Assessment of Brand Loyalty Among Emerging High Networth Individuals on Luxury Segment of Cars
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Date
2024-10
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Abstract
Developing and sustaining loyal customer is the most crucial strategy of the
marketers to keep customers devoted to their brands and to keep the business growing and
competitive. Organizations exercise extreme caution in regards to brand loyalty, it could
serve as a barometer of brand relationship. The boom in country's wealthy class is
evolving in terms of lifestyle associated symbolic consumption. Attracting this high-
income category of customers and developing loyalty towards a brand is the most essential
factor for the manufacturers of high-end luxury products, especially the cars. It is
important to understand the influence of various hedonic and brand-related elements on
brand loyalty of luxury cars among this high-income segment.
The present study intend to analyse the effect of various factors of luxury cars
namely Brand image, Brand experience, Perceived Value, Product differentiation and
Brand positioning on brand loyalty, through the mediation effect of customer satisfaction
and to examine the moderating effect of brand trust between customer satisfaction and
loyalty, among a particular segment called Emerging High Networth Individuals.The
study is both descriptive and analytical in nature. The locale of the study is Ernakulam
district in the state of Kerala, India which is selected purposively as it is the luxury car hub
of Kerala. The sample size of the study is 380 and the questionnaire used to collect the
data, The rank analysis applied to identify the most preferred features of the luxury brand
car. Chi-Square test is applied to find the significant association between select variables.
Analysis of Variance and t test for testing the significant mean difference existed between
select constructs and S tructural Equation Modelling (SEM) to test the influence of
brand related attributes of luxury cars on brand loyalty of EHNI car owners with
mediating effect of customer satisfaction and the moderating effect of brand trust on brand
loyalty.
The results indicated that a significant positive correlation exist between perceived
value, brand image, brand experience and brand loyalty. But the effect of product
differentiation and brand positioning on brand loyalty is not statistically significant. The
study found a strong correlation between all brand related attributes and customer
satisfaction; and there is a significant correlation exists between customer satisfaction and
brand loyalty. The mediating effect of customer satisfaction between brand-related
attributes and brand loyalty were analysed and the test results indicate that all the
mediation effect in these paths is statistically significant. Brand Trust reinforces and
strengthen the relationship between Customer satisfaction and attitudinal loyalty
rather than behavioural loyalty. Even though hedonic aspects are significant in influencing
brand loyalty towards luxury cars, marketers should also concentrate on the technical
aspects and the quality of dealer service as it plays a momentous role in influencing brand
loyalty through customer satisfaction.
Keywords: Brand Image, Brand Experience, Perceived Value, Product
Differentiation, Brand Positioning, Brand Loyalty, Attitudinal Loyalty, Behavioural
Loyalty
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Commerce