Advertisement acts as a driving force for any business because it is an efficient way to
spread your message and stay in customers' minds, while brand image is a hidden tool that can
change people's buying behaviors. These two factors work together to improve any business'
performance. In the study Impact of Brand Image and Advertisement on Consumer Buying
Behavior by Malik M. E., et al. they proved through their findings that brand image and advertising
have a major impact on consumer purchasing behavior. People hold a favorable view toward the
brand's image. According to their study, teenagers in Gujranwala are more aware of their social
standing and prefer branded goods, and this awareness positively influences their consumer
behavior.
Furthermore, in the study of Akkucuk, U., et al., data show that brand awareness and
loyalty are the main factors influencing the decisions of the majority of smartphone buyers. On the
other hand, perceived quality and brand affiliation do not appear to affect purchasing decisions.
Despite the fact that many studies have found that satisfaction has a major positive impact
on brand loyalty and that actual re-purchase behavior of the same brand leads to long-term
economic profits. Awan, A. G. studied the impact of customer satisfaction on brand loyalty to look
into the effect of customer satisfaction on brand loyalty for long-lasting items or durable goods.
As a result, it shows that the customer satisfaction has significant factor that affect brand loyalty.
Brand loyalty leads to majority of the consumers to purchase their needs accordingly. They
tend to prioritize their decisions to what they have previously experience as their ground for trust.
With this it is safe to say that brand loyalty plays a major role in keeping a steady rate of customer
purchases with a chance of improvement or deterioration over time depending on how the brand
manages customer loyalty.
The huge significance of brand loyalty to customer satisfaction has lead a trend on brands
to create programs that specifically enhances loyalty. Loyalty programs have been continuously
used and its popularity has been increasing throughout the world. However, there may be loyalty
programs that perform better than the other which is why brands keep on developing new ideas on
how to improve their loyalty programs to get a better attention to the consumers and divert the
competition into their advantage.
According to Dorotic, M., et al., loyalty programs have grown in number and popularity,
but their impacts on consumer behavior remain ambiguous, owing to a lack of understanding of
the factors that influence loyalty program effectiveness and a lack of generalizable conclusions
from earlier studies. Their findings show that loyalty programs are effective in enhancing customer
purchase behaviors over time, but the impact varies according on the consumer segment and
market. Currently, neither enterprises nor consumers benefit completely from the opportunity
provided by loyalty programs.
It is supported that loyalty programs are decreasingly becoming effective which is
supported by the study of Dowling, G. R., & Uncles, M., customer loyalty programs have sparked
tremendous interest as businesses employ one of marketing's most well-known strategies: "If you
see a good idea, copy it." Some banks have issued credit cards with a variety of valuable incentives
to regular customers. Customers that buy on the spot market have typically received preferential
treatment in business-to-business markets. The frequent-flyer programs of the major airlines are
other well-known examples of customer loyalty programs. Initially praised as creative ways to
foster and preserve loyalty, these and other well-supported programs have come under increasing
scrutiny over time.
By providing an additional incentive, loyalty programs that aim to bind people to a business
or its goods and services present an intriguing conundrum. Even while these schemes frequently
garner a lot of consumer interest, they are challenging to sustain given the state of the market and
consumer behavior today. According to this study, the majority of schemes don't significantly
change how the market is structured. They might be seen as a valid weapon in the marketer's
arsenal and aid in protecting incumbents, albeit at the expense of raising marketing costs.
Lee, J. J., et al. supports the idea that loyalty programs seem to be a logical response to the
competitive environment given the rising competitiveness in the hotel business for frequent guests,
who account for a disproportionate share of income. Nevertheless, the effectiveness of these
programs in boosting hotel operators' profitability is still an open subject. Empirical findings imply
that spending on hotel loyalty programs has a favorable effect on profitability and occupancy rates.
Additionally, these findings have a number of managerial ramifications for the hotel sector, despite
the fact that the overall effect is minimal.
Overall, it is assumed that customer loyalty programs are in need of a newer alternatives
or at least a significant improvement so brands could stay relevant and as trustworthy for their
customers. Otherwise, the competition will remain strong and the cost will still remain at its current
state, costly.
References
Malik, M. E., Ghafoor, M. M., Iqbal, H. K., Ali, Q., Hunbal, H., Noman, M., & Ahmad, B. (2013).
Impact of brand image and advertisement on consumer buying behavior. World Applied Sciences
Journal, 23(1), 117-122. Retrieved on (20 March 2023)
Akkucuk, U., & Esmaeili, J. (2016). The impact of brands on consumer buying behavior: An
empirical study on smartphone buyers. International Journal of Research in Business and Social
Science (2147-4478), 5(4), 1-16. Retrieved on (20 March 2023)
Awan, A. G., & Rehman, A. U. (2014). Impact of customer satisfaction on brand loyalty: An
empirical analysis of home appliances in Pakistan. British journal of marketing studies, 2(8), 1832. . Retrieved on (20 March 2023)
Dorotic, M., Bijmolt, T. H., & Verhoef, P. C. (2012). Loyalty programmes: Current knowledge
and research directions. International Journal of Management Reviews, 14(3), 217-237. .
Retrieved on (20 March 2023)
Dowling, G. R., & Uncles, M. (1997). Do customer loyalty programs really work?. MIT Sloan
Management Review. Retrieved on (20 March 2023)
Lee, J. J., Capella, M. L., Taylor, C. R., & Gabler, C. B. (2014). The financial impact of loyalty
programs in the hotel industry: A social exchange theory perspective. Journal of Business
Research, 67(10), 2139-2146. Retrieved on (20 March 2023)