The effect of brand value on brand loyalty: A study of consumer products

In a market place, cluttered with brands, it is difficult for a brand to stand out and be seen as distinctive. Several theories have been proposed on how a brand can be built and what marketing actions can lead to the creation of a brand. One of the models, for building Brand Value, is the Brand Asset Valuator, by Young and Rubicam, a leading advertising agency. The Brand Asset Valuator Model proposes that a brand can be built, on the basis of differentiation, relevance of the brand to the customer, the esteem in which the brand is held and the knowledge customers possess about the brand. This study aims to understand the relationship between the brand value and customer loyalty to the brand. It shows that there is a significant correlation between the independent variable, brand value, its two primary dimensions, brand vitality and brand stature and the dependent variable, brand loyalty. Regression results showed that the variation between observed values of brand loyalty and values of brand loyalty, predicted by the Model, could be explained, within the 95% level of confidence. The findings indicated that marketing activities, carried out to build brand value, can be justified by their effect on brand loyalty.