CHAPTER ONE
INTRODUCTION
1.1. Background to the Study
In this contemporary age, one industry that is experiencing an aggressive competition in today global market is the laptop companies, mainly because there are numerous brands of laptops manufacturers which are been introduced and circulated in the market, such as Dell, Lenovo, LG, Acer, Toshiba, Apple, Hewlett Packard, Asus, Samsung, and so on. The features of these various laptop brands influence the customer preference in purchasing a laptop brand. The increasing rate of laptop use is of course a good opportunity for laptop companies. With an expanding market, laptop-producing companies compete with each other to market their products to capture the hearts of consumers. Brand preference has performed an indispensable task in customer choice of products if customers have preferred a specific brand and buys the product/service when presented to other products of the same type; this has been described as a brand preference, (Hellier, Geursen, Carr, & Rickard, 2016). A lot of literature on brand preference has focused on precursors of brand preference, (Tolba, 2017). However, a number of researchers have focused on the effect of brand preference, (Mousavi, Naami, & Iranpour, 2018). Besides, other scholars said that brand preference had a crucial antecedent of brand loyalty (Mousavi, S. M., Naami 2018; Chinomona, Mahlangu, & Pooe, 2015). Past studies confirmed that brand preference had a positive on brand loyalty, (Tolba, 2017; Chinomona, Mahlangu, & Pooe, 2015; Mousavi et al., 2018).
According to Chinomona, Mahlangu, & Pooe. (2015) brand image can either be assessed as positive or negative by customers. These assessments both come together to the form part of the brand image. A strong and positive brand image makes customers feel confident of their brand choice. It makes customers feel more relaxed and satisfied with their purchase (Muniz & O’Guinn, 2015). Brand image refers to the way through which consumers view brands; it can be defined as a unique package of associations within the minds of target customers (Asongu 2015). The image of a brand shows what the brand stands for and the way certain brands are positioned in the market, (Pappu & Quester 2016).
According to Tolba (2017) brand image is not just a mental image it is able to convey the emotional value. It can highlight a firm’s mission and vision to all. The major components of positive brand image are its unique logo which is the reflection of firms’ image, motto which describes a firm’s business and the brand identity which supports key values (Stocchi, Driesener & Nnycz 2015). Quality perceptions make the customer feel happier than if the product is purchased from an unfamiliar supplier (Maharaj & Parumasur 2016). The image of the brand plays a key role in building loyalty towards brands. From brand image, customers can build and develop their own perceptions of the firm and the firm’s relationships to society as positive or negative. In gaining information on the brand image, customers can retain confidence, action and attitude towards the purchase of a brand. Customer loyalty increases faster through favorable brand image (Nguyen, Miller &Kenneth, 2016)
Brand loyalty is when a customer is in a position of making recurring buy of a product or service in the same category selection (Crain, 2015). Customers can make the repeat purchase of the same brand, and are able to speak highly of the brand values, features, advantages and benefits. Customers who are brand loyal have a strong belief in sense that their choice is always better than other customers (Severi & Ling 2016). Thus, brand loyalty is not merely with reference to a recurring buy, but as well about the perceptions customers hold of a brand and how that win over their beliefs and eventually their behaviour towards a brand. Brand loyalty is the choice of a person to buy a particular brand in a product category. It takes place when a person or consumer view that the brand offers the right product features, images or level of quality at the right price (Aaker, 2010). This view may turn into a repeat purchase leading in loyalty. Consequently, brand loyalty is an individual’s preference and attachment to a brand. It may happen as a result of a long history of using a product and trust that has developed as a reward of the long usage (Aaker, 2010).
Antouridis and Trivellas (2015) claimed that, brand loyalty has both attitudinal and behavioral elements, and it is ascertained by the strength of the relationship between relative attitude and repeat purchase. Dick and Basu (2016) developed a conceptual framework of brand loyalty based on relative attitude and repeated purchased. According to Dick and Basu (2016), attitude used to assess an object/brand position on a continuum favorable, so brand attitude range from high to low. An individual customer may have a positive or negative attitude toward a brand; however in an unusual situation, customers may shop at a brand for which they have negative attitude (Dick & Basu, 2016). Furthermore, Yoo and Donthun (2017) see brand loyalty as the tendency to be loyal to a brand and this is shown by the consumer’s intention to buy the brand as a matter of decision. Aaker (2006) stated that, the brand loyalty of the customer base is often the core of brand equity. If customers are indifferent to the brand convenience with little concern to the brand name, there is likely little equity. If on the other hand, they continue to buy the brand even in the face of competitions with superior features, price, and convenience, substantial value exists in the brand and perhaps in its symbol and slogan (Aaker, 2006).
In this epoch of mounting competition, every organisation tries to achieve customer satisfaction in the competitive environment which is seen to be key elements for all businesses (Hunt, 2015). For the best customer satisfaction firm, it has assured the safety of its customer simply because every customer wants safety. Customer satisfaction has a positive influence on the customer repurchase intention (Anderson, Fornell, & Mazvancheryl, 2016). Customer always becomes loyal and satisfied to a company that makes the product according to customer requirements. A number of companies that are well established bear losses in order to develop and enhance their customer satisfaction and loyalty.
1.2. Statement of Research Problems
Without doubt, the most vital elements that influence customers’ preference of laptop brands are the creative attributes or features of the laptop such as the design quality, battery duration, weight, and other interesting features. Consumers view a brand as an important part of a product, and branding can add value to a product. Brands have meaning well beyond a product's physical attributes, (Kotler & Armstrong, 2015). Therefore, brand enables a customer to differentiate a company or manufacturer from the other. This identification as well serves to differentiate it from the products offered by the competitor companies.
According to Govender (2017), there are several factors which drive or wear out brand loyalty of customers. For instance, if a customer is currently on a brand for too long, and is looking for other alternatives, he/she might want to switch to another laptop brands. This behavior of brand switching is significant for laptop brand in Nigeria and the world in general. If a laptop brand is losing out on potential future growth, for this reason the brand of the laptop will be affected. As a result, there is the need for laptop brands to seek and develop new strategies that will increase brand loyalty and encourage customers’ satisfaction (Keaveney & Parthasarathy 2016). These problems often result in the consumer switching brands.
Although, brand loyalty has the capacity to increase the popularity of a brand and as well enhance its market share, and on the other hand, it equally has the capacity to mar their chances if customers perceive a brand to be of bad products. Quite a number of studies have been examined by various authors in different countries on brand loyalty and brand image. However, despite the importance of brand image and loyalty, studies are lacking to show the degree to which it influences customer preference for laptop brands. As a result, there exists a gap in this area. Therefore, this study is examined to understand the laptop brand preference, perception of brand image and brand loyalty among working class female in corporate organisations in Ikeja local government area, Lagos State
1.3. Research Objectives
The main objective of the study is to evaluate laptop brand preference, perception of brand image and brand loyalty among working class female in corporate organisations in Ikeja local government area, Lagos State. The specific objectives are to;
- find out brand preference for laptops of working class females in corporate organisations in Ikeja local government, Lagos State
- ascertain the perception of brand image of laptops by working class females in corporate organisations in Ikeja local government, Lagos State
- determine brand loyalty to laptops among working class females in corporate organisations in Ikeja local government, Lagos State.
1.4. Research Questions
Based on the above research objectives, the following research questions will be poised.
- What is the impact of brand preference for laptops on the loyalty of working class females in corporate organisations in Ikeja local government, Lagos State?
- To what extent of the perception of brand image of laptops on the retention of working class females in corporate organisations in Ikeja local government, Lagos State?
- What is the perception of brand influencing the purchasing behaviour of working class females in corporate organisations in Ikeja local government, Lagos State?
1.5. Research Hypotheses
- i. Brand preference of laptop has no significance impact on the brand loyalty of working class females in corporate organisations in Ikeja local government, Lagos State.
- ii. Perception of brand image has no influence on the brand loyalty of working class females in corporate organisations in Ikeja local government, Lagos State
- iii. Brand loyalty has no influence on the purchasing behaviour of working class females in corporate organisations in Ikeja local government, Lagos State.
1.6. Significance of the Study
The study deals on laptop brand preference, perception of brand image and brand loyalty among working class female in corporate organisations in Ikeja local government area, Lagos State. It is hoped that, this study will help the management of the laptop brands in Nigeria to focus on innovation factors that will have major influence on not only organisation’s performance but as well as customers’ satisfaction that will enhance loyalty.
Furthermore, this study will help organisation’s management in Nigeria to practice and implement innovation where necessary in order to improve their customers’ satisfaction which will in the end enhance their loyalty to the brand.
Besides, this study will be helpful to top management of various organisations to make appropriate decisions as regard to the kind of attributes that will enhance customers’ loyalty to the brand.
In addition, the result of this study will serve as an aid for future research in this area; moreover, this study will be very helpful as a source of secondary data for reviewing the literature
Furthermore, the outcome of this study will provide information for women on the laptop attributes that will influence their purchasing decision.
The results of the study are as well expected to contribute to closing the gap in literature with respect to understanding the impact of brand image and loyalty on customers’ buying preference of laptop brands in Nigeria.
1.7. Scope of the Study
The study focused on the laptop brand preference, perception of brand image and brand loyalty among working class female in corporate organisations in Ikeja local government area, Lagos State. The study is restrained to working class female in Ikeja local government area in Lagos State, Nigeria. The reason for the choice of female working class in corporate organisation is because, they are open to the use of laptop in their place of work, and as a result, studying what influence their preference for a laptop brand will be crucial to the study. However, the study is limited some sub-variables which are brand preference, brand loyalty, and brand image. In order to make the research manageable, the geographical representation of the study will be confined to Ikeja Local Government, Lagos State.
1.8. Definition of Operational Term
Brand Perception: is the availability of customers having awareness of a brand or product in the market. A 15 point scale will be used to measure brand perception, which are; positive perception = 0-5, negative perception = 6-10, no perception 11-15.
Brand Loyalty: is an individual’s choice to purchase a particular brand in a product category. A 15 point scale will be used to measure brand loyalty, which are; highly loyal 0-5, moderately loyal 6-10, poor loyal 11-15
Purchasing Behaviour: is defined as the concept to elucidate the choice and purchasing behaviors of individuals or consumers in a particular time. A 10 point scale will be used to measure buying behaviour, which are; positive buying behaviour 0-5, and negative buying behaviour 6-10
Brand Image: is the way in which consumers view brands. A 10 point scale will be used to measure brand image, which are; positive image = 0-5, negative image = 6-10
Customer Retention: is the activity that a selling organisation undertakes so as to reduce customer defections. A 15 point scale will be used to measure customer retention, which are; high product/service quality 0-5, good customer relationship 6-10, and good working atmosphere 11-15.
