Effects of Product Quality on Brand Loyalty (a Study of Nokia Mobile Phone)
CHAPTER ONE
OBJECTIVES OF THE STUDY
The broad purpose of this research work is to identify the effect of product quality on brand loyalty in an organisation. Pertinently, the objective of this research work are to:
- To determine the perception of Nokia Mobile Phone users regarding the quality of the product;
- To ascertain the relationship between product quality (i.e. Nokia Mobile Phone’s quality) and the brand loyalty of its users;
- To determine how the phone’s ‘User friendliness’ affects customers’ retention/loyalty level;
- To assess the extent of impact to which the phone’s affordability affects customers’ retention/loyalty.
CHAPTER TWO
Literature review
2.1 INTRODUCTION
This research examines the effect of product quality on brand loyalty. Given this focus, the aim of this chapter is to problematize this study by making a review of a variety of theories or model that explicates the concept of product quality comprehensively: whilst also making a case for the absence or little theoretical framework that explain the extent to which product quality influences brand loyalty. In order to accomplish this task therefore, this chapter has been delineated into four important paragraphs and this constitute the first. The second paragraph examines a variety of models or theories underscoring the product quality phenomenon. This is followed by an analysis of the strengths and weaknesses of these theories or models. Following this analysis, the work of Grace Ndukwe (2011) on the absence of a framework highlighting how product quality influences brand loyalty which lead to her creation of a model that will explain the effect of product quality on brand loyalty in the Nigeria market.
CONCEPTUAL FRAMEWORK
BRAND AND BRANDING
Farquhar (1989) defines brand as ‘a name, symbol, logo, or mark that enhances the value of a product beyond its functional value.’
Kotler and Keller (2005) refers to a brand as ‘a name, term, sign, symbol, design, or a combination of these elements that is intended to identify the goods or services of the seller and differentiate them from competitors.’
Kotler et al. (2005) define brand mark as ‘the elements of the brand that cannot be articulated (e.g., a symbol, design, or unique colour or lettering).’
MSH Marketing Group (2006) defines branding as a marketing function that identifies products and their source and differentiates them from all other products.
Jaffe Associates (2006) state that branding is important for consumer decision-making, as it provides a road map to identifying professional services with high value. The more differentiated the brand, the less likely the customer will switch to a substitute. Examples of brand are Marriott, Burger King, TGI Friday’s, KFC, and Wendy’s. Some examples of brand mark are Marriott’s M, Burger King’s English king, TGI Friday’s red-and-white stripes, KFC’s Colonel Sanders, and Wendy’s country girl (a daughter of the founder).
A trademark is a legal designation to which the owner has exclusive rights for the brand or part of the brand.
CHAPTER THREE
RESEARCH METHODS
INTRODUCTION
This chapter discusses the methods adopted for this study. It includes the structural design of the logical inquiry of the study starting from the population used; the sample size and the method adopted for its determination; data collection method and procedures; validity and reliability of the data collection instrument; and the data analysis and presentation methods.
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
INTRODUCTION
In this chapter, the data collected from the survey were all analysed and interpreted. The entire chapter is divided into three parts: Analyses of Respondents’ Demographic Data; Analyses of Respondents’ Opinion regarding each item on the Questionnaire; and Test of Hypotheses. In all, only 104 copies out of the 120 copies of questionnaire administered were retrieved and used for the analyses. This indicates 86.7% percentage response from the survey and can be concluded to be significant enough for use in this study and for generalisation about the subjects studied.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
INTRODUCTION
This chapter sheds more light on the summary on the findings derived from the analysis of the data gathered for this study. It also provide for the conclusion drawn from this study as well as the recommendations made.
SUMMARY OF FINDINGS
This study was aimed at determining the impact of product quality on the brand loyalty of consumers, using Nokia Mobile Phones as a case study. It was conducted in Iyana-Iba Local Government Area of Lagos state Nigeria. Out of about 120 Nokia mobile phone users that were captured across Local Government Secretariat, SMEs, Banks, Secondary Schools, LASU and Transporters in Iyan-Iba, only 104 could respond favourably to the survey and this represents about 86.7% response rate. Findings revealed that (i) there is no difference (F = 0.645, p > 0.05) in the perception of Nokia mobile phone users in terms of its quality, affordability and user friendly; (ii) there is a significant (γ = 0.275**, p < 0.05) correlation or relationship between the perceived quality of Nokia mobile phones and brand loyalty of users; (iii) ‘User friendliness’ has a significant (bi = 0.375, p < 0.05) effect on Nokia Mobile Phone Users’ Retention/Loyalty; and (iv) ‘Affordability of Nokia Mobile Phones’ has insignificant (bii = 0.096, p > 0.05) effect on Customer Retention/Loyalty.
- CONCLUSIONS
Based on the findings of this study, it can be deduced that product quality is one crucial driver of customer retention/loyalty and that the affordability of the product may not in any way account for customer loyalty. It means, if a product is of good quality, irrespective of its pricing, consumers who have the experience of the product’s performance, durability, reparability, etc would always opt for it. In the case of Nokia mobile phones, by being ‘User friendly’, customer could also become loyal to the product. Less educated or even non-educated customers can hardly switch to using another type of phone because of the likely uneasiness they may encounter in operating the new phone. Since the configuration and design of all Nokia mobile phone series and models are almost the same or similar, it (the phones) can however be used or operated by anyone hence, causing a significant effect on customers’ loyalty/retention.
RECOMMENDATIONS
The following recommendations have been made subject to the findings of the study.
- In the phone industry, producers of other brands of phones should strive to make their phones ‘user-friendly’. This will significantly help to impact their customer retention/loyalty just as it does to Nokia mobile phones consumption or usage in Iyana-Iba Local Government Area of Lagos state.
- Marketers should emphasise the warranty provided upon their products so as to allow customers to amass confidence in using their product. This would not only communicate about the quality of the product but also create an impact on customers’ loyalty because, many consumers would always to shop from a merchant or seller who gives warranty.
It is not always compulsory that a product should be affordable to everyone. A product might be of good quality and yet, highly priced. It is recommended however that, manufacturers should remain consistent on their product quality and ensure user-friendliness. By so doing, customers would always prefer their products even if it priced high.
REFERENCES
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- Anderson, E.W., and Fornell, C. (1994). Customer Satisfaction, Market Share and Profitability: Findings from Sweden. Journal of Marketing, 58(3), 53.
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- Bhuian, S.N.(1997). Marketing Cues and Perceived Quality: Perceptions of Saudi Consumers towards Products of the U.S, Japan, Germany, Italy, U.k and France. Journal of Quality Management, 2(2), 217-235.
- Bloomer, M.M., and Kasper, D.P. (1995). The Complex Relationship between Customer Satisfaction and Brand Loyalty. Journal of Economic Psychology, 16,311-329.
- Boulding, W., Klara, A., Staeling, R., and Zeithaml, V. (1993). A Dynamic Process Model of Service Quality: From Expectation to Behavioural Intentions. Journal of Marketing Research, 30(February), 7-27.
