Impact of Brand Image on Customer Loyalty_ A Case Study of McDonald (GC02026)
Acknowledgment
Abstract
This paper conducts research on a particular topic, where the topic is to analyze the effectiveness of brand image on consumer loyalty in the case of the UK fast-food sector. This research focused on a specific case, where the case name is McDonald. This research focused on four key objectives. The first objective is to understand the role of brand image in terms of the UK fast-food retail sector. The second objective is to investigate the role of customer loyalty in terms of the UK fast-food retail sector. The third objective is to determine the relationship between brand image and customer loyalty in terms of the UK fast-food retail sector. The fourth objective is to provide suggestions for the UK fast-food retail sector on how they can increase their customer loyalty by their brand image.
The explanatory and descriptive approaches are conducted for the research. Both approaches are applied in the research to maintain the relationship between the causes and effects of the research. Two key methods were used in this research: one is the survey method and another one is the case study method. Here, the survey method was used to collect quantitative data, and the case-study method was used to collect qualitative data.
The finding of this research shows that the majority (66%) of respondents think the brand image is important to them and they think McDonald’s has a good brand image. The finding of research shows that 11%, 22% and 35% of respondents visit McDonald’s daily, several times a week, and several times in a month respectively. The finding of this research also shows that the majority numbers (59%) of participants recommend others. The finding of this research disclosing that McDonald’s brand attracts more male (55%) customers than female customers (45%). The finding of this research also discloses that majority numbers (60%) of McDonald’s customers are happy with its brand due to its quality products and services and 53% of participants feel them prestigious by eating at The similar finding is of this research outcome, where majority numbers (57%) of participants are influenced by McDonald’s brand image and make them loyal towards this brand. Additionally, 57% of respondents are very likely to be loyal for a long time towards the brand of McDonald’s due to its strong brand image. This means a stronger brand image significantly influences the customers to be loyal towards UK fast-food restaurants.
Table of Contents
Acknowledgment.
Abstract.
Chapter 1: Introduction.
1.0 Introduction.
1.2 Research background.
1.3 Research rationale.
1.4 Research problem.
1.5 Research aims and objectives.
1.6 Research questions.
1.7 Significance of the study.
1.8 Research structure.
1.9 Chapter conclusion.
Chapter 2: Literature Review.
2.0 Introduction.
2.1 Brand image the UK fast-food retail industry.
2.1.3 Brand image development process.
2.2 Customer loyalty.
2.3 Impact of brand image on customer loyalty.
2.4 Conceptual framework.
2.5 Chapter conclusion.
Chapter 3: Methodology.
3.0 Introduction.
3.1 Research Philosophy.
3.2 Research approach.
3.3 Research Design.
3.4 Research Strategies.
3.5 Research Ethics.
3.6 Research Reliability and Validity.
3.7 Conclusion.
Chapter 4: Research Finding and Analysis.
4.0 Introduction.
4.1 Finding of case study research.
4.2 Finding of Primary Research.
4.3 SWOT findings for UK McDonald.
4.4 Discussion.
4.5 Conclusion.
Chapter 5: Conclusion and Recommendation.
5.1 Conclusion.
5.2 Recommendation.
5.3 Limitation.
5.4 Further research areas.
References.
Appendices.
Appendix A: Research Onion.
Appendix B: Survey Questionnaire.
Appendix 3: Personal Statement.
Reflective Statement.
Chapter 1: Introduction
1.0 Introduction
The term “Brand image” indicates the real picture of the brand in consumer’s mind (Forozia et al., 2013). The brand image can be positive or negative. Only a positive brand image is very helpful for the firm to gain customers’ acceptability and profitability. A good image of the brand is ensured after meeting the desired level of expectation of the customers (Saleem and Raja, 2014). This means the achievement of customers’ satisfaction highly depends on brand image. For this reason; the image of the Brand is not only needed for customers’ satisfaction but also for increasing the loyalty of the customers (Kumar and Shiplap, 2014). Customer loyalty helps the firm to attract more and more customers and make them satisfied (Reichheld, 2013). This study analyzes the effect of brand image on customer loyalty of McDonald’s, UK.
1.2 Research background
In this globalized world; the production process is changing in nature with the change in the customers’ demand. The customers’ demand for the first food company is also changed. Dudovskiy (2016) stated that the popularity of the fast-food industry all over the world is increasing including in the UK due to its special features like foods with lower prices, smooth and due to time delivery, easy to consume, the safety of health and highly qualified goods. Humphries (2010) mentioned that the UK people are very much enjoying the food habits. The food companies also help the economy by reducing the unemployment problems in the UK. These companies have 200000 workers and provide 1.5 billion meals per year in 20,000 outlets. The most important point is the size of the UK food industry is double of the German food industry. In addition; three times the French food industry. Hardwick (2014) revealed that UK people are also enjoying to expense for the food purpose and it has nearly £30 billion in every year.
McDonald’s is a popular fast-food company not only in the UK but also all over the world. In a day; McDonald’s provides food services to 40 million consumers. It has 30,000 restaurants. More than 75% of Mcdonald’s is run by local operators and most of the profits are coming from the US and European markets. The strength of McDonald’s is the strong brand image in the UK and international market. McDonald’s is able to attract customers by proper caring, using hygiene cars as well as quality foods with a smooth delivery system (McDonald, 2018). Warsinske (2017) said that McDonald’s has gained a positive response from the customers and gained the 6th position in the global market. McDonald’s has used various strategic strategies for gaining the top position in the market including market segmentation, market testing, and proper implementation of marketing mix strategies.
In this competitive age; fast-food companies set new strategies to establish brand image and competitive advantages. The long-term vision is also considered by the food industry to develop the position of the firm. The challenges are also considered by the food industry to attract and retain potential consumers in the UK market. At this time; the Food industry has used various strategic strategies for gaining the brand image and customers’ loyalty in the market including market segmentation, market testing, and proper implementation of marketing mix strategies.
According to Kotler et al. (2015), the Brand image indicates the real picture of the brand in customer mind regarding their desire products and services (Kotler et al., 2015). Business success highly depends on brand image and brand loyalty. The customers’ purchasing behavior is also affected by the brand image and brand loyalty of a product. Reducing the customers’ switching is essential for any business that can be possible with a good brand image. Loyal customers are returning and buying similar types of brands frequently boosts up the image of brands (Galetto, 2017). The loyal customers also share information regarding their loyal brands with others that also have a positive impact on the firms’ profitability (Kotler et al., 2015). Kotler and Keller (2016) mentioned that if an organization wants to boost up its customer loyalty it must increase its brand image. Very few researchers are done research on this research topic. That is why; the researcher analyses the topic very carefully to identify the influence of brand image on the customers’ loyalty in the food industry in the UK.
1.3 Research rationale
According to Moss (2017), a good brand image plays a significant role to build strong relationships with a target audience of a business. Sun (2016) stated that a good brand image contributes to market share, attracts food lovers, and retains customers for longer time periods. Colyer (2013) said brand image including its products and services increase business prosperity and provides sustainable competitive advantages. On the other hand, Gilligan and Wilson (2013) said customer loyalty plays an important role increase business sales and revenue, profits and wealth. Kotler et al. (2016) said loyal consumers express their feeling regarding a brand with others that in turn increase the brand image of a business. According to Eakuru and Mat (2016), loyal customers play advertising roles and can motivate others to purchase products and services from a particular brand that maximize the sales and profits of a business. For example, Visionsharp (2017) claimed that McDonald’s is a popular and recognizable brand not only in UK fast-food sector but also in the global food industry. This brand reputation and brand image help McDonald to attract its target customers and gain expected revenue and profits. Fleming (2018) stated that McDonald’s brand image helps it to increase its customer loyalty and post its best sales figures for ages.
A similar finding is seen in the primary research outcome, where the majority numbers (57%) of participants are influenced by McDonald’s brand image and make them loyal towards this brand. Additionally, 57% of respondents are very likely to be loyal for a long time towards the brand of McDonald’s due to its strong brand image. This means a stronger brand image significantly influences customer loyalty positively. However, increasing customer loyalty through brand image has now been more challenging than ever before. The key challenges of increasing brand image are developing effective digital strategies and integrated marketing communication, leveraging brand assets as well as managing brand relevance to ensure growth (Cronje, 2016), making brand-portfolio strategy, building brand internally, possessing a compelling vision, and treating brands as assets (Aaker, 2014). On the other hand, increasing customer loyalty is a key challenge for fast-food retailers due to the customer changing needs and demands (Astute, 2019), customers avoiding the center of store products, the demand for healthier foods and clean labels, increase demand for natural and organic foods, shifting toward e-commerce, slower product innovation cycles, and add value to products, and making the product more convenient (Carolyn, 2016). In this situation, UK fast-food restaurants now need to conduct a study on how to improve brand image and customer loyalty………………………
Total Word: 21000
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