This chapter presents the researchers proposal for the project which includes the reason for the study, purpose and who stands to benefit from it. The researcher identified a topic that is beneficial to the hospitality industry precisely the cake and confectionery outlets. 1.1 BACKGROUND TO THE STUDY
Branding is the use of a name, term, symbol or design or a combination of these identities of a product; it includes use of brand names, trademarks, and practically all other means of product identification (Kotler P, et al., 2003). However, brand is more complicated than a name or logo. It can also be a “set of expectation and perception that rose from the experience of the product or the organization” (Davide 2002).
Branding has become an increasingly important component of culture and the economy because it refers to how a corporation is perceived and it is the generally accepted image of what a company stands for. A brand is a name or trademark connected with a product or producer and it is a term that includes practically all means of identifying a product name term, sign, symbol, design or combination of them that identifies the goods or services of one seller or a group of sellers and differentiates them from those of competitors (Oliveira-Castro, et al, 2008). Brand is one of the variables that determine the value of the organization in competitive environment. Brand has effect on customers as it has become a source of decision making.
A preferential famous brand is not only attractive for customer to buy product, but also brings the behavior of repetitive purchase and reduce the behavior resulting from the price volatility (cadogan and foster, 2000). Customer displays different degrees of loyalty and commitment towards a product, service or brand (Kandampully and sunartanto2011). In general, loyalty takes place when customers buy a product repeatedly and holds a positive attitude towards the product. Cake is a form of bread or bread like food. In its modern forms, it is typically a sweet baked dessert. This project aims to survey on the different brand of cake available in Lagos metropolis (Ikeja and Surulere), to find out what cake brand customers patronize the most and factors affecting customer loyalty. 1.2 STATEMENT OF THE PROBLEM
Since branding has long been popular in different products. Some brands have become so powerful that they are used as generic terms for the product itself. For example consumers refer to “egg noodles” as “indomie”, because indomie is one brand name producing noodles.
Branding is one of the variables that determine the value of the organization in the competitive environment. Its choice by customer is determined by its function and its importance plays a critical role in the formation of customer preferences. Thus brand has become a source of purchasing or patronage decision-making. Brand affects the behavior of customer in relation to the repeated purchase or patronage process and affects his or her adherence to the brand that stems from the conviction of brand strength and influence.
In addition, brand creates relationship with the customer, whether a positive relationship by being loyal to the brand or negative relationship by changing the brand. This is the reason why this research seeks to find out factors affecting customer loyalty to those brands. 1.3 RESEARCH QUESTION
What are the factors affecting customer loyalty to a cake brand? 1.4 PURPOSE OF THE RESEARCH
The aim of this research is to survey on the different brand of cake product available in Lagos metropolis (Ikeja and Surulere) and factors affecting customer loyalty. This will be achieved through the following objectives:
1. Identify different cake brands.
2. To know the awareness level of these cake brands.
3. To identify the factors affecting customer loyalty to a cake brand. 4. To determine the role of brand trust as a marketing tool in building brand loyalty.
References: 1. Aaker, d. Kumar, v. & day, g(2007) Market Research(9th edition) new Jersey John Willey Limited.
2. Bryan & Jeffrey (2011), What Makes People Buy? Future New Inc.Word Press Admin
6. Ifidon .s. & ifidon, e (2007), basic principles of research methods,, Benin city, Nigeria. Goodness expresses communications.
7. Lai, A.W (1995), ‘consumer values, product benefits and customer value: a consumption behavior approach, in advances in consumer research volume 22. University of Wisconsin, Madison.
8. Lewis BR (1991), Service quality: an International comparison of bank customers’ expectations and perceptions. J. Mark. Manage. 7(1): 47- 62.
9. Pride and Ferrell, (2003). Marketing concept and strategies (5th edition) Bosto.
Please join StudyMode to read the full document