Factors Affecting Brand Loyalty Towards Fermented Milk in Bangkok, Thailand

Topics: Marketing, Brand, Brand management Pages: 14 (4391 words) Published: June 1, 2011
FACTORS AFFECTING BRAND LOYALTY TOWARDS
FERMENTED MILK IN BANGKOK, THAILAND

by
Ornprapa Charoenphan
Graduate School of Business, Assumption University

Abstract

The purpose of this research is to examine the factors affecting brand loyalty towards fermented milk. This research explores and explains the relationship between family influence, brand awareness, brand associations, perceived quality and brand loyalty. The research is conducted with fermented milk consumers aged below 40 years old who are loyal to a brand and be working people in Silom, Sathorn and Surawong area. The primary data is gathered from 399 respondents. The result indicated that family influence has a positive relationship with brand awareness, brand associations and perceived quality. Brand awareness, brand associations and perceived quality have a positive relationship with brand loyalty. The most important factor that is affected to brand loyalty is brand associations which caused from family influence.

INTRODUCTION

In current situation, Thai consumers are more concerned with their health. The way of consuming has been changed as people get higher education and also the various choices of food. People concern more on the usefulness of products providing to their lives. As the result of this, we cannot deny one product that has been well- known in the food market for several years. Fermented milk is a nutritious food containing lactic acid bacteria like Lactobacillus which helps the process of digestion. Fermented milk is favorite food/drink of a lot of people who are concerned about nutritions. Therefore, there’s an intense competition in fermented milk market, leading to higher growth. Nevertheless, consumers are considered brands at first because brands can be defined by its name, price, product’s attribute, reputation and its history. Also, brand has been considered as a whole part of marketing strategy. In other words, brand can represent the information provided by the companies which aim to provide brand awareness, brand associations and make the consumers perceive the quality of the product. All of these may lead to repurchase of the same brand for several times which is known as brand loyalty. However, deeply-felt brand loyalty cannot be built by only marketing activities, but it can also be established from family. As Gil, Andres and Salinas (2007) stated that consumers get more information from their family than marketing activities which may establish from close relationship. Besides, Moor et al (2002) indicated that family has similarity to “lighting and passing the torch”. It means that family conveys general skills, attitudes and consumption behaviors to children. Family may also provide the knowledge of the brand to them when the family consumes the product at home. Moreover, Olsen (1993) and Fournier (1998) stated that brand may be related to family’s memories, which the family provides the information by using emotional meaning to explain. Then, the family has been considered as consumer-brand relationship; the family is a powerful influencer in consumers’ behavior. Shahh & Mittal (1997) and Feltham (1998) asserted that family is a close and reliable reference because family has previous experience or preceded trial and error, so consumers believe their parents more than others. In this study, the researcher focuses on the families who provide the information of brand to their families’ member which are the current fermented milk’s consumers by passing contact at home up to the stage. Also, brand loyalty is built in consumer’s mind through their families. This research was conducted with fermented milk company to study the factors affecting brand loyalty towards fermented milk in Bangkok, Thailand.

LITERATURE REVIEW

This research emphasizes on some variables that have an effect towards brand loyalty. This study applied the research model from Gil, Andres and Salinas, (2007). In previous...

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