The Role of Brand Trust in Customer

Retention through Product Quality

By

Iniobong Ebong

October, 2014

The Role of Brand Trust in Customer Retention

through Product Quality

By

Iniobong Ebong

A dissertation submitted to the School of Media

and Communication, Pan-Atlantic University

in partial fulfilment of the requirements for

the award of the degree of Masters of Scienceii

of Pan-Atlantic University

October, 2014

ABSTRACT

In recent times , brand trust has gained increased value

among both goods and service providing companies. Marketing

literature has continually shown that trust is a crucial

factor because it has a continuous exchange relationship.

Therefore, the purpose of this thesis is to investigate the

degree to which brand trust and its antecedents can influence

customer retention, which is a component of brand loyalty. A

survey was carried out, where questionnaires were distributed

to 150 respondents within Eti-Osa, in Lagos State and one-on-

one interview was conducted with four personnel in the

advertising sector. This thesis adopted a competitive

advantage approach among commonly used dairy products in the

iii

FMCG market. This was done to avoid complex results seeing

that FMCG products vary to a large extent. Findings from this

study imply that there are other factors besides product

quality that can influence a customers’ loyalty.

Keywords: Brand trust, Customer retention, Customer

satisfaction, Product quality, FMCGs.

TABLE OF CONTENT

THE ROLE OF BRAND TRUST IN CUSTOMER RETENTION THROUGH PRODUCT

QUALITY......................................................i

iv

THE ROLE OF BRAND TRUST IN CUSTOMER RETENTION THROUGH PRODUCT

QUALITY.....................................................ii

ABSTRACT...................................................iii

ACKNOWLEDGEMENTS............................................iv

DEDICATION...................................................v

DECLARATION.................................................vi

CERTIFICATION..............................................vii

TABLE OF CONTENT..........................................viii

LIST OF FIGURES.............................................xi

LIST OF TABLES.............................................xii

CHAPTER ONE..................................................1

1.1 INTRODUCTION...........................................1

1.2 BACKGROUND OF STUDY....................................1

1.3 STATEMENT OF PROBLEM...................................3

1.4 OBJECTIVES OF STUDY....................................3

1.5 RESEARCH QUESTIONS.....................................4

1.6 SIGNIFICANCE OF STUDY..................................4

v

1.7 OUTLINE OF THESIS......................................5

1.8 DEFINITION OF KEY TERMS................................6

CHAPTER TWO..................................................7

2.0 LITERATURE REVIEW......................................7

2.1 INTRODUCTION...........................................7

2.2 THEORETICAL FOUNDATION.................................7

2.2.1 THE CONCEPT OF BRAND TRUST...........................7

2.2.2 ANTECEDENTS OF BRAND TRUST..........................10

2.3 A REVIEW OF BRAND TRUST MODELS AND THEIR RELATIONSHIP

WITH OTHER MARKETING VARIABLES............................13

2.3.1FACTORS IN THE CONSUMER-BRAND RELATIONSHIP MODEL (CBRM)

..........................................................14

2.3.2 FACTORS IN THE KELLER BRAND EQUITY MODEL (CBBE).....18

2.3.3 FACTORS IN THE CONVERSION MODEL BY RICHARDS (1996) 21

2.3.4 STRENGTHS & WEAKNESSES INHERENT IN THE MODELS.......23

2.4 THE CONCEPTUAL FRAMEWORK..............................23

2.4.1 THE COMMITMENT–TRUST THEORY.........................24

vi

2.4.2 CONCEPTUALISATION OF RQ1:...........................29

2.4.3 CONCEPTUALISATION OF RQ2:...........................30

CHAPTER THREE...............................................31

RESEARCH METHODOLOGY........................................31

3.1 RESEARCH METHOD.......................................31

3.2 SAMPLING TECHNIQUE....................................32

3.3 POPULATION OF STUDY...................................32

3.4 SAMPLE SIZE...........................................32

3.5 DATA COLLECTION METHODS...............................32

3.6 RESEARCH INSTRUMENTS..................................33

CHAPTER FOUR................................................34

4.1 INTERPRETATION AND PRESENTATION OF DATA...............34

4.2 PRESENTATION OF DATA (Interviews).....................34

ANALYSIS:.................................................37

4.3 PRESENTATION OF DATA (Questionnaires).................39

4.3.1 FREQUENCY TABLES....................................39

4.4 DISCUSSION OF FINDINGS................................49

vii

CHAPTER FIVE................................................53

CONCLUSION AND RECOMMENDATION.............................53

5.1INTRODUCTION...........................................53

5.2 SUMMARY OF FINDINGS...................................53

5.3 Key findings from literature review..................53

5.4 Key findings from field................................54

5.5 RECOMMENDATIONS.......................................55

5.6 FINAL CONCLUSIONS.....................................57

REFERENCES..................................................59

APPENDIX 1..................................................63

APPENDIX 2..................................................65

APPENDIX 3..................................................67

APPENDIX 4..................................................69

APPENDIX 5..................................................71

viii

LIST OF FIGURES

Figure 1 Source: Morgan and Hunt (1994).............................14Figure 2: Source: Aaker (1991)........................................17Figure 3: Source: Kevin Lane Keller (1999)..............................18Figure 4: Graphic presentation of the conceptualisation of the RQs...............30Figure 5; Presentation of findings from interview...........................34Figure 6: Factors influencing customer retention:...........................49

LIST OF TABLES

Table 1...........................................................39Table 2...........................................................39Table 3...........................................................40Table 4...........................................................41Table 5...........................................................41Table 6...........................................................42Table 7...........................................................43Table 8...........................................................43Table 9...........................................................44Table 10..........................................................45Table 11..........................................................45Table 12..........................................................46Table 13..........................................................46Table 14..........................................................47

ix

Table 15..........................................................48

x

CHAPTER ONE

1.1 INTRODUCTION

This chapter gives an insight to the thesis, where the concept

of brand trust and other mediating variables will be

introduced and explained briefly. Furthermore, the statement

of problem discussion will be presented, which will in turn

lead to the study’s purpose and research questions. The thesis

outline will be presented and key terms used in this study

will be defined.

1.2 BACKGROUND OF STUDY

The central idea of relationship marketing consists in

developing and maintaining lasting relationships with

customers in order to strengthen a company’s competitive edge.

The American marketing association’s description of marketing

states, “Marketing is an organizational function and a set of processes for

creating, communicating and delivering value to customers and for managing

customer relationships in ways that benefit the organization and its stakeholders”

(AMA).

According to Armstrong and Kotler (2008) it is important for

companies to implement the right marketing strategies in order

to succeed. Traditionally, companies have focused their

marketing strategies around attracting new customers and

increasing their market share. Retaining customers in the FMCG

industry is characterized by high competition, as their sole

aim is to meet the customers’ needs and expectations.

Therefore, building a strong and dependable relationship with

customers takes precedence.

The academic literature today recognizes the existence of a

shift in firms’ orientation to their customers, from just

being transactional to a more relational approach (Eriksson &

Vaghult, 2000; Morgan & Hunt, 1994). The concept of

relationship marketing is defined as the attracting, the

maintaining and the enhancing of customer relationships

(Berry, 1983). It determines the output, quality and customer

satisfaction because customers’ needs are important when

developing products. Morgan and Hunt (1994) state that “trust

is an important factor in the development of marketing

relationships and it exists when one party has confidence in

an exchange of the partners’ reliability and integrity”. This

2

level of trust eliminates certain factors like price

consciousness and brand switching.

When a customer purchases a product to fulfil a need, he has

certain expectations from the brand. When those perceived

values are met, the customer develops trust and satisfaction

towards the brand. Customer satisfaction is a measure of how

products and services supplied by a company meets or surpasses

customer expectations, Farris et al.(2010). Studies have shown

that it takes a longer time to win over new customers than it

is to retain old ones. Companies have realized this and there

is an effort to improve on product quality in other to satisfy

their customers, rather than spend more money winning over new

ones.

Perception of high product quality helps create a reputation

around a brand. Customers are drawn to a particular brand

because of the way it is perceived. Perception is a

subconscious element fuelled by visuals (adverts, promos,

packaging etc), word of mouth and satisfaction from product

delivery. Perception of high quality or that which is above

expectations can create customer retention (Economic

3

glossary). Studies have also shown that, the way a customer

perceives a brand has a strong role to play in determining the

customers’ commitment to the brand. Companies that invest to

give their customers the best in quality whether as a product

or service always have customer retention as a pay-off.

This work will be looking at how consumers’ trust in a brand

can be built through product quality and other variables (that

will be determined through research) to achieve customer

retention.

1.3 STATEMENT OF PROBLEM

Eriksson and Vaghult (2000) state that in order for firms to

benefit from customer relationships, they need to understand

the mechanisms behind it by studying already retained

customers. There are several factors that influence the

customers’ decision to purchase and repurchase a product and

remain loyal to it. Scholars and experts have at different

points analysed the factors that influence brand trust and

they believe that a major and recurrent factor is that,

product quality or perceived product quality is the dominant

reason why a customer would remain loyal to a brand. 4

Consequently, if one wants to study the success and failure

determinants of any relationship, the study of both partners’

behaviour is necessary. One factor to note is that, in

building a successful exchange relationship with customers,

there is a need to understand customer behaviour and to focus

on the ever changing needs of the customer. This is due to the

fact that, the market is highly competitive and customers may

switch, either temporarily or permanently to other brands.

Companies are employing customer retention strategies as a

tool to securing customer loyalty over time.

A review of brand trust models also emphasizes the gap that is

constructed solely to explain the degree to which brand trust

influences customer retention. This is because the models

available highlight the chain of effect, from customer

expectations to fulfilment stage.

However, there is little empirical research modelling on the

factors and determinants of brand trust relationships in the

Nigerian market which makes contextualizing this work a bit

challenging.

5

1.4 OBJECTIVES OF STUDY

To explore the concept of brand trust and its mediating

role in customer retention.

To explore how the factor of pricing mediates between the

relationship of brand trust and customer retention.

To explore the influence of product quality in customer

retention.

To explore and discover other variables that influence

customer retention.

We intend to realize these objectives from the research

this study will carry out, while keeping the focus on the

customer’s perspective.

1.5 RESEARCH QUESTIONS

The overall purpose of this study is to gain better

understanding on how customer retention can be achieved

through brand trust and other mediating variables over time.

To reach the outlined purpose above, the following research

questions will be addressed;

6

RQ1: How does pricing moderate the relationship between brand trust and

customer retention?

RQ2: How can the factors of brand trust, as perceived by the customer,

influence customer retention?

1.6 SIGNIFICANCE OF STUDY

The underlined purpose of this work is to accentuate our

understanding of the relationship between customers and their

brand. It is expected to develop better understanding of the

mediating role of brand trust in relationship marketing, the

role of product quality as a determinant, the influence of

pricing, the effect of customer satisfaction and other

consumer-brand marketing variables while keeping the main

focus on customer retention in the FMCG market.

1.7 OUTLINE OF THESIS

This thesis consists of five chapters, which includes the

introduction, the literature review, the research methodology,

data presentation and analysis and finally, the conclusion and

implication of findings.

7

The first chapter serves as the background to the study in

which the researcher will attempt to create an understanding

of the variables involved in the study and reasons why the

author embarked on this study. The second chapter is broken

down into two parts. Part A of the literature review will

serve as the theoretical foundation of the study while Part B

will serve as the conceptual and theoretical framework.

The literature review presents the relevant literature around

the concept of brand trust and its antecedents. Review of the

relevant models regarding the factors that influence brand

trust and their relationship with other variables. This is

followed by an analysis of the strengths and weaknesses

inherent in these models.

Part B of the literature review, the conceptual and

theoretical framework, here, the theory relevant to the study

is discussed which is followed by discussing the

conceptualization of the research questions.

In the third chapter, the research methods used to conduct

this study is presented and explained.

8

The fourth chapter, the data collection is presented in two

parts; Part A; data analyzed from the semi-structured

interviews and Part B; presentation and discussion of data

collected from the field, which is presented graphically. The

collated data and findings from the field are used in

answering the research questions.

Finally, chapter five, the conclusion and implications of the

study, the overall conclusions are drawn, which will lead to

recommendations for future research around this thesis topic.

1.8 DEFINITION OF KEY TERMS

Brand trust

Brand trust is a factor that makes an average user believe

that the brand will perform its

stated purpose whatsoever.

Customer satisfaction;

Anton (1996) defined customer satisfaction as a state of

mind in which the customer’s needs, wants, and expectations

throughout the product or service life have been met or

exceeded, resulting in future repurchase and loyalty.

9

Product quality

The concept of product quality can be critically defined

from two different perspectives; objective quality and the

perceived quality (Bruno et al., 2005). However, this study

focuses on perceived quality. Perceived quality is a result

of consumers’ subjective judgment on a product, Zeithaml,

(1988) Dodds et al. (1990) Aaker, (1991).

Customer retention

This is a component of brand loyalty which indicates a

customer’s propensity (willingness) to stay with their service

providers.

FMCG

Fast moving consumer goods – An industry that deals with

consumables from cereals, dairy products to beverages and

much more.

10

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 INTRODUCTION

This work examines the role of brand trust in customer

retention (a component of brand loyalty) using product quality

as a determining factor in the FMCG market. This chapter

builds on the previous chapter by providing a theoretical and

conceptual framework for the development of this thesis.

Specifically, this chapter will provide a theoretical analysis

on the concept of brand trust as well as a conceptual

understanding of the connection between brand trust and

customer retention. In order to achieve these objectives, this

work will be divided into three sections and this section

constitutes the first. The chapter continues in the second

section with theoretical foundation. In the third section, the

author discusses the conceptual framework and then the chapter

ends with a summary of the issues discussed.

11

2.2 THEORETICAL FOUNDATION

This section of the literature review examines the concept of

brand trust, the antecedents of brand trust and the models

that connect brand trust to customer retention.

It will also make an analysis of the strengths and weaknesses

that will be revealed in the literature. Given this focus, a

gap analysis will be analysed based on the weaknesses and

research questions relating to this gap will also evolve.

2.2.1 THE CONCEPT OF BRAND TRUST

Chaudhuri and Holbrook (2001) define brand trust as consumer’s

‘willingness to rely on the ability of the brand to perform

its stated function’. Brand trust is defined by authors as

‘the confident expectations of the brands’ reliability and

intentions, in situations entailing risk to the consumer

(Delgado-Ballester et al, 2003). The factor of trust is also

viewed by Morgan & Hunt (1994) who argue that brand trust has

a positive relation to the extent through which the firms

share similar values. Trust in itself is an intangible element

but trust can also be tangible because it can be quantified,

12

measured and we will be using brand trust models to illustrate

this point. Customers believe that a brand’s positive

intention towards their welfare and expectations or interest

is essential for it to be perceived as trustworthy. A customer

either trust or does not trust a brand. Trust can be gained or

lost. Once lost it is difficult to gain back. Brand trust is

important because it is earned “currency” because when that

trust has been built with a customer, the issue of switching

to other brands is minimized.

The brand trust construct is conceptualized as a multi-

dimensional and a uni-dimensional phenomenon; this means that,

it can be measured as an independent factor and can also co-

exist with its various dimensions. It is undoubtedly one of

the strongest tools in building a relationship with

customers (Urban et al, 1996) and a company’s most dominant

marketing tool (Berry,1995). The concept of brand trust is

based on brand-consumer relationship, which is seen as a

substitute for human contact with the company and its

consumers, Sheth & Parvatyar, (1995). A consumers’ trust in a

brand contributes to the reduction of uncertainty in consumer

13

purchases (Garbrino & Mark 1999; Gommans et al, 2001) and its

belief to increase customers (Fullerton, 2001; Narayandas,

1998). Trust is the single most powerful relationship based

marketing tool (Berry, 1998) which is based on the perception

that, the brand is reliable and responsible for the interests

and welfare of its customers (Kambiz H. Hanzaee et al, 2012).

In marketing literature, the term brand trust as previously

mentioned, is defined as the willingness of consumers to rely

on the ability of a brand to perform its stated functions, as

the confident expectations of the brands’ reliability and

intentions in situations entailing risk to the consumer

(Delgado & Ballester, 2004) or simply described in terms of

reliability and dependability (Dawar & Madan, 2000). These

meanings suggest an individual’s conscious inclination to

trust on a consumer-brand relationship. As reported in

relevant literature, consumers rely on trusted brands to

economize time and other search cost. Moreover, it is trust

that allows a personal relationship with the brand (Hess &

Story, 2005). Brand trust is a significant factor in customer

14

retention because trust creates an exchange relationship that

is of high value.

In recent times, marketing scholars found out that trust and

loyalty are two important constructs that affect customer

performance behaviour (Bettencourt, 1997; Gabrino & Mark

1999). Therefore, it is expected that a brand’s reliability

and integrity ensures consumer’s willingness to keep the

relationship and encourage future purchases.

Drawing on the conceptualization of trust, many researchers

differentiate cognitive and affective trust. Cognitive trust

is based on “good rational reasons why the object of trust

merits trust” (Lewis & Weigert, 1985), while affective trust

is based on emotional reasons. Therefore, it is based on

evaluating the competence, reliability and predictability of

the trusted object and reflects the economic understanding of

trust as a rational choice, Johnson and Grayson, (2003).

Conceptually, from this literature, the antecedents of trust

are a mix of affective and cognitive trust.

According to Lau & Lee (1999), when one party trusts another

party that eventually engenders positive behavioural15

intentions towards the second party, Anderson and Narus (1992)

propose that it can be safely deduced that, one party believes

the actions of the other party will bring positive outcomes to

the first party, Doney and Cannon (1997) added that the

concerned party must also have the ability to continue to meet

its obligations towards its customers within the cost benefits

relationship, so the customer not only foresees the positive

outcomes but also believes that these positive outcomes will

continue in the future.

2.2.2 ANTECEDENTS OF BRAND TRUST

Given the dimensionalities of brand trust, we will be

discussing the variables that make up the brand trust

construct.

Product Quality

Product quality is fast becoming an important competitive

issue. Market researchers over time have looked at quality as

a multi-dimensional concept that cannot be easily measured or

defined. Quality itself has two constructs; Objective quality

and Perceived quality. Monroe and Krishman (1985), refer to

objective quality as the actual technical, measurable and16

verifiable nature of products and service. These include

features, product performances and durability. Kan (2002)

reflects in his work that in objective quality, consumers will

use their experience and knowledge to evaluate overall product

benefits, functionality, durability, technology and

reliability of a product.

While perceived quality is the consumer’s judgment about the

product`s overall excellence or superiority (Zeithaml, 1988).

Perceived quality is encompassing, as it includes the features

and characteristics of a product or service and its ability to

meet the need or satisfy the consumer’s expectations.

Perceived quality is defined on the basis of users’

recognition while objective quality is based on the

orientation of product manufacturing (Garvin, 1983). In other

words, perceived quality is subjective and based on the

consumers’ perception. It is a comparative concept that will

include factors like previous experience, customer service

experience, purchase intention and purchase risk etc. More so,

from the consumers’ perspective, quality means a product

should have these under mentioned characteristics:

17

Right quality (as perceived by the customer).♦

Must be safe, reliable, and long lasting.♦

Must be economical for the customer’s use.♦

Price must be right.♦

There should be effective communication (adverts, promotions♦etc.).

In summary, we can say that perceived quality is a consumers’

subjective judgment on product quality and the evaluation of

the consumer is based on feelings and previous experiences.

This has a direct effect on purchase intentions and level of

satisfaction. Customers perceive a product to be high or low

based on how their expectations have been met.

CUSTOMER SATISFACTION

Customer satisfaction is defined as the customer’s fulfilment

response. It is the judgment that a product or service feature

or the product or service itself, providing (or is providing)

a pleasurable level of consumption- related fulfilment,

including levels of under – or over fulfilment (Oliver, 1997).

18

According to Boselie et al. (2002), satisfaction is a

positive, affective state resulting from the appraisal of all

aspects of a party’s working relationship with another.

Giese & Cote (2002) figured from the various literatures that,

all the definitions of customer satisfaction share common

elements. They summarized it by saying that, there are three

common components in customer satisfaction;

Customer satisfaction is a response to an evaluation

process (emotional and cognitive).

The response pertains to a particular focus

(expectations, product, consumption experience etc.).

The response that occurs at a particular time (after

consumption, after choice based on accumulated

experiences.

Basically, customer satisfaction is an attitude which is

reflected on the consumers’ purchase behaviour. Therefore,

consumers’/customers’ expectations will be based on their

perception over time. These predictions could be immediate as

the customer may express a level of certainty knowing that

this product will meet his demands. On the other hand, another19

category of customers will use words like – could, maybe which

shows a high level of expectation. This could be due to their

evaluation or assessment of the product and these evaluations

are predicated on several factors like product quality, price

consciousness, brand awareness and accessibility.

Conclusively, customers have varying expectations of a

product. It is the extent to which these expectations are met

that determines the customer’s assessment or judgment of the

product. Different levels of satisfaction could also portray a

customer’s feelings towards the product. If the customers’

expectations were met, a form of approval would be word of mouth

to draw in more customers and the intent to repurchase

(inertia). Disapproval will turn away customer’s attention

from the product. Patterson, Johnson and Spreng (1997) argue

that satisfied customers are perceived as indispensable means

of creating sustainable advantages in competitive

environments. The authors further refers to Anderson &

Sullivan (1993) who stated the following; “Investing in customer

satisfaction is like taking out an insurance policy. If some hardship temporarily

befalls the firm, customers will be more likely to remain loyal”.

20

BRAND REPUTATION

Brand reputation is about creating a positive image in the

minds of the customers - an image that will positively

influence the customer’s perception and purchase decision.

Brand reputation is said to be a community thing, in other

words, it revolves within a cluster. It plays an increasing

role in keeping organizations honest and forcing them to take

definite actions (Huleatt S., 2007).

BRAND AWARENESS

Brand awareness is the extent to which a brand is recognized

or recalled by potential customers and is correctly associated

with a particular product. Expressed usually as a percentage

of the target market, brand awareness is the primary goal of

advertising in the early months or years of the product’s

introduction into the market.

PERCEPTION

Brand perception is a conscious or unconscious state of

understanding of one’s surroundings that exist within the mind

and formed through sensory signals stimulated by current

21

conditions, expectations and past memories. Perceived

perception is one of the factors that influence the customer’

purchase decision.

2.3 A REVIEW OF BRAND TRUST MODELS AND THEIR RELATIONSHIP WITH

OTHER MARKETING VARIABLES

In searching for the key factors that lead to strong lasting

relationships, attention will be focused on identifying the

key relational constructs and exploring how these constructs

interact (Dwyer et al. 1987; Morgan & Hunt, 1994; Wilson,

1995).There are a few models that explain the concept of brand

trust. The brand trust construct is considered as a brand-

consumer relationship, therefore these models and theories

will be viewed as such. Three models have been selected, The

Consumer-brand relationship model by Morgan & Hunt (1994), Keller’s

brand equity model by Kevin Lane Keller (1999) and the Conversion

model by Richards (1996). These models explain the chain of

effect in the customer’s purchase behaviour and will

illuminate other factors relevant in building the

relationship.

22

2.3.1 FACTORS IN THE CONSUMER-BRAND RELATIONSHIP MODEL (CBRM)

Figure 1 Source: Morgan and Hunt (1994)

The consumer-brand relationship model by Morgan and Hunt,

(1994) is a relationship-commitment model which reflects that,

if a consumer trusts a brand, they will commit to a

relationship with it and it can be characterized by the

willingness to sustain a long-term relationship despite any

incidents, provided they are temporary. Taking a cue from the

literature review, one of the definitions of brand trust

states “that brand trust is a feeling of security held by the consumer in his/her

23

interaction with the brand which is based on the perceptions that the brand is

reliable and responsible for the interest and welfare of the consumer”. De

Chernatony and Riley (1998) described the brand as a

multidimensional construct, which they presented in twelve

brand theme definitions as: value system, logo, risk reducer,

image, personality, legal instrument, relationship, company,

adding value, identity and shorthand. The idea behind these

definitions is to humanize these characteristics which will

create a visible relationship between the brand and the

consumer.

Major constructs in the consumer-brand

relationship

Brand loyalty, brand satisfaction, brand trust and brand

personality:

Brand loyalty, brand satisfaction, brand trust and brand

personality are branding concepts which have been investigated

in association to consumer-brand relationship. The most

influential works are from Oliver (1980, 1999), who proposed

the customer satisfaction/dissatisfaction paradigm andanalysed24

the relationship between brand satisfaction and brand loyalty.

The analysis of the causal relationship between satisfaction

and loyalty concludes that satisfaction is a necessary step in

loyalty formation. Chaudhuri and Holbrook (2001) examine two

aspects of brand loyalty; purchase loyalty and attitudinal

loyalty, as linking variables in the chain of effects from

brand trust and brand affect to brand performance. However,

three main streams of the research of loyalty may be

distinguished: behavioral loyalty, attitudinal loyalty and

composite loyalty.

In consumer research, the expression ‘customer loyalty’ is

often measured by indicators

like the ‘intention to continue buying the same product’,

‘intention to buy more of the same product’ and ‘repeat

purchase’ or ‘willingness to recommend the product to others’

(attitudinal indicator, reflecting product advocacy) Rauyruen

& Miller, 2007.Caprara et al. (2001) examine mass-market

brands to determine to what extent in a consumer setting is

human personality and brand personality related.

Brand commitment

25

Research on relationship commitment highlights two aspects;

affective commitment and calculative commitment. Calculative

commitment (Fullerton, 2003) captures the more rational,

economic-based dependence on product benefits. Affective

commitment is a more emotional factor, related to the degree

to which a customer identifies and is personally involved with

a brand which results in trust and commitment (Morgan & Hunt,

1994). However, when consumers like the brand, positive

information is relevant and it spreads around. A consumer who

has an emotional connection with a brand is more willing to be

committed to that brand and more so, willing to sacrifice for

the brand beyond reason.

The diagram below is adapted from Aaker (1991), a consumer-

brand relationship model which highlights the attitude of the

consumer and level of commitment which is rated as the

outcome. Aaker’s intention is to describe the consumer’s

attitude and how these intentions are translated into actions.

These actions reflect the consumer’s level of commitment as

either positive or negative. Aaker (1991), states that trust

26

is the foundation on which these other factors are built,

which is the primary element in building strong brands.

Figure 2: Source: Aaker (1991)

This diagram illustrates that trust has a direct positive

impact on commitment; trust diminishes the perceived risk and

the vulnerability in a consumer-brand relationship and

therefore leads to higher commitment (Ganesan, 1994). In this

case, trust is seen as an essential antecedent of commitment.

If a brand is not perceived to be benevolent, honest or

competent enough to show useful behaviourregarding the

relationship in question, the customer cannot rely on this

27

brand and thus will show no commitment towards the

relationship (Morgan & Hunt, 1994).

There is only one exception though, in a case where the brand

has a high amount of power over the customer, which is usually

the case when a brand is in a certain monopoly position and is

very difficult or impossible to replace. In this case, even

though the brand may not be benevolent, honest or competent

with regards to the relationship, the customer will commit

himself or herself to the supplier out of dependency (Ganesan

1994, Kumar, Scheer & Steenkamp, 1995). Conclusively, this

adaptation from Aaker (1991) significantly reflects that, the

more a customer trust a brand, the higher the customer’s

commitment to the relationship with this brand will be.

2.3.2 FACTORS IN THE KELLER BRAND EQUITY MODEL (CBBE)

28

Figure 3: Source: Kevin Lane Keller (1999)

Keller’s brand equity model is also called the Customer brand

based equity (CBBE) developed by Kevin Lane Keller. The

concept behind this model is building a strong brand,

understanding how your customers’ think and feel about the

products. Building the right experiences around the brand is

pertinent to influence the customers’ positive thoughts,

feelings, beliefs and opinion. When there is strong brand

equity, customers will most likely buy more and recommend the

29

brand to other customers and the brand is less likely to lose

them to competition.

This model depicts the decision-making process of customers,

while emphasizing on their unique selling point with which the

customer can identify with. This model is set in the realm of

brand added value, that is, the added value a brand offers

customers, which Keller (1999) defined as “the differential

effect that consumer’s brand knowledge has on their response

to the marketing of that brand”. This model describes the six

dimensions of brand equity; brand salience, brand performance,

brand imagery, consumer judgements, consumer feelings and

brand resonance. The highest level of brand equity is realized

when the top of the pyramid is achieved. In Keller’s view,

resonance is attained when the consumer has a high level of awareness of

and familiarity with the brand and holds some strong, favourable and unique brand

associations in memory.

Keller’s model emphasizes four cardinal points:

Brand salience: (Brand identity- who are you?) This is the first step

in the development of a strong brand which involves describing

its identity and revolves around the question; who am I?.30

Getting customers to identify with the brand is the first step

in negotiating the hurdle. A clear link between the brand and

a specific product class has to be established in the mind of

the consumer. This will enable the consumer place the brand in

context when confronted with its advertising. It also provides

a foundation for the building of brand awareness and brand

knowledge. Brand salience refers to how familiar consumers are

with a brand and their level of familiarity, is it a top-of the-mind

brand? Can it be recalled spontaneously?. A high level of salience means

that a customer has knowledge, of the depth and width of the

brand. Depth refers to the ease with which a brand can be

activated in the customer’s mind, while width refers to the

extent to which this happens when the consumer is making a

purchase decision.

Brand performance: This step basically answers the question of

what am I?.This question can be answered using intrinsic

(tangible) and extrinsic (intangible) characteristics of the

brand. Intrinsic characteristics refer to the degree of

performance of a product or service, as perceived by the

31

consumer. Extrinsic characteristics refer to how the consumer

thinks about a brand. Boosting overall brand equity requires

an active focus on both brand performance and brand imagery.

These two dimensions bring about certain associations that are

strong, positive and unique. These dimensions are considered

important indicators for possible brand loyalty.

Brand judgements and brand feelings: After realizing strong,

positive and unique brand association and moving up the

pyramid. This third step deals with the way a consumer thinks

and feels about the brand. The brand is evaluated and judged

at this stage by consumers. There are two important dimensions

at this stage: rational (brand judgements) and emotional

(brand feelings). Brand judgement refers to the consumer’s

opinion of a brand and how they evaluate the brand. The

consumer’s opinion is formed rationally and based on quality,

reliability and superiority. Brand feelings are the emotional

reactions by consumers to brands and their marketing efforts.

The type of feelings a brand evokes in a consumer, can be

equated as positive or negative. These feelings affect brand

observation during actual use of the product.

32

Brand resonance: When all the conditions of the three stages are

fulfilled. This stage answers the question of whether the

consumer is willing to enter into a long-term relationship

with the brand. If positive, then brand loyalty will have been

achieved. At this point, the consumer identifies with the

values of the brand to a considerable degree and the consumer

is willing to invest in a relationship. This is expressed as

repeat purchase and even in paying a possible price premium.

Brand resonance is the ultimate relationship between a brand

and the consumer, it can be measured using these four factors:

customer loyalty, emotional bond and active brand involvement.

2.3.3 FACTORS IN THE CONVERSION MODEL BY RICHARDS (1996)

The conversion model by Richards (1996) is used as a marketing

tool to identify commitment to different brands of goods or

services thereby optimizing customer retention. The model

argues that there is a difference between committed and

uncommitted customers.The model is based on the fact that it

is not enough to satisfy customers as satisfaction alone does

not predict a customer’s behavior. Richards, argues that,

satisfied customers will leave, dissatisfied customers will33

remain, so rather than focus on customer satisfaction, firms

should focus on customer commitment. Furthermore, the author

agrees that customer satisfaction helps to make the customers

committed; these factors are all affected by trust, which in

turn affects the relationship commitment of the customer.

However, the building of committed customers involves more

than merely satisfying them, Richards (1996) identifies three

factors as drivers of commitment.

Level of involvement : The first factor is the level of

involvement in the brand. The more people are involved in a

given choice, the more carefully they will choose and once

they have made their choices, they remain loyal to it. But if

a customer is unsatisfied and still involved with the brand,

his primary strategy will be to try and repair the

relationship rather than seeking other alternatives. If the

customers are both dissatisfied and uninvolved, they would not

be obliged about fixing the relationship but simply switch

brands. Customer involvement predicated on confidence(trust)

creates a willingness to tolerate dissatisfaction (Richards,

1996). The more a customer is involved, the more confidence he

34

has in the brand and other outcomes, Becket et al. (2000).

Becket argues that the consumer’s involvement in the buyer-

seller relationship integrates other subsets like customer

participation and level of communication.

Attraction of alternatives; This second factor is the attraction of

alternatives. One of the arguements of Richards (1996) is

that the more the alternatives attract, the more dissatisfied

customers will switch service provider. If the alternatives

available are not considered as being ‘good’, then conversion

may be delayed inspite of the dissatisfaction. On the other

hand, if the alternative attracts, then customers may converse

(switch) even though they are highly satisfied. Sharma and

Patterson (2000) state that when customers are not aware of

the available substitutes or competing alternatives that may

continue in a service relationship even though it is less

satisfactory. Patterson and Smith (2000) conclude in their

study that when customers are aware of or perceive that other

suppliers are offering a differentiated service in terms of

price, quality, service, they tend to be less commited to one

provider. The study also shows that, if the customer has

35

developed a relationship with a supplier based on his level of

contact and involvement, then the commitment to the

relationship may terminate the switching.

The extent of ambivalence; The third factor is the extent of

ambivalence, which means the level of insecurity caused by the

range of choices a customer has to be committed to. Richards

(1996) argues that customers ought to compare and review the

advantages and disadvantages of each alternative before being

committed to the brand. According to the author, being in a

state of ambivalence is when the customers are in a state,

where they will either leave or stay. Ambivalence makes the

customers less committed, although conversion is delayed as

either choices offer obvious advantages. (Richards, 1996).

Therefore, a customer’s commitment level can be recorded as an

indicator to changes in behaviour.

2.3.4 STRENGTHS & WEAKNESSES INHERENT IN THE MODELS

Strengths:

36

Firstly, these models clearly show that there are no

shortcuts in building a brand. Gaining a customer’s trust and

commitment requires an understanding of the customer’s

intentional behaviour. One factor inherent in these models is

that, trust is pivotal for effective relationship management.

The models are all customer-oriented which means that the

first consideration in relationship management is to the

customer and how to meet their expectations and fulfill their

needs. The models reflect the customer relationship value

which can only be developed when a customer has “confidence in

an exchange patner’s reliability and intergrity” relationship.

The models try to humanize the brand characteristics to enable

easy identification of needs and level of satisfaction by the

consumer.

Weakness:

The only weakness identified is that the authors did not

explore the feasibility of measuring perception.

2.4 THE CONCEPTUAL FRAMEWORK

A conceptual framework also known as a theoretical framework

is defined by Miles & Hubberman (1994, p.18) as “something that

37

explains either graphically or in narrative form, the main things to be studied – the

key factors, constructs or variables and the presumed relationships among them’.

The conceptual framework shows the connection between the

research questions stated in the Chapter 1and the

conceptualized models and theory in Chapter 2. The research

questions stated in this thesis focuses on the factors

influencing brand trust. Based on the findings, each research

question will be affected by the other as there is a

relationship connection.

2.4.1 THE COMMITMENT–TRUST THEORY

Morgan & Hunt (1994) introduced one of the most cited theories

in relationship marketing. They argued that trust and

relationship commitment are the key mediators in the exchange

between participants, which essentially leads to building a

relational co-operation. These two variables make up the

foundation for an effective relationship marketing and that is

because relationships are built on mutual commitment. The

effectiveness of commitment and trust in relationship

marketing is central to achieving success because it can

38

distinguish whatever is productive and effective from

unproductive and ineffective.

Trust

The growth of various forms of relationship has put trust in

centre stage, mainly because of the belief that trust is

essential in establishing co-operative relationships

(McQuinston, 1997; Handfield & Bechtel, 2002). All definitions

of trust suggest that trust involves one party having

confidence in or relying on another party to fulfil its

obligation (Anderson & Narus, 1990). Trust is a complex

construct with multiple meanings and dimensions. Delimiting

the scope of trust is difficult and can be frustrating as the

construct essentially is linked with other constructs such as

opportunism, uncertainty and power. Trust involves emotions,

these emotions could be personal, cognitive and interpersonal,

this goes on to show us that trust is a driver of relationship

commitment. Trust has been conceptualised in many ways and

several studies have conceptualised trust as a unidimentional

construct (Anderson & Weitz,1989; Morgan & Hunt, 1994). Other

studies begin by proposing trust as a dual-dimensional but all

39

these studies practically find that trust emerges as a

unidimensional construct (Geyskens et al., 1996; Doney &

Cannon,1997). Other studies have a multi-dimensional approach

to studying trust (Rodgriguez & Wilson,1995; Johnson &

Grayson, 2005).

Performance/ Cognitive trust

Performance/cognitive trust is the confidence, willingness or

intention of a party to rely on a partner’s competence,

reliability/credibility and promptness in meeting their

obligations (Anderson & Weitz, 1989; Moorman et al., 1992).

Trust emerges from a party’s predictions regarding his/her

partner’s future actions/behaviours to fulfil promises (Zaheer

et al., 1998). These predictions are based on accumulative

knowledge gained through parties’ interaction(Harris & Dibben,

1999) or based on a party’s reputation in other relationships

( Johnson & Grayson, 2005). Because trust is knowledge driven,

the lack or incomplete knowledge creates the need to trust.

The amount of knowledge necessary to trust is somewhere

between complete knowledge and total ignorance (McAllister,

1995). Trust decisions are driven by available knowledge and

40

‘good reasons’ to trust (Mayer et al,1995). However,

performance-based trust is viewed as an expectation rather

than a conviction, which reflects an uncertain anticipation of

a partner’s future behaviour (Zaheer et al., 1998). Therefore,

trust provides parties with a degree of freedom to disappoint

expectations. This is particularly possible at organisational

level, where trust needs to be reactivated specifically when

parties take on new transactional tasks (Huemer,2004) to

ensure no unpleasant surprises arise from change in tasks.

While future actions/behaviours imply some degree of risk, the

knowledge gained reduces uncertainity,Eriksson & Sharma

(2003). Parties’ expectations can be a good indicator of the

level of trust. When the trust level is high, expectations can

be reliably predicted since it makes parties feel secure in

their interaction. However, when trust is low, expectations

will be clouded by uncertainty. Performance-based trust is

seen as important in initiating parties’ commitment to the

economic aspects of the relationship (Ganessan, 1994; Coutler

& Coutler, 2003; Johnson & Grayson,2005). Despite this

important outcome of performance-based trust, it is not enough

41

to help secure long-lasting relationships. Most researchers

have focused on the antecedents of this dimension, which have

been described by Nicholson et al.(2001) as a more impersonal,

detached and dispassionate analytic antecedent such as common

value system and frequency of interaction.

Affective/Personality Trust (Interpersonal Level);

Building up trust is a social process, which takes time and

must be based on personal experience (Hakansson,1982).

Personality traits of an individual can be either trusting or

not. Interpersonal interaction is important in the creation of

trust (Zaheer et al. 1998). Although trust is an internal

feeling, it is manifested in external actions/ behaviours.

Affective-based trust is the confidence a party places in

another party based on the feelings and emotions generated by

the caring, empathy, politeness, similarity and concern for

the other party, demonstrated in their interaction (Rempel et

al.,1985). Affective based trust is characterized by “feelings

of security and perceived strenght of the relationship”

(Johnson & Graysson, 2005). Thus, trust is in effect based on

emotions. An emotional bond is essential in driving the

42

relationship and nurturing trust mutuality (Nicholson et al.,

2001). This improves their understanding of each other as

individuals and creates emotional openness without much

concern for vulnerability (Chowdhury, 2005).

This type of trust is motivated by a partner’s goodwill,

reputation, actions/behaviours, shared values, norms and

benevolence (Ganessan,1994; Donney & Cannon, 1997; Kumar et

al.,1995). Within affective-based trust,

reliability/credibility arises from a patner’s honesty or

integrity at the personal level with the ability to rely on a

partner’s word, keep one’s promises and fulfill obligations

(Kumar et al.,1995). Honesty is based on the extent to which

the buyer believes that the seller will keep his or her

promises (Ganessan, 1994). It involves deep dependence and

unequal power between parties. Coutler & Coutler (2003) found

that affective-related factors (similarity, empathy and

politeness) have greater impact on trust when parties’

familiarity is low. Brashear et al. (2003), found that

predictive basis of trust, is based on the perception of

parties’ respect and is significantly related to the

43

perceptions of affective-based trust, which means that, the

importance is not necessarily the amount of interaction but

the quality of that interaction.

Relationship Commitment

Relationship commitment has been recognised in different

literatures such as channel relationships, buyer-seller

relationships, network theory and social exchange theory to

play a central role in a long –lasting relationship.

commitment is central to the success of relationship marketing

therefore researchers have focused their research on factors

that influence the development and maintenance of commitment.

Relationship commitment is known as an enduring desire to

maintain a relationship (Dywer et al.,1987; Geyskens et al.,

1996; Moorman et al., 1992; Morgan & Hunt, 1994). Relationship

commitment is increasingly becoming the focal point in

marketing as suggested by Gundlach et al. (1995), commitment

may become the focal point of explanation in marketing, as the

discipline moves further away from the transactional view of

exchange and embrace the relational view. However,

relationship commitment is a complex phenomenon and difficult

44

construct that is poorly understood and subject to different

forces (Kumar et al., 1995). Nevertheless, commitment has been

seen as the willingness or intention to continue maintaining

the relationship into the future.

Instrumental/Calculative dimension; This type of commitment refers

to the investment of relationship specific assets among

partner organisations (Rylander et al.,1997). Calculative

commitment is viewed as a function of pledges, sharing of

information and allocation of relationship-specific resources

(Dywer et al., 1987). Inputs or investments in a relationship

are evidence and manifestation of implementing early promises,

which enhance parties’ credibility and reduce uncertainty and

the risk of opportunism (Morgan & Hunt, 1994; Achrol &

Gundlash, 1999; Wuyts & Geyskens, 2005).

Attitudinal dimension;This dimension isalso known as affective

commitment. This type of commitment is more personal,

involving social interactions among individuals presenting

partners’ organisations (Rylander et al., 1997). The

attitudinal aspect of affective commitment is critical in

terms of developing the trust, mutuality, integrity and

45

solidarity that are necessary to sustain long term

relationships (Gunlach et al., 1995). Social/emotional bonding

is the key factor in initiating affective commitment. Wilson

(1995) defined social bonding as “the degree of mutual

personal friendshipand liking shared by the buyer and seller.

Hence,Social interaction improves relationship quality, helps

relationship satisfaction and increases relationship

attractiveness (Harris et al.2003).

Antecedent Variables of Relationship Commitment:

Relationship Termination Costs: Termination costs have been seen as

a positive reason for maintaining relationship commitment

(Heide & John, 1988; Morgan & Hunt, 1994). These costs include

finding an alternative partner (Ping & Dwyer, 1992), change

in transactional cost over time, Low, 1996. Although there

are a number of reasons for relationship termination, trust

and commitment are the key variables which are likely to

influence the termination (Hocutt, 1998).

Relationship Benefits: The formation of business relationships is

motivated primarily to gain competitive advantages in the

market place (Jackson, 1985; Webster, 1992; Nielson, 1998).

46

Pressured to meet the demands of competition, parties are

increasingly engaged in collaborative efforts to produce

quality products with cost implications (Metcalf et al.,

1992).Relationship benefits are also viewed as pure economic

benefits.

Shared values: It plays an increasingly important role in the

interpersonal and inter-organisational interaction between

buyer and seller. According to the commitment-trust theory by

Morgan and Hunt (1994), shared values affect both trust and

commitment positively. Communication effectiveness is a key

factor in interacting with customers as communication is the

exchange of information between buyer and seller. Successful

relationships are based on an extensive level of involvement

as per person-to-person. Therefore, these connections enable

information to reduce the level of perceived risk and improve

credibility.

2.4.2 CONCEPTUALISATION OF RQ1:

How does pricing moderate the relationship between brand trust

and customer retention?

47

The purpose of the first research question is to provide

understanding on the mediating role of pricing in retaining

customers. The factor of pricing (high and low) over time has

influenced the buyer-seller relationship. Several studies

highlight the decisive role of pricing especially in the

context of retailing and its significant impact on customer

retention. Studies have shown that companies use the strategy

of price juggling and low pricing to attract customers to

increase their market share. On the other hand, some have

invested in premuim pricing as a means of attracting a

selected class of customers. Which ever way you look at it,

the factor of pricing can be used to gain customers. But it

cannot be determined conclusively, if this factor is strong

enough to gain a customer’s loyalty.

2.4.3 CONCEPTUALISATION OF RQ2:

How can the factors of brand trust as perceived by the

customer influence customer retention?

The purpose of the second research question is to provide

better understanding of the factors influencing customer

retention as perceived by the customer. This research question48

will be conceptualized based on previewed literature and a

combination of research that will be carried out. The factors

influencing customer retention will be analyzed from the

customers’ point of view. Therefore as earlier stated, based

on these factors, the author will analyze the key elements

influencing customer retention (a component of brand loyalty)

and how it determines a customer’s purchase decision. From our

study, the variables of brand trust will form a chain of

effects which will be used in analysing the relationship

between trust and retention. (Full analysis in Chaper four).

Figure 4: Graphic presentation of the conceptualisation of the RQs.

49

ProductQuality

CustomerSatisfacti

Price

-High

- Low

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 RESEARCH METHOD

This chapter will present the methodological framework of this

thesis applied to solve the research problem. This research

adopted the qualitative research method which allows for

obtaining specific information about consumer survey. The

qualitative assessment is required in order to fully collect

data that will reflect the intention of this research. The

qualitative research method addresses the need to collect,

understand and analyse the subjective assessment of feelings,

opinions, attitudes and behaviours of consumers within a

particular population. The main purpose was to investigate the

50

BrandCompete

Perceptio

BrandReputati

Brand

Trust

Customer

consumers’ perception, interpret the data and then arrive at a

shared meaning. This approach allowed for an understanding of

the whole phenomenon of brand trust and its influence in

retaining customers. Qualitative data reveals emerging

patterns, meanings and understanding of events and situations

(Patton 2002). Research in such a situation is a function of

the researcher’s insights and impressions. This approach

generates results either in non-quantitative form or in a form

that is not subjected to rigorous quantitative analysis. But

the qualitative data evaluation will be subject to consistency

checks. This research method will further improve the validity

of the interpretation of the data collected for the study. In

the interest of acquiring knowledge, a researcher can conduct

individual interviews with a limited number of participants in

order to get their views about a problem or situation (Carolyn

& Peale 2006). Interviews can help find meaning to people’s

experiences and interactions in the practical world. It is

equally systematic and flexible.

51

3.2 SAMPLING TECHNIQUE

For the purpose of this study, purposive sampling technique and

simple random technique were used (qualitative research).

Purposive sample helps one select a small sample of people,

nested in the context and studied in-depth. A simple random

sample gives every member of the population an equal

opportunity to be chosen. This technique has been chosen

because the sample is supposed to be an unbiased

representation of the population. Emphasis was put on the

descriptive technique since it allows focus within an area.

3.3 POPULATION OF STUDY

For the purpose of this research, the population size was

determined through data from the National Population

Commission of Lagos State for Eti-Osa local government area.

The research studied users of FMCG products within Victoria

Island metropolis, where the population was estimated at

287,785.

The population for the interview was selected from four

advertising agencies: DDB advertising and creative agency, SOU

52

Saatchi & Saatchi, Noah’s Ark and Pulsar Limited. One

representative was picked from each agency. We had 4

participants for the interviews.

3.4 SAMPLE SIZE

The sample size is used to make inferences about the

population from a sample. After calculating the population of

study (287,785) against a confidence interval of 8.0 and

confidence level of 95%, the sample size arrived at for this

study was 150 users and 4 participants for the interview.

Altogether, we had 154 participants for this study.

3.5 DATA COLLECTION METHODS

Data for this study was collected through interviews and

questionnaires.

The interviews were open-ended; this was based on a pre-

prepared list of questions. The semi-structured interviews

enabled the respondents to answer freely, bearing in mind that

their answers had to be within the structure of the topic..

The questionnaire was used to gather information from 150

respondents. There was a 99% completion on the task.

53

3.6 RESEARCH INSTRUMENTS

Questionnaires.

Interviews (semi- structured).

CHAPTER FOUR

4.1 INTERPRETATION AND PRESENTATION OF DATA

In this chapter, the presentation and analysis of the data

from the findings will be discussed. The idea of data analysis

is used to evaluate data using analytical and logical

54

reasoning to examine every component of the data provided

which will be presented in form of charts and tables. The

findings, interpretation and discussion of the data will be

used to answer the research questions. A one-on-one interview

was conducted with four key account managers from different

advertising agencies. This interview was carried out to

investigate the degree of brand trust and the factors that

influence customer retention. The four interviewees have

worked for five years and above. For this reason, they were

considered as being eligible to provide answers regarding the

subject.

4.2 PRESENTATION OF DATA (Interviews)

Data was collected from four advertising agencies; SOU Saatchi

& Saatchi, DDB, Noah’s ark and Pulsar Limited. The

representatives of these agencies have worked with several

brands and they have vast knowledge on the subject discussed

in this study. This is a graphic presentation of the findings.

Full questions are in the appendix.

Figure 5; Presentation of findings from interview

55

Questions

(Full

questions

in

appendix)

Respondent 1 Respondent

2

Respondent 3 Respondent

4

Job

function

Account

Director

Key Account

Manager

Brand

Manager

Brand

Executive

Measuremen

t of

customer

satisfacti

on

- Referrals

and

recommendati

ons.

- Customers'

buying

behaviour.

- Repeat

purchase

behaviour.

-

Customers

buying

behaviour.

Influence

of brand

- Strongly, - Determines - Eliminates - Promotes

56

reputation customers

are drawn to

what they

see, hear

and know.

customer’s

loyalty to

brand.

brand

switching.

customer

loyalty

over time.

Rating the

factor of

product

quality.

-Strong

determinant.

- Strong

influencer.

- Strong

influencer.

- Strong

influencer

.

Pricing as

a

retention

strategy

tool

- Very

strategic

for brand

positioning.

- Strategic.

It creates

value.

- Strategic

for brand

positioning

-

Strategic

but can

also a

have

negative

effect.

The role

of

Perception

in

retention.

- Customers

are drawn to

visuals

(packaging,

adverts and

- What a

customer

thinks about

a product

will

- What a

customer

thinks and

sees

influences

- What the

customer

thinks and

what

people say57

awareness) determine

his next

action.

his purchase

behaviour.

about the

brand

determines

level of

loyalty.

Factors

that

determine

customer

loyalty

-Quality,

Pricing,

trust,

reputation.

Repeat

purchase.

- Quality,

trust,

satisfaction

through

service

delivery,

inertia.

_ Quality,

buying

behaviour,

trust,

effective

communicatio

n.

- Quality,

trust,

satisfacti

on,

reputation

, inertia.

In what

ways can

firms

communicat

e

effectivel

y to gain

customer

loyalty

-Adverts,

customer

surveys,

loyalty

reward

programs.

-Adverts,

product

packaging,

promotions.

-Adverts,

CSR

( community

service),

surveys

Adverts,

discounts,

surveys,

reward

programs.

58

ANALYSIS:

According to the questions put forward, the findings from the

interviews showed that:

In measuring customer satisfaction, the interviewees

evaluated it as an emotional construct which translates

to action. These actions are measured by the customer’s

purchase behavior and repeat purchase (inertia).

Interviewees verified that a satisfied customer will

remain loyal to a brand. Hence, the more satisfied a

customer is, the higher the rate of retention.

A brand’s image is regarded as a non-verbal factor in

communicating the effectiveness of their products and

services. This could arise from word-of-mouth and

recommendations from customers who have had positive

experiences with the brand. This factor was regarded as a

strong retention strategy which could possibly eliminate

59

switching barriers and this is because consumers have a

tendency to trust a brand that has an established

reputation.

In this work, product quality is regarded as a tool for

retention. By investigating further, it is significantly

evident that this factor can influence a customer’s

decision. It also shows that, this factor is not

independent.

Pricing is seen as a strategic factor, either as low or

high (premium) pricing. Whichever way, it always gets the

attention of customers. It promotes brand positioning.

Perceived perception in the mind of the customer,

unconsciously determines the customer’s purchase

decision, either positive or negative, the interviewees

went further to analyze perception as visual elements

that include packaging, interaction with sales attendant

and product satisfaction.

Findings showed the factors that determine customer

loyalty are pricing, quality, repeat purchase (inertia),

60

brand reputation and product delivery (gaining

satisfaction from the product).

On effective communication, the interviewees outlined

advertising as a major player, stating that, this was the

customer’s first point of contact with the brand and if

the advert invoked any emotions from the customer, then

it is very likely that the customer will be willing to

purchase the product and eventually remain loyal to it.

Another factor was carrying out customer surveys, which

aids in customer involvement. This way, the brand gets

the customers involved in their decision making process,

bearing in mind that a satisfied customer will gain

confidence to remain loyal to the brand. Interviewees

also pointed out that, loyalty rewards are considered a

means of companies identifying with their customers,

thereby creating a bond beyond the buyer-seller

relationship. This level of involvement gives the

customer the impression, that the brand considers the

customer as a key factor in the business. The higher a

61

customer values a business relationship, the stronger the

customer’s commitment towards the brand will be.

4.3 PRESENTATION OF DATA (Questionnaires)

4.3.1 FREQUENCY TABLES

Q1.Respondents’ Age

Table 1

AGE FREQUENCY PERCENTAGE

15-25 23 15.0

26-35 47 32.0

36-45 58 39.0

46- 55 15 10.0

56 – ABOVE 6 4.0

TOTAL 150 100.0

62

Of the total number of respondents, 58 (39%) who were the

majority fall between ages 36-45; 47 (32%) were in the age

range of 26-35; 23 (15%) were between ages 15-25; 15 (10%)

were between ages 46-55 and only of 6 (4%) the respondents

were above age 56.

Q2.Respondents’ Gender

Table 2

GENDER FREQUENCY PERCENTAGE

MALE 67 44.7

FEMALE 83 55.3

TOTAL 150 100.0

The table shows that 44.7% of the respondents were male and

55.3% were female. There were more female respondents than

male.

Q3.Which of these brands do you consume or buy most?

Table 3

63

BRAND FREQUENCY PERCENTAGE

PEAK MILK 80 53.4

LOYA MILK 40 26.0

DANO MILK 11 8.0

COW BELL MILK 16 10.6

HOLLANDIA MILK 3 2.0

TOTAL 150 100.00

The table above shows that Peak milk had the highest number of

consumers at 53.4%, followed by consumers of Loya milk with

26%, Cowbell milk consumers at 10.6%, Dano milk at 8% and

lastly Hollandia milk had the lowest number of consumers at

2%.

Q4. How long have you used this brand?

Table 4

YEARS FREQUENCY PERCENTAGE

64

1 – 5 25 17.0

6 – 10 60 41.0

11 -15 43 29.0

16 -20 16 11.0

20 – MORE 3 2.0

NO RESPONSES 3 2.0

TOTAL 150 100.0

The table shows that 41% of the respondents have used their

favourite brand for about 10 years, 29% of the consumers have

used theirs for about 15 years, 17% used theirs for about 5

years, 11% have used theirs for about 20 years and 2% for over

20 years. 2% of the respondents did not respond to this

question.

65

Q5. Does the reputation of this brand influence your buying

decision?

Table 5

FREQUENCY PERCENTAGE

YES 110 70.0

NO 20 15.0

MAYBE 20 15.0

NO RESPONSE 0 0

TOTAL 150 100

70% of the respondents affirmed that the brands’ reputation

influenced their loyalty, 15% did not think that the

reputation of the brand could influence their loyalty and 15%

were undecided.

Q6. What other factors influenced your choice of brand

selection?

Table 6

FREQUENCY PERCENTAGE

ADVERTS 45 30.0

66

PACKAGING 30 20.0

RECOMMENDATIONS

(Positive remarks

from other users)

45 30.0

PROMOTIONS 30 20.0

TOTAL 150 100.0

45% of the consumers indicated that adverts got their

attention to the brand, another 45% were influenced by the

positive recommendations they got from other users. 30% were

influenced by the packaging of the product and 30% were

influenced by the sales promotion of the brand which offered

more for less price.

Q7.What attracted you to this brand?

Table 7

FREQUENCY PERCENTAGE

QUALITY 85 55.7

AVAILABILITY 12 8.0

67

PRICING 53 35.3

TOTAL 150 100

The table indicates that quality had the highest rating with

55.7% as compared to other variables like pricing that had

35.3% and availability had 8% rating.

Q8. Can you remember the last advert for this brand?

Table 8

FREQUENCY PERCENTAGE

YES 82 55.0

NO 45 30.0

MAYBE 22 14.0

NO RESPONSES 1 1.0

TOTAL 150 100.0

68

The table shows that most of the respondents 55% remembered

the advert of their favourite brand, 30% did not remember the

adverts and14% were not sure if they did, they were

indifferent. 1% of the respondents did not answer this

question.

Q9. Does the price of this brand influence your purchase

decision?

Table 9

FREQUENCY PERCENTAGE

YES 45 30.0

NO 101 67.3

INDIFFERENT 4 2.7

TOTAL 150 100.0

This data shows that most respondents 67.3% purchased their

favourite brand irrespective of the price while 30% showed

price consciousness and 2.7% were indifferent.

Q10. If the price of your favourite brand is higher than other

brands, would you still be willing to pay for it?

69

Table 10

FREQUENCY PERCENTAGE

YES 107 70.0

NO 29 20.0

MAYBE 15 10.0

TOTAL 150 100.0

The table shows that, 70% of the customers would buy their

brand even if the price was higher than other brands, 20% did

not share the same views and 10% were indifferent.

Q11. If you do not find your favourite brand at your point

of purchase, would you consider buying another brand?

Table 11

FREQUENCY PERCENTAGE

YES 46 31.7

NO 96 65.0

MAYBE 5 3.3

TOTAL 150 100.070

Table indicates that 65% of the respondents would not consider

buying another brand, 31.7% considered purchasing other

brands and 3.3% were indifferent.

Q12.Are you satisfied with the quality of this brand?

Table 12

Out of the total number, 67.3% were very satisfied with the

quality of their favourite brand, 27% indicated that they were

satisfied (meaning the quality of the brand meets their need

71

FREQUENCY PERCENTAGE

VERY SATISFIED 40 27.0

SATISFIED 101 67.3

UNSATISFIED 0 0

INDIFFERENT 10 6.7

TOTAL 150 100.00

though not satisfactorily) while 6.7% were indifferent.

However, no respondents were unsatisfied with their brands.

Q13. Would you likely recommend this brand to others?

Table 13

FREQUENCY PERCENTAGE

YES 110 75.0

NO 26 16.0

MAYBE 14 9.0

OTHERS 0 0

TOTAL 150 100.0

Majority of the respondents 75% agreed that they would readily

recommend the brand to others, 26% of the dissatisfied

respondents would not recommend the brand and 14% were

indifferent.

Q14. What is the possibility of switching, if other brands

offer features like low pricing and better quality.

Table 1472

FREQUENCY PERCENTAGE

MOST LIKELY 119 79

LIKELY 30 20

UNLIKELY 1 1

VERY UNLIKELY 0 0

INDIFFERENT 0 0

TOTAL 140 100

79% consumers indicated that they would most likely go for

better features, 20% were not strongly opinionated about

switching brands and 1% was not likely to switch at all.

Q 15.Customers have the right to demand for more, what are

your expectations from your brand?

Table 15

73

FREQUENCY PERCENTAGE

PREMIUM PRICING 15 10.0

LOWER PRICING 50 35.0

BETTER QUALITY 80 55.0

INDIFFERENT 0 0

Total 150 100.0

The table indicates that most respondents 55% opted for better

quality, 35% were concerned about pricing and 10% opted for

premium pricing (high pricing).

4.4 DISCUSSION OF FINDINGS

The discussions drawn from this research will be presented as

the author analyses the findings to answer the research

questions. This diagram is to highlight the factors

influencing customer retention as discovered from this

research.

Figure 6: Factors influencing customer retention:

74

Strategies of customer retention

Creating value processes

Creating bonds binding the customer to the firm

Monitoring customer

Customer Satisfact

Research Question One:

How does pricing moderate the relationship between brand trust and customer

retention?

From our findings, data significantly shows that the factor of

pricing is multi-faceted, meaning that pricing is more than

just numbers; it plays out on the customers’ perception. Using

pricing as a retention strategy has its positive and negative

effects on the customer. When a customer makes a decision

based on the perceived value or quality of a product, the

customer psychologically places that product on a ranking

75

Strategies of customer retention

Creating value processes

Creating bonds binding the customer to the firm

Monitoring customer

Customer Involveme

Service quality & Price

Switching barriers

scale, which will determine the willingness to purchase.

Respondents agreed that as much as pricing is a strategic tool

for brand positioning, price juggling and price cuts could

also affect the customer’s perception about the product.

Pricing can be in classified into; Premium pricing and Low pricing.

Questions 9, shows that 70% of the respondents were willing to

pay any amount for their favourite brand, despite the fact

that other brands offered less. For this class of customers,

price consciousness is secondary, quality and brand reputation

had a higher ranking on their scale. When a customer pays a

higher price for a product, he is not only paying for quality

which he can see, feel or judge (tangibles) but for esteem

value (intangibles).

On the other hand, 30% indicated that low pricing was a

determinant in their buying decision. This reflects that, some

respondents used their price meter to measure their propensity

to purchase the product. For such customers, low pricing is an

indicator to purchase regardless of the quality. This class of

customers do not share the perception that, high price = high

quality. Question 7 also revealed that as much as 55% of the

76

customers were concerned about quality, 35.3% were attracted

to certain brands because they offered pocket friendly prices

within their range. Due to the high level of competition in

the market, pricing has become a tool for edging out

competition. As seen, from the data, majority of the customers

will go for high quality products but then again, if they are

offered features like low pricing, record shows that 67.3% of

the customers will take that option. A customers’ perspective

of the fairness of pricing depends on how much information the

customer has at his disposal. This information enables the

customer make a decision.

Conclusively, the better perceived price is, the greater the

level of repurchase intentions. Therefore, findings from this

study show that there is a direct relation between price

perception and the customer’s purchase intentions which

evidently leads to customer loyalty.

Research Question Two:

How can the factors of brand trust, as perceived by the customer, influence

customer retention?

77

As mentioned previously, the key elements affecting customer

retention play out their roles as being dependent on each

other. From the data, these factors have a symbiotic

relationship, one variable complements the other. The analysis

shows that quality or perceived quality which is a determinant

in customer loyalty was the measurement scale with which

customers measured their level of satisfaction. 80% of the

responses reflected that, quality was the key influencer in

the buyer-seller relationship. 53.5% of the respondents

indicated that their commitment to the brand was based on

their perceived quality. Thus, there is a relation between

product quality and customers repurchase intention.

Companies cannot relate with their customers one-on-one but

their products can relay the messages. This is where effective

communication plays an active role, findings from data show

that 55% of the customers remembered the advert of the brand,

which means the adverts and campaigns, motivated their

purchase intentions. Brands use advertising to convey their

messages to their target audience. This adverts come in

78

different attractive forms. For the customer, the acceptance

is a sub-conscious emotion which translates into an action.

The ability of a brand to deliver on its promise is a

contributing factor to gaining customer loyalty. Findings

indicate that, if a brand offered better features than the

current brand, 60% of the customers were willing to switch

brands. Therefore, brand loyalty is genuinely present when

customers’ resist the temptation of brand switching. This

further shows that commitment is an essential element in

relationships whether long-term or otherwise. Developing a

business relationship with customers, by meeting the

customer’s expectation is predicated on the customer

relationship value (which is mediated by trust and

satisfaction).

Customers require experience with a product to determine how

satisfied they are with it. Taking a cue from our findings,

when asked about their level of satisfaction from their

brands, 67.3% indicated they were satisfied, 30% indicated

they were very satisfied, which means that a customer’s level of

satisfaction is subjective judgement resulting from the

79

brand’s performance. It also showed that a customer’s level of

satisfaction minimizes brand switching. When a customer has

gained confidence (trust) concerning a product, chances are

that he will stay committed to the brand.

80

CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

5.1INTRODUCTION

This chapter is the concluding part of this study where the

findings from the research are discussed and recommendations

based on the findings will be presented for further research.

5.2SUMMARY OF FINDINGS

This work is aimed at understanding the degree to which brand

trust influences customer retention (which is a component of

brand loyalty) using product quality as a determinant. In this

study, we presented trust as a mediating variable, from the

customer’s perspective. This perspective led to discovering

other factors that influenced customer retention.

5.3 Key findings from literature review

A review from the literature indicates that trust is

undoubtedly a strong building tool in customer

relationship and the foundation of any buyer-seller

relationship. Trust is classified into two categories,

81

the cognitive and affective trust. This study is based

on cognitive trust, which is the basis for rational

thinking.

The role of trust in developing behavioural intentions

is well noted in the literature which clearly shows

trust as a mediating variable within the models and how

it encompasses various components of the consumer-brand

relationship.

One factor in literature that reflected the possibility

of retention is competence, competence is seen as

expertise, for the customers, it reflects the brand’s

capacity to live up to their expectations.

There is an existing gap in the literature on the

conceptualization of brand trust in the Nigerian

market.

5.4 Key findings from field

Reputation; Findings indicated that brand reputation

plays a significant role in customer retention. This

was as a result of most respondents, indicating that,82

they purchased a brand because of its reputable and the

fact it came highly recommended. Reputation and image

come from the customer’s own experience which will form

a personal opinion. On the other hand, customers also

rely on third party information, through word of mouth

to measure the company’s image. Customers may have a

true or false image depending on their prior

transaction.

Therefore, the more positive the customer’s

perception is of a brand’s image is, the more

positive is his perception of the brand’s reputation.

Price: Based on the findings in this study, there was a

direct relation between price perception and the

customer’s behavioral intentions. Price plays a

determining role and is also a major influencer. From

our findings, we can conclude that, the better the

perceived price, the greater the level of repurchase

intentions.

Inertia: From the study presented, inertia is seen as a

strong indicator of loyalty. It is a non-conscious form

83

of retention based on satisfaction. This significantly

reflects that the decision to continue to purchase a

product from the same brand leads to customer loyalty.

Hence, the greater the degree of inertia, the more

likely the customer will be attracted to promotions or

similar attempts by the brand.

Customer Indifference: This factor may seem as

insignificant but in the light of this study, it was

discovered that a certain percentage of customers had

an indifferent attitude towards the brands they

purchased. Certain authors propose that the higher the

level of customer indifference, the greater the level

of repurchase intentions. This is because customers,

who have a positive perception of a product and also

show a certain level of indifference, are more likely

to ‘hang around’ a brand as they see no gain in

switching. According to Reneweera and Neely (2003), the

literature on measuring customer indifference is rather

scarce and has sometimes been used in the marketing

literature in relation to customer’s attitude towards

84

advertising, which is described as neither positive nor

negative.

5.5 RECOMMENDATIONS

This research was able to investigate the degree to which

brand trust and other variables can influence customer

retention. Having investigated these variables, this research

also discovered that besides product quality, there were other

factors that determined customer retention. Factors like

repeat purchase (inertia), customer indifference, brand

reputation and pricing were strong indicators towards

achieving customer retention. Product quality or perceived

quality was a significant factor but pricing was the driving

factor that influenced the customer’s purchase decision. As

previously mentioned, pricing has also been used as a

retention strategy by firms to gain customer loyalty over

time. For further researches and to gain better understanding

of how the consumer-brand relationship market works, these

factors should be considered;

85

Monitoring customer relationships: This is one of the basic

strategies employed by companies to gain and retain their

customers over time. This can be done through three basic

ways; market surveys, effective communication and loyalty programs

Market survey; Many organizations conduct surveys on their

customers and it should happen more often because a

customer’s perceived value, quality and satisfaction of

services provided can maximize switching brands. It will

get the companies more involved in understanding the

needs of their customers, by taking this step, the

company can edge out competition.

Effective communication; Communicating with customers is

usually combined with certain factors that influence the

customer’s overall perception about the brand.

Advertising functions as a means of communicating the

company’s message. An attractive and convincing advert

gives the customer a positive impression. Visuals have a

way of attracting and leading customers to a brand

because of the perceived expectations. Product packaging

86

appeals to a customer’s judgments about the brand, which

will also determine how the customer will rate the cost.

Loyalty programs; Rewarding customers for their patronage is

perceived as a relationship strategy for retention, which

is effective. Giving back to customers is perceived as a

relationship that transcends beyond the buyer-seller

relationship. A loyalty program is seen as a benevolent

act which represents the company’s willingness to take

into consideration consumer interests when making

decisions and when planning engagement in customer

relationship activities. For example, Peak, sponsors a

football talent program for young boys. This has

increased their sales and market share, it has breached

the perception that the product is only for a certain

class. Another example is the ‘Back to School’ Bournvita

promos for students, which offers scholarships and

reading materials. The aim is to increase customer

retention through profitable segments, by providing

increased satisfaction and value to its target market.

87

5.6 FINAL CONCLUSIONS

This research helped the author gain better understanding on

the concept of brand trust and the mediating role of trust in

influencing customer retention (which is a component of brand

loyalty). Secondly, we further investigated the degree of

effect of the factors of brand trust and how it could be used

as retention strategies in gaining customer loyalty. The

concept of trust has been analysed at different levels of

social interaction. But in marketing, the central role of

trust is recognised in developing and maintaining

relationships, especially in a buyer-seller relationship. In

fact, the role of trust has been seen to have an immediate

effect on the decision of the customer, either to pursue or

end the relationship with the brand. After reviewing the works

of scholars, the author discovered that there were few studies

on the brand trust construct. On the other hand, seeing that

brand trust is a consumer-relationship based construct, the

author used consumer-brand relationship theories to highlight

the customer’s thought process and behaviour when making

purchase decisions.

88

In the conceptual models, findings indicated that product

quality (which is an antecedent of brand trust) was not the

only determinant in customer retention. Customer satisfaction

was seen as a pre-condition for retention. Most customers

found out that if a product met their expectations, there was

a likelihood of sticking with that brand. Customer

satisfaction was also seen as a dependent factor on other

external influencers like brand reputation, which is viewed as

the overall result of a firm’s image building process. It was

also discovered from our models and theories, that reputation

and image are based on the information used by the consumer to

assess a brand’s performance. This information also comes from

the consumer’s experience with the brand as well as other

sources of information like word-of-mouth and advertising.

Customers who expressed their trust for a brand expected the

brand to reflect the promises as advertised.

From the conceptual models, it showed that trust is not the

only factor that explains customer retention. Other factors

like product quality, perceived value, customer satisfaction

and pricing also modify customer retention. These concepts

89

form a chain of relationships that are dependent on each

other. The models and theory highlighted the role of trust as

a higher construct while taking into cognisance the other

factors that play supporting roles.

In the course of the research, key factors like perceived

pricing, inertia, customer indifference, loyalty programs and

advertising were highlighted as factors that could influence

retaining targeted customers over time. From the customers’

standpoint, the author was able to analyze how these

intentions translate into actions. Hence, the author can

conclusively state that, a customer’s commitment to a brand

determines his loyalty to the brand. The author hopes that

these findings will contribute to widening of the scope on the

concept of brand trust and customer retention.

90

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APPENDIX 1

DEPARTMENT OF MARKETING AND MEDIA ENTERPRISE

My name is Ini Ebong, M.Sc. student of the above institution.

I am conducting a research for my dissertation on The Influence

of brand trust in customer retention through product quality among fast

moving consumer goods. This interview will not take more than 5

minutes Thank you for your time.

Respondent One

1. What is your job function?

96

Account director

2. How long have you worked here?

Eight (8) years

3. How do you measure customer satisfaction?

Customer satisfaction can be measured by the customer’s

attitude ( referrals, recommendations, word-of-mouth).

4. To what extent do you think a brands’ reputation can

influence customer retention?

To a large extent, it is considered a strong factor

because customers are drawn to what they see, hear and

know about a brand.

5. Will you say that product quality is a strong factor on

customer retention?

Yes, it is strategic because it gives a brand an edge

over competition.

6. Do you think pricing can be used as a tool to gain

customer retention?

Yes, It is a good strategy for brand positioning.

7. Can a customer’s perception of a brand determine their

loyalty to the brands?

97

Yes it can because customers are drawn to visuals like

packaging, quality, pricing and advertising.

8. In your opinion, what other factors can influence

customer loyalty?

Product quality, price factor, repeat purchase and brand

reputation.

9. In what ways can firms communicate effectively to gain

customer loyalty?

Through loyalty programs and surveys.

98

APPENDIX 2

DEPARTMENT OF MARKETING AND MEDIA ENTERPRISE

My name is Ini Ebong, M.Sc. student of the above

institution. I am conducting a research for my dissertation on

The Influence of brand trust in customer retention through product quality

among fast moving consumer goods. This interview will not take

more than 5 minutes. Thank you for your time.

Respondent two

1. What is your job function?

Key account Manager

2. How long have you worked here?

Six years

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3. How do you measure customer satisfaction?

By a customer’s purchase behavior.

4. To what extent do you think a brands’ reputation can

influence customer retention?

To a large extent because it determines a customer’s

loyalty - the way a customer perceives a brand will tell

you if this customer will switch brands or will be

loyal.

5. Will you say that product quality is a strong factor on

customer retention?

Yes, it is a strong factor that overrides pricing in many

cases.

6. Do you think pricing can be used as a tool to gain

customer retention?

Yes, pricing is strategic. It creates value for the

brand.

7. Can a customer’s perception of a brand determine their

loyalty to the brands?

What a customer thinks about a product determines the

customer’s next action.

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8. In your opinion, what other factors can influence

customer loyalty?

Repeat purchase, reputation, quality, and pricing.

9. In what ways can firms communicate effectively to gain

customer loyalty?

Through adverts, promotions, customer surveys and loyalty

reward programs.

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APPENDIX 3

DEPARTMENT OF MARKETING AND MEDIA ENTERPRISE

My name is Ini Ebong, M.Sc. student of the above institution.

I am conducting a research for my dissertation on The Influence

of brand trust in customer retention through product quality among fast

moving consumer goods. Thank you for your time.

Responden

t Three

1. What is your job function?

Brand Manager

2. How long have you worked here?

Eight (8) years.

3. How do you measure customer satisfaction?

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By the customers buying behavior (repeat purchase).

4. To what extent do you think a brands’ reputation can

influence customer retention?

A brand’s reputation can influence a customer’s investment

in the brand. It also eliminates brand switching.

5. Will you say that product quality is a strong factor in

customer retention?

Yes it is.

6. Do you think pricing can be used as a tool to gain

customer retention?

Pricing is a strategic marketing tool which can either

have a positive or negative effect.

7. Can a customer’s perception of a brand determine their

loyalty to the brand?

Yes it can, perception is a sub-conscious element that

expresses itself in the purchase behaviour.

8. In your opinion, what are the factors that determine

customer loyalty?

Quality, pricing, trust, brand reputation and repeat

purchase.

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9. In what ways can brands communicate effectively to gain

customer loyalty?

Through adverts, product packaging and promotions.

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APPENDIX 4

DEPARTMENT OF MARKETING AND MEDIA ENTERPRISE

My name is Ini Ebong, M.Sc. student of the above institution.

I am conducting a research for my dissertation on The Influence

of brand trust in customer retention through product quality among fast

moving consumer goods. Thank you for your time.

Respondent Four

1. What is your job function?

Account executive

2. How long have you worked here?

Seven (7) years.

3. How do you measure customer satisfaction?

By a customer’s repeat purchase behavior.

4. To what extent do you think a brands’ reputation can

influence customer retention?

It is a strong influencer because it promotes customer

loyalty over time.

5. Will you say that product quality is a strong factor in

customer retention?

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Yes it is a strong influencer.

6. Do you think pricing can be used as a tool to gain

customer retention?

Pricing is a strategic marketing tool but does not

necessarily guarantee customer loyalty.

7. Can a customer’s perception of a brand determine their

loyalty to the brand?

Yes it determines the customer’s purchase behavior.

8. In your opinion, what other factors that determine

customer loyalty?

Repeat purchase, quality, pricing

9. In what ways can firms communicate effectively to gain

customer loyalty?

Through adverts , community service, relationship surveys.

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APPENDIX 5

DEPARTMENT OF MARKETING AND MEDIA ENTERPRISE

Dear Sir/Madam,

107

My name is Ini Ebong, M.Sc. student of the above institution.

I am conducting a research for my dissertation on The Influence

of brand trust in customer retention through product quality among fast

moving consumer goods. This survey will not take more than 5

minutes Thank you for your time.

PART I:

Please tick as appropriate

1. Sex (a) Male [ ] (b) Female

[ ]

2. Age (a) 15-25 [ ] (b) 26-35 [ ]

(c) 36-45 [ ] (d) 45- 55

[ ]

(e) 56- above [ ]

PART II

3. Which of these brands do you consume or buy most?

(a) Peak milk [ ]

(b) Loya milk [ ]

(c) Dano milk [ ]

(d) Cow bell [ ]

(e) Hollandia milk [ ]

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4. How long have you used this brand?

(a) 1 - 5 years [ ]

(b) 6 -10 years [ ]

(c) 11 - 15 years [ ]

(d) 16 - 20 years [ ]

(e) More [ ]

5. Does the reputation of this brand influence your purchase

decision?

(a) Yes [ ]

(b) No [ ]

(c) Maybe [ ]

6. What other factors influenced your choice of brand?

(a) Adverts [ ]

(b) Recommendations [ ]

(c) Packaging [ ]

(d) Promotions [ ]

7. What attracted you to this brand?

(a) Quality [ ]

(b) Availability [ ]

(c) Pricing [ ]

8. Can you remember the last adverts for your favorite brand?

(a) Yes [ ]

(b) No [ ]109

(c) Indifferent [ ]

9. Does the price of this brand influence your buying decision?

a. Yes [ ]

b. No [ ]

c. Indifferent [ ]

10. If the price of your favorite brand is higher than other

brands, would you still be willing to pay for it ?

(a) Yes [ ]

(b) No [ ]

(c) Maybe [ ]

11. If you do not find your favorite brand at your point of

purchase , would you consider buying another brand or wait

till your brand is available?

(a) Yes [ ]

(b) No [ ]

(c) Indifferent [ ]

12. Are u satisfied with the quality of this brand?

(a) Very satisfied [ ]

(b) Satisfied [ ]

(c) Very unsatisfied [ ]

(d) Indifferent [ ]

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13. Would you readily recommend this brand to others?

(a) Yes [ ]

(b) No [ ]

(c) Maybe [ ]

14. What is the possibility of switching to other brands if

they offer better features like lower pricing and better

quality?.

(a) Most likely [ ]

(b) Likely [ ]

(c) Very unlikely [ ]

(d) Unlikely [ ]

15. Customers have the right to demand for more. What are

your expectations from your favorite brand?

(a) Premium pricing [ ]

(b) Lower pricing [ ]

(c) Better quality [ ]

(d) Maintain quality [ ]

(e) Availability [ ]

Thank you for your time. 111

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