The study examined brand personality and
customer loyalty in Babcock University using of indomie instant noodles
of de united foods as a case.
More specifically, the study sought to assess the brand personality and customer loyalty in Babcock University.
The study consist of consumers in
Babcock University, illishan, the sample frame of the study was made up
of consumers of of indomie instant noodles in Babcock University,
The simple random sampling technique
method was use to pick the respondents and 400 consumers in Babcock
University, illishan were selected, and a well- developed questionnaire
was designed to elicit information from the respondents.
The data collected were analyzed using
the descriptive statistics technique and the linear regression analysis
was adopted to test the stated hypotheses at .05 significance level.
Result from the study indicated that
there is Brand sincerity has significant effect on Customer Retention,
There is significant relationship between brand competence and customer
repurchase intention, Brand sophistication has significant impact on
Base on this, the study advised that
Indomie instant noodles of De united foods should stimulate its
customers’ loyalty by considering the personality of its different
customer groups via providing a distinct brand personality, major
customers should be recognized and their different personalities should
be explored through questionnaire, interview, and qualitative research
methods, and a determination should be made as to which brand
personality they prefer, The intended personality that is involved
exactly in customers’ attitudes and beliefs should be designed at the
phase of new product development.
1.1 Background to the Study
Personality is perceived as a basic
factor in building strong relationship among human beings. By this they
are sure of winning each other’s trust and affection through activities
that fall in line with their personalities. This is also true of product
and brand offerings which should characterize personality that appeals
to consumers in order to take a decision to purchase them (Nofle &
Shaver, 2006; Pollalis, 2011). The concept of brand personality has
reached the level of great importance when it comes to successful brand
management. With the intention to satisfy and meet customer’s needs,
firms decide to position their brands with unique personalities (Weis
& Huber, 2000). Looking at the field of relational marketing, brand
personality stems up and is perceived as a set of human characteristics
associated or attributed to a brand (Aaker, 2004).
The idea of brand personality offers a
major advantage to firms as they are able to apply their personality if
positive to their brands so as to win over the heart of their customers
from competitors. This then gives insight into the study of brand
personality as a veritable tool to improving the stand of firms in the
mind of their customers (Gouteron, 2008)). An important observation that
needs to be made is the fact that brand personality helps a firm to
exert action on consumer behaviour. This implies that brand personality
is used as a vehicle to express functional benefits of a brand, it also
serves as a reflective symbol of the consumer and as a medium to
establish consumer-brand relationship (Ahmad & Thyargaraj, 2015).
Brand personality creates a long-term
relationship between the customer and the brand on the one hand and
distinguishes it from other existing brands on the other hand (Kumar,
Lemon, & Parasuraman, 2006). Brand personality is a potential
marketing strategy to increase customers' loyalty towards a specific
brand. Many customers are interested in a brand due to the similarity
between their own personality and the brand. Brand personality is
effective on sales volume and customer loyalty improvement (Lin &
Huang, 2012; Vallete et al., 2011).
Brand personality has provided a
strategic tool for executive marketing managers through which the
relationship between the brand and consumers will be reinforced (Achouri
& Bouslama, 2010), because consumers often intend to choose a brand
that is closer to them in terms of personality and shows their own
personality (Park &John, 2011). Thus, strong emotional linkages will
be created among the customers and the brand that will finally lead to
the customer’s commitment and loyalty to that brand (Arora & Stoner,
2009). A brand which does not have a clear and strong identity is like a
ship which has lost its path (Aaker et al., 2004).
Customer loyalty is becoming more
complex to achieve as a result of increased competition. Companies are
trying hard to keep their customers loyal and avoid means of making room
for competitors to grab these customers (Abubakar, 2014). Businesses
require customers to be particularly loyal to their brand of products
because it contributes greatly in reducing costs thus improving brand as
well as company’s profitability (Tiele &Mackay, 2001). For instance
a company will gain profit when loyal customers provide free
advertisement through positive word of mouth. Satisfied and happy
customers recommend stores, products or services to their family and
friends. Hadiza (2014) revealed that each satisfied customers tells nine
or ten people about their happy experiences and 13% of dissatisfied
customers tell more than 20 people about how bad the company or products
Customers’ loyalty is important for the
continued growth of every industry. The concepts of brand personality
and customer loyalty have been in existence for years and many
purposeful researches have been carried out in this area. Earlier
contributions to the study of brand identity and customer loyalty
include the works of Behabadi (2009); Christian (2000); Gee, Coates and
Nichadsen, (2008); Geuens, Maggre, Weifjfers, Bert, Bert, Wulf and
Kristof (2009). This area is given attention by researchers and scholars
alike because of its continued relevance and centrality in the success
of every firm. To corroborate this assertion, Holliday, Sue, Kuenzei and
Sven (2008) asserted that a business is as strong as its unhindered
customers, as loyal customers is the centre piece of every business that
is hoping to do well.
Consumer loyalty is a behaviour of a
consumer in which they show willingness to repurchase from a company and
continue relationships with that company in their future purchases.
Customer loyalty is the key factor under consideration of each and every
firm (Vesel & Zabkar, 2009). Dick and Basu (1994) brought out the
idea of relative attitudes while defining various forms of loyalty
depicted below. They described loyalty as the strength of the
relationship between a customer's relative attitude and repeat patronage
and four dimensions had been identified: true loyalty, latent loyalty,
spurious loyalty and no loyalty. The perception of the customers about a
brand is very important, therefore organisations should deliver a
consistent brand experiences that interact or connect with consumers and
long term communication with the customers to enable customer loyalty.
This study focuses therefore on the
probable relationship between brand personality and customer loyalty
using De- United Nigeria makers of Indomie instant noodles.
1.2 Statement of Problem
In Nigeria however and especially in the
FMCG sector, there is the problem of poor brand identity, inadequate
customer satisfaction, poor network service, poor coverage, high tariff
charges among others. Most brands have poor personality, sincerity in
the sense that the products don’t actually perform what they portray,
These problems have indeed led to
frequent brand switching behaviour among customers in the industry.
Problems arising out of poor brand personality management can be poor
patronage from customers, poor customer mapping to determine what they
want as a result brand loyalty and customer patronage will erode
(Baines, 2013) These problems combine together to tarnish the image and
good will of the organization in relation to their customers, hence the
fall in the desired level of performance (Baines, 2013). These problems
therefore become issues of concern in considering the effective or
effectual performance of the organization. It is against this premise
that this study wants to find out the effects that product branding will
have on organizational performance using De-United Foods Industry Ltd.
1.3 Objectives of the Study
The main objective of this study is to
evaluate the impact of brand personality on customer loyalty using De
United foods industry as a case study. The specific objective however
will be to:
1 find out if brand sincerity has an effect on customer retention
2 Examine the relationship between brand competence and customer repurchase intention.
3 Assess how brand sophistication has impacted on customer advocacy.
1.4 Research Questions
The study will be able to provide answers that would be linked to the following questions
1 What is the effect of brand sincerity on customer retention?
2 What is the relationship between brand competence and customer repurchase intention?
3 What impact does brand sophistication have on customer advocacy?
1.5 Research Hypotheses
H0: brand sincerity has no significant impact on customer retention
H0: There is no significant relationship between brand competence and customer repurchase intention.
H0: Brand sophistication has no significant impact on customer advocacy
1.6 Operationalization of research variables.
Where Y= Customer loyalty
X= Brand personality
Therefore X= (x1, x2, x3)
Y = (y1, y2, y3)
Then we have:
y1 = customer retention
y2 = customer repurchase intention
y3 = customer advocacy
Functionally we have
Statistically or regressionally, we have
y1 = ……………………. (1)
y2= …………………….. (2)
y3= …………………….. (3)
Where: The constant of the equation
The coefficient of the independent variable
The stochastic value, error term or values that account for change but are not part of the survey at present.
X= the independent variables
Y= the dependent variable
1.7 Scope of the study
The study will focus on the relationship
between brand personality and customer loyalty and how the relationship
will be affected by some other variables. The study would involve the
Fast Moving Consumer goods sector in Nigeria and use of De United Foods
makers of Indomie Instant Noodles as a case study. The study will cover
the customers based in Ogun state, Ilishan Remo, Nigeria. The population
for the study are Babcock university students of business
administration and marketing, accounting and anatomy department and
would serves as our target population. The study would also include a
simple random sampling technique, and while data will be analysed using
correlation and regression tools.
1.8 Significance of the study
On completion of the study, it’s meant
to examine the impact of brand personality on customer loyalty in
manufacturing sector in Nigeria.
The study would help give a better
understanding to individuals on brand personality as an important factor
to customer loyalty. It would also to give an insight on why companies
do have a competitive edge than others because of the concept of brand
personality. To the society at large, the influence of this study would
led to an improved quality satisfaction and experience of the brand by
the individuals, through the quality of the product been produced and
add to economic development of Nigeria.
The study would help industries to be
able to establish a successful brand personality in order to create a
successful brand strategies which will lead to brand equity which
enables customers purchase, re-purchase and be loyal to that brand, also
it will help with clarity in communication and marketing activities or
programs necessary to create awareness. The study would help to improve
the management of Indomie Instant Noodles (a product of De- United foods
industries limited) in Nigeria, to be able to understand the concept of
brand personality that helps to give the company a stand in the market
over other competitors and lead to them having long term customers which
involve in customer loyalty. It would also be seen as a way to have
competitive edge over other competitors in the same line of industry to
Indomie Instant Noodles, utilizing the brand personality dimensions.
In all the study would help the
government understanding the issues concerning the manufacturing sector,
and how it can be solved. For the manufacturing sector to be more
utilized to help in economic growth of the country, drift the attention
from the agricultural and Oil sectors. The study would help future
researchers to have a wide understanding of brand personality concept,
it importance’s, merit and demerit and how its cab be applied in any
industry. Gap would be identified by further researchers. It severs as a
guideline for researchers who wishes to study on brand personality and
customer satisfaction and its application.
1.9 Definition of operational terms
Brand personality: human
traits or characteristics associated with a specific brand name. Common
characteristics represented include uniqueness, sincerity, and
competence. Brand personalities gives consumers something with which
they can relate, effectively increasing brand awareness and popularity.
Customer loyalty: The fact of a customer buying products or services from the same company over a long period of time.
Sincerity: is a mix of seriousness and honesty, it is the quality or state of being sincere; honesty, genuineness, good faith.
ability to do something successfully or efficiently. The quality of
being competent; adequacy, possession of required skill, knowledge,
capacity. A cluster or related abilities, commitments, knowledge, and
skills that enable a person (or an organization) to act effectively in a
job or situation.
involve having a good understanding of the way people behave and or/ a
good knowledge of culture and fashion. A person character, ideas, tastes
or ways as the result of education, worldly experience.
Customer retention: it refers to the ability of a company or a product to retain its customer over some specified period.
Customer repurchase intention: deals with the customer’s decision to engage in future activities or in future buying of a company’s product.
Customer advocacy: is a specialized form of customer service in which companies focus on what is best for the customer.