The Impact of Brand Values On Customer Brand Loyalty in Youth Segment PDF

THE IMPACT OF BRAND VALUES ON CUSTOMER BRAND
LOYALTY IN YOUTH SEGMENT:

SPECIAL REFERENCE TO SOFT DRINK MARKET IN SRI
LANKA
Abstract
Customer loyalty is regarded as one of the key factors for organizations. Managers and
marketers are trying to keep their brand loyal customers and trying to avoid competitors
absorbing of these customers. Brands, just like people, have values. This research has focused
impact of brand values on customer brand loyalty. This research has mainly focused on brand
values of product quality, brand personality, emotional appeal and value proposition are
influenced the customer brand loyalty towards the soft drink brand brands.
Key Words
Brand Value
Brand Loyalty
Youth Segment
January 2013
The Impact of Brand Values on Customer Brand Loyalty In Youth Segment
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
As the competition in the market grows day after day, many companies realize the value of
their existing customers more and seek to improve their customer loyalty through the creation
of satisfaction. The consistent pursuit of the customer loyalty started from the early 80s.
Afterward, most companies developed and examined some forms of customer loyalty
strategies. Customer loyalty is regarded as one of the key factors for organizations, which
causes their profitability and success a brand becomes successful only if its owners have an
accurate perception of its constitutional assets. In case of important of the brand, the brand
values play a vital role. Brands are among the important issues associating with the
companies‟ products. The companies make long-term investments on their brands.
It is the investment for brand management, in such a way that it both preserves the brand
values and do not miss the customer loyalty through the preservation of the brand‟s
characteristic. Since many factors affect the customer loyalty, In order to manage customer
loyalty in the best way, the organizations must be able to communicate with their customers
in the best way and identify their needs and demands. The loyal customer has a positive
attitude towards it and is less sensitive to its prices. In this study attempt to study how the
impact of brand values on customer brand loyalty in soft drinks.
Once upon a time a soft drink was considered as a prestigious product and it has become
acceptable to people of every age group. The first soft drink business was begun in 1783 as
an artificial mineral water. Using the modern brand name, an Atlanta pharmacist began to sell
Coca- Cola as a tonic in 1886. Mr. Sattar was the first entrepreneur to be involved with the
marketing of soft drinks in 1965. Gradually it is becoming more popular in the consumers'
world and its demand is world- wide.
Nowadays soft drinks have become essential part in lifestyle of the people in the society.
There are number of soft drink brands are available in the market. In those brands, some
brands are very famous not only in Sri Lanka but also globally. All companies doing lot of
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things to create a loyal customer base towards their brand by giving a value to the customer.
Researcher selected that area because of companies invest lot of money in increase the brand
values. Then investigate the relationship between loyalty and brand values in this study, the
relative effects of some factors of brand values on customer loyalty are simultaneously
examined.
1.2 INDUSTRY OVERVIEW
The food and beverage industry in Sri Lanka has become a thriving sector in the economy
propelled by the post war optimism and reaping maximum benefits from peace dividends
since May 2009. Contribution to the Private Consumption Expenditure (PCE) by the food and
beverages industry was recorded at 37.8 % of 2011.
The food and beverage sector industries listed in the Colombo Stock Exchange (CSE)
witnessed a staggering growth of 42 % subsequent to the cessation of the 3-decades-long
internal conflict. The private sector took full advantage of the end of the prolonged war by
entering into untapped markets in the North and East provinces. Private sector firms in the
food and beverage industry penetrated the North and East provinces in a massive wave
increasing firm level earnings by two to three folds. Post conflict buoyancy in the tourism
industry also facilitated in expanding the food and beverage industry on a substantial scale.
The soft drink market comes under the food and beverages sector. The soft drink market has
significant contribution to the food and beverages sector. Carbonated soft drinks are a thirst
quencher and consumers are known to purchase them mostly on impulse. This requires the
product to be widely available, especially in its chilled form, inplaces where impulse buyers
could readily purchase them.
Manufacture of beverages recorded a growth of 10.2 per cent in 2011 compared to 19.7 per
cent in 2010, mainly contributed by the growth in soft drinks. The production of beverages
benefitted from enhanced market access to the Northern and Eastern provinces, increased
consumer spending on account of improved income levels as well as the high growth
momentum of the tourism sector.
Statistics indicate that there will always be a market for carbonated soft drinks, because these
are popular and command a global market share of about 50% of all beverages. Sri Lanka‟s
economy has grown significantly, over 8% in the 2011. GDP per capita increased to US$
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2836 in 2011, compared to US$ 2400 in the previous year (Source: Central Bank of Sri
Lanka). The income trends of consumers‟ indicate that more people can now afford to
purchase and consume soft drinks, which augur well for market growth. However, rising
inflation has reduced the disposable incomes of consumers significantly, impacting on market
growth.
There are 5 main industry players in carbonate soft drink market in Sri Lanka. They are
 Ceylon Cold Stores Ltd

 Coca-Cola Beverages (Pvt) ltd
 Varun Beverages Lanka (Pvt) Ltd (Pepsi)
 Pet Packaging (Pvt) Ltd (My Cola)
 Shaa Cola beverages (Pvt) Ltd
Ceylon Cold Stores Limited (CCS), also known as Elephant House, has established itself as
the leader in Sri Lanka‟s carbonated soft drinks market, gaining a 47% share and
outperforming leading multinationals such as Coca-Cola, Pepsi and other local brands in a
highly competitive business environment. CCS manufactures a variety of soft drinks such as
Ginger Beer, Orange Barley, Cream Soda, Lemonade, Necto, Orange Crush, Soda, Peyawa
and newly entered brand to the market Kik kola, with most of these products having a history
as old as the company itself.
Second market leader in soft drink market in Sri Lanka is multinational Coca-Cola Company
which provides variety of internationally popular brands such as Coca-cola, Sprite, Fanta,
Portello. CCBSL produces and sells over 10-million unit cases of carbonated soft drinks per
annum. It operates through a countrywide distributor network, consisting of about 128
distributors.
Varun Beverages Lanka is the franchise for Pepsi-Cola brands who is the franchise owner of
Neganahira Nagas in Sri Lanka Premier League. They can target young segment easily by it
because Cricket is the most popular sport in Sri Lanka. They manufacture and distribute
internationally known brands Pepsi, Mirinda, 7up. Rather than these main 3 competitors there
are 2 companies My beverages and Shaa beverages provide soft drinks similar to product of
major competitors
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1.3 RESEARCH PROBLEM
Marketers‟ survival depends on consumer loyalty. Consumer loyalty depends on their

perception and brand preference of the particular brand. With this in mind, the wishes of
businessman to achieve customer brand loyalty can indeed become a reality with several
efforts. To remain a competitive business, companies should treat customers as friends. In
order to achieve this goal, managers should use the strategies to create values to the customer.
Organizations in both public and private sectors have learned that the ability to communicate
effectively and efficiently with their target audiences is important to their success.
If a particular brand maintains a significantly higher perception of value to a consumer than
any other brand in the category, that consumer will consistently purchase that brand and
consistently recommend that brand to others. Conversely, as brands in a category become less
differentiated in terms of both tangible and intrinsic features, price becomes the major
differentiator of values, and thus, there is little loyalty.
Marketers should know their market power originates from the creation of brands for their
products, and powerful brands bring about customer loyalty for them. The most distinct skill
of the professional companies may be their ability to create, keep and develop their brands.
This study deals with the investigation of the role of brand values in the creation of customer
loyalty in Soft drink among youth generation in Sri Lanka. So the research problem in this
research to what extend Brand values impact on the Degree of Customer brand loyalty?
1.4 RESEARCH QUESTIONS

1. What is the impact of brand values towards the brand loyalty of customer?
2. How each brand value would influence for customer loyalty?
3. What is the customer attitude towards brand values when they buy a soft drink?
4. How brand values influence when consumers recommend a brand others?
5. What is the most important brand value for customer loyalty?
6. What is the consumers‟ ability to recognize brand values?
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1.5 RESEARCH OBJECTIVES
Key Objective
 Determine the impact of brand values towards customer brand loyalty.
Specific Objectives
1. Examine the customer attitude towards brand values when they buy a soft drink.
2. Find out impact of brand values when consumers recommend a brand to others.
3. Find out most important brand value for customer loyalty.
4. Examine the consumers‟ ability to recognize brand values.
5. Identify how soft drink companies can use brand values to make loyal customers.
6. Provide some recommendations to soft drink companies.
1.6 SIGNIFICANCE OF STUDY
It is important for the marketers to build up loyal customers to ensure the success of business.
Customer loyalty is one of the most important issues organizations face today. Creating loyal
customers has become more important in Soft drink market due to significant increase in
competition. Customer loyalty is regarded as one of the key factors for organizations, which
causes their profitability and success a brand becomes successful only if its owners have an
accurate perception of its constitutional assets. In case of important of the brand, the brand
values play a vital role. Brands are among the important issues associating with the
companies‟ products. The companies make long-term investments on their brands.
Businesses are trying to attract and building a loyalty through satisfy customers. The aim of
this study examines the significance of brand value on customer brand loyalty. The objectives
of the study are determining relationship between of brand value with customer brand loyalty
towards soft drinks brand in youth segment. So that is more important to marketers extend
their business by creating loyal customers.
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.
1.7 HYPOTHESES
H0: There is a significant impact of product quality on customer brand loyalty

H1: There is a no significant impact of product quality on customer brand loyalty
H0: There is a significant impact of brand personality on customer brand loyalty

H1: There is a no significant impact of brand personality on customer brand loyalty
H0: There is a significant impact of emotional appeal on customer brand loyalty

H1: There is a no significant impact of emotional appeal on customer brand loyalty
H0: There is a significant impact of value proposition on customer brand loyalty

H1: There is a no significant impact of value proposition on customer brand loyalty
1.8 RESEARCH METHODOLOGY
1.8.1 Sources of Data
There are mainly two ways to collection of the data. That are,
1. Primary data
2. Secondary data
The method of collecting them is further explained in this section.

Collection of secondary data,
Secondary data was needed for the study when selecting the most popular brands & sample
for the survey. The secondary data will be gathered by reports articles, journals and books.
And Some Statistics gathered from Central bank of Sri Lanka and Census and statistics
department.
The primary data is collected for the special purpose. That is the research problem. In that
way questionnaire for collect the research data. With the questionnaire method, the accuracy
and reliability of the data are secured. The study was mainly conducted by using
questionnaires. The well prepared questionnaire was used to gather essential data from the
customers
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1.8.2 Sampling Plan
The sample selection firstly identified the population then after decides the sample. In that
way the sampling techniques are,
 Probability sampling technique
 Non-probability sampling techniques
In that way population should be the youth between ages of 15 & 30 in Sri Lanka. And
randomly select the 50 respondents in each Colombo & Gampaha districts as the sample for
the data collection
1.8.3 Data Presentation & Analysis Method
Data collected through questionnaires and analyzed in a quantified basis. Each question in the
questionnaire is analyzed critically in order to analyze the each research question separately.
For data analysis purpose, researcher used a prominent data analyzing software called SPSS.
As the analytical tools, hypothesis testing and Standard deviation is used.
After using these software and the analytical tools, the gained findings are presented in
graphical form by using pie charts and bar charts. By critically analyzing those findings, built
hypothesis will be testing and the relationships among the variable were identified. Then they
were presented in both numerical and graphical forms.
Descriptive analysis is done for the calculation of Mean, Standard deviation, Frequencies,
and percentages for the Independent and Dependant Variables. Pearson‟s Correlation will be
used to measure the strength of the linear relationship between two variables by measuring
the degree of „scatter‟ of the data values. This reflects whether the theory is true or false. The
graphical representation of the data has been used for the purpose of meaningful presentation
and rational interpretation.
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1.9 LIMITATIONS OF THE RESEARCH
A research is only focus on the Carbonate drinks brands so people who are using the non-
carbonate drinks such as natural drinks based on fruits because health considerations are not
match with the research questions. And also sample is only the respondents of Colombo and
Gampaha districts. It is decreasing the reliability of the research due to the reason of only two
districts not representing the whole soft drink market. Other than that sample size also
insufficient to such a vast research. And the validity of this research is in question as people
might be in a hurry to complete it and so might not give accurate responses
1.10. CHAPTERIZATION
Total research will include six chapters and which are as follows
Chapter 1- Introduction
This chapter represents the background of the thesis. As instance it contain research problem,
research objectives, research questions and information which require laying the foundation
of thesis.
Chapter 2- Literature Review

It contains the research articles, relevant theories and concepts which have written relevant to
particular research topic and the previous researches. This will support to understand the
prevailing vacuum in the industry.
Chapter 3- Conceptualization and Operationalization

Under this chapter mainly define the variables and interpreting the conceptual framework.
Chapter 4- Research Methodology

This contains formulating hypotheses, sampling plan and scaling of the data.
Chapter 5- Data Presentation and Analysis

Mainly testing hypotheses is conducting under this chapter and analyze the variables.
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Chapter 6- Summary and conclusion

Conclusion and suggestions are going to be presented here as the eventual task of the thesis.
1.11 CHAPTER SUMMARY

Under the first chapter discuss the background of the study, industry overview, research
problem, objective of the study, how can collection of data, significance of the study and
hypotheses development. Mainly first chapter discuss the overall idea about the conduct the
research.
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CHAPTER TWO
LITERATURE REVIEW
2.1. LITERATURE REVIEW
2.1.1. Studies of Brand Loyalty
Brand Loyalty is an important concept of today‟s brand marketing world. Many definitions
were being proposed by many researchers, among which the most complete definition was
being proposed by Jacoby and Olson (1970). They defined brand loyalty as the result from
non-random, long existence behavior response, and it was a mental purchase process formed
by some certain decision units who considered more than one brands. In early researches,
researchers usually took the act of repurchase as the method of measure brand loyalty. But
some researchers indicate that to measure brand loyalty the best way is to measure by
affective loyalty (Bennett and Rundle-Thiele, 2000).
Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise
continue using the brand and can be demonstrated by repeated buying of a product or service
or other positive behaviors.
According to the study conducted by Oliver (1999), the brand loyalty was classified into four
parts: cognitive loyalty, affective loyalty, conation loyalty and action loyalty. Day (1996)
added two indicators, action and affection for brand loyalty and divided brand loyalty into
true brand loyalty and spurious brand loyalty. The spurious brand loyalty consumers may
make repeated purchases only because the brand they purchase is the only one choice in the
stores. On the other hand, true brand loyalty consumers should show both psychological and
affective commitments in addition to repurchase consistency. As shown in Figure 2.1, Dick
and Basu (1994) classified loyalty into:
1. True loyalty 3.Latent loyalty

2. Spurious loyalty 4. No loyalty.
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Figure 2.1 Degree of Loyalty

Repeat Purchase Possibility
High Low
True Loyalty Latent Loyalty
Related High
Attitude Low Spurious Loyalty No Loyalty
Source: Dick and Basu (1994)
It is admittedly true that shopper allegiance for a brand in truth contributes much to
marketing. According to the concept of brand loyalty, it is regarded as the essential feature of
brand value. The American Marketing Association gives it the explanation as “the situation in
which a consumer generally pays money for the same manufacturer-originated product or
service repeatedly over time rather than buying from multiple suppliers within the category”
or “the degree to which a consumer consistently purchases the same brand within a product
class”(2006, qtd in Moisescu).
The author draws attention to the fact that since other descriptive aspects of brand equity,
such as considerable quality, associations and awareness, all have consanguineous
relationship with purchase and appreciation, they can guarantee the level of brand loyalty. It
follows that brand fidelity may add the satisfaction of other dimensions of brand value. For
example, brand devotion always leads the payers to believe the perceived quality of the brand
is better than others.
Typical loyal purchasers are less sensitive to price. Because of this, when a product mark up,
they won‟t lessenthe quantity of they buy. It is the view of Reilly (2008) that loyal customers
deem the assessment of the product .As a consequence, they strong believe their choices. In
that case, they trend to center less on the price.
The potential benefit that the loyal customers are able to add is that they may bring in more
new consumers. At the same time, these potential consumers are also possible to become the
future loyal customers. A good example of this is that when one repeatedly buy the same
brand cosmetic, and consider it convenient to use, he will recommend it to his classmates and
girl friend. Hence, there is no wonder that people around always own the same brand of
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clothes as well as other commodity. In contrast, if people around me complain the poor
quality of a brand to me frequently, I won‟t think of owning it as well.
Most of all, in the global economy, client brand dependability stands out as an important
competitive weapon. Kust (2008, p.24) correctly argues that the world has switched into a
global business in the last 10 decades; developing the brand loyalty globally is essential to
enter the market. He goes on to indicate that in order to keep a trust relationship with their
consumer, corporations should create a customer brand loyalty program among customers.
According to Vraneševic and Stanandccaronec (2003), the importance of product brand can
be seen primarily in its impact on consumers‟ choice and their loyalty towards the brand
through identifying and differentiating quality. In other words, customers will more likely to
become loyal to a brand when the particular brand is perceived to provide the level of quality
that can meet customers‟ expectations. Similarly, Ruyter, and Bloemer (1998) has found that
there was a positive relationship between perceived service quality and service loyalty when
they conducted series of studies for five different service industries. The same goes to
perceived quality and brand loyalty as well because customers‟ perception of quality towards
a product or services may enhance their loyalty towards a brand.
Brand loyal consumers are more willing to pay more for a brand because they perceive some
unique value in the brand that other brand cannot provide (Jacoby and Chestnut, 1978;
Pessemier, 1959; Reichheld, 1996).This uniqueness most probably derived from greater
brand trust in the reliability of a brand or from more favorable affect when customers use the
brand (Chaudhuri and Holbrook, 2001). In the commitment-trust theory, Morgan and Hunt
(1994) stated that trust is a key variable in the development of an enduring desire to maintain
a relationship in the long term e.g. the long term relationship might be developed towards a
brand due to the trusting relationship that the customer has. Likewise, Ballester and Aleman
(2001) found that there are possible conceptual connections of trust to the notion of loyalty
and this actually drives the authors to focus on Aust. J. Basic & Appl. Sci., analyzing the
relationships existing among these concepts. Subsequently, the results suggested that brand
trust play an imperative role in generating customers' commitment towards a brand or brand
commitments towards a particular product. In other words, brand trust as one of the variables
in their study would possibly effects the level of brand loyalty. Thus, brand trust is included
in the theoretical framework of this research.
Brand image play an important role in brand building, especially in customer dependability.
As Reichheld (2001,qtd in Hsieh and Li,) perceptively state that preferable brand image will
lead consumers to conceive a perception of an organization‟s public relationship practice,
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which matches the corporate reputation better. With this in mind, customers are more likely
to retain optimistic faith, attitude, and action. It must be therefore be acknowledged that
customer loyalty grows fast through approving brand image.
Understanding loyalty is essential for marketing practitioners as loyal customers are less
likely to switch and make more purchases than similar non loyal customers (Reichheld,
1996; Reichheld and Sasser, 1990), thus if the company can retain just 5% more of its loyal
customers, profits will increase by 25% - 125% (Reichheldand Sasser, 1990). Reichheld‟s
(1996) is further supported by Strauss and Frost (1999), who suggest that relationship
marketing is cost effective; it is less expensive to retain one customer than to acquire one; it
is easier to sell more products to one loyal customer than to sell the same amount to two new
customers. This means that, it is easier to persuade loyal customer than to persuade new
customers. The loyal customers normally have more confidence towards the firms compared
to new customers.
Theoretically, brand loyalty could be enhanced by maintaining the long term relationship
with the customers in that it could help in creating the competitive advantages for any
particular company. Normally, in order to increase the market share, most companies are
utilizing common strategies such as discounting their market prices (having price war with
competing brand), expanding their distribution channels or even launching promotional
campaigns (Cravens, 1994). However, it would be more cost effective and profitable to
increase the market share that could be sustained over time though effectively strategizing the
brand loyalty rather than using the common short-term strategies. Once the relationship or
loyalty is build, it would be easier for the companies to achieve sustainable competitive
advantage.
2.1.2. Studies of Product Quality
In today‟s intense competitive market, the marketers are looking towards building a long term
profitable business relationships with the customer. The whole marketing orientations has
changed from the production concept to the marketing and societal concept. In marketing
concept, the achievement of the overall organizational goals depends on how best is a
company in delivering satisfactions better than the competitors (Kotler and Armstrong,
2010). From the marketing point of view, competitive advantage can be achieved through a
series of intermediate objectives such as perceived quality, achieving satisfaction, greater
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commitment and confidence on the part of customers, as well as a final objective, which is to
enhance loyalty.
Product quality is defined as „Differences in quality amount to differences in the quantity in
the desired ingredient or attribute‟ (Abbott, 1955). As mentioned by Garwin (1984), there are
8 dimensions of quality which include performance, features, reliability, conformance,
durability, serviceability, aesthetics and perceived quality. Product quality can be analyzed
under the concept of two different perspectives, objectives quality and perceived quality
(Brunso et al., 2005). The objective to measure the quality is determined by intrinsic and
extrinsic attributes. The intrinsic or the inner attributes refers to something that are related to
the physical of the product (color, appearance and etc) whereas perceived quality or extrinsic
attributes exist in the form of non-physical but related to the product (brand name, stamp of
quality, product information and etc). The differences between objective quality and
perceived quality lie in that objective quality has a pre-design standard to a product, and
perceived quality is influenced by internal and external product attributes which is an
evaluation basis for consumers (Olshavsky, 1985; Zeithaml, 1988). Kan (2002) points out
that objective quality is that consumers will use their experience and knowledge to evaluate
overall product benefit, function, durability, technology and reliability when consumers
purchase a product. Perceived quality is a consumer judgment on the accumulative product
benefits and a subjective feeling on product quality (Zeithaml, 1988; Dodds et al.,
1991).Aaker (1991) argues that perceived quality can show the salient differentiation of a
product or a service and becomes a selective brand in consumers‟ mind.
In order to increase the brand loyal customer base, it is suggested that an organization needs
to create the awareness, reputation, image, reputation, brand extension, innovation and
perceived quality of its product. It is also noted that to create brand loyalty, an organization
needs to create a valued based which is preferred relationships with the customer. Product
owners need to work out on the volume on relevance, emotional connectivity and customers‟
experiences in order to hook customers on stay with the said brand. Best-practice
organizations recognize that the emotional aspects of their brand are reflected in how
customers experience that brand across every touch point. Today's loyalty programs enable
companies to execute against these opportunities by helping them better understand customer
motivations, and then deliver on these unique insights through mass customization – not mass
communication. (Pearson, 2006)
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A good quality product creates customer delight. In turn, delighted customers remain loyal
and talk favorably to others about the company and its product. Studies show big differences
in the loyalty of customers who are less satisfied, somewhat satisfied and completely
satisfied. Even a slight drop from complete satisfaction can create an enormous drop in
loyalty (Kotler and Armstrong, 2010). Several researches have been done and it was noted
that there are positive relationship between performance quality and customer satisfaction.
However the correlation differs between one product and services to another. According to a
research constructed by Croanin and Taylor (1992) who examined for businesses, found
strong correlation between satisfaction and loyalty for fast food and dry cleaning.
If the consumers recognize, quickly recall, and are aware of the brand, this can is a sign of
quality and commitment. Thus, a buyer aware of a brand with favorable associations in
her/his mind and able to recognize quality is more willing to consider this brand at the time of
purchase, which leads to a favorable behavior towards the brand.
2.1.3. Studies of Brand Personality
In the business world of today, every company is trying to get the attention of the customers
by creating a distinctive brand image for their products. Pepsi is often perceived by
consumers as more “young,” Coke as more “real and honest,” Dr. Pepper as more “non-
conformist and fun” (Aaker 1997, p. 348). These kinds of human characteristics associated
with the brand are called “brand personality”.
Brand personality mainly comes from three sources: the first one is the association consumers
have with a brand, secondly, the image a company tries hard to create. Aaker (1997) defines
brand personality as “a set of human characteristics associated to a brand.” Hence, brand
personality offers the functions of self-symbolization and self-expression (Keller, 1993).
Levy (1959) indicates that brand personality contains demographic features, such as gender,
age and social class, and they may be directly influenced by the image of the brand users,
personnel and product spokespersons, and indirectly affected by product attributes as well.
Brand Personality is a differentiating element in an environment of symbolic consumption
(Lannon, 1993), which is presented to the consumer as a vehicle of self-expression and the
expression of an ideal (Sirgy, 1982; Malhotra, 1988), and a source of personal and social
meaning (Levy, 1959; Allen & Olson, 1995; J. Aaker, 1995, 1997). Brand Personality is thus
a factor that influences consumer choice and preference (Biel, 1993) and, as such, is an
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element that generates value for the consumer and for the company (D. A. Aaker, 1991,
1996).
Also a strong, favorable brand personality can provide consumers with emotional fulfillment,
image enhancement, an increased willingness to remain loyal to the brand, to try a new brand
or brand extension and to pay premium prices for a brand. BP can be the principle
differentiation basis when there is little or no distinction other than the brand (Aaker 1997,
Freling & Forbes 2005b, Venable et al 2005, Chang & Chieng 2006).
Most of the authors accept the approach that considers brand personality as a set of human
characteristics linked to a brand. A long term relationship between brands and loyal
customers is based upon clear and string brand personality. A real and affective closure to the
customer can only be achieved when a brand evokes human features. The dimensions of
brand personality are supposed to be correspondent to those identified in the case of human
beings by psychologists.
According to Jennifer Aaker, he suggests Sincerity (typified by traits such as wholesome,
down-to earth, and honest), Excitement, (typified by traits such as daring, imaginative, and
exciting), Competence (typified by traits such as intelligent, secure, and confident),
Sophistication (typified by traits such as glamorous, smooth, and charming) and Ruggedness
(typified traits such as strong and masculine).By using various marketing approaches, a
company may convey their brand personality to consumers and have the consumers of
varying personality traits believe and recognize the company‟s brand personality; thus,
consumers may develop some kind of relationship with the brand, which will further
influence their brand loyalty.
Many of the studies are conducted to show the relationship between the brand personality and
the brand loyalty of the customer and the consequences have being analyzed. Additionally, it
is found that by involving the concept of brand personality, the brand loyalty can be
enhanced.
It might be that consumers like the brands having more distinct brand personality, and it is
also likely that consumers are more familiar with the brands they prefer. Consumers may
likely use the brand and products in line with their own personality traits, in other words, all
the marketing activities are aimed at having consumers believe and recognize a brand
personality, and reinforcing the communication between the brand and the consumer (Govers
and Schoormans, 2005), in order to enhance the brand‟s loyalty and equity.
Mengxia (2007) investigated the Influence of brand personality on consumers‟ brand
preference, affection, loyalty and purchasing intention. The results of his study shows that
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brand personality has a positive influence on brand preference, affection, and loyalty and
purchase intention. A brand personality should be shaped to be long-lasting and consistent.
Besides, it should also be different from other brands and meet consumer‟s demands (Kumar
et al., 2006). Also a study conducted by Kumar et al. (2006) sorted out the connection
between brand personality and brand loyalty, and separately used durable goods (cars), and
consumer goods (tooth-pastes) to explore the relationship between brand personality and
brand loyalty.
2.1.4. Studies of Emotional Appeal
Many authors have discussed about what is emotional appeal and its importance on building.
Here researcher gives a theoretical based view of how we can generate brand loyalty through
emotional advertising.
Emotions are kinds of mental feelings, which together with moods and attitudes form the
umbrella concept of affect (Bagozzi, Gopinath, and Nyer 1999). More specifically, emotion
has been defined as a "mental state of readiness that arises from cognitive appraisals of events
or thoughts, has a phenomenological tone, often expressed physically, accompanied by
physiological processes, and may result in specific actions to affirm or cope with the
emotions" (Bagozzi, Gopinath, and Nyer 1999). Holbrook and Batra (1987) called for a
broadening of the unidimensional view of affect to encompass the full gamut of emotions,
and these emotional reactions include not only liking and disliking, but also love, hate, fear,
anger, joy, sadness, and so on.
Emotions are ubiquitous throughout marketing as they influence information processing,
mediate responses to persuasive appeals, and measure the effects of marketing stimuli
(Bagozzi, Gopinath, and Nyer 1999). Affective responses, such as moods and feelings evoked
by an advertisement are found to be antecedents of the attitude toward the ad (Batra and Ray
1986). It is widely accepted that emotions and moods trigger buying responses (Gardner
1985). How and to what extent emotional reactions to ads influence consumer decision-
making has attracted attention from a number of researchers in recent years. Geuens and De
Pelsmacker (1999) tested emotions and affect intensity on communication effects of different
emotional (warm, humorous, and erotic) and non-emotional advertising appeals. They found
that affect intensity seems to be mood specific, and the predicted effects of affect intensity
seem to occur more in the case of warm and humorous appeals than erotic appeals
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McGuire (1969) argues that there is no difference between emotional appeals and rational
appeals in terms of the effectiveness or emotional appeals are more effective. Holbrook and
Hirschman (1982) suggested that emotional appeals come from the emotional, experiential
side of consumption. Choi and Thorson (1983) found that emotional ads were better than
rational ads by most recall measures. Emotional appeals make a brand liked or friendly (Batra
and Ray 1985).
Where, Kotler and Armstrong (1991, 426-427) define emotional appeal as an: “attempt to stir
up either negative or positive emotions that can motivate purchase. These include fear, guilt,
surprise and shame appeals that get people to do things they should or stop doing things they
shouldn‟t. Communicators also use positive emotional appeals such as love, humor, pride,
hope and joy.”
An appeal, according to Manrai et al. (1992), is the basic idea behind an advertisement or the
basic reason why an audience should act. Emotional appeals are often strategically employed
to influence consumers indirectly and make the consumer feel good about the product (Calder
and Gruder 1989) relying on feelings for effectiveness (Aaker et al 1992).
When it comes to changing the message receiver‟s beliefs about the advertised brand
(Stafford 1993), Emotional appeal ads may have rational appeal components while rational
appeal ads can have emotional appeal component respectively. Stafford (1993) suggests that
both types of meanings occur in all ads and only case by case does the balance vary.
However, Aaker, Stayman and Hagerty (1986) found a positive relationship between the level
of warmth created by a commercial and the attitude toward the ad Page, Goldberg and Gorn
(1987) also reported more positive reactions for emotional appeal advertisements than for
informational appeal advertisements. Thorson and Heide (1990) also found that emotional
advertisements may be more effective and memorable than rational advertisements.
One of the most critical concerns advertisers express about television advertising is the
potential decline of the persuasive impact on TV spots because of increasing clutters in the
media environment. To make advertising appeals more distinctive and hence, perhaps more
persuasive, advertisers frequently use dramatic emotional ads messages designed to “shock
the emotions and make the brain itch” (Moore 1989)
Such advertising executions often feature high impact, sensually evocative appeals that
stimulate strong positive emotions (e.g., the Hallmark greeting card ads dramatizing precious
moments and nostalgic memories in life). However, advertisers also employ graphic and
sensational negative emotional advertising messages such as those used by insurance
companies, healthcare institutions, drug and alcohol abuse clinics, food manufacturers
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exploiting consumers' fears of cancer and cardiac diseases (Alsop 1988), and public service
agencies making appeals to prevent child abuse or to promote the use of contraceptive
devices (LaTour and Pitts 1989).
Researcher has gone through the definitions of emotional appeals from different authors
given in different times. Their thoughts and findings are similar somewhat but also vary as
the time changes, from these definitions can get a clear view about emotional advertising and
to some extend its importance. Basic purpose of emotional appeals is to engage more and
more viewers into the brand and ultimately influence them to buy the product. As we know
that marketing‟s basic function is to target the need of people while emotional appeal aim the
hidden feelings behind that need, and then eventually through this marketers can create brand
loyalty.
2.1.5. Studies of Value Proposition
A value proposition is presented to customers highlighting what they get from your using
products or services. Value propositions typically show benefits of the company and what the
customer can expect to experience through the process. This statement should make the
customer see why they should choose your company over another. The more specific a value
proposition is the better. This will reduce any uncertainty among the customer and let them
know upfront what they can expect. Strong value propositions will be able to grab the
customers‟ attention and make them want to know more.
Creating and delivering the value proposition are critical issues that marketing planners
should consider in planning strategies. These days, a high level of competition and rapid
changes in the market and technology make it complex for a company to sustain momentum
without focusing on deliver the value that customers require. Value propositions vary across
industries and across different market segments within an industry (Kaplan & Norton 1996).
Capon and Hulbert (2007) linked the success of firms in the marketplace to the value
provided to customers. They introduced a principle of customer value, with customer insights
driving the company‟s marketing activities. Customer value should also drive investment and
production decisions, because customers perceive value on the benefits of the product or
service they receive. Consequently, as the environment changes, and the customer experience
and their needs change, the value they seek also changes. Therefore, most companies
especially leader companies invest more money in marketing research to gain deep customer
insights, in order that they can shape their development plans with deep understanding of the
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market based on recent history, which is at the “heart of positioning”. Capon and Hulbert
(2007: 251) state that a clear and effective value proposition should be the basis of a firm‟s
functional, psychological and economic value, with related benefits. It shows how to “gain
customers and beat competitors”.
Organizations are successful when customers buy and repeat buy from them. Buying
behaviors and motivations are extremely different between one and another customer. Some
customers seek quality, others prefer quantity, some like a high level of service, and others
desire to do things by themselves. Organizations compete in order to attract more customers
to purchase and repurchase. They provide different types of marketing activity related to their
strategy to satisfy customers and to provide the value expected by their customers. On the
other hand, customers perceive the value provided by organizations differently. This variation
occurs due to the different needs for each customer. Osterwalder and Pigneur (2003) stated
that “Modeling and mapping value propositions helps better understanding of the value a
company wants to offer its customers and makes it communicable between various
stakeholders”.
A value proposition is an explicit promise made by a company to its customers that it will
deliver a particular bundle of value creating benefits (Buttle, 2009). In other words, “the
value proposition is a written statement focusing all the organization‟s market activities onto
customer critical elements that create a significant differential within the customer‟s decision
process, to prefer and/or purchase the organization‟s offering over a competitor‟s”(Fifield,
2007). Lanning (1998) defines the value proposition as an entire set of experiences, including
value for money that an organization brings to customers. Customers may perceive this set or
combination of experiences to be “superior, equal or inferior to alternatives”. According to
Anderson, Narus and Rossum (2006) there are three kinds of value proposition, involving all
benefits, favorable points of difference and resonating focus. All benefits are a complete list
of positive features that a supplier believes its offerings might deliver to end customers as a
result of good knowledge about the customers and the competitors. Favorable points of
difference are the factors that distinguish the supplier‟s offerings among the next alternatives.
To achieve that, detailed knowledge about the next best competitor(s) is required in order to
shape the company‟s strategy. The resonating focus approach differs in two respects: more is
not always better and it is better to focus on one or two key points to deliver to the target
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customer. Suppliers in this approach must identify the elements that make their offer superior
in order to demonstrate, document and communicate them clearly to the targeted customers.
Lanning (1998) stated that a superior value proposition offers breadth of resulting
experiences, which may make an improvement over other scenarios of experiences. Neither
internally-driven nor customer-propelled methods work well in discovering these scenarios.
Managers must think like customers and listen to them. Michael Porter‟s original competitive
advantage framework presented strategy decisions as a choice between whether to provide
generic low-cost products and services or more differentiated and customized ones for
specific market and customer segments to create and deliver the value proposition (Kaplan &
Norton, 2008). Kaplan and Norton (2006) realized that customer synergies arise when retail
companies consistently deliver the same value proposition across a geographically dispersed
network of retail outlets. When investigating the value proposition, there should be some
visible signs on customers‟ perceived value terms. According to Ravald and Gronroos (1996),
customer perceived value is the trade-off between perceived benefits and perceived sacrifice
(Kar, 2006). Perceived sacrifice involves all of the activities of purchasing, comparing prices,
transportation and installations. Perceived benefits are the physical and technical features of
the product. That means that adding more benefits and reducing sacrifices may increase
customer perceived value.
Fifield stated that “A successfully tested and proven value proposition is essential to a
successfully differentiated business” (Fifield, 2007). As the value proposition can improve
the efficiency and effectiveness of the internal process of a particular product or service, the
results would be many more retained customers and cost reduction, which finally lead to
satisfied shareholders, profit rise and increases in market share. Kar (2006) states that the
ability of a company to provide a superior value for its customers is regarded as one of the
most successful competitive strategies.
2.2. PREVIOUS STUDIES
Reshma Farhat and Dr. Bilal Mustafa Khan has studied Importance of Brand Personality
to Customer Loyalty. Here an attempt has been made to probe into the behaviour of a
customers‟ willingness to buy a brand/product, of what are the related factors which
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influences his buying behaviour and attitude towards the brand. An investigation is done to
highlight a point of what are the influencing factors which compels him to be a loyal for a
brand. The study findings suggest a conceptual model that combines the theories of brand
personality with the necessary dispositional variables to explain the customer‟s loyalty
processes.
Che Aniza Binti Che Wel (PHD), Syed Shah Alam, (PHD) Sallehuddin Mohd Nor have
studied Factors Affecting Brand Loyalty. This study intended to examine the factors that
could possible affect brand loyalty among young consumer in Malaysia. The results revealed
that product involvement, perceived quality and brand trust are the major factors that affect
consumer brand loyalty.
Mohd Rizaimy Shaharudin, Anita Abu Hassan, Suhardi Wan Mansor has studied The
Relationship between Extrinsic Attributes of Product Quality with Brand Loyalty on
Malaysia. This study is about the discoveries on the relationship between extrinsic attributes
of product quality with brand loyalty. It helps to extend the understanding of a commitment
to re-purchase a product, due to the feelings and effects formed as a result of the perception
of quality. Results obtained in this study with the earlier literature are consistence to confirm
that although the product quality based on the perceived quality (extrinsic attribute) have
significant influence on the brand loyalty.
Faiza Saad M.Phil. (Marketing) has studied Brand Loyalty through Emotional Advertising.
In this study she gave a theoretical based view of how generate brand loyalty through
emotional advertising. Plus what are the drivers of emotional appeal and how to achieve
emotional satisfaction through advertising and its experience.
2.3. CHAPTER SUMMARY

In this chapter, the researcher tried to discuss about the theories and the concepts relating to
the brand values and brand loyalty. Literature also discusses the impact of brand values on
consumer brand loyalty. So it is very useful for the third chapter of this research in order to
develop and conceptualize the variables.
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CHAPTER THREE
CONCEPTUALIZATION AND OPERATIONALIZATION
3.1. CONCEPTUAL FRAMEWORK

The conceptual frame work is the foundation of which the entire research which used in
research to outline possible courses of action or to present a preferred approach to an idea or
thought. Conceptual frameworks can act like maps that give coherence to empirical inquiry.
Because conceptual frameworks are potentially so close to empirical inquiry, they take
different forms depending upon the research question or problem.
Researcher has logically developed considering the variables relevant to the problem
situation and which have been identified through past research by the researcher. Here
conceptual framework will indicate the relationship between independent and the dependent
variables. So by using those factors, researcher formulated the conceptual framework to
describe the impact of brand values on customer brand loyalty as follows.
Figure 3.1 Conceptual Framework
Brand Values
Product Quality
Brand Personality Degree of

Impact on
Customer
Emotional Appeal Brand Loyalty
Value Proposition
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3.2. DEFINING VARIABLES
Brand Loyalty
Brand loyalty can be defined as the result from non-random, long existence behavior
response, and it was a mental purchase process formed by some certain decision units who
considered more than one brands. Brand loyalty, in marketing, consists of a consumer's
commitment to repurchase or otherwise continue using the brand and can be demonstrated by
repeated buying of a product or service or other positive behaviors
Product Quality
Product quality can be defined as „Differences in quality amount to differences in the quantity
in the desired ingredient or attribute‟. The product quality is determined by intrinsic and
extrinsic attributes. The intrinsic or the inner attributes refers to something that are related to
the physical of the product (color, appearance and etc) whereas perceived quality or extrinsic
attributes exist in the form of non-physical but related to the product (brand name, stamp of
quality, product information and etc).
Brand Personality
The brand personality is a part of the brand image. Brand personality can be defines as “the
set of human characteristics associated with a brand” continues by explaining that the
personality of a brand is similar to the one of a human, e.g. it possesses characteristics such as
age and gender, and human personality traits such as warmth and concern. Brand personality
is both consistent, long- term and that everything associated with a brand affects the
personality of it. And brand personality must be similar to what the target market desires, and
that it has to feel important enough to be associated with this personality.
Emotional Appeal
Emotions are kinds of mental feelings, which together with moods and attitudes form. More
specifically, emotion has been defined as a "mental state of readiness that arises from
Page 25
cognitive appraisals of events or thoughts, has a phenomenological tone, often expressed

physically, accompanied by physiological processes, and may result in specific actions to
affirm or cope with the emotions". These include fear, guilt, surprise and shame appeals that
get people to do things they should or stop doing things they shouldn‟t. Communicators also
use positive emotional appeals such as love, humor, pride, hope and joy.”
Value proposition
A value proposition is presented to customers highlighting what they get from your using
products or services. Value propositions typically show benefits of the company and what the
customer can expect to experience through the process. This statement should make the
customer see why they should choose your company over another.
3.3 FORMULATION OF HYPOTHESES

Researcher analyzed the whole literature related to this study, and come up with following
hypotheses.


H1: There is a no significant impact of Brand Personality on customer brand loyalty


Page 26
3.4. OPERATIONALIZATION THE CONCEPTUAL FRAMEWORK

Measure
Concept Variables Indicators Measure
Scale
Ingredients Degree of consideration Five-point
of ingredients‟ quality Likert Scale
Packaging Degree of consideration Five-point

of bottle shape and its Likert Scale
quality
Product Quality
Standards Degree of consideration Five-point
of Standardized product Likert Scale
Health Value Degree of consideration Five-point

of health value of Likert Scale
product
The Effect of
Degree of consideration Five-point
Brand Values
of cheerful Likert Scale
Sincerity
on Customer
characteristics of brand
Brand Loyalty
Brand Degree of consideration Five-point
towards Soft
Personality of excitement Likert Scale
Drink Brands Excitement
imaginative of brand
among Youth
Segment in Sri Competence
of success of the brand Likert Scale
Lanka
Social Degree of consideration Five-point
Appeal of social appeal Likert Scale
Emotional
Appeal Lifestyle Likert Scale
with lifestyle connection
Connection
of consumer
Value For
Money of value for money Likert Scale
Value Degree of consideration Five-point

Experience
Proposition Value of Experience Value Likert Scale

Benefit
Value of Experience Value Likert Scale
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3.5 CHAPTER SUMMARY
Under this chapter discuss the conceptual framework of the research and how the
operationalization of the conceptual framework can and discuss the independent and
dependent variables broadly. In that way identify the main three independent variables and
sub variables of each independent variables and dependent variable.
Page 28
CHAPTER FOUR
METHODOLOGY
4.1 INTRODUCTION
This chapter contains the description of the research design, data collection, population,
sampling procedure, data presentation and data analysis content. Under the chapter one
covered the background of the study, industry overview, objective of the study, develop
hypotheses, significant of the study etc. after second chapter discussed the literature regarding
the topic of the impact of brand values on customer brand loyalty.
The purpose of the study is to identify the impact of brand values on customer brand loyalty
in youth segment. Extract the most relevant information from the resources is important,
definition of the research objective are focused. Having a solid objective avoiding research
distracted by other irrelevant elements and keeps the study within certain field & helps to ask
the right questions regarding how to use brand values to build a loyal customer base in youth
segment.
4.2. METHODOLOGICAL CHOICE
4.2.1. Research Approach

There are two methods available for selecting research approach. Those are as follows,
 Inductive method: In this method, based on observations and other research findings, the
researcher prepares a theory.
 Deductive method: In this method researcher uses conventional theory to develop

hypothesis which are being tested to analyze the findings and to made conclusions to justify
those hypothesis.
The Deductive method will be used in conducting this research. This is to develop a theory
and hypothesis (or hypotheses) and design a research to test the hypothesis (Sunders et al.,
1996).
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4.2.2. Research Design
The research design is a plan for addressing the research objectives or hypotheses. The
researcher develops a structure or framework to answer a specific research
problem/opportunity. There are mainly three types of research design. Those are exploratory,
descriptive and causal. This study is quantitative and causal and mainly depends on the
answers of the responders. Because investigate whether the value of one variable causes or
determines the value of another variable, in an attempt to establish linkage between them. In
here it primarily based on four fundamentals the Product Quality, Brand personality,
Emotional appeal, & Value Proposition as independent variables. Data collection is focused
on the sub elements in each four elements. One questionnaire has been developed for data
collection from the customers.
4.3. METHOD OF DATA COLLECTION
The data was collected under mainly two categories as primary data collection methods and
secondary data collecting methods. Following sources are the key sources, which were used
to gather information needed to achieve research objective
4.3.1 Primary Data Collection
This research is a quantitative research where sources data for the study will be gathered
through a structured questionnaire. The Questionnaire method considered as the prime tool of
data collecting. With the questionnaire method, the accuracy and reliability of the data are
secured. The study was mainly conducted by using questionnaires. The well prepared
questionnaire was used to gather essential data from the customers.
All variables are operationalized using the literature on brand values and customer brand
loyalty. This study is interested in describing the characteristics of a population or
phenomenon. This study also use hypotheses testing to examine how brand image impact on
customer brand loyalty in youth segment, and the questionnaire will includes questions to
examine it.
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4.3.2 Secondary Data Collection
Secondary data consist of information that has already been gathered and might be relevant to
the problem at hand (McDaniel & Gates 2008:72).
The secondary data will be gathered by reports articles, journals and books. And Some
Statistics gathered from Central bank of Sri Lanka and Census and statistics department.
4.4 THE SAMPLING PLAN
4.4.1 Population
The objective of this Research was to investigate the impact of brand values on customer
brand loyalty towards carbonate soft drink among youth segment. So the population was
young between age 15 and 30 in Sri Lanka.
4.4.2 Sample
Probability sampling techniques were used in this research for sample selection. The
sampling technique used was a mix of convenience sampling and simple random sampling.
Therefore there was no sample frame used in selecting respondents, which lead to a non-
probability sampling techniques.
The research is focused only on Colombo and Gampaha districts and hopes to get the
information from respondents who are representing those Districts. The total sample was
consisted with 100 numbers of customers in Colombo and Gampaha district with the age
limit of within 15-30
Additionally in order to enhance the representation of the selected sample the researcher
collected data from different office staffs, University students and School students
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4.5. MEASURING SCALE
All items in the questionnaire were measured on a five-point Likert scale. In that way
measure the impact of brand values towards the customer brand loyalty. There are 4 types of
independent variables and one dependent variable.
Figure 4.1 Five-point Likert Scale
1. 2. 3. 4. 5. Strongly
Strongly Disagree Neutral Agree Agree
Disagree
4.6 DATA ANALYSIS
After collecting data which has gathered by the questionnaires analyze & interpret to identify
the solution for the research problem. Each question in the questionnaire has analyzed
critically in order to analyze the each research question separately. For data analysis purpose,
researcher was use prominent data analyzing software called SPSS. As the analytical tools,
hypothesis testing and standard deviation were used. With the help of SPSS analysis system
used data tables to represent the numerical figures of finding as well as Bar charts and Pie
charts are used to show those findings graphically. Because of that users and decision makers
may able to understand the information and to get correct decision on research. Microsoft
Excel will also be used to assist the data analysis process.
Descriptive analysis will be done for the calculation of Mean, Standard deviation,
Frequencies, and percentages for the Independent and Dependent Variables. Pearson‟s
Correlation will be used to measure the strength of the linear relationship between two
variables by measuring the degree of „scatter‟ of the data values. This reflects whether the
theory is true or false.
The analyses will enable to examine the individual relationship between the independent
variables and dependent variable.
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4.7 CHAPTER SUMMARY
Under this chapter discuss how the research was done by the researcher. In that way discuss
the sample design, data collection, data analysis technique, measuring techniques of the data.
Page 33
CHAPTER FIVE
DATA PRESENTATION AND ANALYSIS
5.1 INTRODUCTION
This chapter deals with the presentation of data on the basis of dependent variables and
independent variables of the research model and statistical analysis. Statistical tools such as
mean, mode, frequencies, correlation are used to test the hypotheses and objectives taken in
the study. And also relative importance of the independent variables was presented in this
chapter based on the responses given through the questionnaire of research.
5.2 ANALYSIS OF DEMOGRAPHIC STATISTICS
5.2.1 Analysis of “Gender”
Figure 5.1 Gender Category

80
68
70
60
50
40 32
30
20
10
0
Male Female
Source: Survey Data 2012
The questionnaire was collected from 100 respondents. Those 100 respondents comprise with
68 males and 32 females. (Table 5.1 attached in Appendix)
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5.2.2 Analysis of “Age” Category
Figure 5.2 Age Category
22% 13%
15-20
21-25
26-30
65%
The researcher used three age category with the age limit of 15-30 for conduct the research.
Because the objective of this Research was to investigate the impact of brand values on
customer brand loyalty towards carbonate soft drink among youth segment. The researcher
used the three age category for conduct the research namely 15-20, 21-25 and 26-30. The
majority of respondents were age between 21-25 years old, & that was 65%. (Table 5.2
attached in Appendix)
5.2.3 Analysis of “Income Level”
Figure 5.3 Income level
15% 2%
Less than Rs.10000
42% Rs.10000-Rs.20000
23%
Rs.20000-Rs.30000
18%
Rs.30000-Rs.40000
Rs.40000 above
Page 35
42% respondents had selected „less than Rs. 10000‟ category as their income level. 18%
respondents were having an income between Rs. 10000 – Rs. 20000 where as 23% of the
total sample were having an income between Rs. 20000 & Rs. 30000. However this indicates
that majority of the sample was having less spending ability with an income level less than
Rs. 10000.Because of the sample is consist significant amount of school students and
university students. (Table 5.3 attached in Appendix)
5.2.4 Analysis of “Occupation”
Figure 5.4 Occupation
Student
1%
8% Unemployed
7%
28%
Trainee
Executive-Private
24%
1%
Executive-
Government
32% Manager
Self Employed
When considering about the occupation, almost 28% of the total sample were representing
the Students. Since undergraduates & school students represent the youth segment of the
society, the researcher has accessed the University crowd & school students above age of 15.
However the sample also included 32% of trainees because of most of senior students of
universities have joined with companies as trainees. (Table 5.4 attached in Appendix)
Page 36
5.3. ANALYSIS OF OTHER APPROACHING QUESTIONS
5.3.1 Analysis of most favorite soft drink brand
Figure 5.5 Most favorite soft drink brands

30% 28%
25%
20% 19%
15% 14%
11%
10% 8%
7%
6%
5% 4%
3%
0%
Coca-Cola Pepsi Fanta Elephant Portello EGB Sprite 7up Others
Cream
Soda
According to research among 100 respondent‟s 28 persons select Elephant Cream Soda as
their first choice. Coca-Cola has the second place in the market as 19 respondents have Select
Coca-cola as their first preference. Another Cola brand Pepsi has third place in the market
according to research. Fanta has been selected by 11 respondents as their most favorite brand.
Cola and Pepsi has significant market share. The reason of that they are international brands
and world famous brands. (Table 5.5 attached in Appendix)
5.3.2 Analysis of importance of brand values
Respondents were asked to rank the brand values soft drinks. The brands values are provided
to rank are taste and quality, value for money, taste and quality, brand image, design &
associated feelings.
Page 37
Table 5.6 Importance of brand values

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Total
Taste & Quality 74 10 14 2 0 100
Value for Money 2 38 16 17 27 100
Brand Image 21 41 35 2 1 100
Design 0 6 31 44 19 100
Associate
Feelings 3 5 4 35 53 100
Total 100 100 100 100 100
Figure 5.6 Importance of brand values

80
70
60
Taste & Quality
50
Value for Money
40
Brand Image
30 Design
20 Associate Feelings
10
0
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
According to findings most of people give their attention firstly for the taste and quality.
From the sample of 100 respondents, 74 respondents had stated Taste and quality was their
mostly important brand value. 21% of the respondents had ranked brand image as first. But
only 2% of the respondents have ranked value for money as first. 41 respondents had selected
brand image as second while 38% of the respondents had ranked value for money as
second.44% has ranked design as fourth.
These results show that consumers within the sample mostly preferred brand value is taste
and quality. A significant portion of respondents had revealed that they prefer to taste and
quality mostly. They exhibit a less tendency towards associate feelings, while the respondents
within the sample holding a moderate prefer with brand image.
Page 38
5.4. ANALYSIS OF VARIABLES
5.4.1 Analysis of Product Quality
5.4.1.1 Analysis of impact of quality of ingredients
Researcher took product quality as first variable under the independent variable. Quality of
ingredients was one of the main indicators used to identify the impact of product quality on
brand loyalty towards soft drinks. Respondents were asked whether they become loyal for a
soft drink brand based on the quality of ingredients. Because the high quality of ingredients
could be increase the brand loyalty
Table 5.7 Impact of quality of ingredients
Valid Cumulative
Frequency Percent Percent Percent
Valid Disagree 2 2.0 2.0 2.0
Neutral 12 12.0 12.0 14.0
Agree 54 54.0 54.0 68.0
Strongly 32 32.0 32.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.7 Impact of quality of ingredients

60 54
50
40
32
30
20
12
10
0 2
0
Strongly Disagree Neutral Agree Strongly Agree
Disgree
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Table 5.8 Impact of quality of ingredients-Mean

N Valid 100
Missing 0
Mean 4.1600
Mode 4.00
Std. Deviation .70668
Out of the 100 respondents 32% were strongly agreed to the statement & 54% respondents
were agreed with the statement. 12 respondents have said they are neutral with the statement
and 2 respondents disagreed with the statement. Table 5.8 shows the mean value is 4.16
which higher than neutral value.
This shows that majority of the sample was considering the quality of ingredients when they
become for a soft drink brand.
5.4.1.2 Analysis of impact of bottle shape
The second indicator of product quality was packaging. When considering the packaging of
soft drink it is bottle. So here the respondents were asked whether the bottle shape is an
important factor when they become loyal for a soft drink brand.
Table 5.9 Impact of bottle shape

Valid Cumulative
Valid Strongly 3 3.0 3.0 3.0
Disagree
Disagree 23 23.0 23.0 26.0
Neutral 31 31.0 31.0 57.0
Agree 34 34.0 34.0 91.0
Strongly 9 9.0 9.0 100.0
Agree
Total 100 100.0 100.0
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Figure 5.8 Impact of bottle shape

40
34
35
31
30
25 23
20
15
9
10
5 3
0
Disagree
Table 5.10 Impact of bottle shape-Mean

N Valid 100
Missing 0
Mean 3.2300
Mode 4.00
Std. Deviation 1.00358
34% respondents were agreed with the statement & 9% respondents were strongly agreed
with it. However 31% respondents were neutral with the statement.23 respondent said
disagree with the statement while 3 respondents said they are strongly disagreeing with it.
Table 5.10 shows the mean value is 3.23
This indicates the bottle shape is not a so much important factor when become loyal for a soft
drink brand. It has an average impact on it.
5.4.1.3 Analysis of impact of standardized product
Next the respondents were asked whether Standardized product offering is an essential factor
for them when they buy a soft drink. This question was asked to measure the indicator
product standard
Page 41
Table 5.11 Impact of standardized product
Valid Cumulative
Neutral 9 9.0 9.0 14.0
Agree 74 74.0 74.0 88.0
Strongly 12 12.0 12.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.9 Impact of standardized product

80 74
70
60
50
40
30
20
12
9
10 5
0
0
Disagree
Table 5.12 Impact of standardized product-Mean

N Valid 100
Missing 0
Mean 3.9300
Mode 4.00
According to findings 74% respondents were agreed with the statement & 12% respondents
were strongly agreed with it. 9% respondents were neutral on the statement. Only 5
respondents were disagreed. Table 5.12 shows the mean value is 3.93 which say that they
usually expect standardized product when they buy a soft drink.
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5.4.1.4 Analysis of impact of health values
The final main indicator used under the independent variable Product quality is health values
of product. Respondents were asked whether health values of the product gain their loyalty
towards that particular soft drink brand.
Table 5.13 Impact of health values of the product
Valid Cumulative
Neutral 6 6.0 6.0 9.0
Agree 66 66.0 66.0 75.0
Strongly 25 25.0 25.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.10 Impact of health values of the product

70 66
60
50
40
30 25
20
10 6
3
0
0
Disagree
Table 5.14 Impact of health values of the product-Mean

N Valid 100
Missing 0
Mean 4.1300
Mode 4.00
Page 43
From the total sample, 66 respondents were agreed with the statement & 25 respondents were
strongly agreed with it. But 6 were neutral & 3 respondents said they were not considering
about the health values when purchasing a soft drink by disagree the statement. Table 5.14
shows the mean value is 4.13 which higher than neutral value.
Those results demonstrate that most of the sample respondents are considering about the
health values when purchasing a soft drink.
5.4.1.5 Analysis of impact of product quality for repurchases
Next the respondents were asked whether overall product quality influence them to
repurchase that particular soft drink brand.
Table 5.15 Impact of product quality for repurchases
Valid Cumulative
Valid Agree 68 68.0 68.0 68.0
Strongly 32 32.0 32.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.11 Impact of product quality for repurchases

80
68
70
60
50
40
32
30
20
10
0 0 0
0
Disagree
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Table 5.16 Impact of product quality for repurchases-Mean

N Valid 100
Missing 0
Mean 4.3200
Mode 4.00
The above table clearly shows 68% respondents were agreed with the statement & 32%
respondents were strongly agreed with it. Table 5.16 shows the mean value is 4.32 which
higher than neutral value. The results clearly indicate that majority of the respondents
repurchase the particular soft drink brand if it has a good product quality.
5.4.2 Analysis of Brand Personality
5.4.2.1 Analysis of impact of cheerful characteristics
Under the second independent variable Brand Personality, Sincerity was taken as first
indicator used to identify the impact of brand personality on brand loyalty. To measure it, the
respondents were asked whether cheerful characteristics of the brand increase the loyalty of
them for a soft drink brand.
Table 5.17 Impact of cheerful characteristics
Valid Cumulative
Neutral 27 27.0 27.0 36.0
Agree 61 61.0 61.0 97.0
Strongly 3 3.0 3.0 100.0
Agree
Total 100 100.0 100.0
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Figure 5.12 Impact of cheerful characteristics

70
61
60
50
40
30 27
20
9
10
3
0
Disagree Neutral Agree Strongly Agree
Table 5.18 Impact of cheerful characteristics-Mean

N Valid 100
Missing 0
Mean 3.5800
Mode 4.00
From the total sample, 61% respondents were agreed and 3% of respondents were strongly
agreed with the statement. However 27% respondents were neutral on the statement. Only
9% of the respondents had disagreed with statement. Table 5.18 shows the mean value is 3.58
which indicate that majority of the respondents like to cheerful characteristics of the brand
when they loyal for a soft drink brand.
5.4.2.2 Analysis of impact of excitement imaginative
Table 5.19 mention the summary of the results gathered from asking whether excitement
imaginative of the brand increase the loyalty of them for a soft drink brand. This question
was asked to measure the indicator excitement under the Brand personality.
Page 46
Table 5.19 Impact of excitement imaginative
Valid Cumulative
Neutral 38 38.0 38.0 46.0
Agree 46 46.0 46.0 92.0
Strongly 8 8.0 8.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.13 Impact of excitement imaginative

50 46
45
40 38
35
30
25
20
15
10 8 8
5
0
Table 5.20 Impact of excitement imaginative-Mean

N Valid 100
Missing 0
Mean 3.5400
Mode 4.00
From the total sample of 100, 46 respondents were agreed and 8 respondents were strongly
agreed with the statement. However 38 respondents were neutral on the statement. Only 8
respondents had disagreed with statement. Table 5.20 shows the mean value is 3.54
Results demonstrate that nearly half of the sample respondents said excitement imaginative
can gain their loyalty towards a soft drink brand.
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5.4.2.3 Analysis of impact of success of the brand
Next the respondents were asked whether Success of brand in the market is important when
become loyal for soft drink brand. This question was asked to measure the indicator of
Competence.
Table 5.21 Impact of success of the brand in the market
Valid Cumulative
Neutral 22 22.0 22.0 28.0
Agree 59 59.0 59.0 87.0
Strongly 13 13.0 13.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.14 Impact of success of the brand in the market

70
59
60
50
40
30
22
20
13
10 6
0
Table 5.22 Impact of success of the brand in the market-Mean

N Valid 100
Missing 0
Mean 3.7900
Mode 4.00
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According to the findings 59% respondents were agreed with the statement & 13%
respondents were strongly agreed with it. But 22% respondents were neutral on the statement.
Only 6% respondents were disagreed. Table 5.22 shows the mean value is 3.79. These results
says that they usually look whether that brand is success or not in the market.
5.4.2.4 Analysis of impact of brand personality for repeat purchases
Next the respondents were asked whether overall brand personality influence them to repeat
purchase that particular soft drink brand
Table 5.23 Impact of brand personality for repeat purchases
Valid Cumulative
Valid Neutral 18 18.0 18.0 18.0
Agree 68 68.0 68.0 86.0
Strongly 14 14.0 14.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.15 Impact of brand personality for repeat purchases

80
68
70
60
50
40
30
18
20 14
10
0 0
0
Disagree
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Table 5.24 Impact of brand personality for repeat purchases-Mean

N Valid 100
Missing 0
Mean 3.9600
Mode 4.00
Table 5.23 clearly shows 68% respondents were agreed with the statement & 14%
respondents were strongly agreed with it. 18% respondents are neutral on the statement. And
Table 5.24 shows the mean value is 3.96. The results clearly indicate that majority of the
respondents repurchase the particular soft drink brand if it has a good brand personality.
5.4.3 Analysis of Emotional Appeal
5.4.3.1 Analysis of impact of social appeal
Third independent variable was Emotional Appeal. Social appeal was taken as first indicator
to measure the impact of emotional appeal on brand loyalty of soft drink brand. Here the
respondents were asked whether Social appeals (Love, Friendship) of the brand attracted
them to be aware of soft drink brand.
Table 5.25 Impact of social appeal
Valid Cumulative
Neutral 49 49.0 49.0 56.0
Agree 42 42.0 42.0 98.0
Strongly 2 2.0 2.0 100.0
Agree
Total 100 100.0 100.0
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Figure 5.16 Impact of social appeal

60
49
50
42
40
30
20
10 7
2
0
Table 5.26 Impact of social appeal-Mean

N Valid 100
Missing 0
Mean 3.3900
Mode 3.00
Table 5.25 clearly shows that 42% respondents agreed with the statement and 2%
respondents strongly agreed. But 49% respondents were neutral on the statement and 7%
disagreed. And Table 5.24 shows the mean value is 3.39. So, a clear statement cannot be
made as there is a highly impact of social appeal on brand loyalty
5.4.3.2 Analysis of impact of Lifestyle Connection
The second indicator was Life style connection under the variable of emotional appeal. Here
the respondents were asked whether Life style connection of the brand retain their awareness
for a soft drink brand
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Table 5.27 Impact of lifestyle connection
Valid Cumulative
Neutral 35 35.0 35.0 37.0
Agree 59 59.0 59.0 96.0
Strongly 4 4.0 4.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.17 Impact of lifestyle connection

70
59
60
50
40 35
30
20
10
4
2
0
Table 5.28 Impact of lifestyle connection-Mean

N Valid 100
Missing 0
Mean 3.6500
Mode 4.00
From the total sample, 59% respondents were agreed and 4% of respondents were strongly
agreed with the statement. However 35% respondents were neutral on the statement. Only
2% of the respondents had disagreed with statement.
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Table 5.26 shows the mean value is 3.65. Most of the respondents of the total sample
agreeing with the statement stated that they actually relate their lifestyles with Soft drink
brand they use.
5.4.3.3 Analysis of impact of emotional appeals for repeat purchases
Next the respondents were asked whether overall emotional appeal influence them to
repurchase that particular soft drink brand
Table 5.29 Impact of emotional appeals for repeat purchases
Cumulati
Frequen Valid ve
cy Percent Percent Percent
Neutral 51 51.0 51.0 53.0
Agree 42 42.0 42.0 95.0
Strongly 5 5.0 5.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.18 Impact of emotional appeals for repeat purchases

60
51
50
42
40
30
20
10 5
2
0
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Table 5.30 Impact of emotional appeals for repeat purchases-Mean

N Valid 100
Missin 0
g
Mean 3.5000
Mode 3.00
Table 5.29 shows 42% respondents were agreed with the statement & 5% respondents
were strongly agreed with it. But the majority of the sample 51% respondents are neutral
with the statement. Table 5.28 shows the mean value is 3.5. The results indicate that there
is an impact of emotional appeal on repurchases the particular soft drink brand.
5.4.4 Analysis of Value Proposition
5.4.4.1 Analysis of impact of value for money
The final independent variable was Value proposition. Under this firstly respondents
were asked whether getting a value for money which they pay is an essential factor when
they buy a soft drink. This question asked to measure the indicator Value for money.
Table 5.31 Impact of value for money
Cumulati
Frequen Valid ve
cy Percent Percent Percent
Valid Neutral 4 4.0 4.0 4.0
Agree 80 80.0 80.0 84.0
Strongly 16 16.0 16.0 100.0
Agree
Total 100 100.0 100.0
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Figure 5.19 Impact of value for money

90
80
80
70
60
50
40
30
20 16
10 4
0
Neutral Agree Strongly Agree
Table 5.32 Impact of value for money-Mean

N Valid 100
Missing 0
Mean 4.1200
Mode 4.00
Out of the total sample, 80 respondents were agreed & 16 respondents were strongly agreed
with the statement. These two kinds of respondents represent 96% of the total sample which
is a significant proportion. There are not any respondent disagreed with the statement where 4
respondent on neutral. Table 5.30 shows the mean value is 4.12 which higher than neutral
value.
The results indicate that a larger portion of the respondents in the sample expect significant
value for money which they for a soft drink.
5.4.4.2 Analysis of impact of experience value

Next the respondents were asked whether experience value of the soft drink get my loyalty
towards soft drink brand. This question was asked to measure the indicator of experience
value under the value proposition.
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Table 5.33 Impact of experience value
Valid Cumulative
Valid Neutral 13 13.0 13.0 13.0
Agree 74 74.0 74.0 87.0
Strongly 13 13.0 13.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.20 Impact of experience value

80 74
70
60
50
40
30
20
13 13
10
0
Neutral Agree Strongly Agree
Table 5.34 Impact of experience value-Mean

N Valid 100
Missing 0
Mean 4.0000
Mode 4.00
According to findings 74% respondents were agreed with the statement & 13% respondents
were strongly agreed with it. 13% respondents were neutral on the statement. Here also not a
single respondent disagreed with the statement. Table 5.34 shows the mean value is 4.12
which higher than neutral value. This result says that they usually look for the experience
value of soft drink.
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5.4.4.3 Analysis of impact of benefit value

Table 5.35 Impact of benefit value
Valid Cumulative
Neutral 19 19.0 19.0 23.0
Agree 75 75.0 75.0 98.0
Strongly 2 2.0 2.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.21 Impact of benefit value

80 75
70
60
50
40
30
19
20
10 4 2
0
Table 5.36 Impact of benefit value-Mean

N Valid 100
Missing 0
Mean 3.7500
Mode 4.00
The final indicator which used under the independent variable value proposition was benefit
value. The respondents were asked whether they become loyal for a soft drink brand based on
the benefit value of soft drink.
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The above table clearly shows that 75% respondents agreed with the statement and 2%
respondents strongly agreed. Here 19% respondents were neutral on the statement where 7%
disagreed. Table 5.36 shows the mean value is 3.75 which can be made a statement as there is
an impact of benefit value on brand loyalty.
5.4.4.4 Analysis of impact of value proposition for repeat purchases
Next the respondents were asked whether overall experience and benefits influence them to
repurchase that particular soft drink brand.
Table 5.37 Impact of value proposition for repeat purchases
Valid Cumulative
Valid Neutral 9 9.0 9.0 9.0
Agree 79 79.0 79.0 88.0
Strongly 12 12.0 12.0 100.0
Agree
Total 100 100.0 100.0
Figure 5.22 Impact of value proposition for repeat purchases

90
79
80
70
60
50
40
30
20 12
9
10
0 0
0
Disagree
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Table 5.38 Impact of value proposition for repeat purchases-Mean

N Valid 100
Missing 0
Mean 4.0300
Mode 4.00
Table 5.36 clearly shows 79% respondents were agreed with the statement & 12%
respondents were strongly agreed with it. Not a single respondent disagreed with the
statement while 9% neutral on the statement. Table 5.38 shows the mean value is 4.03. The
results clearly indicate that majority of the respondents repurchase the particular soft drink
brand if it has a good value proposition.
5.5. CORRELATION ANALYSIS AND TESTING HYPOTHESES
Pearson‟s Product Moment Correlation Coefficient test was conducted to identify the
sensitiveness and the responsiveness between the variables in this research and to classify its
significance and direction of the relationships. The correlation analysis has been done in
many researches to fulfill the above requirements. The researcher of this study also will apply
correlation analysis to independent and dependent variables to test the hypothesis built in
chapter 04. Both correlation analysis and hypothesis testing will be done parallel. Proposed
four hypotheses will be tested here.
5.5.1. Hypothesis testing of 1st variable (Product Quality)

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Table 5.39 Relationship of product quality and brand loyalty

Correlations
Product_Quality Brand_Loyalty
*
Product_Quality Pearson Correlation 1 .209
Sig. (2-tailed) .037
N 100 100
*
Brand_Loyalty Pearson Correlation .209 1
N 100 100
*. Correlation is significant at the 0.05 level (2-tailed).

Hypothesis is accepted.
There has a relationship with the Product quality and Brand Loyalty. The relationship is
between Product quality and Brand Loyalty which is 0.209. All Correlations are significant at
the 0.05 level. Here we can see that not the stronger relationship is there but there is moderate
relationship with Product quality and Brand Loyalty. However far as mean values of sub
variables of product quality are concerned (depicted in table 5.8, 5.10, 5.12, 5.14). The total
product quality variable mean value is 3.8625 which mean there is a relationship with Product
quality and Brand Loyalty
Since there is a significant relationship between brand loyalty and product quality, the null
hypothesis, “There is no significant relationship between Product quality and Brand Loyalty
of soft drinks brand.” is rejected and H1 is accepted.
5.5.2. Hypothesis testing of 2nd variable (Brand Personality)

H1: There is a no significant impact of brand personality on customer brand loyalty
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Table 5.40 Relationship of Brand Personality and brand loyalty

Correlations
Brand_Personal
ity Brand_Loyalty
**
Brand_Personality Pearson Correlation 1 .404
N 100 100
**
N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).

Hypothesis is accepted
The above correlation analysis clearly shows that there is a significant relationship between
brand personality and brand loyalty of soft drinks brands. Because of the relationship
between the two variables is calculated to 0. 404. However far as mean values of sub
variables of brand personality are concerned (depicted in table 5.18, 5.20, and 5.22).So there
is a relationship with Product quality and Brand Loyalty.
Since there is a significant relationship between brand loyalty and brand personality of soft
drink brand, the null hypothesis, “There is no significant relationship between brand loyalty
and brand personality” is therefore rejected. Also it can be stated that since the significance
level (p value) is 0.000 there is a statistically significant relationship
5.5.3. Hypothesis testing of 3rd variable (Emotional Appeal)

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Table 5.41 Relationship of emotional appeal and brand loyalty

Correlations
Emotional_App
eal Brand_Loyalty
**
Emotional_Appeal Pearson Correlation 1 .382
N 100 100
**
N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).

The above correlation analysis clearly shows that there is a significant relationship between
emotional appeal and brand loyalty of soft drinks brands. Because of the relationship between
the two variables is calculated to 0. 382. However far as mean values of sub variables of
emotional appeal are concerned (depicted in table 5.26, 5.28). The total emotional appeal
variable mean value is 3.52 which mean there is a relationship with emotional appeal and
Brand Loyalty
Since there is a significant relationship between brand loyalty and emotional appeal of soft
drink brand, the null hypothesis, “There is no significant relationship between brand loyalty
and brand personality” is rejected. Also it can be stated that since the significance level (p
value) is 0.000 there is a statistically significant relationship between the two variables and
are linearly related.
5.5.4. Hypothesis testing of 4th variable (Value Proposition)

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Table 5.42 Relationship of value proposition and brand loyalty

Correlations
Value_Propositi
on Brand_Loyalty
Value_Proposition Pearson Correlation 1 .095
N 100 100
N 100 100
There has a relationship with the value proposition and brand loyalty. The relationship is
between value proposition and brand loyalty which is 0.095. Here we can see that not the
stronger relationship is there but there is less relationship with value proposition and brand
loyalty. However far as mean values of sub variables of value proposition are concerned
(depicted in table 5.32, 5.34, 5.36). The total value proposition variable mean value is 3.9567
which mean there is a relationship with Product quality and Brand Loyalty
Since there is a significant relationship between brand loyalty and value proposition, the null
hypothesis, “There is no significant relationship between value proposition and brand loyalty
of soft drinks brand.” is therefore rejected and H1 is accepted.
5.6 CHAPTER SUMMARY
Under this chapter discuss the main part of the research that is the analysis of the collection
data. That is the most critical part of the research in that way use the mean, mode, standard
deviation for analysis the independent and dependent variables finally discuss the hypotheses
that way use the correlation for test the hypotheses.
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CHAPTER SIX
CONCLUTION AND RECOMMENDATIONS
6.1. INRODUCTION
This chapter is focused on drawing out conclusion from the analysis and discussion
performed in the previous chapters and give recommendations. Also this chapter includes
some suggestions for future researches. The gathered data which were analyzed; interpreted
and tested hypotheses will be then used give an overall summary and conclusion for this
study with regards to determine the impact of brand values on brand loyalty towards soft
drinks.
6.2. OVERALL SUMMARY OF STUDY
The key objective of this study was to determine the impact of brand values on customer
brand loyalty towards soft drink in youth segment in Sri Lankan market. Before all,
researcher has done a broad analysis for brand values as well as the brand loyalty concept.
The key objective then divided into specific sub objectives according to the independent
variables found in previous literatures. The significance of this study was lack of previous
researches carried out in this nature. In global context more researches can be found which
were done on the some brand values and impact to brand loyalty.
In this research, brand values like product quality, brand personality, emotional appeal, and
value proposition are the independent variables and customer brand loyalty is dependent
variable. Hypotheses were developed through the past literature available to test the
relationships with the brand values and customer brand loyalty.
Population of this research is youth age between 15 & 30 in Sri Lanka and by using
convenience sampling method researcher select 100 respondents as the sample from two
districts in Sri Lanka called Colombo, and Gampaha to represent whole country. The data
collected through the questionnaire has been tabulated for meaningful analysis and ease of
interpretation. The data will be analyzed using mathematical techniques to identify and
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validate the theory that is to be justified. Primarily Descriptive analysis and Pearson‟s
Correlation techniques of data analysis were mainly used in this study. A number of
relationships were identified through the testing hypotheses which were done in previous
chapter. The findings of this research were discussed thoroughly with the backing of
literature in a line with the objectives of this research been fulfilled.
So the findings of research will be highly useful for the soft drink companies who are playing
in the industry, and companies are planning to enter the soft drink market. And advertising
agencies are also benefited because they can identify which brand values should emphasis in
their advertising campaigns when they advertise a soft drink brand.
6.3. SUMMARY OF THE FINDINGS
There is an impact of product quality on customer brand loyalty

Qualities of ingredients, bottle shape, standards of product and health values of product are
measured under the product quality.
 The impact for brand loyalty by product quality is most affected by qualities of
ingredients (Mean value is 4.16)
There is an impact of brand personality on customer brand loyalty

Sincerity, excitement, competence are measured under the brand personality.
 The impact for brand loyalty by brand personality is most affected by success of the
brand which use measure the competence. (Mean value is 3.79)
There is an impact of emotional appeal on customer brand loyalty

Social appeal and lifestyle connection are measured under the emotional appeal.
 The impact for brand loyalty by emotional appeal is most affected by lifestyle
connection due to consumers match their lifestyles with Soft drink brand. (Mean
value is 3.65)
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There is an impact of value proposition on customer brand loyalty
Value for money, experience value and benefit value are measured under the value
proposition.
 The impact for brand loyalty by value proposition is most affected by value for
money. They expect perceived value for money that they pay. (Mean value is 4.12)
6.4. CONCLUSION AND RECOMMENDATION
Throughout this study, researcher has tried to accomplish the key objective by using
dependent and independent variables. It is to assess the impact of brand values on customer
brand loyalty towards soft drink in youth segment in Sri Lankan market. Testing hypotheses
as well as other analysis has someway proved the impact of brand values on customer brand
loyalty towards soft drink. Here the notable thing is some of factors of variables highly
impact on customer brand loyalty. So it is important for the soft drink companies who are
playing in the industry, and companies are planning to enter the soft drink market when build
a value for their brands.
Soft drink is an important product item in modern society both urban and rural areas.
Consumers mainly purchase the product for their refreshment. Today it has a significant place
in various parties and picnics. In the past decade it has become a part of foods. People use
soft drinks along with foods. Consumers purchase decisions for soft drinks are always
influenced by a number of factors, which lead them to select a particular brand in preference
to others.
As per this study researcher selected youth segment because the importance of these
consumers is also widely recognized in the soft drink market. These young customers are
recognized as style setters that influence consumption change than other market segments
.Buying behavior of youth is determined by values like the image, lifestyle connection. But
there are significant impacts by quality of product also alongside context specific factors such
as gender and lifestyle. The challenge was to researcher is to discover which factors are
mostly affected because marketing managers have insufficient knowledge about what drives
this market segment.
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At present many brands of soft drink are being consumed in Sri Lanka. Consumers can
express their attachment and be loyal to a brand. Consumers avoid brands which are not
attributed as expected by them. Customers‟ brand loyalty for soft drinks is always influenced
by a number of brand values that lead them to select a particular brand in preference to other
available brands in the market. According to research consumers of soft drink has highly
ranked taste and quality of soft drink and brand image. According to this study most popular
soft drink brand in youth segment is Elephant Cream Soda. Brand values of ECS have been
really connected with youth lifestyle and its taste has got highly attraction of youth segment.
When customers buy a soft drink consider about the quality ingredients. That means taste and
quality of a soft drink has significant role. When Elephant Cream Soda and global brands
such as Coca Cola and Pepsi absorb the market, their taste has much affected. Under the
product quality the bottle shape also significant impact on get the attractive and retain
towards that soft drink brand. The newly entered soft drink brand Kik Cola couldn‟t grab the
market. Their bottle design was not attractive for the young generation.
The research revealed that health values also a considerable factor for soft drink. Health
conscious is a new trend due to the knowledgeable young generation. So manufacturers
should give the message to the customers the soft drinks never cause of their healthy.
As per the young customers are recognized as style setters, the brand personality is the most
affected brand value. According to research success of the brand has highly indicated under
brand personality. But when soft drink brand become a success brand it is affected by other
elements of brand personality. When researcher asked whether cheerful characteristics of the
brand increase the loyalty of them for a soft drink brand, majority of the respondents have
agreed with that. It can be further concluded by practice of the current market. The top three
ranked soft drink brands Elephant Cream soda, Coca Cola and Pepsi have used cheerful
characteristics for develop their brand personality. When companies develop their brand
personalities they can use celebrity endorsements. Sports category is the most important
celebrity category for the soft drink industry if emphasize cheerfulness of the brand.
Companies should carefully use the endorsement of celebrities, because it will highly
influence to the brand personality because as the attitude towards the advertisement
significantly impacts brand attitudes.
For the brand loyalty emotional appeals have high values. Researcher have identified youth
segment actually relate their lifestyles with soft drink brand they use. So marketers should
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give emotional appeals with the lifestyle connection. So soft drink marketers are well aware
of the fads and trends of the youth culture. Young may use brands to become trendsetters and
opinion leaders for several groups in society. When consider the value proposition customers
thought they have to feel the product for repeat purchasing. Soft drink brand should emphasis
their experience value to the customer
6.5. SUGGETIONS FOR FUTURE RESEARCHES
This study carried out to the impact of brand values on customer brand loyalty towards soft
drink in youth segment in Sri Lankan market. This study is only focused on carbonated soft
drink. But nowadays, demand for non-carbonated soft drink such as natural drinks based on
fruits is being increased due to the health conscious. In that way in future should evaluate
which brand values are very affective for carbonated and non-carbonated soft drinks.
So there is a very good opportunity for a future research to carry out a research to test which
brand values are very affective when positioning a non-carbonated soft drink brand.
6.6 CHAPTER SUMMARY
Under this chapter discuss the final overall summary of the research, conclusion,
recommendation and suggestions of future researches.
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APPENDIX I
Questionnaire
The Effect of Brand Values on Customer Brand Loyalty towards

Soft Drink Brands among Youth Segment in Sri Lanka
I am a final year undergraduate of the Department of Marketing Management of University
of Kelaniya. I am conducting a research for my academic purpose. As a part of my research I
would like to gather some information from you. Your information will be highly valuable
for this study and the information provided will be kept confidential and for academic use
only. I greatly appreciate your cooperation.
1. Gender
Male Female
2. Age Level
15-20 21-25 26-30
3. Monthly Income Level
Less than Rs.10000 Rs.10000-Rs.20000

Rs.20000-Rs.30000 Rs.30000-Rs.40000
Rs.40000 above
4. Occupation
Student Unemployed
Trainee Executive-Private
Executive-Government Manager
Self Employed
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5. Which soft drink brand is your most favorite among following popular soft drinks
brands available in Sri Lanka
Coca-Cola Portello
Pepsi EGB
Fanta Sprite
Elephant Cream Soda 7up
Fanta Cream Soda Other…………….
6. Rank the importance of following brand values of soft drinks according to your
purchasing behavior
Taste & Quality

Value for Money
Brand Image
Design
Associated Feelings
Please indicate your level of agreement or disagreement with each of the following
statements regarding Product quality of soft drinks
Strongly Disagree Neutral Agree Strongly

Disagree Agree
7.I become loyal for a soft drink brand
based on the quality of ingredients
8. The bottle shape is an important factor

when I become loyal for a soft drink
brand
9.Standardized product offering is an

essential factor for me when I buy a soft
drink
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10.Health values of the product gain my

loyalty towards that particular soft drink
brand
11. Overall product quality influence me

to repurchase that particular soft drink
brand
statements regarding Brand Personality of soft drinks

Disagree Agree
12. Cheerful characteristics of the brand
increase the loyalty of me for a soft
drink brand
13. Excitement imaginative of the brand

increase the loyalty of me for a soft
drink brand
14. Success of brand in the market is

important when I become loyal for a soft
drink brand.
15. Overall brand personality influence

me to repurchase that particular soft
drink brand
statements regarding Emotional Appeals of soft drink brands
16. Social appeals (Love, Friendship) of

the brand attracted me to be aware of soft
drink brand
17.Lifestyle connection of the brand retain

my awareness for a soft drink brand
18. Overall emotional appeals of the brand

influence me to repurchase that particular
soft drink brand
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statements regarding Value Proposition of soft drink brands

Disagree Agree
19. Getting a value for money which I
pay is an essential factor when I buy a
soft drink
20. Experience value of the soft drink

get my loyalty towards soft drink brand
21. I become loyal for a soft drink brand

based on the benefit value of the soft
drink
22. Overall experience and benefits

influence me to repurchase that
particular soft drink brand
……………………………Thank You…………………………
Page 72
APPENDIX II
Table 5.1 Analysis of “Gender”

Gender
Valid Cumulative
Valid Male 68 68.0 68.0 68.0
Female 32 32.0 32.0 100.0
Total 100 100.0 100.0
Table 5.2 Analysis of “Age”

Age Level
Valid Cumulative
Valid 15-20 13 13.0 13.0 13.0
21-25 65 65.0 65.0 78.0
26-30 22 22.0 22.0 100.0
Total 100 100.0 100.0
Table 5.3 Analysis of “Income Level”
Monthly Income Level

Valid Cumulative
Valid Less than 42 42.0 42.0 42.0
Rs.10000
Rs.10000- 18 18.0 18.0 60.0
Rs.20000
Rs.20000- 23 23.0 23.0 83.0
Rs.30000
Rs.30000- 15 15.0 15.0 98.0
Rs.40000
Rs.40000 2 2.0 2.0 100.0
above
Total 100 100.0 100.0
Page 73
Table 5.4 Analysis of “Occupation”
Occupation
Valid Cumulative
Valid Student 28 28.0 28.0 28.0
Unemployed 1 1.0 1.0 29.0
Trainee 31 31.0 31.0 60.0

Executive- 24 24.0 24.0 84.0
Private
Executive- 7 7.0 7.0 91.0
Government
Manager 8 8.0 8.0 99.0

Self 1 1.0 1.0 100.0
Employed
Total 100 100.0 100.0
Table 5.5 Analysis of most favorite soft drink brand
Which soft drink brand is your most favorite among following

popular soft drinks brands available in Sri Lanka
Valid Cumulative
Valid Coca- 19 19.0 19.6 19.6
Cola
Pepsi 14 14.0 14.4 34.0
Fanta 11 11.0 11.3 45.4
Elephant 28 28.0 28.9 74.2

Cream
Soda
Portello 4 4.0 4.1 78.4
EGB 8 8.0 8.2 86.6
Sprite 7 7.0 7.2 93.8
7up 6 6.0 6.2 100.0
Total 97 97.0 100.0
Missing System 3 3.0
Total 100 100.0
Page 74
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THE IMPACT OF BRAND VALUES ON CUSTOMER BRAND

LOYALTY IN YOUTH SEGMENT:

1.1 BACKGROUND OF THE STUDY

1.2 INDUSTRY OVERVIEW

 Ceylon Cold Stores Ltd

1.3 RESEARCH PROBLEM

Marketers‟ survival depends on consumer loyalty. Consumer loyalty depends on their

1.4 RESEARCH QUESTIONS

2. How each brand value would influence for customer loyalty?

4. How brand values influence when consumers recommend a brand others?

5. What is the most important brand value for customer loyalty?

6. What is the consumers‟ ability to recognize brand values?

1.5 RESEARCH OBJECTIVES

 Determine the impact of brand values towards customer brand loyalty.

3. Find out most important brand value for customer loyalty.

4. Examine the consumers‟ ability to recognize brand values.

6. Provide some recommendations to soft drink companies.

1.6 SIGNIFICANCE OF STUDY

H0: There is a significant impact of product quality on customer brand loyalty

H0: There is a significant impact of brand personality on customer brand loyalty

H0: There is a significant impact of emotional appeal on customer brand loyalty

H0: There is a significant impact of value proposition on customer brand loyalty

1.8 RESEARCH METHODOLOGY

1.8.1 Sources of Data

The method of collecting them is further explained in this section.

1.8.2 Sampling Plan

1.8.3 Data Presentation & Analysis Method

1.9 LIMITATIONS OF THE RESEARCH

Chapter 2- Literature Review

Chapter 3- Conceptualization and Operationalization

Chapter 4- Research Methodology

Chapter 5- Data Presentation and Analysis

Chapter 6- Summary and conclusion

1.11 CHAPTER SUMMARY

2.1. LITERATURE REVIEW

2.1.1. Studies of Brand Loyalty

1. True loyalty 3.Latent loyalty

Figure 2.1 Degree of Loyalty

Source: Dick and Basu (1994)

2.1.2. Studies of Product Quality

2.1.3. Studies of Brand Personality

2.1.4. Studies of Emotional Appeal

2.1.5. Studies of Value Proposition

2.2. PREVIOUS STUDIES

2.3. CHAPTER SUMMARY

CONCEPTUALIZATION AND OPERATIONALIZATION

3.1. CONCEPTUAL FRAMEWORK

Figure 3.1 Conceptual Framework

Brand Personality Degree of

3.2. DEFINING VARIABLES

cognitive appraisals of events or thoughts, has a phenomenological tone, often expressed

3.3 FORMULATION OF HYPOTHESES

H0: There is a significant impact of product quality on customer brand loyalty

H0: There is a significant impact of brand personality on customer brand loyalty

H0: There is a significant impact of emotional appeal on customer brand loyalty

H0: There is a significant impact of value proposition on customer brand loyalty

3.4. OPERATIONALIZATION THE CONCEPTUAL FRAMEWORK

Packaging Degree of consideration Five-point

Health Value Degree of consideration Five-point

Value Degree of consideration Five-point

Degree of consideration Five-point

3.5 CHAPTER SUMMARY