BRAND LOYALTY OF OISHI GREEN TEA

A CASE STUDY OF THE FACTORS THAT IMPACT ON CUSTOMER LOYALTY OF

OISHI GREEN TEA

Present by Thitiporn T. ID 512-9170

Introduction

• Researchers found that defines brand loyalty as consumer behavior who has repeated purchasing. Consumer will not change their mind to others although there are resonaably substituteable selections (Schultz, 2005).

• Solman (1994) indicated that purchase decision based on loyalty may become simplified and even habitual in nature and he further supports the assertion that this may be a result of satisfaction with the current brands.

Research Objective

1. To identify the relationship between brand image and brand loyalty.

2. To study the relationship between trust and brand loyalty.3. To find out the relationship between customer satisfaction and

brand loyalty.4. To evaluate how brand reputation impact to brand loyalty .5. To analyze the relationship between perceived quality and trust and

how they impact to brand loyalty .6. To measure the customer satisfaction have affected to brand

loyalty7. To identify customer satisfaction affect to brand reputation .8. To study the relationship between perceived quality and brand

reputation and how they impact to brand loyalty .

• Focused only the one brand of green tea beverage. • Focused on Oishi green tea buyer who live in Bangkok and

consumers in the period of study only .• The respondents who aged below 40 years old both male and

female.• The sample size only 150 samples. • Researcher focus only 5 factor which can effecting to brand

loyalty.

Limitations of Research

Theoretical Framework

Source : Fred Selnes (1993), “An Examination of the Effect of Product Performance on Brand Reputation, Satisfaction and Loyalty”, European Journal of Marketing, Vol.27, No.9, pp.19-35

Model of the relationship between performance quality, brand reputation, satisfaction and loyalty.

Model of the relationship between satisfaction, value, resistance to change, affect, trust, brand equity, behavior loyalty and attitudinal loyalty

Source: Steven A. Taylor, Kevin Celuch and Stephen Goodwin(2004), “ The importance of brand equity to customer loyalty”, Journal of Product & Brand Management Vol.13, No.4, pp. 217-227

Source: Rio, A.B., Vazquez, R. and Iglesias, V. (2001), “The role of the brand name in obtaining differential advantages”, Journal of Product & Brand Management, Vol.10, No. 7,pp. 452-65.

Model of the relationship between store name, perceived quality, satisfaction and loyalty

Source : Jean Donio’, Paola Massari and Giuseppina Passiante (2006),” Customer satisfaction and loyalty in a digital environment: an empirical test”, Journal of Consumer Marketing, Vol.23, No.7, pp. 445–457.

Model of act of purchase, customer satisfaction, customer trust, customer commitment and customer loyalty

Source : Andres Kuusik and Urmas Varblane (2009), “How to avoid customers leaving: the case of the Estonian telecommunication industry”, Baltic Journal of Management, Vol.4, No. 1, pp. 66-79

Model of the relationship between satisfaction, image, trustworthiness, importance of relationship and loyalty

Conceptual Framework

H9

H4

H3

H2

H8

H7

H6 H5

H1

• H1o: There is no relationship between perceived quality and brand loyaltyH1a: There is a relationship between perceived quality and brand loyalty

• H2o: There is no relationship between brand image and brand loyaltyH2a: There is a relationship between brand image and brand loyalty

• H3o: There is no relationship between trust and brand loyaltyH3a: There is a relationship between trust and brand loyalty

• H4o: There is no relationship between customer satisfaction and brand loyaltyH4a: There is a relationship between customer satisfaction and brand loyalty

• H5o: There is no relationship between brand reputation and brand loyalty

H5a: There is a relationship between brand reputation and brand loyalty

Research Hypotheses

Research Hypotheses• H6o: There is no relationship between perceived quality and customer

satisfactionH6a: There is a relationship between perceived quality and customer satisfaction

• H7o: There is no relationship between perceived quality and brand reputationH7a: There is a relationship between perceived quality and brand reputation

• H8o: There is no relationship between customer satisfaction and trust

Ha: There is a relationship between customer satisfaction and trust • H9o: There is no relationship between customer satisfaction and brand

reputationH9a: There is a relationship between customer satisfaction and brand reputation

Research Methodology1. Research Method

• Research Design: Survey method by using questionnaire• Research Method Used : Descriptive research

2. Respondents and sampling procedures

• Target population : Consuming Oishi green tea, male and female, aged below 40 years and live within Bangkok

• Sample size : 150 respondents• Sampling procedure :

• Sample random sampling : 6 area are Phathunwan, Ladprao, Saunlung, Bangna, Jomthong and Talingchan.

• Quota Sampling • Convenience sampling

Research Methodology

3. Pre-test (Reliability test of questionnaire) : Cronbach’s Alpha coefficients level.

4. Collection of data : questionnaires, previous related research

5. Statistical Treatments of Data : Cronbrach’s reliability, Independent t-test,

ANOVA Test, Multiple Regression and Pearson’s Correlation

Statistic Treatment of Data

H9

H4

H3

H2

H8

H7

H6 H5

H1

Multiple Regression

Pearson’s Correlation

Summary of Respondents’ demographic data

Factor Majority No. of Respondent

Percentage

Gender Female 95 63.3

Age 20-30 yrs 101 67.3

Education level Undergraduate 117 78.0

Occupation Private Company 128 85.3

Income Level 25,000-50,000 Bht 70 46.7

Summary of Reliability Statistics

Variable Alpha test No. of question No. of Item

Brand Image 0.657 150 3

Trust 0.733 150 3

Customer

Satisfaction

0.845 150 3

Brand Reputation 0.631 150 3

Perceived Quality 0.743 150 3

Brand Loyalty 0.679 150 5

Cronbach’s Alpha No. of Item

.901 21

The analysis of brand loyalty when based on gender by using Independent T- test.

• From table, the independent t-test indicates that the significant is equal .185 which greater than 0.05 (.185>0.05). It show that equal variance assumed.

• The significance (2-tailed test) is equal 0.266 which greater than 0.05 (0.266>0.05). It means that null hypothesis (Ho) was failed to reject.

• Therefore, there is no significance in brand loyalty between male and female customers at the 0.05 significant level.

The analysis brand loyalty when segmented by occupation by using analysis of variance (ANOVA)

• The result show that the significant at 0.772 is more than 0.05 (0.772>0.05) which mean that the null hypothesis (Ho) was failed to reject.

• There is no statistical significant difference in brand loyalty when determined by occupation at 0.05 significance level.

The analysis brand loyalty when segmented by income level by using analysis of variance (ANOVA)

•The result show that the significant at 0.677 is more than 0.05 (0.672>0.05) which mean that the null hypothesis (Ho) was failed to reject.

•There is no statistical significant difference in brand loyalty when determined by income level at 0.05 significance level.

From table show that the coefficient of determination (R2) of .694 mean 69.4% of observed variability in independent variable impact on customer loyalty of Oishi green tea or directly predictable from the variability in independent variable.

Hypotheses Testing by using Multiple Regression

Hypotheses Testing

•From the table shows that the significant value of F statistic is 0.00 which less than 0.05 (.000<.05), therefore, the null hypothesis is rejected.

•Thus, it can be concluded that at least one independent variable impact to customer loyalty.

The coefficient of multiple regression analysis of the factors that impact on customer loyalty of Oishi green tea

If significant level greater than 0.05 (Sig.>0.05), the null hypothesis is failed to reject. If significant level less than 0.05 (Sig.<0.05), the null hypothesis is reject

Summary of Hypothesis Testing (H1o – H2o)

Hypothesis Significant level Result Meaning

H1o .345 Accept Ho There is no relationship between

perceived quality and brand loyalty

H2o .009 Reject Ho There is a relationship between brand

image and brand loyalty

H3o .479 Accept Ho There is no relationship between trust

and brand loyalty

H4o .000 Reject Ho There is a relationship between

customer satisfaction and brand

loyalty

H5o .581 Accept Ho There is no relationship between

brand reputation and brand loyalty

Hypotheses 6

• From the table indicates that the significant is equal .000 which is less than .01 (.000<.01). It means null hypothesis was rejected (accept Ha). Therefore, there is a relationship between perceived quality and job satisfaction at the significant .01 level.

• At .649 means that there is strong relationship between perceived quality and customer satisfaction or two variables move to the same direction. If perceived quality increase, customer satisfaction will increase as well.

Hypotheses Testing ( Ho6 – Ho9) by using Pearson Correlation

• The analysis show that the significant is equal .000 which is less than .01 (.000<.01). It means null hypothesis was rejected (accept Ha). There is a relationship between perceived quality and brand reputation at the significant .01 level.

• At .271 means that there is weak relationship between perceived quality and brand reputation or two variables move to the same direction. If perceived quality increase, brand reputation will increase as well.

Hypotheses 7

• The analysis indicates that the significant is equal .000 which is less than .01 (.000<.01). It means null hypothesis was rejected (accept Ha). There is a relationship between perceived quality and brand reputation at the significant .01 level.

• At .769 means that there is very strong relationship between customer satisfaction and trust or two variables move to the same direction. If customer satisfaction increases, trust will increase as well.

Hypotheses 8

• The analysis indicates that the significant is equal .000 which is less than .01 (.000<.01). It means null hypothesis was rejected (accept Ha). There is a relationship between customer satisfaction and brand reputation at the significant .01 level.

• At .346 means that there is weak relationship between customer satisfaction and brand reputation or two variables move to the same direction. If customer satisfaction increases, brand reputation will increase as well.

Hypotheses 9

Conclusions

o Building the brand loyal by using brand image and customer satisfaction

o Perceived quality is the important factor to improve customer satisfaction

Recommendation

Further study

• Collect the data from the other province of Thailand and should be repeated at regular intervals to observe the impacts of change

• Conduct to the same method to the other brand

• Comparing brand loyalty of green tea drink between two brands such as Oishi and Unif.

• Extend dependent variable to consumer behavior and their attitude and purchasing intention for Oishi green tea.

Thank You