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Millennials Brand Loyalty in The Fashion Industry & The Role of Brand Identity

Written by Ali Hassanzadeh, Tara Namdar

Paper category

Bachelor Thesis

Subject

Business Administration>General

Year

2018

Abstract

Bachelor Thesis: Brand Brand can be interpreted as a well-known name, term, logo, symbol or design, or even a combination of them, used to identify the seller’s product or service or distinguish it from competitors (Keller, 1993). Brand help The customer identifies the product or service and establishes a connection with it. From the customer's point of view, the brand can be described as all the customer's experience in the company (Ghodeswar, 2008). A brand succeeds when products, services, people or locations can be identified and enhanced so that buyers or users feel relevant and unique values ​​that meet their personal needs (Ghodeswar, 2008). 2.1.2 Brand identity Brand identity comes from within the company, that is, the company is responsible for making excellent products with unique features. By distinguishing products or services, companies seek to identify themselves (Marguiles, 1977). In addition, the brand identity is a dynamic impression that comes from many participants including the company and customers (He, Harris, Wang and Haider, 2016). The concept of brand identity includes all the factors that make a brand meaningful and unique (Black & Veloutsou, 2017). By establishing a solid, unique and meaningful brand identity, companies can create appeal in the market, add value to their products or services, and even set a premium (Ghodeswar, 2008). Brand identity strives to enhance the inner essence of the brand, not its surface. As a means to become or maintain a strong brand, it must be true and consistent, in sharp contrast with the customer’s image of the brand. In order to develop an effective brand identity company, it is necessary to distinguish their brand from their competitors, and to combine the brand identity with the customer's perception of the brand (Keller, 1993). Since different brand identities and customer brand images seem to have a negative impact on brand loyalty, customer interpretation of the brand is regarded as an important tool to improve brand identity. A key factor in building a successful brand is to understand how to develop a unique brand identity. In addition, to understand what the brand is associated with and what it represents, and to express the identity in an effective way (Aaker, 1996). The solutions to these problems are given from the customer's evaluation. Kapferer (2008) developed a brand identity model "brand identity prism", which takes into account the customer's brand image. The model explains the brand identity through six dimensions, which involves the sender and the receiver (receiver). The sender is considered a company, and the recipient (recipient) is considered a customer. In short, the model encompasses the influence of the company and customers, and explains the construction of the brand identity. The six dimensions of the model are: appearance, personality, culture, customer self-image, consumer reflection and relationship. 2.2 Brand loyalty Brand loyalty can be explained as a person's positive attitude and commitment to the brand (Jacoby & Kyner, 1973). Loyal people will buy the same brand repeatedly now and in the future, although there are other options on the market (Jacoby & Kyner, 1973). No matter how the competitors' behavior or environment changes, brand loyalists' commitment to the brand will not change (Oliver, 1999). Jacoby and Chestnut (1978) made one of the most famous and simple definitions of brand loyalty: "... the biased behavior of one or more alternative brands expressed by a decision-making unit over time Response, which is a function of psychological process. The basic principle of the statement lies in the cooperation of attitude and behavioral loyalty. According to Dick and Basu (1994), brand loyalty can be divided into attitude and behavioral components. Attitude component is a psychological process, in this In the process, the customer establishes a relationship with the product or service, and maintains consistency and loyalty to the brand. When this relationship is established, it will lead to behavioral loyalty (Bandyopadhyay & Martell, 2007). Behavioral loyalty is defined as the passage of time Customer behavioral responses to consistently repurchase the preferred product or service (Yoshida, Gordon, Nakazawa, Shibuya, 2018). The attitude component is the most important loyalty behavior, which will ensure lasting loyalty (Bandyopadhyay & Martell, 2007). However, this The research will focus on the two dimensions of brand loyalty. For many reasons, companies need brand loyalty. Oliver (1999) said that it is profitable for a company to have loyal customers because it is more costly to retain existing customers than to acquire new customers. Low. Lazarevic (2012) agrees and claims that companies benefit from loyal customers because they don’t have to spend so much for each customer when maintaining and marketing to them (Lazarevic, 2012). Evidence shows that organizations can protect loyal customers To increase their market share. Because these customers are loyal to the company and often buy their products, they also resist the marketing efforts of competitors (Su & Chang, 2018). It seems that brand loyalty is also part of the fashion industry, the industry Of brands face difficulties in maintaining brand loyalty among millennials. In a recent study, Su and Chang (2018) believes that college students, who are also regarded as millennials, prefer fast fashion brands, that is, low-cost brands. Clothing series. And these young customers prefer fast fashion because their income is low and the style of the fast fashion industry is constantly changing (Su & Chang 2018). On the other hand, there are also contradictory studies that show that the research believes that millennials Have fashion awareness. Read Less