by Paul Knottnerus Release date: Survey Methodology, May-June 2015 Vol. 44, No. 1, pp Canada, Catalogue No.

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1 94 Catalogue no X ISSN On aligned composite estimates from overlapping samples for growth rates and totals Survey Methodology On aligned composite estimates from overlapping samples for growth rates and totals by Paul Knottnerus Release date:

2 95 How to obtain more information For information about this product or the wide range of services and data available from Canadian researches, visit our website, You can also contact us by at telephone, from Monday to Friday, 8:30 a.m. to 4:30 p.m., at the following toll-free numbers: Statistical Information Service National telecommunications device for the hearing impaired Fax line Depository Services Program Inquiries line Fax line To access this product This product, Catalogue no X, is available free in electronic format. To obtain a single issue, visit our website, Standards of service to the public survmethodjournal is committed to serving its clients in a prompt, reliable and courteous manner. To this end, survmethodjournal has developed standards of service that its employees observe. To obtain a copy of these service standards, please contact survmethodjournal toll-free at The service standards are also published on under About us > The agency > Providing services to researchers. Published by authority of the Minister responsible for survmethodjournal Minister of Industry, 2014 All rights reserved. Use of this publication is governed by the survmethodjournal Open License Agreement (survmethodjournal.org). Cette publication est aussi disponible en français.

3 96 Effect of Brand on Customer s Loyalty Mohammad mahdi Parhizgar 1, Saeed Ramezani 2, Fatemeh Zahra Gilani nezhad 3 1. Department of management,payame Noor University,P.O.Box ,Tehran,Iran 2. MBA Masters, Payame Noor University, Tehran, Iran 3. EMBA Masters, Allameh Tabatabai University, Iran Abstract Today, all the strategies of organizations formed around customer loyalty has always stressed the importance of the issue to go there that the construction and implementation of any strategy is doomed to failure without the customer center. In this study (which is a cross-survey) has tried to pay attention to the importance of brand management as one of the most stable ways to increase customer loyalty to our attention. Thus, this article examines the impact of brand image on customer loyalty. The questionnaire contains 48 questions, taken from the Latin articles for local conditions, among customers three top brands in 2008 countries in terms of food is tested. Questionnaire validity through the Cronbach's alpha and questionnaire reliability by experts through the content validity was conducted. 160 questionnaires distributed among the population, and data usage, path analysis and structural equation modeling was analyzed. The findings show that brand value, increase customer loyalty. Keywords: brand loyalty, brand trust, brand reputation, perceived value, brand image. Introduction The primary goal of any business is profit. Customer loyalty is one of the means to achieve this goal. The source of the organization invest to building loyalty, if not focus on profitability may fail. [47] This principle is accepted in marketing that the acquisition of new customers is much more expensive than building a deep relationship with current customers. So as a whole should be viewed with concern the losses a customer, in organizations that are more dependent on customer a long-term relationship between the customer and the organization is necessary. [20]. The proliferation of brand products and services has problems to select clients and differentiate the brand in the last decade among different brands for consumers [15] And the ultimate goal of the marketing process, reinforce the strong relationship with loyal customers and create loyal customers [49]. Brands are names that have a positive impact on buyers. This definition forms the essence of the brand, a name with the power to influence the buyer. [26]

4 97 Loyal customers buy more, they are willing to spend more money, more easily available, [30] brands with low market share or low penetration has less mean than shopping frequency, [14] the branding to create a strong emotional connection with the customer so that the customer feels they have been joined brand, [22] companies with strong brands are less risky and brands are remove risk of these companies. [26] It is obvious that determine brand loyalty and its relationship with consumer behavior in markets and products is different. [37] But loyalty is creator significant advantages such as increased sales, forming a barrier against competitors, increase the company's ability to respond to the threat of competitors, and make customers less likely to respond to the actions of their competitors [44]. In previous research showed that non-loyal customers, loyal customers spend more money, and positive mouth to mouth advertising to enhance the interests of the organization or participation in the organization as valued customers and strong arms act to reduce costs. [38] [19]. Almost any business cannot survive without the loyal customers [4] and one of the most stable ways to achieve this is to strengthen the organization's brand, in this study, we attempt to use the four dimensions of the reputation, image, perceived value and customer loyalty trusted brand on our review. Because of the importance of research in many different parts of the world, especially in recent years in this area has been done such that it can be pointed out the following: Hiober Frank et al in 2009, research on the effect of malpractice brand and brand-consumer presented. Cheng Hissen et al in 2009 as the perception of the consumer perceived quality, security and loyalty in e-commerce presented. And Yuksel, JD et al in 2009 with the theme of an article belonging to the target and its impact on the customer satisfaction and cognitive and emotional loyalty were written. Trust of the brand Trust is a fundamental step in building a long term relationship between buyer and seller. Trust is an essential element of marketing. [27] Trust as a willingness to trust a partner as someone who is reliable, or as expected generalized from how he is a partner in the future transaction. Trust by dealing with advertising, mouth to mouth advertising, consumer brand satisfaction is affected. [21] An important factor in many of these roles eliminates consumer uncertainty about the features and benefits of the product. [46] The main measures of trust are: 1 Reliability 2 Ethics 3 quality of product/service 4 the cumulative processes [40] Loyalty, as well as a chain has direct link to trust, perceived value [40]. And many of the strong evidence of the relationship between trust and loyalty in both the B2B and B2C business offered. [39] And since trust can reduce the risk during

5 98 communication process and customer's confidence is a major factor in customer loyalty. [50] Perceived value People with understanding and knowledge of different brand, will interpret brand association in different forms and will evolve opposite meanings from the brand. [29] Perceived value as a result of a comparison between the perceived benefits and what the customer loses expressed. [39] [30] [13] [10] Perceived value as a factor affecting consumer purchase intent and loyalty are known. [48] [33] [43] In both B2B and B2C environments, as well as is practical reasons for the strong support of a strong relationship between customer perceptions of value and customer loyalty. [39] Basically to build loyal customers, customers need to have a high perceived value. [27] Brand image In fact, brands and products in order to create a favorable image can be used. [32] Brands has a positive image in the minds of consumers with a greater ability expand new products brands. [11] Brand image unified brand functional and symbolic beliefs in shaping consumer perceptions of the brand. [39] A positive image to increase the pleasure of a shopping experience, so help customer experience in order to enjoy the benefits of social and emotional. Brand image has a significant direct impact on customer loyalty. [13] [3] [27] Brand reputation Kaslv states that reputation may be based on certain characteristics, such as communication with stakeholders or measured based on the reputation of the organization. In fact, the reputation is the integrity of the organization in attention to the environment [31] In fact; brand reputation management is a continuing process. [7], or if the organization's reputation knows as a social identity and social image. [35] Indicators are known, good management, product-based, success, innovation, customer focus, to keep the customer informed of information and related organization events, good citizen. [3] Many researchers have shown that the positive reputation of higher market share and higher sales driven and creates loyalty is higher [31] A good reputation decreased sensitivity to price incentives and other benefits will be faithful. [5] Brand loyalty

6 99 Loyalty, as well as a deep commitment to buy or to buy a service or product in the future, despite the different positions and repeat purchase of a brand is defined. [43] After creating loyalty, customers are the amount of the stipend, because they trust and are loyal to it [8] [4] [28] [18]. At first loyalty as an attitude and as a result more evident in repeat purchase behavior can be considered [10] [37] [42] to measure true loyalty both attitudinal and behavioral loyalty be measured in parallel. [9] The loyalty is not means the only repeated purchase of a brand. [41] The conceptual model The research on the structure and hypotheses developed a model to assess the effectiveness of the transition functions on brand loyalty is provided. This model consists of five structures associated with brand loyalty. [31] [30] [50] [13] [3] [23] [48] [33] [43] [27] Factors Structure explained Brand reputation Trust brand H;1 H;2 Brand image Brand perceptua l value H;3 H;4 Brand loyalty Figure 1: Conceptual Model Research Research questions The main question: whether the brand has a significant impact on customer loyalty? Sub-questions: Is brand reputation, trust, image, perception and value have significant effect on brand loyalty? Method

7 100 The study in term of direction and purpose is applied descriptive. It also has been used to collect data from the field. The statistical model used in this research used structural equation modeling. Data collection methods Data collection methods include library studies and data collection was by questionnaire. The reliability of measuring instruments To measure questionnaire reliability alpha test is used. For this purpose, Cronbach's alpha for each part of the questionnaire (brand trust0.875, brand reputation 0.818, brand image 0.823, perceived value 0.811, and Brand loyalty 0.913) was calculated, and eventually the whole Cronbach's alpha was calculated. Total reliability is confirmed in all cases. The validity of measurement tool The validity of measurement tool based on validity, content validity with a survey of professionals was conducted measured. The population and sample The population of the investigation consisted of customers of three active brands in the food industry (Behroz, Kalleh, Yek o Yek). The sample size was calculated as follows n=. Speech accuracy 95% and probability of error of 0.08%, the sample size is equal to 150. [1] Analysis of the data: Evaluation and validation of research models In this section, the main objective answer to this question, whether the current research model is a good fit? With regard to the issues raised, to answer this question various criteria can be used such as χ2 or 2 df. Figure 2 shows a model of research (including measurement model and structural model) shows that undertake specific relation between the structure of its index measurement model and the relationships between structures in the structural model and the values of their impact factor is standard. Measures of overall fit of the model study for the basic model (Figure 2) and a modified version of the study (Figure 3) are shown in Table 2.

8 101 According to results in the table above, the modified model has good fit value, because the majority of the admission criteria (NFI, CFI, etc.) are over 90%. As a result, the modified model is likely to test the hypothesis of the study, the relationship between the structures provided in the structure (conceptual) section of model. Evaluation and validation of measurement model To assess the study measurement model should construct validity and reliability of the models examined. Convergent validity exists when all indicators supposed to measure latent variables (constructs) are statistically significant with loads. The amendments made in the previous step, the remaining indicators to measure structures in the 5% error were significant and measurement model is signaling a strong convergent validity. The perennial indicators to assess the number and dial indicators remained in the modified version, along with the structural reliability coefficients in Table 2 are listed in detail. The results in Table 2, all structures in both the original and modified research models in terms of reliability (internal consistency) are in good condition, because each one of them are in the range of utility alpha coefficient (more than 0.8). The research hypothesis testing (Assessment and validation of structural models) After the confirmation of the acceptance criteria of the overall fit of the model and the measurement model validity starts to evaluate the structural model. In general, if the value of t more than 1.96 or 2.576, the effect of the structure on the order of 5% error and another error is 1% of the statistically significant [2] the results of the study hypothesis test is summarized in Table 3 Table 3: the structural impact of the proposed research model Test result Impact coefficien t Signific ant number Research model hypotheses Factors affecting brand explainable structure Rejected Hypothesis 1: brand reputation has a significant impact on brand loyalty. Accepted Hypothesis 2: trusted brand has a significant impact on brand loyalty.

9 102 Rejected Accepted Hypothesis 3: brand image has a significant impact on brand loyalty. Hypothesis 4: cognitive value of brand has a significant effect on brand loyalty. Table 1: Indices fitness comprehensive research model Fit index Statistics improved model Statistics prototype χ 2 χ2 =..70 / 1.,df =060 2 df./000./ 00. RMSEA 7 / / 760 SRMR 7 / / 760 NFI 7 /.. 7 /.. CFI 7 /.0 7 /.0 GFI 7 / 0. 7 / 07 AGFI 7 / 07 7 / 60 χ2 =.1.0 / 0.,df =07. Hoelter s Critical N 115 N (of sample)n= N (of sample)n= Proposal model: In total, according to the results of the test hypotheses and assumptions of the model proposed in the modified version can be modified research models and model proposed in accordance with Figure 2. R2 values indicate the amount of explained variance in this model is indigenous structures. Brand Impact coefficient Structure explained Trust brand Brand perceptual value Brand loyalty R 2 = % 70 Figure 4: The proposed research

10 103 Assessment and grading structures of research According to Table 4, brand perceived value and trust ", respectively, are the most influential factors on brand loyalty. Table 4: Ranking structures influencing customer loyalty Variety of impact Total Indirect Direct Factors affecting brand brand loyalty 7 / /.. Brand perceptual value 7 / /.0 Trust brand 7 / /.7 Brand image 7 / /.0 Brand reputation Conclusion The main hypothesis of the study was examine the effect of the strength of brand on consumer loyalty, according to the literature divided into four hypotheses these include the impact of brand trust, brand reputation, perceived value of the brand and brand image on consumer loyalty that ultimately tested every four sub hypotheses and two hypotheses based on the findings of the questionnaire and the analysis of them was confirmed. In other words, as predicted by the factors mentioned above for the reasons detailed in the questions of questionnaire reflected, has a positive effect on increase consumer loyalty. In fact, both the brand perceived value and trust have the greatest impact on consumer loyalty and two other factors not directly affect loyalty and the likely impact on the perception of an intermediary such as confidence in the brand loyalty will be affected. Consumers about the brand of their past experiences with a product and marketing plan for their business obtained information. They find that any brand needs to eliminate, and which does not meet their needs. The lives of consumers become more complex and people are faced with the problem of lack of time the ability of a brand to ease the power to make decisions and reduce risks, become more valuable and are the most influential factors on brand loyalty.

11 Perceived value Brand image Brand trust Brand reputation Survey Methodology, May-June Variable Index 1. The brand enjoys a good reputation. 2. The brand enjoys a good reputation compared to competitors. 3. In the past, the present and future of the brand value does not change. 4. The brand in terms of quality has good reputation. 5. In general, I believe that these are promises that customers will always have the answer. 6. These are much respected. 7. The above brands are successful. 8. The brand has a good reputation among colleagues and friends. 9. I am confident that the products that they offered. 10. I am sure that they will not deceive me. 11. It is reliable, because it basically is addressing customer concerns. 12. I now have confidence in what they do. 13. There is a high degree of honesty and integrity. 14. I feel that these customers are understood. 15. I feel that professional branding. 16. Following are the deeply satisfying to me. 17. These products are of high quality. 18. These products are characterized by better than their competitors. 19. Goods competitors are usually less valuable. 20. These are the traits that differentiate it from competitors is minimal. 21. This is one of the best brands in this field. 22. This use is consistent with my character. 23. I believe there is a good image in the minds of its customers. 24. Goods competitors are usually less valuable. 26. These are the products that we paid per rial valuable. 27. The experience of the demands and needs are met me. 28. Brand value in exchange for money is good. 29. These are a good buy. 30. The economic cost of the brand. 31. It is prized brand.

12 Loyalty Survey Methodology, May-June I would like to recommend the brand to others and my friends. 33. If other brands in this category are cheaper than the brand I prefer above. 34. I am only interested in buying the same brand. 35. When I need to buy my first priority is my brand. 36. I love this brand. 37. I have the chance again to buy, too. 38. Even if the most intimate friends offer another brand does not change my opinion. 39. I know a loyal customer to the brand. 40. I am proud to tell others of the brand purchase. 41. I bought this brand frequently do. 42. I encourage them to buy the brand is repeated. 43. I am interested in increasing the purchase of the brand in the coming year. References 1. Sarmad, Zohreh, Bazargan, Abbas, Hejazi Ellahe (2005), Research Methods in the Behavioral Sciences, Tehran, aware. 2. Heidar Ali, H. (2005). Structural equation modeling, Tehran; the publication 3. Backhaus, K. & S. Tikoo (2004), "Conceptualizing and Researching Employer Branding",Career Development International, Vol. 9, PP Baek, Tae Hyun & Karen white hill King (2009), "Exploring the Consequences of Brand Credibility in Services", Journal of Services Marketing, Vol. 25, PP Baumgarth, C. (2009), "Brand Orientation of Museums: Model and Empirical Results",Intjn Arts Manage, Vol. 11, No. 3, PP Berthon, R., Ewing, M. & L. Hah (2005), "Captivating Company Dimensions of Attractiveness in Employer Branding", International Journal of Advertising, Vol. 24, No. 2,PP Beverley Williams & Don Cooper (2004), The 30 Second Commute, Mc Graw Hill. 8. Bhat, Subodh & K. Reddy Serinivas (1998), "Symbolic and Functional Positioning of Brand, Journal of Consumer Marketing, Vol. 15, No. 1, PP Blankson, Charles and Stavros P.Kalafatis (1999), "Issues and Challenges in the Positioning of Service Brands", A review Journal of product and brand management, Vol.8, No. 2, PP

13 Brexendorf.Timoliver, Muhlmeier. Silke, Tomczak. Torsten & Martin Eisend (2009),"The impact of Sales Encounters on Brand Loyalty", Journal of Business Research. 11. Chen, S. (2010), Strategic Management of E-Business, John Wiley and Sons, NewYork,PP Diane Hallstead (1999), "These of Comparison Standards in Customer Satisfaction Research and Management", Journal of Marketing Theory and Practice. 13. Gil, R., Bravo, E., Fraj Andres & E. Martinez Salinas (2007), "Family as a Source of Consumer Based Brand Equity", Journal of product & Brand Management, Vol. 16, No. 3,PP Hatch, M. J. & M. Schultz (2001), "Are the Strategic Stars Aligned for Your Corporate Brand?", Harv Bus Rev, Vol. 79, No. 2, PP Hatch, M. J. & M. Schultz (2008), Taking Brand Initiative- how Companies can Align Strategy, Culture, and Identity through Corporate Branding, San Francisco: Jossey- Bass. 16. Kapferer, J. N. (2008), The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term, 4the ed, London, England: Kongan Page.

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