The Effect of the Relationship of Brand Trust and Brand Affect on Brand Performance: an Analysis from Brand Loyalty Perspective (a Case of Coffee Instant Product in Indonesia)

Topics: Brand, Brand management, Branding Pages: 17 (4699 words) Published: June 7, 2013
The Effect of the Relationship of Brand Trust and Brand Affect on Brand Performance: An Analysis from Brand Loyalty Perspective (A Case of Coffee Instant Product in Indonesia) Rizal Edy Halim Department of Management Faculty of Economics, University of Indonesia

Abstract Brand that manages to bring a meaningful impression on consumers are more likely to win a special attention. Value-added brands are also more likely to win a distinctive spot in consumers’ minds. In addition, brand could affect consumers’ brand affection and brand trust. Consumers attempt to choose the brand they want with the consideration of the value of purpose and pleasure (Batra & Athola, 1990), availability, uniqueness, quality (Sheth, 2001), etc. This research is conducted to discover the effect of the relationship of brand trust and brand affect toward brand performance mediated by purchase loyalty and attitudinal loyalty as units of consumer brand loyalty. This research uses one product category (instant coffee), consisting of four brands (Nescafe, Torabika, ABC, and Kapal Api). Keywords : Brand Affect, Brand Trust, Brand Loyalty

Electronic copy of this paper is available at: http://ssrn.com/abstract=925169

Introduction Brands act as a distinctive factor that distinguishes one product from the other. For example, consumers are no longer buying coffee but choosing brands in the market, i.e. Nescafe, Torabika, ABC, Kapal Api, etc. Consumer sensitivity is the sensitivity or perceptiveness of consumers towards an object (brand) that builds their pattern of behavior towards the object. Producers of the various instant coffee brands can provide a detailed explanation on the differences of the brands. Consumers see the differences in the package, logo, color, even the shape of fonts used by the brands. This is called consumer sensitivity. Therefore, it is very important for producers to manage their brand to make their products a success in the market. A highly, professionally managed brand will attract consumers, drive and stimulate them to buy, and even to buy repeatedly. Brands should be considered as a soul (Aaker ; 1991). This statement suggests that brand should not be viewed as product or service, but as an organization, person, or symbol that distinguishes them. Nevertheless, not every strong brand delivers brand loyalty. Popular brands sometimes bring damage as they can transform to generic product. For example, many people see Aqua 1 as identical to mineral water products, not as a brand. This brings a negative effect to Aqua as consumers fail to see the difference between the brand and the product. Additionally, they do not mind if they are offered other brands besides Aqua. Consequently, if Aqua does not want to loose its market, at least it should ensure the availability of its products. The brand actually makes the personification of the products or companies. This condition goes along with an old Latin saying “on est omen” (the name is the mark, identification or identity). The product brand forms or possesses identity or image and integrity of the product/company through a perception process within the very mind. In other words, the brand is related to how the potential consumer perceives the products’/services’ attribute through its brand. For examples Coke is not only known as a brand of soft drink inside the mind of the consumers, but also a promise of a good performance related with the values of refreshment, fun and good times. The brand is considered something which is very important to the company. The brand, which owns that extra value on the sight of the consumers, will be favored by the consumers and has its own place within the consumers’ mind. Another example is “Odol”. It is a tooth paste brand, which used to be produced by the Dutch but it can no longer be found in the market today. However, when people are buying or ordering tooth paste now in the present day, they still use “Odol” as the name of the tooth paste,...

References: Aaker David.A (1991), “Managing Brand Equity”, The Free Press, New York. ____________(1996), “ Buliding Strong Brands”, The Free Press, New York. ____________& Joachimsthaler Erich (2000), “Brand Leadership”, The Free Press, New York. Agung I.G.N (2002), “ Statisitika : Analisis Hubungan Kausal Berdasarkan Data Kategorik”, Cetakan kedua (Feb.2002), RajaGrafindo Persada, Jakarta. Assael Henry (1998),“Consumer Behavior and Marketing Action”, South-Western College Publishing, Ohio.
12
Aurifeille, Clerfeuille Fabrice, & Quester Pascale (2001), “Consumers Attitudinal Profiles: An Examination at the Congruence between Cognitive, Affective, and Conative Space”, Advanced in Consumer Research, Vol.28: 301-308. Bloemer, Jose.M.M (1998), “ Brand Choice Involvement And Commitment : Two Different Though Related Concepts”, European Advanced in Consumer Research, Vol.3 : 21-31. Bollen Kenneth.A (1989), “Structural Equation With Latent Variables”, John Wiley & Sons,Inc. Chaudhuri,Arjun & Holbrook, Morris B (2001), “The Chain Of Effect From Brand trust and Brand Affect To Brand performance : The Role Of Brand Loyalty”, Journal Of Marketing, 65 (April): 81-93. _______________(1999), ”The Effect Of Brand Attitudes And Brand Loyalty On Brand performance”, European Advanced in Consumer research, Vol.4: 276. _______________(1998), “Antecedents Of Brand Loyalty : The Role Of Perceived Risk”, European Advanced in Consumer Research, Vol.3 : 32. Delgado-Ballester (2001), “Brand trust in The Context of Customer Loyalty”, European Journal of Marketing, Vol.35: 1238-1258. Dhar, Ravi & Wertenbroch, Klaus (2000), “Consumer Choice Between Hedonic and Utilitarian Goods”, Journal Of Marketing Research, Vol.37 (February) : 60-71. Dholakia, Utpal M. (1997), “An Investigation Of Some Determinants Of Brand Commitment”, Advanced in Consumer Research, Vol.24: 381-387. Garbarino, Ellen & Johnson, Mark S. (1999), “The Different Roles Of Satisfaction, Trust, Commitment in Customer Relationship “, Journal Of Marketing, Vol.63 (April) : 70-87. Hair Joseph.P.Jr, Anderson Rolph.E, Tatham Ronald.L, & Black William.C (1998), “Multivariate Data Analysis”,5th ed, Prentice-Hall,Inc. New Jersey. Joreskog Karl & Sorbom Dag (1996),”Lisrel 8: Users Reference Guide”, SSI,Inc. Chicago. Kapferer Jean-Noel (1992), “Strategic Brand Management: New Approaches to Creating and Evaluating Brand Equity”, The Free Press, New York. Keller, Kevin Lane (1993), “Conceptualizing, Measuring, and Managing CustomerBased Brand Equity”, Journal of Marketing, 57 (January):1-22. _________________(2001), “ Building Customer-Based Brand Equity”, Marketing Management, (July-August) : 15-19. Knapp Duane.E (2000), “The Brand Mindset”, McGraw-Hill, New York. Knox Simon & Maklan Stan (1998), “Competing On Value: Bridging the Gap between Brand and Customer Value”, Financial Times Pitman Publishing, London. Lepla F.Joseph & Parker Lynn.M (1999), “Integrated Branding; Becoming Brand-Driven Through Companywide Action”, Qourum Books, Greenwood Publishing Group,Inc. McEnally & Chernatory (1999), “The Evolving Nature of Branding: Consumer and Managerial Considerations”, Journal of The Academy of Marketing Science, Vol.2. Oliver, Richard L. (1999), “Whence Customer Loyalty”, Journal Of Marketing, Vol.63 (Special Issue): 33-44.
13
Pearson Steward (1996),” Building Brands Directly: Creating Business Value from Customer Relationship”, Macmillan Business. Schiffman Leon.G & Kanuk Leslie Lazar (2000), “Consumer Behavior”, 7th edition, Prentice-Hall.Inc, New Jersey. Sheth, Jagdish.N (2001), “Competitive Advantage Through Customer Satisfaction”, Bombay Management Association Review: 13-25. Spangenberg, Eric R., Voss, Kevin E., and Crowley, Ayn E. (1997), “Measuring the Hedonic and Utilitarian Dimensions of Attitude: A Generally Applicable Scale”, Advanced in Consumer Research, Vol.24: 235-241. Szymanski, David M. & Henard, David H. (2001),” Customer Satisfaction: A MetaAnalysis Of The Empirical Evidence”, Journal Of The Academy of Marketing Science, Vol.29 (1):16-35.
14
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Brand Loyalty Essay
  • brand Essay
  • brand switching Essay
  • Brand Loyalty Essay
  • brand loyalty Essay
  • Brand Loyalty Essay
  • Brand Loyalty Essay
  • Brand Loyalty Essay

Become a StudyMode Member

Sign Up - It's Free
Awkward. | Miss Monochrome: The Animation 3 | Novelas Amar a muerte 1x30