Effect Brand Value Commitment On Consumer Brand Loyalty Of Indomie Noodles

Abstract

Business practice shows that brand in essence is a kind of "commitment" which creates value for stakeholders and can get value from it. At present, most researches explore the consumption psychology and behavior from the view of brand loyal (or purchase intention) and pay the less attention to the brand value commitment. Even in the few related studies, they are qualitative ones. Therefore, by virtue of the Organization Commitment Theory and Commitment Foci, the aim of this study was to examine the effect Brand Value Commitment on Consumer brand loyalty of indomie instant noodles. This study focused on the dimensions of attitude commitment which includes; affective commitment, quality commitment, economic commitment and relationship commitment. To meet this aim, a qualitative methodology was designed to provide an insider’s perspective on how loyal the consumers are towards the product. The research design for this study was survey research design. The major source of data was Primary data which was collected using closed-ended questionnaires. A response was measured on five-point Likert scale. Data collected was analyzed using regression analysis. The result of the analysis showed that Affective commitment has a significant effect on consumer brand loyalty, brand quality commitment has a significant effect on consumer brand loyalty, Economic commitment has a significant effect on consumer brand loyalty and relationship commitment has a significant effect on consumer brand loyalty. The researcher concluded that brand quality commitment can affect consumer brand loyalty and therefore recommended that managements should try in satisfying consumers’ value requirement and expectation. Consumers fix their brand perception (confidence, identification, satisfaction and loyalty) by how satisfied they felt on the brand, which have the impact on their continued support, participation, cooperation and consuming behavior. Meanwhile, consumers’ word-of-month advertising will influence other consumers and their behavior. Thus, it is much important to set up the brand value commitment, internalize consumers’ knowledge, thought and information to the organizational resource and strength the consumers’ loyalty and behavior intention.

TABLE OF CONTENT

Title page ﾿ i

Certification ﾿ ii

Declaration ﾿ iii

Dedication ﾿ iv

Acknowledgement ﾿ v

Table of content ﾿ vi

List of tables ﾿ ix

List of figures ﾿ x

Abstract ﾿ xi

CHAPTER ONE: INTRODUCTION ﾿

1.1 ﾿ Background of the study ﾿ 1

1.2 ﾿ Statement of Problem ﾿ 3

1.3 ﾿ Objectives of the study ﾿ 4

1.4 ﾿ Research question ﾿ 4

1.5 ﾿ Research hypotheses ﾿ 4

1.6 ﾿ significance of the study ﾿ 5

1.7 ﾿ Scope of the study ﾿ 5

CHAPTER TWO: LITERATURE REVIEW

2.1 Concept of Brand Commitment ﾿ 6

2.2 Brand Identity. ﾿ 6

2.3 Brand Image ﾿ 9

2.4 Brand Personality ﾿ 12

2.5 Brand Positioning ﾿ 13 

2.6 Brand Awareness                  ﾿ 14                           

2.7 Consumer Brand Loyalty  ﾿ 16                     

2.8 Conceptual Frame Work ﾿ 18            

2.8.1 Affective Commitment and Consumer Buying Behavior ﾿ 19    

2.8.2 Relationship Commitment and Consumer Buying Behavior ﾿ 20 

2.8.3 Quality commitment and Consumer Buying Behavior ﾿ 23 

2.8.4 Economic commitment and Consumer Buying Behavior ﾿ 26                           

2.9 Theoretical Review ﾿ 28                   

2.10 Empirical Framework ﾿ 29

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design ﾿ 33                

3.2 Area of Study ﾿ 33                      

3.3 Population of The Study ﾿ 35                       

3.4 sample size and sampling technique ﾿ 35                               

3.5 Source of data ﾿ 36                    

 3.6 Method of Data Collection ﾿ 36               

3.7 Method of Data Analysis  ﾿ 37                

3.8 Validity and reliability ﾿ 37                

3.9 Model Specification ﾿ 38                         

3.10 Decision Rule ﾿ 38

CHAPTER FOUR: DATA ANALYSIS, RESULTS AND DISCUSSIONS

4.1 Introduction ﾿ 39

4.2 Descriptive statistics of Response Rate ﾿ 39

4.3 Demographic Profile of the respondents ﾿ 39

4.4 Hypothesis Tests ﾿ 42

4.5 Discussion of Findings ﾿ 47

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION 

5.1 Summary ﾿ 52

5.2 Conclusion ﾿ 52

5.3 Recommendation ﾿ 53                         

5.4 Limitations and Future Research ﾿ 54     

Reference ﾿ 55          

APPENDIX 1: questionnaire  ﾿ ﾿