The effectiveness of brand equity on creating customer loyalty: a case of sign graphics private limited company, Harare.

Abstract

It is imperative to acknowledge that brand equity is an inseparable part of marketing and essential to the companies to create core-competencies and build strong brand experience that will impact the consumer decision making process and foster customer loyalty, Aaker (2011). This study involves assessing the effectiveness of brand equity on creating customer loyalty at Sign Graphics Private limited, Harare. The study aimed at investigating the relationship between brand familiarity and customer retention, evaluating the impact of brand awareness on repeat purchase, assessing the impact of brand image on customer perception, as well as investigating the impact of brand extension on company growth. Data collection was done using self administered and electronically mailed questionnaires. A sample size of 50 respondents was considered being corporate customers for signage products and services. Analysis was done using Statistical Packages for Social Sciences (SPSS version 16.0). The result of regression analysis indicates a positive relationship between brand awareness and customer loyalty and brand image and customer loyalty. The result of a correlation analysis also showed that there is a significant relationship between brand awareness and brand image. The researcher concluded that brand image and brand awareness have a positive impact on the formation of customer loyalty. Based on the results and conclusions, this study recommends that continuous rebranding should be instituted in order for the company to enjoy customer loyalty and patronage.