Data Analysis And Discussion
Chapter 4 Data Analysis And Discussion
4.1 Introduction
This chapter aims to analyze the data collected through various questionnaires and also relate the data to the literature theories applied in chapter 2. The objective of asking such questions to the audience is to determine the relationship between customer satisfaction and brand loyalty.
4.1 Introduction
4.2 Perception of Customer Satisfaction of Managers/Customers
This research required a deep understanding of customer satisfaction and hence it became very important to ask questions relating to customer satisfaction and what perceptions do different people have about them. Before collecting the responses, it was not clear if managers could provide a better answer or the customers themselves.
Manager 1
“Customer satisfaction occurs when a customer is happy with or satisfied with the performance of a particular product. The performance could be manifested in functionality, aesthetics or after sales service.”
Manager 2
“Customer satisfaction occurs when a customer thinks that a particular product or service was worth his hard earned money.”
Customer 1
“A customer is satisfied when a product’s perceived performance meets its actual performance which basically means when the product lives up to its expectations”
Customer 2
“Customer satisfaction occurs when a customer is happy with the products looks, performance, packaging, durability and everything relating to that product.”
The feedback suggests that the random managers who were asked the question had a different perception of customer satisfaction; however, there were areas of agreement which proves that customer satisfaction is basically when the customer is happy with the product. The customers also have a similar view of customer satisfaction and they think for the customers to be satisfied, it is important for products to live up to their expectation be their product should prove to be consistent with their claims. This is consistent with the theory discussed in the literature review when a product’s perceived performance matches a buyer’s expectations (Kotler & Armstrong, 2008). It was assumed that customers might not have any idea about customer satisfaction but apparently some of them did and they were very precise in giving the answer.
4.3 Perception of Brand Loyalty among Managers/Customers
Since the research analysis the relationship between customer satisfaction and brand loyalty, it becomes essential to ask people of what they think is brand loyalty and how much do they believe in such a concept in today’s price competitive market.
Manager 8
“Brand loyalty is when the customer is highly satisfied with the results of a product and his satisfaction results in repeated purchases and if those repeated purchases result in consistent quality, then the customer becomes loyal to the brand.”
Manager 2
“Brand loyalty occurs when a customer prefers one product over the competitor’s product due to pleasant experiences with that product”
Manager 4
“Brand loyalty just exists in the books. When customers find a product which is cheaper and is satisfying their needs, they will switch to that product and leave the product they have been using for years”
Customer 2
“Brand loyalty arises when a consumer is so satisfied with a product that, another product offering a lower price, will not be purchased by him/her as they are more satisfied with their present choice and don’t think the cheaper product will satisfy them”
Customer 3
“I don’t’ believe in brand loyalty. In tough economic times such as these, it is hard remain loyal to good quality products which are expensive, and you become more prone to buying cheaper products even if they are not of great quality”
This question represents conflicting views from the audience. One manager thinks that is possible to retain customers through brand loyalty by offering them good quality. However, many people think that in such tough economic times, when many people are unemployed, it is not possible to purchase products that cost more. Hence, any cheaper alternative offered will be purchased, rather than sticking to the expensive one because it satisfies your need. The fact that customers buy your product even when cheaper alternatives exits s complying with one of the theories discussed in the literature review. Brand loyalty is also seen as when consumers consistently buy a product even when the competing products offer lower prices (Huang & Perloff, 2005). Audience also responded that preference of one product over another is known as brand loyalty (brandchannel.com, 2006). Hence, it is clear that certain theories discussed in chapter 2 agree with the audience’s response about their perceptions of brand loyalty.
4.4 Significance of Customer Satisfaction and Brand Loyalty
It was essential to ask a question relating to how important customer satisfaction and brand loyalty are to an organization. It is quite obvious, even through the literature review shows that, innumerable researches and studies have been conducted on the topic of customer satisfaction and brand loyalty which proves that it is essential for business success. However, there are some people who are ready to challenge these concepts and claim that business success could be achieved without customer satisfaction and brand loyalty.
Manager 12
“Customer satisfaction is essential for business success. Without it, people will never buy your product and the competitors will dominate you”
Manager 6
“Businesses cannot survive without satisfying their customers. It provides a framework over which the product is sold to the customer. If the customer is not happy, you can pack your bags and leave because you won’t be able to survive for a long time”
Manager 7
“Customer satisfaction is not an absolute necessity. Nowadays, cheaper products are dominating the market and the economic downturn has caused people to become price sensitive. They cannot afford quality products anymore which satisfies them”
Manager 9
“Brand loyalty is of utmost significance. Brand loyalty helps businesses to retain valuable customers and focus more on attracting new ones.”
Manager 5
“Brand loyalty is a concept that if most of the managers understand, their business will always be the market leader”
From the above responses, it seems that customer satisfaction is very significant for the businesses. For any company it is very important to satisfy its customers with products live up to their expectations. (Clive Meakings, 2003). However, there are people who still think that there are more important things then customer satisfaction such as efficiency and profits.
4.5 The impact of Product Quality on Customer Satisfaction and Brand Loyalty
A question was asked about the monthly income of customers as it was an important factor contributing to knowing how price sensitive customers are. If they have a very low income then for them brand loyalty is almost non-existent and if reasonable to high, then customer satisfaction is very important for them.
Customer 2
“My income group is of 100000 and above and I like to spend my money on products that are of high quality and have distinctive features in them. If I like a product and it consistently delivers superior performance then it is likely that I am going to purchase that product tell others about it”
Customer 5
“My income falls between the range of 60000-80000 and I think that it is important for me to spend my money on products that are worth their price. I don’t go for high-end brands but look for products that satisfy my needs and if it does then I try to stick to it”
Customer 8
“My income range is that of 30000 and below and I try my best to find products that satisfy my needs, however, sometimes it gets difficult for me search for these products as they are not available at a reasonable price and hence I have to opt for cheaper alternatives.”
The above responses prove that income has a huge affect on customer satisfaction and brand loyalty. It must be agreed that every consumer’s needs customer satisfaction as it is the integral part of a product. However, the tendency to stick to one product despite of cheaper options varies with a person’s income. The lower the income, the lesser brand loyalty. However, if the product is cheap but the customer is satisfied with it, band loyalty plays its part.
Question regarding how often people buy electronic goods was asked as it was important to find out with what frequency these people buy electronic goods because this way we will be able to determine whether every time they purchase the product, do they purchase it from the same brand they did from before.
Customer 7
“As the electronic goods market is constantly evolving, I usually buy electronic goods twice a month. I like to keep changing my cell phones for newer ones and purchase mp3 players and laptops for my family back home. Hence some time or the other, I need to purchase an electronic item”
Customer 9
“I purchase electronic goods occasionally as my income does not allow me to regularly purchase new products. Luckily, I buy products with warranty and the last for a longer time and I do not need to make frequent purchases for electronic goods. I try to keep my cell phone for at least 2 years before I start using a new one.”
Unexpectedly, many responses showed that 65% of people purchase electronic items twice a month. This shows the growth of the electronic goods market and the fact that it is constantly evolving. The fact that people are purchasing these goods so frequently shows that they might not be satisfied with the phone or laptop of one company and if they don’t like it, they immediately switch to another one. The reason behind the this customer satisfaction according to the author is that all the products that HTC, Apple and Microsoft have manufactured are design in such a way that they will be user friendly and customers will be able to use and enjoy the product even if they are not that technically sound.( Akash Aggarwal April 2011)
The next question was asked relating to Apple and to see the performance of their product. It was asked that how long you have been using an apple product for. The response from the customers was not at all surprising.
Customer 10
“I absolutely love apple. It is my favorite brand and I have a strong brand loyalty towards it. This is why I have been using my iPhone 3 for the past 2 years now and I don’t need a better product that I already have. I think it is a pioneer in smart phones and no one can offer services and apps like Apple”
Customer 8
“You can call me a brand ambassador of Apple as I have their laptops, iPhones, mp3 players and what not. My iPod is almost 5 years old and I am still not ready to give it away as it works perfectly fine. I have been using iPhone 3 for almost 2 years now and I was never disappointed with its performance. Having said that, I am looking forward to the buying the iPhone 4S just so that I can keep up with my friends.
Customer 4
“I once was an owner of iPod and I used it for about a year but then switched to another one as I did not want to go through the pain of using iTunes. Since then, I bought an iPhone but experienced problems with it and within 5 months switched to HTC”
The above response showed that majority of the consumers used apples products for more than 2 years which shows their satisfaction from the product.In addition, it also shows that their satisfied customers led to increased brand loyalty among them which makes Apple the most popular brand among its customers. As stated in one article, Apple’s products are in front of their own separate competitors. The company’s sales are blooming day by day due to new and innovative technologies and their loyal customers who wait anxiously for any new update about a product (Jon Tews, 2009)
4.6 Effect of Innovation on Brand Loyalty and Customer Satisfaction
It was also asked from the customers that how many electronic brands they have tried so far so as to know how often customers switch in between brands.
Customer 1
“I have tried many leading electronic brands. This includes Samsung, Toshiba, Sony, Apple and many more. The truth is I prefer the cell phones of one company and the laptops of another. I absolutely love the Sony laptops and Apple’s iPhones”
Customer 7
“I have so far tried Samsung, Sony, and Apple. I own a Sony laptop, and Apple iPhone and a Samsung DVD player”
Customer 4
“I have tried a couple of products including Apple, HTC, Samsung and Sony. So far I am satisfied with Apple the most as it has one of the best hardware and software devices and a great customer service”
Customer 8
“Apple and Sony. I just hate Samsung. I have heard so many negative reviews about it from my friends.”
The above answer shows that almost all of the correspondents have tried Apple products. The reason for them trying its products is that due to word of mouth and buzz marketing, they are forced to try the product even if they don’t want to. Certain researches show that how Apple has been able to satisfy its customer and the reasons that it will be easily able to maintain and retain its current customer base. (Morningstar Equity Research, 2011). Sony comes in second after apple as its marketing and its brand name speak for itself and many people have become loyal toward its products.
It is important to know what makes a consumer use a particular brand and hence we asked the audience about what made them use the brand in the first place.
Customer 5
“I started using Samsung after I watched its advertisements on TV. It was very reasonable for me and it fulfilled most of my requirements so I started using it.
Customer 1
“I started using Sony after my friends and family informed me about it. They said that its products are durable and of good quality. So I decided to try it out for myself and I am quite satisfied right now.”
Customer 4
“I started using Apple iPhones because I heard a lot about them from my friends and family and out of curiosity as t what the hype is all about? When I tried it myself, I thought that all the hype is worth it!”
Customer 6
“I started using Apple iPhone and Ipad because I was in a desperate need of a product which could satisfy my day-to-day business needs and hence I found these products. Now wherever I travel, I carry my office with me”
It is proved that majority of the people use products because their friends suggest them to use a particular product. Advertising has some part to play in influencing their purchase choices but they mainly learn it through their friends circle.
4.7 Effect of services of Apple on Customer Satisfaction and Brand Loyalty
Another important question relating to this research is how easily are consumers able to switch to another product once they have started using it. It is an important question as we have to see how important brand loyalty is in this age.
Customer 6
“It is not very difficult for me to switch to other even if I am hooked to one brand. I like change and cannot stay with one type of a product for more than a year”
Customer 7
“I am the kind of person who once gets used to the product; I stop thinking about other products and remain loyal to that particular product”
The responses from this question showed that 30% of people did not find it easy to switch to another brand (John Buys, 2009) the better experience that they have with the product, the more difficult it becomes to shift to another one. However, 20% of people believe that they do not form emotional attachments to brands or products and hence try using different products from time to time (John L Giese & Joseph A. Cote, 2000). This supports our theory from literature review that customer satisfaction and brand loyalty are basically emotional and cognitive responses to a product.
4.8 Chapter Conclusion
From the above analysis of the data collected from questionnaires and interviews, it becomes clear that customer satisfaction and brand loyalty are directly linked to each other. No matter how much people try to disagree but this is a fact and the literature review with the data analysis proves that. In addition, it is proved that customer satisfaction and brand loyalty are two most significant aspects of business without which it cannot survive. Brand loyalty is the key to an organizations success and customer satisfaction leads the way to brand loyalty. A company can never expect dissatisfied customers to come back and buy their product and become loyal customers.
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