1. INTRODUCTION , OBJECTIVES AND LITERATURE REVIEW .

2. RESEARCH METHODOLOGY & DATA COLLECTION

IMPACT
OF
BRAND IMAGE AND CONSUMER PERCEPTION
ON
BRAND LOYALTY: A STUDY IN CONTEXT OF
PATANJALI AYURVEDA LTD. AMONG THE
PEOPLE OF DEHRADUN

SUBMITTED TO SUBMITTED BY

ABHISHEK CHAUHAN AVNISH SHUKLA

 CHAPTER 1: INTRODUCTION

Given a much broader array of product choices offered in the current market andubiquitous
marketing efforts, consumers often turn to a favorite brand to facilitate theirpurchase decisions. A
brand includes a name, symbol, design, or experience that helpconsumers identify products,
services, or differentiate offerings among competitors(Aaker, 1991; Keller, 2008; Neumeier,
2006). Brand identity, which is a group ofassociations developed by firms, communicates with
consumers what a brand provides(Aaker, 2007; Keller, 2008).

Academic literature clearly addressed the importance of building a strongemotional relationship

between consumers and brands (Carroll & Ahuvia, 2006; Keller,2001, 2008; Taylor, Cluch, &
Godwin, 2004).According to Kellers (2001) more recent conceptual framework,consumers
positive brand feelings lead to favorable responses towards a brand, such asattitudinal attachment
and behavioral loyalty .Similarly, recentliterature on branding has argued that an emotional brand
experience is important tofoster brand loyalty and purchase intentions (Albert, Merunka, &
Valette-Florence, 2008;Carroll & Ahuvia, 2006; Chaudhuri & Holbrook, 2001; Esch et al., 2006;
Nowak, Thach,& Olsen, 2006; Pawle & Cooper, 2006; Taylor, Celuch, & Goodwin, 2004;
Thomson, MacInnis, & Park, 2005). Moreover, brand consulting and advertising industry
literature(Gob, 2001; Lindstrom, 2005; Neumeier, 2006; Riesenbeck & Perrey, 2007;
Roberts,2004, 2006) has illustrated the importance of building deep emotional connections with
consumers to augment brand loyalty.

DEFINITIONS OF TERMS

The following definitions are the major terms investigated in the present study.

BRAND IMAGE: Akaah, (1988) conclude that consumers are more likely to purchase well-
known brand products with positive brand image as a way to lower purchase risks. This
argument is also supported by Rao and Monroe, (1988) that a brand with a more positive image
does have the effect of lowering consumers product perception risks and increasing positive
feedback from consumers. Therefore, consumers generally believe they can make a satisfying
purchase by choosing well-known brands and also lower any purchase risks by doing so. How
much is a brand worth? How does a brand represent the product? Keller, (1993) defines a brand
image as an association or perception consumers make based on their memory toward a product.
Thus, brand image does not exist in the technology, features or the actual product itself, but is
something brought out by promotions, advertisements, or users.

Thakor et al. (1997) said that through brand image, consumers are able to recognize a product,
evaluate the quality, lower purchase risks, and obtain certain experience and satisfaction out of
product differentiation. When it comes to experiential product evaluation, a positive brand image
may make up for an inferior image of the origin country and raise the possibility of the product
being selected. According to Grewal et al. (1998) the better a brand image is, the more
recognition consumers give to its product quality. Consumers are usually limited in regards to the
amount of time and product knowledge to make an informed purchase decision when facing
similar products to choose from. As a result, brand image is often used as an extrinsic cue to
make a purchase decision.

Kotler, (2000) contends that brand is a name, term, symbol, design or all the above, and is used
to distinguish ones products and services from competitors. For example, Nike adopts a check
mark as its brand image, which creates a positive effect indicating approval. According to Kotler,
(2000) image is the way that public perceives the company or its product. Image is affected by
many factors beyond the companys control. The consumer develops a set of brand beliefs about
where each brand stands on each attribute. The set of or its product. Image is affected by many
factors beyond the companys control. The consumer develops a set of brand beliefs about where
each brand stands on each attribute. The set of beliefs about a brand make up brand image. The
consumers brand image will vary with his or her experiences as filtered by the effects of
selective perception, selective distortion and selective retention.

Romaniuk, (2003) studied the relationship between association of a brand with different types of
image attributes and subsequent purchase of the brand. The image attributes incorporated were
based on the product categories, situations and benefits offered. While mention of the brand for
an image attribute was positively related to future purchase, this relationship did not vary
between attributes once brand and attribute size was taken into account. However, a positive
relationship was found between the number of attributes associated with the brand and future
purchase.
BRAND LOYALTY: The most elaborate conceptual definition of brand loyalty was presented
by Jacoby et al. (1978). We will use and discuss this definition, because it covers the most
important aspects of brand loyalty, & since it enjoys widespread support in the marketing
literature, either in its original form or in slightly modified versions (Wilkie, 1990). Jacoby et al.
(1978) defined brand loyalty, according to this definition, brand loyalty is: The (a) biased, (b)
behavioral response, (c) expressed over time, (d) by some decision making unit, (e) with respect
to one or more alternative brands out of set of such brand, and (f) is a function of psychological
process.

Rethinking Brands from the Customer Point of View: According to Jim, (2003) many of the
less successful experience brands are not meeting the challenge of a largely time-starved
audience. Our research confirms that in most societies today, time has become more desired than
money. Increasingly, people value experiences more than things. Consumers are really looking
for ways to make the most of everyday lived experiences. So marketers need to constantly ask
themselves, is our brand part of the problem or part of the solution? A brands role in becoming a
solution for its audience can make it stand out for customers. In that sense, the meaning of brand
is its use. Profitable customers are born when a powerful brand promise is fulfilled by a brand
experience that exceeds expectations.

BRAND PERCEPTION: Perception is a process by which individuals organize and interpret

their sensory impressions to give meaning to their environment (Robbins & Judge, 2013). In
marketing, perceptions are more important than reality because perceptions affect consumers
actual behaviour (Kotler, Keller, Koshy, & Jha, 2014). Information processing model have four
major steps or stages. It starts with exposure followed by attention, interpretation and lastly
retention. The first three of these establish perception (Hawkins, Best, Coney, & Mookerjee,
2007). All this takes place inside the mind or black box of the consumers simultaneously, and it
changes from person to person. Perception is highly subjective and therefore easily distorted.
Moreover, perception is the meaning that an individual attributes to the incoming stimuli that
gathered through the five senses that are taste, smell, touch, hearing and sight. According to
Kurtz and Boone, (2006) different people have different perceptions of objects or events based
on the interactions of two types of factors that are stimulus factors and individual factors.
What is not a brand?

A brand is not an advertising campaign, a slogan, or a logo; nor is it solely created for he
customer. A brand must resonate with all stakeholders: employees, shareholders, customers,
partners, and end users.

Why do brands matter?

In every developed and developing economies, consumers have an astonishing, often

bewildering, array of choices in almost every industry and product category. This diversity of
choice puts pressure on corporates to find more potent ways of differentiating themselves and
securing competitive advantage. Much of the skill of marketing and branding is concerned with
building equity for products whose characteristics, pricing distribution, and availability are really
quite close to each other. Take cola drinks. Coca-Cola and Pepsi-Cola are able to dominate the
worldwide market. Their worldwide distribution network no doubt plays a part in this, but the
main factor is the strength and consumer appeal to consumers. The strong, instantly recognizable
names, logos, and colors of these two brands symbolize their makers promise that consumers
expectations will be fulfilled, whatever the subtleties of these might be. Brands allow consumers
to shop with confidence, and provide a route map through a staggering array of choices. The real
power of successful brands is that they meet the expectations of those that buy them or, to put it
another way, they represent a promise kept. As such, they are a contract between a seller and a
buyer: if the seller keeps to its side of the bargain, the buyer will be satisfied and more likely a
loyal repeat customer.

How has the use of brands evolved?

According to Philip Kotler Branding has been around for centuries as a means to distinguish the
goods of one producer from those of another. The earliest signs of branding in Europe were the
medieval guilds requirement that craftspeople put trademarks on their products to protect
themselves and consumers against inferior quality. In the fine arts, branding began with artists
signing their works.
Quoting from Brands & Branding

The wide scale use of brands is essentially a phenomenon of the late 19th and early 20th
centuries. Hand in hand with these brands came early trademark legislation, which allowed the
owners of these brands to protect them in law. It is in the period since the end of World War II
that weve seen the real explosion of the use of brands. An activity that, for three quarters of a
century, was mainly confined to consumer goods and services, now features in industrial and
BtoB sectors, the public and voluntary sectors, utilities, and non-governmental organizations.
Football teams, political parties, and pop stars alike all now consider themselves brands.

What are the benefits of brands?

Brands are business assets, and the value to businesses of owning strong brands is incontestable.
Brands identify the source or maker of a product and allow consumers either individuals or
organization to assign responsibility to a particular manufacturer or distributor. Consumer may
evaluate the identical product differently depending upon how it is branded. Consumers learn
about a brand through past experiences with the product and its marketing programme. As
consumers lives become more complicated, rushed and time starved the ability of a brand to
simplify decision making and reducing risk is invaluable. Brands also perform valuable functions
for firms. First, they simplify product handling or tracing. Brands help to organize inventory and
accounting records.

A brand also offers the firm the legal protection for unique features or aspects of the product. The
brand name can be protected through registered trademarks, manufacturing process can be
protected through patents and packaging through copyrights and designs. These intellectual
property rights ensure that the firm can safely invest in the brand and reap the benefits of a
valuable asset. Brands can signal a certain level of quality so that satisfied buyers can easily
choose the product again although competitors may easily duplicate manufacturing processes
and product designs, they can not easily match lasting impression in the mind of individuals and
organizations from years of marketing activity and product experience. In this sense brand can be
seen as a powerful means of competitive advantage. To firms, brands thus represent enormously
valuable pieces of legal property that can influence consumer behaviour, be bought and sold ,
and provide the security of sustained earnings to their owners. Brands that keep their promise
attract loyal buyers who will return at regular intervals. The benefit to the brand owner is that
forecasting cash flows becomes easier with repeat customers, and the brand owner can plan and
manage with greater confidence the development of the business. Thus brands, with their ability
to secure future income, can be classified as productive assets in exactly the same way as any
other, more traditional assets of a business (e.g., plants, equipment, cash, investments, and so
on). The asset value of brands is now widely recognized by both brand owners and investors.
Brands can generate high-quality earnings that directly affect the overall performance of the
business and thus influence share price.

PRODUCT IDENTITY

A classic success in this genre is Coca-Cola. It not only became a brand name to be remembered
but a product identification generic one too. The cola leaves of South-America and the kola nut
of West Africa combined to make this originally medicinal beverage into a famous soft-drink.
However, the alliterative names made it rather tongue-twisting. Hence, the company also
registered the shorter brand name, Coke. Pepsi-Cola would also like to be known as just Pepsi. In
India, however, Parle's have followed a rather ambivalent policy on naming their diverse
products, with unmixed success. Their oldest offering was named Gold Spot , to indicate that it
was a whale of an organge soft drink. The second successful product in their range, a cola drink
hasn't looked back since George Fernandes sent Coca Cola packing from India in 1977, had
also a double- barreled brand name, Thumps Up. However , for their lime-n-lemony fizzy,
Limca, and the soda, Bisleri, single names have been found adequate. Since, Limca is claimed to
be India's top selling soft drink in that category, they are probably right. However the fizz from
their name has been drawn out by Coca-Cola Inc. which purchased all the Parle soft drink for
a ,now seen as ,very low price of just $ 50 million. In 1993 (After liberalization was announced
and Coca Cola wants to enter back).
THE CONCEPT OF BRAND LOYALTY

Perhaps the most elaborate conceptual definition of brand loyalty was presented by Jacoby and
Chestnut (1978). This definition, covers the most important aspects of brand loyalty, and since it
enjoys widespread support in the marketing literature, either in its original form or in slightly
modified versions (e.g. Assae1 (1992); Mowen (1993); Wilkie (1990)).

According to this definition, brand loyalty is: "The (a) biased, (b)Behavior response,(c)
expressed over time, (d) by some decision making unit,, (c) with respect to some alternative
brands out of a set of such brands and (f) is a function of psychological (decision-making,
evaluative)process (Jacoby and Chestnut (1978, p.80))".

This definition identifies six requirements for brand loyalty. Below, each of them is discussed in
somewhat more detail.

Biased behavioral response (a-b)

First, brand loyalty is a biased response. This implies that there has to be a systematic tendency
to buy a certain brand or group of brands. Which means that brand choice should not follow a
zero-order process? A process is zero-order if each brand is chosen by the consumer with a
certain probability which is independent of the consumer's past purchase decisions. Nothing that
the consumer did or is exposed to alters the probability to purchase a specific brand (Massy,
Montgomery, and Morrison (1970))'.

Zero-order behavior is not part of the brand-loyalty construct, because this would imply that
brand loyalty is beyond control by any marketing action, and hence a meaningless concept for
marketing managers. Brand loyalty also entails actual purchases of a brand. Verbal statements of
preference towards a brand are therefore not sufficient to ensure brand loyalty.
Expressed over time (C)

An incidental bias towards a brand does not guarantee brand loyalty. As the process is dynamic,
some consistency is needed during a certain time span. This suggests that one should not only
consider the number of times a specific brand is purchased during that period, but also the
purchase pattern over successive purchase occasions. As such, one can distinguish partially loyal
behavior from completely (non)loyal behavior. Considering a purchase sequence for brands A
and B, Brown (1952) distinguished consistent loyalty towards brand A (indicated by a purchase
sequence AAAAAA), divided loyalty (ABABAB), and unstable loyalty (AAABBB). For brand
A the situation is much dimmer under unstable loyalty than under divided loyalty. These simple

Examples show that the purchase pattern over a given time span contains valuable information
about brand loyalty.

Decision-making unit (d)

Brand loyalty is defined by the purchase pattern of a decision-making unit which may be an
individual, a household or a firm. Important to notice is that the decision unit does not have to be
the actual purchaser. For example, the purchases of a household are often made by one of the
parents, but other members of the household may also be involved in the decision process (see
e.g. Agnew (1987); Davis (1976)).

This issue becomes important when the members of a household have different product needs
and use goods for different purposes. In that case, we might observe switching behavior on the
household level which represents different needs or usage purposes by different family members
rather than an absence of brand loyalty.
Selection of brands (e)

The fifth condition Is that one or more brands are selected out of a set of brands. This condition
implies that consumers may actually be loyal to more than one brand, a phenomenon observed
by many researchers (e.g. Ehrenberg (1972); Jacoby (1971); 0' Leary (1993)). Especially for low
involvement goods, the consumer often does not evaluate brands on a continuous scale, but
classifies them discretely as acceptable or unacceptable. If more than one brand is acceptable, an
individual might be indifferent between them, and exhibit loyalty to a group of brands rather than
to a single brand. A problem with multi brand loyalty is that it is hard to distinguish this kind of
behavior from brand switching, especially if there are only a few brands available.

An individual who buys brand A and B with the purchase sequence ABBABAAB may be
defined as a multi-brand loyal consumer if more than two brands are available. But if only
brands A and B can be selected, the behavior can be interpreted as brand switching, since every
brand available is used regularly.

The fifth condition also implies that in order to have brand loyalty, there must be an opportunity
to choose among alternatives. Jacoby and Chestnut (1978, p.82) expressed it as follows: "Before
one could speak of brand loyal, one must have the opportunity of being disloyal"

As such, brand loyalty cannot exist when a brand has a monopoly position. The determination of
the product category therefore becomes of major importance.

CUSTOMER LOYALTY
Obtaining a thorough understanding of customer loyalty is a prerequisite for the execution of the
research at hand. For that, the development of customer loyalty research within the framework of
relationship marketing will be presented first, before different customer loyalty concepts will be
introduced. From these concepts, a definition of customer loyalty for use in this study will be
derived, before both consequences and antecedents of customer loyalty will be portrayed.
Since the beginning of the 1990s, customer loyalty has gained importance both in relationship
marketing research and in business. In business, this can be attributed to changing market- and
competition-environments. Due to a shift from a sellers to a buyers market and because of an
increasing degree of globalization, most industries find themselves confronted with new
challenges. In a first phase, firms tried to face these challenges by focusing on their internal
processes and organizational structures, trying to achieve cost reductions by concentrating on
internal improvements. A second phase of external focus followed, where firms directed attention
to their customers, trying to retain existing ones and to win over new ones (churning). Since
acquiring new customers is much more expensive than keeping them. And loyal customers
are the bedrock of any business. A loyal customer base represents a barrier to entry, a basis for a
price premium, time to respond to competitor innovations, and a bulwark against deleterious
price competition. Loyalty is critical to brand volume, is highly correlated to market share, and
can be used as the basis of predicting future market share; consequently, understanding loyalty
appears critical to any meaningful analysis of marketing strategy.
In marketing research, two trends mark the development of customer loyalty. While individual
transactions initially were in the center of marketing research, the focus shifted towards
analyzing relationships states that the traditional marketing concept of the marketing mix with
its 4 Ps, developed in the middle of the last century, had been the established approach until the
1990s.
This approach, how-ever, focuses solely on transactions, a deficit tackled by the relationship
marketing approach. At the core of it is the study of relationships between buyers and sellers of
goods or services, in contrast to merely examining transactions. An often cited and
comprehensive definition of relationship marketing is provided Relationship marketing refers to
all marketing activities directed toward establishing, developing, and maintaining successful
relational exchanges. Therefore, the relationship marketing approach pro-vides a suitable
environment in which customer loyalty research can be nested.
While the development of relationship marketing began in the early 1970s, it was not until the
late 1980s that works from the Nordic School of Services. Initiated a paradigm shift that geared
marketing towards the creation, conservation, and extension of buyer-seller relationships.
Although relationship marketing today is widely accepted among marketing researchers, its
promoters do not postulate the replacement of the transactional approach, but rather juxtapose
the two approaches. For example, delineates a strategy continuum, in which different goods
require different degrees of transaction- and relationship-based marketing strategies. As a result
of the focus on relationships in marketing research, customer loyalty gained importance within
research.
Before determining which stream the present study can be associated with, however, it is
important to create a clear understanding of different customer loyalty concepts prevalent in
research. This will be accomplished in the following section.

Determinants of Customer Loyalty

In order to be able to gear marketing activities towards the creation of customer loyalty, its
determinants and their precise effects have to be known. Accordingly, many researchers have
investigated this topic. In order to gain an overview of the determinants identified in these works,
they can be structured in three dimensions:
(1) Company-related determinants refer to the supplier itself or to the goods or services
offered. It is a prerequisite for the existence of customer loyalty that the offered goods or
services create utility for the customer and that they are available. In this respect, an
assessment is usually performed by examining quality. In order to evaluate the price-
performance ratio, customers will pay attention to prices. Customer loyalty will also be
influenced by the reputation a company has and ultimately by customer loyalty programs
offered.
(2) Relationship-related determinants play a significant role in long-term relationships. Factors
regarding the interaction between supplier and customer, such as relationship quality,
previous experiences, and trust are important. Commitment, which provides evidence of
emotional closeness and moral or normative feelings of obligation, takes a central role in
relationships. Specificity and dependence can lead to economic, psychological and social
switching barriers.
(3) Customer-related determinants are mainly influenced by customers characteristics. In this
respect, affect and involvement, and consequently also the importance of the good or service to
the customer, are important.
Addition to the above delineated areas, the effects of the market environment and competition
are researched, as is the link between satisfaction and loyalty, which plays an important role in
the research of customer loyalty and is often placed in one of the three dimensions. However, as
most other determinants influence satisfaction, it cannot be clearly separated and should
therefore be listed as a distinct category.

CUSTOMER SATISFACTION

As Customer Satisfaction is the key principle in every organization. Today consumer is looking
out for value for money. The challenge before the marketers is to identify what value would
appeal and convince the customer. Marketers are trying to enhance the concepts of value through
unique delivery methods. Customer satisfaction is a continuous process which does not begin or
end with a purchase. It covers the entire ownership experience from selecting a product, to
purchase, through aftercare to repeat purchase. Customer satisfaction or dissatisfaction is the
feeling derived by the customer when he compares the products actual performance with the
performance that he expects of it. Customers form their expectations on the basis of past buying
experiences, advice of their reference group and the promises of the marketers and their
competitors.

When the product performance matches the expected performance, the customer experiences
satisfaction; when it falls short of the expectation, he experiences dissatisfaction. And when the
performance exceeds expectations, the customer is highly satisfied or delighted. It becomes
easier for a company to serve a delighted customer. As a delighted customer may become loyal,
bringing more business to the firm, he will be less likely to switch to a competitors product; and
so, he becomes brand loyal.

Customer satisfaction can be measured using different techniques like questionnaires and direct
interviews. A customer feedback program should be viewed as an operating tool rather than as
market research. Customer satisfaction means giving the customers what they really want, when
they want it and the way they want it. It involves understanding customer expectations and
meeting them fully.It can be defined as an outcome of purchase and use resulting from the
buyers comparison of rewards and the costs of the purchase in relation to the anticipated
consequences.

Customer is an individual or an organization. Their requirements are very similar.

Conformance of services to their requirements and its performance in actual stage

Competitive prices
Service
Whether the buyer is satisfied after purchase depends on the offers performance in
relation to the buyers expectations.

Satisfaction is a persons fallings of pleasure or disappointment resulting from comparing a

products perceived performance 9or outcome) in relation to his or her expectations.

As this definition makes clear, satisfaction is a function of perceived performance and

expectation. If the performance falls short of expectations, the customers, the customer is
dissatisfied. If the performance matches the expectations, the customers are satisfied. If the
performance exceeds expectations, the customers are highly satisfied or delighted.

Many companies are aiming for high satisfaction because customers who are just
satisfied still find it easy to switch when a better comes along. Those who are highly satisfied are
much less ready to switch. High satisfaction or delight creates an emotional bond with the brand,
not just a rational performance. The result is high customer loyalty. Xeroxs senior management
believes that a very satisfied or delighted customer is worth 10 times as much to the company as
a satisfied customer. A very customer is likely to stay with Xerox many more years and buy more
than a satisfied customer will.
 There are five major factors, which affected satisfaction of the car namely: -

1. Problems Experienced:
Contributingto 35% of the CSI score, this factor measures the quality of the car in terms of
the number of repair problems that cropped up and how often it was returned for re-service.

Service Advisor:
Which related to ability of the services advisor to ability of the service advisor to understand
the problem and his promptness in attending to the customer, contributing to 28% of the CSI
Score.

2. Service Performance:
Measures the quality of the service performed as well as the dealers ability to fix a problem
on the first visit. It has a weightage of 26% in the CSI score and also considers how easily
spare parts are available when required.

3. Service Timing:
Affecting the score by just 6%, this time taken for a service or repair job was responsible
and if the vehicle was ready at the time promised.

4. Facility Appearance: -
Deals with the appearance of the customer lounge at the dealership and the look and
cleanliness of the service area. This factors has the least impact CSI score at Just 5%.

Measuring Customer Satisfaction

Organization are increasingly interested in retaining existing customers while targeting non-
customers; measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace. Customer satisfaction is
an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will
vary from person to person and product/service. The state of satisfaction depends on a number of
both psychological and physical variables which correlate with satisfaction behaviors such as
return and recommend rate. The level of satisfaction can also vary depending on other options
the customer may have and other products against which the customer can compare the
organizations products. Because satisfaction is basically a psychological state, care should be
taken in the effort of quantitative measurement, although a large quantity of research in this area
has recently been developed. Work done by Berry, Brodeur between 1990 and 1998 [3] defined
ten Quality values which influence satisfaction behavior, further expanded by Berry in 2002
and known as the ten domains of satisfaction. These ten domains of satisfaction include: Quality,
value, Timeliness, Efficiency, Ease of access, Environment, Inter-departmental Teamwork, Front
line Service Behaviors, Commitment to the customer and Innovation. These factors are
emphasized for continuous improvement and organizational change measurement and most often
utilized to develop the architecture for satisfaction measurement as an integrated model. Work
done by Parasuraman, Zeithaml and Berry between 1985 and 1988 provides the basis for the
measurement of customer satisfaction with a service by using the gap between the customers
expectation of performance and their perceived experience of performance. This provides the
measurer with a satisfaction gap which is objective and quantitative in nature . work done by
Cronin and Taylor propose the confirmation/disconfirmation theory of combining the gap
described by Parasuraman, Zeithaml and Berry as two different measures (perception and
expectation of performance ) into a single measurement of performance according to
expectation. According to Garbrand, customer satisfaction equals perception of performance
divided by expectation of performance. The usual measures of customer satisfaction involve a
survey with a set of statement using a Likert Technique or sale. The customer is asked to
evaluate each statement and in term of their perception and expectation of the performance of the
organization being measured.
SdtLConBFm/iNbuHsPhgawfikreylc,v
CHAPTER II:LITERATURE REVIEW

This chapter provides the relevant literature and theoretical framework for thepresent study.

2.1. HYPOTHESIS FORMATION

2.1.1. BRAND IMAGE AND BRAND LOYALTY

Kellers (1993, 2001) conceptual research suggested a strong connection betweena

positive brand image and brand loyalty. Keller (1993) explained that consumers repeated
buying behavior represents brand loyalty, which reflects a favorable attitudetowards a
brand. Esch et al.s (2006) empirical research supported Kellers proposition byshowing a
statistically significant effect of positive brand image on current/futurepurchases. Thus,
the present research posits:

H1. Brand image will not be positively associated with brand loyalty.
bdagrcpownsujmtlie
Figure 1.1 The Brand Loyalty Pyramid (Aaker, 1991, p. 40)

2.1.2. BRAND IMAGE AND CONSUMER PERCEPTION

Past literature revealed that a successful brand image enables consumers to identify their
desired need which ultimately helps a company from its competitors Hsieh et al., (2004).
On the other hand Tarofder and Haque (2007) had given importance on supplier selection
based on their brand image. In fact the findings of Jiang et al. (2011) revealed that apart
from brand image price discount and complementary products may have positive impact
on customer loyalty. Furthermore, Linder and Seidenstricker (2010) agreed that brand
image is one of the companys core competencies. Mishra and Datta (2011) revealed that
brand name has strong influence on customer based brand equity. Kotler (2001) defined
brand image as a set of beliefs, ideas and impression that a person holds regarding an
object. On the other hand, Keller (1993) considered brand image as a set of perceptions
about a brand on consumers memory. Na et al. (1999)connected brand image with
customers perception as they mentioned that image cannot be measured by attribute
measurements alone but must include measurements of consumers' perceptions of the
value and benefits attainable from using the brand.Thus, it posits:

H2. Brand image will not be positively associated with consumer perception.

Figure Conceptual framework

2.1.3. CONSUMER PERCEPTION AND BRAND LOYALTY

Humans unlike machines can have the ability to Perceive. It is a feeling which is based
on the conclusion formed with the given information around and the mindset of the
consumer which is responsible of processing the information. Perception gives humans
the right to make important decisions or can reflect their important decisions. It all leads
to the most important decision of purchasing. Purchasing means to invest ina brand, for
making it a greater brand.

Underlying research will focus on concluding the fact that how much is the impact of
brand perception on brand awareness and brand loyalty of these brands. Several
conclusions can be drawn if consumer perception plays any role and there is a relation
among the consumer perception, brand awareness and brand loyalty of these brands. The
project is intended to fulfill the needs of marketing research which is quite important for
present marketing trend. Total sales turnover of the brand depends on the consumer
purchase decision. Ifthe consumers perceive positive about the brand, it means he carriers
more loyalty and will remain potential customer, until he keeps on getting the right value
for his money. Thus, it posits:

H3. Consumer perception will not be positively associated with Brand loyalty.

2.1.4. GENDER AND LOYALTY INTENTIONS

Customer loyalty has been the object of intense interest in both the business and
academic worlds (Oliver 1999; Reichheld 2001). At the same time, academic research has
discovered important differences in cognitive processes and behavior of male and female
consumers (Fisher and Dub 2005; Meyers-Levy 1988, 1989; Meyers-Levy and
Maheswaran 1991; Meyers-Levy and Sternthal 1991). These differences are reflected in
the widespread use of gender as a segmentation variable in marketing practice. Despite
the importance of customer loyalty on the one hand, and gender differences on the other
hand, little is known about the existence and nature of gender differences in customer
loyalty. This is surprising because if male and female loyalties differ, men and women
might require a different selling approach, has different levels of customer value, and
may respond differently to loyalty programs and other actions aimed at enhancing
customer loyalty. Common stereotypes, perhaps based on widely publicized findings
showing that males exhibit lower levels of loyalty than females (e.g., Blumstein and
Schwartz 1983; Hansen 1987), suggest that females are more loyal customers than
males.Thus, it posits:
H4. Gender will not be positively associated with loyalty intentions.

2.1.5. GENDER AND CONSUMER PERCEPTION

Self-congruency theorists suggest that consumers tend to purchase products and brands
consistent with their self-images (Rosenburg, 1979; Ross, 1971; Sirgy, 1982/1986).
Perhaps the most important and central part of self-image is ones gender identity (Kates,
2002; Palan, 2001), and this gender-self generates strong congruency effects with regard
to ones brand perceptions and choices (Sirgy, 1982/1986). The gender-self is solicited
across a wide variety of marketing practices. Marketers not only use sex as an important
segmentation variable but also develop implicit meanings by factoring gender-related
cues into a brand. Furthermore, consumers gender identity and sexual orientation have
been used to target consumers in emerging gender-market segmentations such as
Metrosexual: males who are heterosexual, hip, concerned with their appearance, and in
touch with their feminine side. However, themarketing literature is replete with studies
that only report biological sex and treat this as the sole determinant of gender-related
behavior. Gender is often used interchangeably with sex because such a dichotomous
variable provides a comfort zone for researchers when measuring and interpreting the
consumerist implications of gender. This approach overlooks the important differences
between sex and gender and leads to biased research and distorted representations of
complex gender-related marketing phenomena (Hirchman, 1993; Palan, 2001). Since the
1960s some researchers have begun to investigate how gender identity (which includes a
combination of sex, psychological gender, and gender attitudes) would contribute to a
consumers product- and brand-consumption (Gould and Stern, 1989; Fischer and
Arnold, 1990/1994; Palan, 2001). However, research results have been mixed. For
example, individuals with a higher masculine-gender identity exhibit stronger
information processing (Kempf, Palan, and Laczniak, 1997; Palan, 2001), while
individuals with a higher feminine-gender identity develop more positive attitudes toward
and get more personally engaged with products and brands (Gainer, 1993; Jaffe and
Berger, 1988; Worth, Smith, and Mackie, 1992). As such, a critical question becomes
whether or not gender identity can consistently predict any of the many facets of
consumer-based brand equity. It has been suggested that consumer involvement may be
an important link between gender and consumer perception (Fischer and Arnold, 1994;
McCabe, 2001; Sirgy, 1982), so this study addresses the research gap between gender
identity and brand loyalty through the lens of a consumers level of product
involvement.Thus, it posits:

H5. Gender will not be positively associated with consumer perception.

2.1.6. GENDER AND BRAND IMAGE

The perception of consumers towards a certain brand can cover a variety of measures,
including attitude towards a brand (Monga & John, 2007; Shen & Chen, 2007); attitude
towards an advertisement or communication of the brand ( Shen & Chen, 2006; Lee &
Labroo, 2004); perceived quality of the brand (Keller & Lehmann,2006; Essoussi &
Merunka, 2007); memorability (Volckner & Sattler, 2007); brand value or equity
(Buchanan et. al. 1999); brand image (Lee & Labroo, 2004; Essoussi & Merunka, 2007);
brand personality (Aaker, 1997); purchase intentions (Lee & Labroo, 2004) and choice
(Shiv et. al., 1997). Brand image is the first word or image that comes to mind when a
certain brand is mentioned. It is fragile and can be altered by new information or
damaged by media commentators (OShaughnessy, 2003). Brand image is the
representation of the brand in the mind of the consumer. In western cultures, brand image
can be like a human being with unique characteristics. In collectivistic culture like
Malaysia, it can be quality and the representation of trust in a firm. Consumers will
attribute to the brand characteristics that fit their own mental maps and from there
develop a brand image (De Mooij, 2005).Thus, it posits:

H6. Gender will not be positively associated with brand image.

2.1.7. BRAND IMAGE, CONSUMER PERCEPTION AND LOYALTY

INTENTIONS

The ever changing marketing scenario andcompetition over the globe hasamplified the
role of brand at unparalleled level.Every person is a consumer of different brands at
thesame time. The choice and usage of a particular brandby the consumer over the time is
affected by the qualitybenefits offered by the brand especially when it comesto brand of
 eatables and cosmetics. Consumersatisfaction is derived when he compares the
actualperformance of the product with the performance heexpected out of the usage.
Philip Kotler (2008)observed that satisfaction is a person's feelings ofpressure or
disappointment resulting from product'sperceived performance (outcome) in relation to
his orher expectations. If the perceived benefits turned out tobe almost same as expected,
customer is highlysatisfied and that is how the company achieves loyaltyof the customer
towards the products.Thus, it posits:

H7. There will not be positiverelationship between brand image, consumer perception
and loyalty intentions.

2.2. RESEARCH BACKGROUND

This survey research has utilized both primary and secondary data and information from different
sources including Patanjali Ayurveda ltd., text books, magazines, journals and websites about
different variables of the study.

Various studies were consulted for collecting data. A study on Patanjali is also available of
consumer perception toward the brand. These studies include:

1. A study of consumer perception of herbal products in Bhopal: International Journal of

Management Studies ISSN (Print) 2249-0302 ISSN (Online)2231-2528

AUTHORS:Md. Irshad Ali, Research Scholar, FPM, Indian Institute of Forest Management,
India and Manmohan Yadav, Professor, Indian Institute of Forest Management, India

The Indian herbal market is flooded with numerous well-known and recognised herbal brands.
Vindhya Herbal is an initiative of Madhya Pradesh government to provide unadulterated
ayurvedic products to the people and for generating gainful employment for the vulnerable and
downtrodden section of the society. The study is to examine existing state of Vindhya Herbal in
Bhopal, its birthplace. Besides, this study talks about other parameters like benefits/attributes
consumer acquaintances with herbal products, awareness, preferential, source of knowledge,
usage and attitude related to herbal products.
The research design consisted of an exploratory phase followed by a descriptive cross-sectional,
close-ended questionnaire-based survey in Bhopal. As the study has been conducted in a Hindi
belt, the questionnaire was kept bilingual; Hindi and English. Sampling was done on the basis of
two criteria; 1) such regions were selected where almost major herbal brands are available and 2)
Respondents have used at-least one of the herbal brands.

Only 23 percent consumers responded to have used Vindhya herbal. Those who have used
Vindhya herbal have preference it, if available in a nearby store. Most of the respondents
mentioned that herbal products are prepared from the natural ingredient, as a result faced no side
effect. Purchase of herbal products primarily takes place on a monthly basis and use on a daily
basis. Doctors, family members and mass media were reliable sources and the respondents trust
on their recommendations for buying fresh herbal products. Desirability for further information
was high among consumers related to herbal products.

2. Customer Perception towards Brand: A Study on Patanjali: Global Journal of

Management and Business Research: E-Marketing, Volume 15 Issue 9 Version 1.0 Year
2015, Type: Double Blind Peer Reviewed International Research Journal, Publisher:
Global Journals Inc. (USA), Online ISSN: 2249-4588 & Print ISSN: 0975-5853

AUTHOR: Miss Rupali Khanna, Chandigarh University, India

This paper carries out a study on what factorsPATANJALI.Patanjali - a brand set up by

PATANJALIAYURVEDA LTD is backed by robust preaching andpromotion of World renowned
Guru Swami Ramdevjiand an international authority on Ayurveda andTraditional Herbs. The
company is set up with anobjective to provide superior quality of products at fairprice and to get
their customers rid off the chronicdiseases by providing products which are organic andnatural.
This concept of Herbal and Pure has gainedmomentum in India and across the world since
peoplenow a days are more centered towards keepingthemselves near to Nature due to their
commercializedroutines. PATANJALI AYURVEDA LTD has more than100 different products in
the catalogue for Skin, Hair,Heart, Eyes and Kidney diseases. Patanjalis recent tieup with Future
Group to enter into FMCG segmentthrough Big Bazaar Retail stores is another bigadvantage
towards the availability of Patanjali Productsnear to their consumers. The Patanjali Products
haverightly been placed at advantage by the very concept ofMarketing through Spirituality.
 3. Effect of Brand Image on Brand Loyalty and Role of Customer Satisfaction in it:
World Applied Sciences Journal 26 (10): 1364-1370, 2013, ISSN 1818-4952, IDOSI
Publications, 2013, DOI: 10.5829/idosi.wasj.2013.26.10.1343, Published on Nov 30,
2013

AUTHORS:Rashid Saeed, Rab Nawaz Lodhi, Amna Mehmood, Urooj Ishfaque,Fareha

Dustgeer, Amna Sami, Zahid Mahmood and Moeed Ahmad

The purpose of this study was to check the effect of brand image on brand loyalty and
themoderating role of customer satisfaction in it. Brand attributes and Brand benefits were
studied as dimensionsof Brand Image. Quantitative study was conducted in wireless
Telecommunication sector of Pakistan. Sampleof 150 students and teachers, from different
colleges and universities of Sahiwal, were selected and surveyedthrough questionnaires. Pearson
Correlation and Regression were run to analyze the data. Finding reveals thatpositive and
significant relation exists between Brand Image and Brand loyalty and Customer Satisfaction
alsohas a positive moderating effect on this relation. The sample size was too short. This study
can be replicatedwith a large sample size in similar sector or context. The impact of marketing
communications and consumersknowledge on brand loyalty can also is studied to enhance the
study. Organizations ought to pay specialattention to the building of brand image, achieving
customer satisfaction. And through this they would alsobe successful in achieving brand loyalty.

4. The Impact of Brand Image on Consumer Behavior: A Literature Review: Open

Journal of Business and Management, 2015, 3, 58-62. Published Online, January 2015 in
SciRes.

AUTHOR: Yi Zhang, Department of Marketing, Management School, Jinan University,

Guangzhou, China

The concept brand image has drawn significant attention from academics and practitioners
since it was put forward, because it played an important role in marketing activities. Although
brand image was recognized as the driving force of brand asset and brand performance, few
studies have elaborated on the relationship between brand image and brand equity. Based on the
brand image theories, this study reviewed extant studies about the impact of brand image on
consumer from perspective of customer equity. It also presented the shortcomings of current
research and pointed out the trends for future study.

CHAPTER III: RESEARCH METHODOLOGY

 OBJECTIVE OF THE STUDY
To study Patanjali as a brand and its product mix.
To analyze consumer perception about Patanjali as a brand and its products.
To analyze impact of brand image on loyalty intentions.
To analyze and identify important factors influencing Patanjali as a brand
Research is a systematic activity to achieve the truth. Research in common parlance refers to the
search for knowledge. One can also define research as a scientific and systematic search for
pertinent information on a specific topic. In fact, research is a part of scientific investigation. The
Advanced Learners Dictionary of Current English lays down the meaning of research as a
careful investigation or inquiry specially through search for new facts in any branch of
knowledge. Research includes the procedure of collecting data, analyzing the data and finding
the conclusion or truth.

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically.

Research design

A proper research always has a definite framework for data collection. This framework
constitutes the research design. In this study descriptive research design has been used.

Data collection

The data source refers to the sources from which the data are collected for conducting the study.
Data may be of two types-

Primary Data

Secondary Data
Primary Data: The data collected from the field under the control and supervision of an
investigator is known as Primary Data .This type of data is generally afresh and collected for the
first time .In this study primary data was mainly collected through the structured questionnaire.

Questionnaire contains the list of questions (enclosed in annexure) regarding the project for
research. It was filled by sample of individuals selected as universe. All precautions were taken
in preparation of questionnaire so that reliable data can be obtained. Self designed questionnaire
is used to assess the employees perception towards exit interview. The answering scale for the
questions related to brand image and brand loyalty is a 7-item Likert scale. Data collection was
done through the online website using an online-based questionnaire.

Secondary Data: Secondary data are collected from the sources which have been already
collected for purpose other than the problem at hand. For this study, Secondary data sources are:-

Annual reports, files and brochures of the company,

Journals and magazines,

Internet websites,

Books on Organizational Behavior and HRM.

Sample size- the sample size was taken as 59 as the true representative of the population.

Sample area- the sample area was selected as dehradun.

A single cross-sectional research design was used for the survey and quantitative analysis was
used for the obtained dataset.

Data analysis tools-

 CHAPTER IV: DATA ANALYSIS

LOYALTY INTENTIONS

# Question Total Mea Frequen Varianc Standar

Respons n cy e d
es deviati
on
1 I intend to buy products of 59
this brand in the near future
2 I intend to buy other products 59
of this brand
3 I consider this brand my first 59
choice in its different product
categories
4 I say positive things about this 59
brand to other people
5 I have or would recommend 59
this brand to someone who
seeks my advice
6 I dont bother looking at 59
alternative brands; this brand
is good enough for me
7 If this brand were to raise 59
their prices, I would continue
to buy their products
8 If this brand was NOT 59
available, it would make huge
difference to me
# Question Total Mean Frequency Variance Standard
Responses deviation
1 High quality 59
2 Traditional and herbal 59
3 Cheaper products 59

CONSUMER PERCEPTION
 # Question Total Mea Frequen Varianc Standard
Respons n cy e deviation
es
1 For older people 59
2 For younger people 59
3 A modern innovative brand 59
4 Buy its products being an 59
indian herbal brand
5 Buy its products NOT because 59
of spiritualism associated
with the brand
BRAND IMAGE

1. GENDER

# Answer Respon % Varian Standa

se ce rd
deviati
on
1 Male 31 53%
2 Female 28 47%
Total 59 100%

2. AGE

# Answer Respon % Varian Standa

se ce rd
deviati
on
1 below 18 2 3%
2 19 to 25 37 63%
3 26 to 35 11 19%
4 36 to 55 8 14%
5 55 and 1 2%
above
Total 59 100%

3. MARITAL STATUS
# Answer Respon % Varian Standa
se ce rd
deviati
on
1 Married 16 27%
2 Widowed 0 0%
3 Divorced 0 0%
4 Separated 0 0%
5 Never 43 73%
married
Total 59 100
%

4. EDUCATION LEVEL

# Answer Respon % Varian Standa

se ce rd
deviati
on
1 Primary 0 0%
2 Secondary 2 4%
4 Graduate 33 55%
5 Post 22 37%
graduate
6 Doctorate 2 4%
Total 59 100%

5. PROFESSION
 # Answer Respon % Varian Standa
se ce rd
deviati
on
1 Retired 0 0%
2 Civil 12 20%
servant
3 Private 9 15%
sector
4 Self 2 3%
employed
5 Student 36 61%
Total 59 100%

H1: Brand image will not be positively associated with brand loyalty.

BRAN
D LOYALTY
IMAG INTENTI
E ONS

BRAND IMAGE 1

LOYALTY 0.699
INTENTIONS 95 1

INTERPRETATION: There is significant correlation between Brand Image and Brand

Loyalty.

H2: Brand image will not be positively associated with consumer perception.

H3: Consumer perception will not be positively associated with Brand loyalty.
H4: Gender will not be positively associated with loyalty intentions.

H5: Gender will not be positively associated with consumer perception.

H6: Gender will not be positively associated with brand image.

H7: There will not be positive relationship between brand image, consumer
perception and loyalty intentions.

QUESTIONAIRE

PATANJALI Brand Image and Loyalty Intentions

Extre 2 3 4 5 6 Extrem
mely ely
likely unlikel
(1) y
 (7)
I intend to buy products
o o o o o
of this brand in the near o o
future
I intend to buy other
o o o o o
products of this o o
Brand
I consider this brand my
first choice in its o o o o o
o o
different product
categories
I say positive things
o o o o o
about this brand to other o o
people
I have or would
recommend this
o o o o o
brand to someone who o o
seeks my
advice
I dont bother looking at
alternative brands; this o o o o o
o o
brand is good enough for
me
If this brand were to
raise their prices, I would o o o o o
o o
continue to buy their
products
If this brand was NOT
o o o o o
available, itwould make o o
huge difference to me

Q1. How loyal are you to brand Patanjali? RATE IT on a scale of 7 from extremely likely to
extremely unlikely.
Q2. How much you agree or disagree about the brand Patanjali?

Extre Extrem
mely ely
likely unlikel
(1) y
2 3 4 5 6 (7)
High quality o o o o o
o o

Traditional and herbal o o o o o

o o

Cheaper products o o o o o
o o

For older people o o o o o

o o

For younger people o o o o o

o o

A modern innovative o o o o o
o o
brand
Buy its products being an
o o o o o
Indian o o
herbal brand
Buy its products NOT
because of o o o o o
o o
Spiritualism associated
with the brand

Please tell about yourself

Q3. Gender

Male

Female
Q4. How old are you?

Below 18

19-25

26-35

36-55

55 and above

Q5. Marital status

Married

Widowed

Divorced

Separated

Unmarried

Q6. Education level

Primary

Secondary

Graduate

Post-graduate
 Doctorate

Q7. Profession

Retired

Civil servant

Private sector

Self employed

Student