• Title/Summary/Keyword: brand loyalty

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The Effects of Advertising Expense on Brand Loyalty, Profitability, and Firm Value (광고비가 마케팅 및 재무적 성과에미치는 영향: 브랜드 애호도, 수익성, 기업가치를 중심으로)

  • LEE, EUN JU;Paik, Tae-Young;Sin, Hyeon-Jun;Jeon, Kyeongmin;Cha, Gyeong-Cheon
    • (The) Korean Journal of Advertising
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    • v.27 no.4
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    • pp.71-90
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    • 2016
  • Managers of firms often wonder whether advertising expenditure is a mere expense or an investment with foreseeable future returns. When top management makes a decision on the level of advertising expense, it must consider whether an increase in advertising spending will positively affect brand loyalty and the increased brand loyalty will positively affect profitability and firm value. We investigate the industry-specific effects of advertising spending on marketing and the effect of loyalty on financial performances using top companies in Korea, specifically, 184 firms' data from year 1998 to 2014. The empirical results of a fixed effect model indicate that the effects of advertising on customer satisfaction index and loyalty on the firms' financial performance are positive. In service industry, unlike manufacturing industry, advertising has a significantly positive effect Brand Loyalty. In addition, Brand Loyalty had positive impacts on ROA and ROE as profitability index, and Tobin's q, a market-value index. The research results suggest that advertising in service industry should be considered as customer satisfaction investment and the increased Brand Loyalty as a profit for present and a business investment for the future respectively.

The Structural Relationship between Selection Attributes of Traditional Culture Festival Storytelling, Brand Equity, Brand Attitude, and Brand Loyalty (전통문화축제 스토리텔링의 선택속성이 브랜드자산, 브랜드태도, 브랜드애호도와의 구조적 관계)

  • Lee, Je-Yong;Yoo, Kwang-Woo
    • The Journal of the Korea Contents Association
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    • v.18 no.5
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    • pp.647-659
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    • 2018
  • 'Waiting for a Thousand Years & Mingling with World People-Gangneung Danoje Festival 2017 as an Important Intangible Cultural Property' is the festival with the longest history in Korea. In spite of its historical value, however, there are not many academic researches on the value of festival brand equity. Thus, the objective of this study is to empirically analyze the influence relationship between selection attributes of festival storytelling, brand equity, brand attitude, and brand loyalty through the structural equation model. Regarding the spatial scope of thesis material, a survey was conducted focusing on 657 tourists visiting the Gangneung Danoje Festival. In the results of verifying the hypotheses in accordance with the structural equation model, the selection attributes of festival storytelling had effects on the brand equity, and the brand equity had effects on the brand attitude and brand loyalty while the brand attitude had effects on the brand loyalty. Based on such results of this study, the implications could be suggested as follows. First, the local contents culture should be developed together with local experts and residents by finding its local custom. Second, the brand equity that could prioritize the strategy of characteristics should be increased by emphasizing the selection attributes of storytelling. Third, the phased development should be achieved through local residents' open participation by dividing roles of experts and non-experts as festival manpower.

The Study on the Effect of Outdoor Experiential Marketing on Brand and Purchase Intentions (아웃도어 체험 마케팅이 브랜드와 구매의도에 미치는 영향에 대한 연구)

  • Lee, Jae-Woo;Park, Eun-Ju;Choi, Myeonggil
    • Journal of Digital Convergence
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    • v.15 no.5
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    • pp.139-150
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    • 2017
  • The purpose of this study is to examine the influence of experiential marketing on brand loyalty through brand image and brand attitude, and to ultimately understand the relationship between experiential marketing and purchase intentions. The subjects of the study were first-time participants of the 'Salomon Outdoor City Trail Run' sponsored by the brand Salomon Outdoor. Out of 223 questionnaires given to the subjects, 195 responses were used as the sample for analysis. SPSS 18.0 and AMOS 18.0 were used as the analysis tools. The study results showed that, of the elements of marketing including sensation, emotion, recognition, action, and relation, feel and action positively influenced brand image. Sensation and relation positively influenced brand attitude. Brand image and brand attitude positively influenced brand loyalty and brand loyalty positively influenced purchase intention. The study is significant in that it explores the effects of experiential marketing all the way up to the purchase intention, and how this is influenced by brand image, brand attitude, and brand loyalty. Implications of these findings for experiential marketing as well as future research directions are also provided.

The Relationship between Consumption Value of Preschooler Clothing, Purchase Satisfaction and Brand Loyalty according to the Moderating Effects of Mother's Preschooler Clothing Involvement (어머니의 유아복 관여도 조절효과에 따른 유아복 소비가치, 구매만족, 브랜드 충성도의 관계연구)

  • Lee, Joo-Yun;Rhee, Young-Ju
    • Journal of the Korea Fashion and Costume Design Association
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    • v.15 no.3
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    • pp.119-135
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    • 2013
  • The purpose of this study was to investigate the relationship between consumption values of preschooler clothing and purchasing satisfaction, company brand loyalty and involvement of preschooler clothing with the mothers of preschoolers. An online survey was adapted as methodology of this study. The collected 323 questionnaires were collected and statistically analyzed. The nine consumption value of preschooler clothing(vicarious satisfaction value, social value, functional value, convenient value, economic value, coordination value, aesthetic value, distinctive value, and fashionable value) resulted from the analysis of survey. Purchasing satisfaction, company brand loyalty, involvement of preschooler clothing was Uni-dimensional. Statistical analysis was performed with frequency analysis, descriptive statistics, exploratory factor analysis, multi-group analysis, confirmatory factor analysis, bivariate correlation analysis, distribution, structural equation, cluster analysis, independent sample t-test, one-way analysis of variance. The results of this study are as follows. In the consumption value of preschooler clothing influencing on the purchasing satisfaction was evaluated depending on the involvement of preschooler clothing group (high-involvement group, low-involvement group). In the low-involvement group, the most significant consumption value of preschooler clothing are economic value, convenient value, social value in order of importance; though in the high-involvement group, aesthetic value, social value, economic value in order of importance. Also the brand royalty was more affected by the purchasing satisfaction in the high-involvement group than in the low-involvement group. In conclusion, the relations of consumption value of preschooler clothing with purchasing satisfaction, company brand loyalty, involvement of preschooler clothing was established in study. The significances of this study is to provide the market segmentation strategy depending on the characteristics of preschooler clothing consumers and establish the information and direction to increase the company brand royalty and purchasing satisfaction.

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The Impact of Benefit Sought on Store Attributes and Brand Loyalty of Children's Clothing Line in Global SPA Brands (추구 혜택이 글로벌 SPA브랜드의 유·아동복 제품에 대한 점포 속성 평가 및 브랜드 충성도에 미치는 영향에 관한 연구)

  • Kim, Go-Eun;Lee, Eun-Jung
    • Journal of the Korean Society of Costume
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    • v.66 no.3
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    • pp.121-134
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    • 2016
  • The purpose of this study is to explore the effectiveness of marketing strategies of children's clothing line for global SPA brands among Korean consumers. The following factors were evaluated as the dependent variables: benefits sought, store attributes, and brand loyalty. We employed a survey method to test our research questions. The subjects of our survey were mothers with preschool kids between 2 and 7 years who had purchase experiences of children's clothing lines of global SPA brands. The major findings are as follows: First, among the three factors of benefits sought ('trend'/'brand value'/'practicality'), the 'trend' factor only positively impacted the 'product' factor, which is part of the store attributes. 'Practicality' and 'trend' factors had a positive effect on the 'service' factor of store attributes. However, all three factors of benefits sought had no impact on the 'store' factor, and 'practicality' and 'trend' factors had positive effects on the price factor of store attributes. Second, 'practicality' and 'trend' factors among the three factors of benefits sought, had positive effects on brand loyalty. Third, the 'product', 'price', 'store', and 'service' factors had a significant positive effect on brand loyalty in decreasing order. Suggestions from our results for national SPA brands are as follows: National SPA children's clothing lines should focus more on unique designs and unique marketing strategies better reflecting Korean consumers' interest and needs in competing with their global counterparts.

Verification of The Effectiveness of Brand Identity of Youth Soccer Club in Korea (국내 유소년 축구클럽 브랜드 아이덴티티의 효과성 검증)

  • Jin-Ho Shin
    • Journal of the Korean Applied Science and Technology
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    • v.40 no.2
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    • pp.301-308
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    • 2023
  • This study sought to provide basic data for soccer clubs to establish efficient brand strategies by verifying the structural model and effectiveness between domestic youth soccer club brand identity, value, and loyalty. Therefore, parents of members of youth soccer clubs in Seoul, Gyeonggi-do, and Chungcheong-do were selected as samples, and 372 copies of data were used for the final analysis. Data processing used the SPSS (ver. 21.0) program to analyze frequency and verify reliability. In addition, the brushstrap BC method was applied to verify the effectiveness and significance of confirmatory factor analysis, correlation analysis, structural equation model analysis, and the effectiveness and significance using the AMOS (ver. 20.0). As a result of the study, first, it was found that the brand identity of youth soccer club in Korea had significant effect on value. Second, value had significant influence on loyalty. Third, brand identity had significant influence on loyalty. Lastly, value between brand identity and loyalty showed partial mediated effect.

Brand Equity and Purchase Intention in Fashion Products: A Cross-Cultural Study in Asia and Europe (상표자산과 구매의도와의 관계에 관한 국제비교연구 - 아시아와 유럽의 의류시장을 중심으로 -)

  • Kim, Kyung-Hoon;Ko, Eun-Ju;Graham, Hooley;Lee, Nick;Lee, Dong-Hae;Jung, Hong-Seob;Jeon, Byung-Joo;Moon, Hak-Il
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.4
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    • pp.245-276
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    • 2008
  • Brand equity is one of the most important concepts in business practice as well as in academic research. Successful brands can allow marketers to gain competitive advantage (Lassar et al.,1995), including the opportunity for successful extensions, resilience against competitors' promotional pressures, and the ability to create barriers to competitive entry (Farquhar, 1989). Branding plays a special role in service firms because strong brands increase trust in intangible products (Berry, 2000), enabling customers to better visualize and understand them. They reduce customers' perceived monetary, social, and safety risks in buying services, which are obstacles to evaluating a service correctly before purchase. Also, a high level of brand equity increases consumer satisfaction, repurchasing intent, and degree of loyalty. Brand equity can be considered as a mixture that includes both financial assets and relationships. Actually, brand equity can be viewed as the value added to the product (Keller, 1993), or the perceived value of the product in consumers' minds. Mahajan et al. (1990) claim that customer-based brand equity can be measured by the level of consumers' perceptions. Several researchers discuss brand equity based on two dimensions: consumer perception and consumer behavior. Aaker (1991) suggests measuring brand equity through price premium, loyalty, perceived quality, and brand associations. Viewing brand equity as the consumer's behavior toward a brand, Keller (1993) proposes similar dimensions: brand awareness and brand knowledge. Thus, past studies tend to identify brand equity as a multidimensional construct consisted of brand loyalty, brand awareness, brand knowledge, customer satisfaction, perceived equity, brand associations, and other proprietary assets (Aaker, 1991, 1996; Blackston, 1995; Cobb-Walgren et al., 1995; Na, 1995). Other studies tend to regard brand equity and other brand assets, such as brand knowledge, brand awareness, brand image, brand loyalty, perceived quality, and so on, as independent but related constructs (Keller, 1993; Kirmani and Zeithaml, 1993). Walters(1978) defined information search as, "A psychological or physical action a consumer takes in order to acquire information about a product or store." But, each consumer has different methods for informationsearch. There are two methods of information search, internal and external search. Internal search is, "Search of information already saved in the memory of the individual consumer"(Engel, Blackwell, 1982) which is, "memory of a previous purchase experience or information from a previous search."(Beales, Mazis, Salop, and Staelin, 1981). External search is "A completely voluntary decision made in order to obtain new information"(Engel & Blackwell, 1982) which is, "Actions of a consumer to acquire necessary information by such methods as intentionally exposing oneself to advertisements, taking to friends or family or visiting a store."(Beales, Mazis, Salop, and Staelin, 1981). There are many sources for consumers' information search including advertisement sources such as the internet, radio, television, newspapers and magazines, information supplied by businesses such as sales people, packaging and in-store information, consumer sources such as family, friends and colleagues, and mass media sources such as consumer protection agencies, government agencies and mass media sources. Understanding consumers' purchasing behavior is a key factor of a firm to attract and retain customers and improving the firm's prospects for survival and growth, and enhancing shareholder's value. Therefore, marketers should understand consumer as individual and market segment. One theory of consumer behavior supports the belief that individuals are rational. Individuals think and move through stages when making a purchase decision. This means that rational thinkers have led to the identification of a consumer buying decision process. This decision process with its different levels of involvement and influencing factors has been widely accepted and is fundamental to the understanding purchase intention represent to what consumers think they will buy. Brand equity is not only companies but also very important asset more than product itself. This paper studies brand equity model and influencing factors including information process such as information searching and information resources in the fashion market in Asia and Europe. Information searching and information resources are influencing brand knowledge that influences consumers purchase decision. Nine research hypotheses are drawn to test the relationships among antecedents of brand equity and purchase intention and relationships among brand knowledge, brand value, brand attitude, and brand loyalty. H1. Information searching influences brand knowledge positively. H2. Information sources influence brand knowledge positively. H3. Brand knowledge influences brand attitude. H4. Brand knowledge influences brand value. H5. Brand attitude influences brand loyalty. H6. Brand attitude influences brand value. H7. Brand loyalty influences purchase intention. H8. Brand value influence purchase intention. H9. There will be the same research model in Asia and Europe. We performed structural equation model analysis in order to test hypotheses suggested in this study. The model fitting index of the research model in Asia was $X^2$=195.19(p=0.0), NFI=0.90, NNFI=0.87, CFI=0.90, GFI=0.90, RMR=0.083, AGFI=0.85, which means the model fitting of the model is good enough. In Europe, it was $X^2$=133.25(p=0.0), NFI=0.81, NNFI=0.85, CFI=0.89, GFI=0.90, RMR=0.073, AGFI=0.85, which means the model fitting of the model is good enough. From the test results, hypotheses were accepted. All of these hypotheses except one are supported. In Europe, information search is not an antecedent of brand knowledge. This means that sales of global fashion brands like jeans in Europe are not expanding as rapidly as in Asian markets such as China, Japan, and South Korea. Young consumers in European countries are not more brand and fashion conscious than their counter partners in Asia. The results have theoretical, practical meaning and contributions. In the fashion jeans industry, relatively few studies examining the viability of cross-national brand equity has been studied. This study provides insight on building global brand equity and suggests information process elements like information search and information resources are working differently in Asia and Europe for fashion jean market.

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Effects of Marketing Strategy on Brand attitude, Store affect, and Store loyalty: A comparison between Global and Korean SPA brands (마케팅 전략이 브랜드 태도, 점포감정, 점포충성도에 미치는 효과: 글로벌 SPA 대 한국형 SPA 비교)

  • Ko, Soon Hwa;Kim, Eun Young
    • Fashion & Textile Research Journal
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    • v.16 no.3
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    • pp.386-395
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    • 2014
  • This study was to identify underlying dimension of marketing strategy, and to examine effect of the marketing strategic factors on store affect, brand attitude, and brand loyalty in global and domestic SPA brands. Based on pilot study, four SPA brands of which consumers were most aware were selected: Korean SPAs (e.g., Codes-Combine, Basic House) and global brands (e.g., Zara and Uniqlo). A self-administered questionnaire was developed based on literatures. By using intercept survey, 421 respondents were obtained from consumers shopping at the selected SPA retail stores located in cities (Seoul, Daejon, Chongju) in Korea. Result showed that SPA brand marketing strategy consisted of four factors: Product differentiation, store location, in-store VMD, and price value. The marketing strategic factors had partially significant effects on brand attitude, store affect and store loyalty. However, there was significant differences in those effects between global and Korean SPA brands. Specifically, the effect of in-store VMD on brand attitude was higher in Korean SPA brands, whereas the effect of price value was higher in global SPA brand. Also, the price value was significant predictor of store affects in global SPAs, while in-store VMD was significant predictor of store loyalty in Korean SPA brands. This study discussed a managerial implication for creating brand attitude and emotional responses, which obtains comparative advantages in the competing marketplace.

Effect of perceived luxuriousness on brand equity

  • Kang, Ju-Young M.;Kim, Jieun
    • The Research Journal of the Costume Culture
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    • v.24 no.5
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    • pp.697-708
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    • 2016
  • The term used to describe consumer's valuation of a brand is brand equity. One concept that can be managed and may impact valuation of a prestige brand is "luxuriousness." As the concept of "luxuriousness" appears to be a key factor contributing to the equity of a prestige brand, the purpose of this study was to examine how luxuriousness is related to the brand equity utilizing a model developed by Yoo, Donthu, and Lee (2000). Yoo et al. (2000) identified three dimensions [brand association with awareness (BA), perceived quality (PQ), brand loyalty (BL)] accounted for the equity (OBE) of a brand. We speculated that the five dimensions of luxuriousness (i.e., quality, extended self, hedonism, accessibility, and tradition) would selectively influence the two dimensions of brand equity (BA, PQ) and that loyalty would mediate the relationship between the two dimensions of brand equity (BA, PQ) and overall brand equity. A total of 502 participants aged from 18 to 74 were surveyed in USA. Using AMOS 18, the path analysis was conducted with the maximum-likelihood estimation procedure. The model exhibited a good fit with the data and all hypotheses were supported except one. Quality, accessibility, and hedonism dimensions of luxuriousness affected perceived quality of the equity of a brand. Hedonism and extended self dimensions affected brand association with awareness. However, tradition dimension did not significantly influence brand association with awareness. Overall, this research expands understanding of brand equity as it documents the contributions of luxuriousness, a component that can be controlled by brand managers.

Relationships between the Effect Factors of Private Brand Images and Customer Trust and Loyalty (유통업자 브랜드 이미지의 영향요인과 신뢰 및 고객 애호도와의 관계에 관한 연구)

  • Kim, Yu-Kyung
    • Journal of Distribution Science
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    • v.13 no.7
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    • pp.73-83
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    • 2015
  • Purpose - Recently, many large retailers have been frequently purchasing commercial brands. Not only the quality of products purchased but also the brand images are of concern in this process. Based on this rising trend, commercial brands have become an important issue in the retail business world, along with increasing general interest as well. Thus, this study focuses on the factors affecting commercial brand images and clarifies the impact of the resulting factors as well. First, store images and familiarity, price sensitiveness, and knowledge are presented as the effect factors for commercial brands. Second, the study tries to clarify the effect of commercial brand image on the reliability and loyalty of customers. Research design, data, and methodology - To conduct the study methodology, 250 questionnaires were distributed to retailers who have used large discount stores located in Busan to purchase a commercial brand a total of 234 valid questionnaires were used in the final analysis. To verify the hypotheses, a structure equation formula using Amos 20.0 was calculated. First, prior to the verification of hypotheses, the reliability and feasibility of the questions were tested, and as a result, the value of Cronbach's alpha was higher than 0.7, thereby showing reliability. Additionally, for the verification of the feasibility of the questions, a confirmation factor analysis was implemented. Results - First, variances such as store images, familiarity, price sensitivity, and knowledge were presented as the factors of effect on commercial brands. As a result of the hypotheses verification, all the effect factors presented in this study were confirmed as important variables of commercial brand images. The hypotheses were drawn based on the studies relating to existing commercial brands, and thereby, a result similar to previous studies was produced. However, the effect factors of the commercial brand image presented in this study shaped a new study model based on the previous studies. Second, it was found that commercial brand images had positive effects on the reliability and loyalty of customers. This study presented reliability and loyalty as the resulting factors of commercial brand image because they are the most important factors in relation to customer behavior and variables that can suggest marketing points for distribution businesses. Conclusions - This study focused on clarifying the factors that are important effect factors for commercial brand images. As a result, all the hypotheses were confirmed in this study, indicating a meaningful result, and thereby suggesting many points that can be presented to distribution businesses. First, the proper strategies should be developed based on the hypothesis that a store image, the familiarity of customers with brands, and the price sensitiveness and knowledge level of customers have an important effect on the choice of commercial brands. Additionally, the formation of such favorable images will have positive effects not only in terms of customer trust in the commercial brands but also in terms of their loyalty.