Analysis the Influence of Trusting a Brand, Brand Logo and Brand`s

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BULL ET IN OF THE GEORGIAN NATIONAL ACADEM Y OF SCIENCE S, vols. 9, no. 1, 2015
Management
Analysis the Influence of Trusting a Brand, Brand Logo
and Brand’s Character on Deciding to Buy,
Considering Loyalty Mediator Role for a Brand
Niloofar Naziri*, Behrooz Ghasemi*, Soheil Sarmad Saeidi*
*
Department of Management, Islamic Azad University, Central Tehran Branch, Tehran, Iran
ABSTRACT. Nowadays, to value customers and influence on deciding to buy a product,
marketers should have more concentration on brand making strategy and also creation and
maintenance of loyal customers’ base. By increasing competence between brands, manager’s
face more challenges in adapting their brands to customers changed understandings and
tastes. In order to create and maintain loyalty to a brand, managers evaluate relevant and
irrelevant aspects of products. Today, managers intend to impress a favorable powerful and
unique brand in customers’ minds. Managing a brand and loyalty of customers seems to be
necessary to gain a rivalry advantage. Researches indicate that entity and character, quality,
impressiveness and loyalty and brand preference are among variables and factors of brands.
Considering the importance of brand logo, brand character, reliability and its influence on
customers, this research is intended to study influence of these variables on deciding to
further purchase according to the role of customers’ loyalty mediator factor in garment
industry.This research is operational and surveyed-field type from the perspective of
information gathering method, has a descriptive nature and correlational type. To analyze
assumptions and evaluating total fitting of conceptual model, structural equations modeling
(minimum of partial squares approach) has been used. Statistical population of this research
is consumers of Nike and Addidas trade marks in Tehran.Results obtained from this research
demonstrates that there is a positive and meaningful relationship between these three
variables: “trusting a brand”, “ brand logo”, “ brand character” and “ loyalty to a brand”
and also between these three variables: “trusting a brand”, “ brand logo”, “ brand
character” and “ deciding to further purchase” and also between “ loyalty to a brand” and
“deciding to further purchase”.© 2015 Bull. Georg. Natl.Acad. Sci.
Key words: loyalty to a brand, deciding to further purchase, reliability of a brand, brand logo, structural equation
model, squares
INTRODUCTION
In the competitive conditions of today’s markets, achieving a suitable position in consumers’ mind in order to make
them to be loyal to the company or the brand is too important and one of the factors to gain such a position in
customers’ mind, is the special value of the trademark and the brand. The value of trademark is the ultimate ideality
or added value that a product such as Coca cola can create. One of the main reasons about the importance of this
concept is its strategic role in achieving competitive advantage. This competitive advantage is obtained from
markets. Consumers have too many decisions to purchase different things every day and deciding to purchase is the
central and main point of marketing efforts. Through examinations and detailed studies of many great companies
about “deciding to purchase” subject is to answer these principal questions: what kind of products, consumers buy?
© 2015 Bull. Georg. Natl. Acad. Sci.
482
N.Naziri
Where do they buy? How and how much? Why and when?In order to buy a product or receiving a service,
consumers do a series of actions that we call: consumer’s deciding process. After determining their needs,
consumers begin to gather information and then according to the information, evaluate purchasing options and
finally decide to buy (Jalilvand and Ebrahimi, 1390).Therefore, nowadays the influence on deciding to purchase
products makes marketers to have more concentration on brand making strategy and also creation and maintenance
of loyal customers’ base (Hamid, 2013). By increasing competence between brands, managers face more challenges
in adapting their brands to customers changed understandings and tastes (Gadswar, 2008). It is so important to
understand that creation of value for customers is not obtained only by operational ideality of products or services
(Jamal and goode, 2001). From customers’ behavior point of view, value is not because of product or service. It is
important that this value is in their minds, potentially or de facto (kapferer, 2008). Therefore focusing on addressees’
mind and how to create mental value (Tominan, 1999) play and key role in long-time creation of value. So, brand
strategic management and implementing brand making policies are very important in strategic management of
organizations.Nowadays, brand making is a vital importance in markets to create loyalty in customers, profit making
and also strength of the organization (Bartlet and Gooshal, 2009). This concept also can act as a powerful mean to
setting company sources in order to develop strategic competitive advantage. Although some advantages are not
known very good these days, but it can be observed that present focusing on brand making according to values and
culture, makes companies to have excess concentration on their brand character so responding to change process has
been reduced (Aker and Keler, 2010).Today, brand making has been introduced as a multiple challenge process for
companies (Barvised and Robinson, 2011). Need to distinguish customized products in market, need to attract and
keep personnel who have high capabilities in order to support the creation of value process, need to identifying
incremental expectances and favors of beneficiaries in order to protect legality of the company and need to present
an enduring, strong and reliable of company in order to safeguard the continuity of the company against rivals and
investors are obvious among complexities of the relations and needs of the company to become well-known and
popular. In order to make and maintain loyalty to a brand, managers evaluate relevant and irrelevant aspects of
products (Kapferer, 2004). Today, managers intend to impress a favorable powerful and unique brand in customers’
minds. Managing a brand and loyalty of customers seems to be necessary to gain a rivalry advantage. Researches
indicate that entity and character, quality, impressiveness and loyalty and brand preference are among variables and
factors of brands (Larche and et. Al). Considering the importance of brand logo, brand character, reliability and its
influence on customers, this research is intended to study influence of these variables on deciding to further
purchase according to the role of customers’ loyalty mediator factor in garment industry.
RESEARCH THEORY BASES
Ranjbarian and et. Al (1391) in a research showed that in chain stores, perceived quality influences on perceived
value and also customers’ satisfaction and deciding for further purchase. In addition, perceived value influences on
customers’ satisfaction and deciding for further purchase. Customers’ satisfaction influences on deciding for further
purchase. Sadeghiani (1388), in his research, by applying special value pattern of Accer brand, investigates the
relationship between independent variables such as loyalty to a brand, brand quality, perceived quality of the brand,
association of the brand and brand popularity on an international and local brand special value from customers’
point of view. In his research, Ja’farnejad (1388) states that there is a meaningful difference in innovation index
between company’s customers and experts points of view. This difference results from different perceives of
innovation concept from both sides.Ghorabi (1388), showed in a research that observing qualitative standards
influences on the brand logo of Gostaresh Foolad industry. Bahreinizade and Tavasoli (1392) showed in a research
that customer’s special value and customer’s satisfaction has a direct influence on loyalty of customers and special
value of value, special value of relations and special value of trademark has indirect influence on customers’ loyalty.
Parhiakar and et. Al shows in a research that there is not any direct relationship between brand logo popularity and
consumers’ loyalty.Moradi and Zare’ee (2011) confirmed the relationship between awareness, perceived quality and
loyalty to a brand via these two variables. Rahimnia an Ftemi (1391) showed that the indirect influence of successful
relations to customers on brand logo is more than its direct influence that shows the important role of brand special
value in creating brand logo.ShahHosseini and et. Al (1390) demonstrates that combination process marketing has
influence on oral propaganda customers’ decision to purchase, whereas this variable doesn’t have any relationship to
inner perceives.GilaniNia and Moosavian (1389) showed in a research that loyalty, awareness and quality have
influence on brand special value. Awareness of a brand is one of the impressive factors of loyalty of customers to a
brand.Dolatabadi and et. Al. (1393) demonstrates that mediator variables are confirmed. In other words, findings of
this research confirm the importance role of brand entity in impressiveness of a brand, and also preference and
trusting a brand to predict the loyalty to a brand level.
Bull. Georg. Natl. Acad. Sci., vols. 9, no. 1, 2015
Analysis the Influence of Trusting a Brand, Brand Logo and Brand’s Character on Deciding to Buy, Considering Loyalty Mediator Role for a Brand
483
Boo and et. Al. (2009) confirms brand special value concept based on customers and additionally, shows that brand
popularity has positive influence on brand value but it can’t have any direct influence on customers ‘ loyalty to a
brand. Kim and et. Al. (2011) showed in their research that brand entity influences on all the variables.
Zoobja and wooris (2006) mentioned the effect of brand satisfactory level and loyalty to a brand. Papoo and Coaster
showed that there is positive relationship between brand satisfactory and awareness level, perceived quality and
loyalty to a brand.Kim and et. Al. (2008) confirmed that customers’ satisfaction have positive influence on brand
awareness level, perceived quality and loyalty to a brand.Kim and et. Al. (2008), Delgadoo and Bulster and et. Al.
(2005) and also Chen (2010) confirmed that reliance is an important factor that shapes the relations and this reliance
increases popularity, perceived quality and loyalty to a brand.Norzalita AbolAziz and NoorjayaMahdeyasin (2010)
find out that organization performance has a deep influence on their access to special value for organization’s brand.
Chin Foo Chen and Van Shian Sang (2010) find out that there isn’t any positive and meaningful relationship
between perceived quality and brand special value and also between brand logo and brand special value.
Bavelangma and Lin Jang (2010) showed in a research that loss of a product occurs because of changes in customers
purchase behavior.Kayaman and Arsly (2007), by using perceived quality aspects in their article and analyzing their
relations to loyalty and brand logo concluded that brand special value aspects influence on brand logo.
In their article, Joo and Chen (2010) showed that hotels often use advertisement to establish connections with
customers and service marketing to help guests to get information relative to brand.Trusting a brand: Consumer’s
imagination based on trademark as an entity that possess character, should behave according to consumers’
expectations (Balid and Behi, 2011).Brand logo: Symbolic and operational believes, unite final perception of the
brand for the customer (Broodi and et. Al.).Trademark character: is a strategic tool that helps understanding
trademark including individual perceptions of trademark, distinguish among trademarks entity and finally creating
brand special value of trademark entity (Aker, 1996).Loyalty to a trademark: It refers to the attitude to be loyal to a
trademark and can be shown as consumers’ first option in selecting a brand (Yoo and Dantoom, 2001).
Deciding for purchase: Select a brand in consumers’ minds among other brands.
RESEARCH METHOD
The present research is operational because it is intended to use its results in Nike and Addidas agency. And also,
considering that it has been done to investigate the relationship between brand logo, trusting to a brand, brand
character and loyalty to a brand and deciding for further purchase. According to this, some assumptions have been
set, so it is an assuming-test research. Of course, according to some questions and performed investigations, some of
the research findings are of descriptive researches and has been fulfilled via correlational and surveyed methods.
Considering that research data gathered by using questionnaire and polling method. Field study (questionnaire) and
library study methods have been used for gathering information. The statistical population of the research is
consumers of Nike and Addidas in Tehran. Because of the infinite number of examinees, sampling method was
used.Considering the small amount of samples in the research and investigate the effect of variables, analyzing
method is partial least square root (PLS). In the present research, considering that the sample volume is limited, it
was impossible to use parametric methods of prediction such as multi-variable regression method. Therefore, using
PLS is suitable in these cases. In PLS method, research assumption test via analyzing path coefficients and
explicated variance valued IR2 is possible (Vinzee and et. Al.,2010). Furthermore, self-managing method (200
subsamples) to calculate statistic values of T is used in order to determine the meaningful state of path coefficients.
Path coefficients are used for determining the share of each predicting variable in explicating variable variance. And
values of R2 indicate the variable explicated variance via predicting variables. In addition, Estoun-geyser Q2
coefficient is used to investigate predicting ability of dependent variables from dependent variables. Positive values
of this coefficient indicates the ability of prediction (Vinzee and et. Al., 2010).
RESEARCH FINDINGS
Normal distribution test
In this research, Kolmogroff-Smirnoff test has been used to become sure of the normal state of data. To analyze
data, we assume data to be normal and set its variable to zero and test it by 5% of error level. Therefore if the results
show a number equal/greater than 0.05, there won’t be any reason to reject zero assumption that indicates the normal
state of data. In other words, data distribution would be normal.To perform this test, statistical assumptions are set as
follow:
Zero (0) assumption: data distribution for each variable is normal.
One (1) assumption: data distribution for each variable is not normal
Bull. Georg. Natl. Acad. Sci., vols. 9, no. 1, 2015
484
N.Naziri
Table 1: results obtained from Kolmogroff-Smirnoff test
Trust to a
Brand logo
Brand
Loyalty to a
brand
character
brand
Quantity
Average
Normal
parameters
Standard
deviation
Absolute
Most
value
differences
Positive
Negative
Kolmogrof-Sminroff statistics
Meaningful test
396
3.4402
396
3.4111
396
3.4263
396
3.3439
Deciding for
further
purchase
396
3.3434
0.82007
0.83583
0.95252
0.90626
0.89523
0.104
0.100
0.103
0.086
0.84
0.072
-0.104
2.064
0.056
0.075
-0.100
1.997
0.081
0.054
-0.103
2.045
0.062
0.058
-0.86
1.714
0.076
0.063
-0.084
1.666
0.098
As can be observed from above table, data distribution is normal for all the indexes because meaningful test is
greater than 0.05.Result of trusting a brand and loyalty to a brand assumption:
The value of beta for trusting a brand and loyalty to a brand path is equal to 0.258. Because the t value is calculated,
this path is 2.937 and it can be said that there is a positive and meaningful relationship between trusting a brand and
loyalty to a brand. Result of brand logo and loyalty to a brand assumption: The value of beta for brand logo and
loyalty to a brand path is equal to 0.386. Because the t value is calculated, this path is 5.558 and it can be said that
there is a positive and meaningful relationship between brand logo and loyalty to a brand. Result of brand character
and loyalty to a brand assumption: The value of beta for brand character and loyalty to a brand path is equal to
0.291. Because the t value is calculated, this path is 4.586 and it can be said that there is a positive and meaningful
relationship between brand character and loyalty to a brand. Result of trusting a brand and deciding for further
purchase assumption: The value of beta for trusting a brand and deciding for further purchase path is equal to 0.166.
Because the t value is calculated, this path is 1.988 and it can be said that there is a positive and meaningful
relationship between trusting a brand and deciding for further purchase Result of brand logo and deciding for further
purchase assumption: The value of beta for brand logo and deciding for further purchase path is equal to 0.187.
Because the t value is calculated, this path is 1.776 (alfa= 0.1) it can be said that there is a positive and meaningful
relationship between brand logo and deciding for further purchase Result of brand character and deciding for further
purchase assumption: The value of beta for brand character and deciding for further purchase path is equal to 0.395.
Because the t value is calculated, this path is 3.106 and it can be said that there is a positive and meaningful
relationship between brand character and deciding for further purchase. Result of loyalty to a brand and deciding for
further purchase assumption:The value of beta for loyalty to a brand and deciding for further purchase path is equal
to 0.311. Because the t value is calculated, this path is 3.349 and it can be said that there is a positive and meaningful
relationship between loyalty to a brand and deciding for further purchase.
Results obtained from research assumptions are given in table 11-4
Path
Table 2: coefficients of research conceptual model path
Path coefficient
Trusting a brand
0.258
Brand logo
0.386
Brand character
0.282
Trustinga brand
0.166
Loyalty to a brand
Loyalty to a brand
Loyalty to a brand
deciding for further
purchase
Brand logo
deciding for further
purchase
Brand character
deciding for further
purchase
Loyalty to a brand
deciding for further
purchase
For loyalty to a brand
For loyalty to a brand
deciding for further purchase
deciding for further purchase
Bull. Georg. Natl. Acad. Sci., vols. 9, no. 1, 2015
Result of t assumption
2.93
5.55
4.58
1.988
0.187
1.776
0.395
3.106
0.311
3.349
0.773
0.34
0.427
0.29
485
Analysis the Influence of Trusting a Brand, Brand Logo and Brand’s Character on Deciding to Buy, Considering Loyalty Mediator Role for a Brand
As can be seen from the following figure, determination coefficient for dependent variable of loyalty to a brand is
equal to 0.773 and for dependent variable of deciding for further purchase is equal to 0.427. Calculated path
coefficients and t values for completed model of research theory are given in the following figure.
Trusting a brand
0.427𝑅
0.166 )1.988(
deciding for further
purchase
0.258 )2.93(
Brand logo
0.386 )5.55(
0.311 )3.349(
Brand character
0.282 )4.58(
loyalty to a brand
CONCLUSION
0.773𝑅
First main assumption
There is a meaningful relationship between “trusting a brand”, “ brand logo”, “ brand character” and “ loyalty to a
brand”. Results obtained from tests show that there is a positive and meaningful relationship between “trusting a
brand”, “ brand logo”, “ brand character” and “ loyalty to a brand”. Results show that “trusting a brand”, “ brand
logo” and “ brand character” can predict about 77 percent of changes in “ loyalty to a brand”. So the first
assumption is approved. Therefore it can be said that improving the level of “trusting a brand”, “ brand logo” and “
brand character” in customers up to 95% can increase “ loyalty to a brand” level.
Second main assumption
There is a meaningful relationship between “trusting a brand”, “brand logo”, “brand character” and “ deciding for
further purchase”. Results obtained from tests show that there is a positive and meaningful relationship between
“trusting a brand”, “ brand logo”, “brand character” and “ deciding for further purchase”.
Third main assumption
There is a meaningful relationship between “loyalty to a brand” and “ deciding for further purchase”. Results
obtained from tests show that there is a positive and meaningful relationship between “ loyalty to a brand” and
“deciding for further purchase”. Results of second and third assumptions show that “trusting a brand”, “ brand
logo”, “ loyalty to a brand” and “ brand character” can predict about 48 percent of changes in “ deciding for further
purchase”. Therefore it can be said that improving the level of “trusting a brand”, “ brand logo”, “loyalty to a
brand” and “ brand character” in customers up to 95% can increase “ deciding for further purchase” level.
Subsidiary assumption 1: There is a meaningful relationship between trusting a brand and loyalty to a brand
Results show a positive and meaningful relationship between “trusting a brand” and “ loyalty to a brand” variables.
So the first assumption is approved. Therefore it can be said that improving the level of “trusting a brand” in
customers up to 95% can increase “ loyalty to a brand” level.
Subsidiary assumption 2: There is a meaningful relationship between brand logo and loyalty to a brand
Results show a positive and meaningful relationship between “brand logo” and “ loyalty to a brand” variables. So
the second assumption is approved. Therefore it can be said that improving the level of “brand logo” in customers
up to 95% can increase “ loyalty to a brand” level.
Subsidiary assumption 3: There is a meaningful relationship between brand entity and loyalty to a brand
Results show a positive and meaningful relationship between “brand character” and “ loyalty to a brand” variables.
So the third assumption is approved. Therefore it can be said that improving the level of “brand character” in
customers up to 95% can increase “ loyalty to a brand” level.
Subsidiary assumption 5: There is a meaningful relationship between brand logo and deciding for further purchase
Results show a positive and meaningful relationship between “brand logo” and “deciding for further purchase”
variables. So the fifth assumption is approved. Therefore it can be said that improving the level of “brand logo” in
customers up to 95% can increase “deciding for further purchase” level.
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486
N.Naziri
Subsidiary assumption 6: There is a meaningful relationship between brand entity and deciding for further purchase
Results show a positive and meaningful relationship between “brand character” and “deciding for further purchase”
variables. So the sixth assumption is approved. Therefore it can be said that improving the level of “brand character”
in customers up to 95% can increase “deciding for further purchase” level.
Results obtained from this research demonstrates that there is a positive and meaningful relationship between these
three variables: “trusting a brand”, “ brand logo”, “ brand character” and “ loyalty to a brand” and also between
these three variables: “trusting a brand”, “ brand logo”, “ brand character” and “ deciding to further purchase” and
also between “ loyalty to a brand” and “deciding to further purchase”.
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