson Correlation .132**
Satisfaction
Sig. (2-tailed)
.044
N
240
240
1
240
* Correlation is significant at the 0.05 level (2-tailed).
Decision Rule: Reject Ho and accept H1 if correlation calculated value is less than 1, accept Ho
and reject H1 if the calculated value is equal to 1 or greater than 1 at 0.05 level of significant (2
tailed)
Conclusion: Accept H1 and reject Ho since the value calculated is less than 1, which is (0.180), it
shows that there is a significant relationship between brand differentiation and consumer
satisfaction.
4.4
Discussion of Findings
The result analyzed in percentage with the Pearson correlation method using the hypotheses given
shows that there is significant correlation between the two variables as presented above.
Findings from the hypothesis one, reveals that Brand Image significantly affects consumer
responsiveness. This findings was supported with the result of the study conducted by Yi Zhang
(2015) that 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. For marketers,
whatever their companies’ marketing strategies are, the main purpose of their marketing activities
is to influence consumers’ perception and attitude toward a brand, establish the brand image in
consumers’ mind, and stimulate consumers’ actual purchasing behavior of the brand, therefore
increasing sales, maximizing the market share and developing brand equity.
Findings from the hypothesis two, reveals that there is a significant relationship between brand
equity and consumer retention. The study carried out by Bina et al (2016) supported this result as
it reveals that 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.
Findings from the hypotheses three shows that there is a significant relationship between brand
differentiation and consumer satisfaction. This was supported by Aaker (1991) and Rory (2000)
who pointed out that, with the construction of good brand image, customers were likely to increase
the satisfaction of usage, and would like to recommend to others. Gensch (1978) considered brand
image as having more influence on the purchase intention and the satisfaction of customers while
the product attribute was not easily defined.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1
Summary
This study carefully examines the effect of branding on consumer loyalty in fast moving
consumable goods. Various literatures was reviewed in relation to the variables and sub
variables of this study. In summary, the SPSS statistical tool was used to present the data
gathered in this study and the hypotheses formulated was tested. However, Hypotheses one
reveals that Brand Image significantly affects consumer responsiveness. It was observed
from hypotheses two tested that there is a significant relationship between brand equity and
consumer retention. Also, hypotheses three tested reveals that there is a significant
relationship between brand differentiation and consumer satisfaction. In addition,
marketing mix is of great importance in determining the position of company in target
market and attracting customers. Therefore, every element of marketing mix must be
compatible with one another and with the various needs of target markets of business.
Managers must directly plan and do marketing activities like distribution, promotion, and
personal selling to stimulate purchase behaviour. In the first stage, managers must use the
entire potential of distribution to inform customers and improve their awareness of brand
and market performance especially those brands which are unknown; therefore, increasing
distribution is essential
5.2
Conclusion
Based on the findings of the study it was concluded that branding has effect on consumer
loyalty in fast moving consumable goods. Branding gives organization an edge over other
competing manufacturing industries. It is also an indispensable tool for any organization
aiming at expanding and improving its overall performance.
Branding influences customer retention, Effective branding increases market share, it also
have influence on organization performance and how they archive their aims and
objectives.
5.3
Recommendations
The recommendations presented in this studies have taken into regard the findings and
interpretations of this study. Consideration has been given to the effect of branding on the
marketing performance of companies within the mobile phone industry.
Frequent training and education is required to effectively manage and maintain the
company’s brand to gain the maximum impact on marketing performance. Building and
managing brands require special skill and commitment. The company should focus not on
immediate impact of branding but long term. Also the study recommends that, the company
should develop and maintain creative brands that communicate phone specific features and
benefits in a consistent manner that goes a long way to differentiate the product from that
of the competition.
Furthermore, the company should develop a committed approach to monitoring and
evaluating of all its branding activities to detect lapses in the systems to enable the company
make corrections which will in the long run improve upon its brands in the market.
Apparently social media in the modern times has become a vibrant platform for
organizations in creating awareness of their product and brands. It has therefore become
very necessary for employees of organizations to be on top of the usage and management
of social media as a competitive tool. The researcher therefore recommends that the
company periodically train, educate and empower employees in the effective use of social
media to promote company brand since Social media campaigns happen to be far cheaper
as compared to TV and Events.
APPENDIX
QUESTIONNAIRE
Department Of Marketing,
School of business and management Studies
Moshood Abiola Polytechnic
P.O. Box 2210,
Ojere Abeokuta, Ogun State.
Dear Respondent,
REQUEST FOR INFORMATION
I am an undergraduate student of the above named institution in the department of Marketing,
School of business and management studies. I am carrying out a research work on the topic “THE
EFFECT OF BRANDING ON CONSUMER LOYALTY IN FAST MOVING
CONSUMABLE GOODS. This is part of research work for the award of Higher National
diploma(HND) in Marketing. Kindly help by answering the Questions in (Section A and B) to
enable the research work .All the information supplied in the questionnaire will be held
confidential and used only for academic purpose.
Yours Faithfully,
Researcher
PART A: BIO DATA OF THE RESPONDENTS
Instruction: Please tick the appropriate alternative of all the following questions Like this )
Age Distribution: 20-30years (
Above (
)
)
31-40 years(
)
2.
Gender: Male(
3.
Marital Status: Single (
4.
Qualification: WAEC/SSCE ( )
Female (
)
) Married (
Others Specify (
5.
)41-50years( ) 51-60years( ) 60yrs &
) Widow( ) Divorced/ Separated( )
OND ( )
HND/BSC (
) MSC/MBA ( )
)
Year spent in the organization: Below 5 years( ), 6-10 years( )11-15years( )
16-20years() 21years and above
6
Status: Staff( )
Customers(
)
PART B: QUESTION
NOTE: SA (Strongly Agree), A (Agree), SD (Strongly Disagree), D (Disagree)
S/N
QUESTIONS
RQ1
To what effect does brand image affect
consumer responsiveness?
6
Brand image affect consumer responsiveness
7
Brand image influence consumer responsiveness
and loyalty
SA
A
U
SD
D
9
Customer satisfaction create customer retention
RQ2
and loyalty
To what effect does brand equity affect
consumer retention?
11
Wrong branding affects consumer retention?
12.
Poor branding affects customer retention and
loyalty
13.
Social and technological trends has impact on
consumer retention and loyalty
14
Branding image enhance organization profitability
15
Branding image enhance customer satisfaction and
loyalty
RQ3
To what effect does brand differentiation affect
consumer satisfaction?
16
brand
differentiation
will
affects
consumer
satisfaction
17
brand differentiation and customer satisfaction and
loyalty are positively related.