1

CHAPTER # 1
Introduction

1. Introduction

1.1 Background:
Tetra Pak is a multinational food packaging and processing to provide
good quality products.

The role of Tetra Pack Milk industry plays a very

important role for development of economy and it has significant boom in

Pakistans economy. The industry of Tetra Pack Milk

currently having a size

US$26 billion per annum with increasing rate of 10% per year and industry has
capable to increase its market share to make 20% upcoming 3 years, that is
showing

the industry has ability and growth of the overall tetra pack milk

industry in Pakistan. Now days the consumers consider too many things while
choosing liquid milk, like taste, quality, price, packing and availability of product.
Marketers called it marketing mix of a product. Now a day, consumers are more
health and brand conscious. Therefore, the marketers should realize the
customers preference because in the end customer has choices in the competitive
era. The customers are paying extra value of a brand instead of generic product.
In milk industry of Pakistan comprising of different dairy product has reached
significantly growth are showing and consumers are become more health
conciseness. As a recent study has examined the different dairy product has
reached US$26 in urban and rural areas on the getting up population and domestic
consumption as well. But lack of awareness in rural areas of Tetra Pak milk
industry, they are using open dairy milk.2 The consumers of this industry wants it
at convenience price, because price factor matter for price conscience or price

1
2

wikipedia
www.thenwstibe.com

sensitive customers. Therefore, company should consider these kinds of

consumers.
There are many tetra pack milk companies in Pakistan for instance Nestls
Milkpack, Engros Olpers and Haleeb. The market leader in this industry is Milk
pack and it has highly market share. The Olpers has been introduced in Pakistan
last four years ago, and they are trying to get more market share. Haleeb is an old
brand but he has very low market share of this industry. There are many things
when choosing the brand and some of the brand loyalty, brand trust, brand
perceived value, brand awareness, customer satisfaction and word-of-mouth.
The most important thing is brand in any industry. Therefore, the impact of
Brands and Brand building towards increase business has changed significantly
over the past twenty years. According to Keller, for any organization the main
important asset is not their equipment, land and machinery and so on, but the
actual assets of their organization is their valuable customers mind it should be
top of mind of customers.

When the marketers defining products in terms of

giving to their customers it fulfill the basic needs of customers and just fill out
their needs, but when customers buy the Branded products, then brands satisfy
their emotional needs and increase the satisfaction level of customers. The
ultimately effects of Brands boost up companys revenues as well as profitability
of the company.4 The main and essential factor of a brand is to build

3
4

Keller, 2008
Hankinson and Cowking, 1996

trustworthiness among their present customers. The brand must have the
distinctive quality that makes a brand dissimilar from other brands. 5
When the firm wants to create brand loyalty, they should establish long term
relationship with their customers and consumers as an understandable relationship
with each other. It gives the company long term profitability and reduce the
companys cost as they want to acquire new customers. The Brand loyalty with
target audience as more than product and service are difficult to differentiate, the
customer may want to an additional point of connection with company and
customer to develop the commitment of long term relationship for brand loyalty.
The additional point of brand loyalty may fulfill the long term customers
requirements through companys ability to serve their customers requirements.
The Loyalty of customers towards specific industry brands shows not only loyalty
but also has reputation of ongoing sale of company from their target customers
and increases the companys long term profitability sale as well. The Brand
loyalty need to invest significant resources to develop long term Brands. The
brand loyalty of the customer base is often the core of a brands equity.6
1.2 Problem Statement:
There are many research conducted to help Brand Managers that how marketing
tools such as advertisement, price, awareness, satisfaction, perceived value, trust
and identity impact on Brand loyalty. The previous research is absent the what
relationship of Brand trust, Brand identity, Brand awareness, Customer
5
6

Kapferer, 2008
Aker, 1991

satisfaction and perceived value on Brand loyalty in Tetra Milk Pack industry in
Pakistan.7 The Managers of Marketing specially those managers who are working
in Tetra Pack Milk industry which are not aware that how these variables affect on
the mind of consumers then they will not able to use marketing mix tools
accordingly. Therefore, it is very important to know the impact of Brand loyalty in
Tetra Milk Pack industry in Pakistan.
1.3 Research Question:
Q1: Factors effecting towards Brand loyalty in Tetra Milk Pack industry in
Pakistan?
1.4 Objective of study:
To find out what factors effecting of Brand loyalty in Tetra Milk Pack of Pakistan.
1.5 Scope of the study:
The very important scope of this study is to provide analysis and detail
information to Brand Managers and who wants to build Personal Relationship for
organization to build Brand loyalty from target customers. This study helps to
achieve brand loyalty in Tetra Pack Milk industry in market and increase firms
financial objectives.
1.6 Limitation:

Dehdashti et al

The main limitation of this study is based on Pakistan Tetra Milk Pack industry
specifically and data have been controlled from Karachi region only due to time
and cost constrain.

CHAPTER # 2
Literature Review

2. Literature Review
2.1 Theoretical Background:
In this era everyone wants new thing for their using purpose even that
layman as well which can satisfy their needs. Therefore marketers are trying to

satisfy their needs through launching new product with Brand name. At this stage
consumers are thing that which product brand satisfies my needs wants and
demand.8 The Branding has become vital role in around the world for this
competitive era. Branding means to you can differentiate the goods and services
from one producer to another producer.
The term brand, we can denote brand through different things which is name,
term, sign, symbol, design which one seller to another seller to differentiate them
from competitors.9
The Loyalty is a historical word which shows how we are loyal to our job, family,
and country friends and so on. Therefore, that word came in marketing
boundaries, where marketers and sellers use term like Customers Loyalty and
Brand Loyalty.10 When we build a Brand then we ought to be creating Loyalty
from customer or consumers.
The Brand Loyalty basically indicates that to consumers and customers repeat
purchasing and building loyal customers requires a company to discriminate. 11
Brand Loyalty means repeat purchase. It is good for those companies who wants
to generates repeat cash, which means when buyer wants to purchase particular
brand and they wants to again and again thats create repeat cash .
The Trust is admitting an attributes related with an thing or a personality. Trust to
a brand is a emotional feature, which highlight all factors hold on the
8

Interbrand Group
Keller 3rd edition
10
Philip Kotler, 2003
11
Philip Kotler, 2003
9

dependability of exacting product of the a brand. 12 The Brand Trust is an

associated with credibility, integrity and benevolence. Therefore, marketing
managers should create a Brand Trust of their product or service on their target
customers.
The word Identity shows some characteristic of something or someone, on the
basis of that we can identify it easily in large area or many brands. The Brand
individuality is a place of elite value, distinguishing, features, settlement and so
on a product in conditions of slogan, assure and opportunities provided for
consumers and might construct a recently identities in competitive period for
civilizing earlier identities. so, we can uniqueness is one of the mainly major
factors for stabilizing product and could channel it towards fresh markets and
goods or services.13 The Brand identity could become effective elements of a
company, when company accompanied with customers needs/wants and
demand.14
In general, the word satisfaction when we get positive results from something
or someone. In organization many personnel are satisfied their current working
job or some are not why, because they are not getting positive result from their
job. Similarly in marketing environment some customers are satisfied with
particular brand. When customers satisfied that brands which is called Satisfied
Customers. The purchaser is satisfied depends on the offers performance in

12

Doney & Cannon, 1997

Keller,2003;Ghodeswar, 2008
14
Aker, 2000
13

10

relationship to the purchasers expectations and whether the purchaser interprets

any deviation between the two brands.15
Brand is a Brand: to manage the brand is to establish a 360

approach to

coherence to create the perception of a differentiated offer, carrying added values

tangibles and intangibles. The perception is creating through coherence of their
repeated experience over time. Therefore, marketing manager wants to create
perceived value about their brand in customers minds.16
The word-of--mouth, term use, when we give our opinion to others without any
financial advantages. In marketing marketers speared their brand word-ofmouth
giving to customer quality, price, placement style and so on things that spread
their promotion without and cost. In word-ofmouth marketers no need ads
salesperson. It can save out advertising cost and other cost can be saving through
word-ofmouth. Most marketing companies would wants to speared out wordof-mouth campaigns in their surrounding their new product launches. 17 In this era
the word-of-mouth become very important variable to create customers.
Ultimately satisfied customers are expanding positive word-of-mouth of particular
companies brands.
In general life the word Awareness how much information about particular
things or persons and how we relate to that, same as in marketing what level of
Brand Awareness of particular brand. The marketer wants to create awareness of
their brands in customers mind in TOM approach which is Top of Mind of
15

Philip Kotler
Kapferer, 2008
17
Philip Kotler
16

11

customers. The Brand Awareness could create through mass advertising i.e. ads,
news papers, magazine, and sign boards and so on. The Brand Awareness tells,
what brand characteristics, features and social status associate of a brand. The
customers are willing to pay a price and accept good-quality goods for the same
brand if it is a brand with high awareness of others brands.18

2.2 Empirical Studies:

18

Knudtzen, 2008

12

Farley (1964), has examined the why does Brand Loyalty vary over products.
The factor Analysis has used to solve the difficult study to exmine. In this
research the used to the variable to solve the study problem i.e. price activity,
distribution characteristics of supply structure and value of critical of the product
in the consumers consumption usage over Brand Switching. The sample size of
this study is 199.The result shows that the positive relationship between
dependent and independent variables. Further, the effects again infer the
essentialness of variables connected with the structure of businesses in
examination of plans of shopper conduct
Selnes (1993) examined the Effect of Product Performance on Brand Reputation,
Satisfaction and Loyalty. Product performance, customer satisfaction, customer
loyalty, performance and satisfaction, performance and brand reputation
satisfaction brand reputation and loyalty have been used. Data is collected from
different companies by questionnaire and telephone interview. From life insurance
company 187 responses were collected, telephone company 385 responses,
college sample 325 responses and salmon feed supplier 125 responses. Result
indicates that brand reputation has strong effect on loyalty and there is strong
relationship between the quality ad loyalties. Similarly there is significant
association between loyalty and brand reputation. The results also indicates that
the between satisfaction and loyalty will be less when controlling for the effect of
the brand reputation on loyalty. In future this model should test in more industries
and on multiple companies with in same industry.

13

Oh and S. Friorto (2002), examine the impact of consumers buying intention,

behavioral effects, gender effects, Income effects, life style effects and age effects
to building brand loyalty towards clothing brand. The data were taken from 328
respondents. The factor analysis and multiple discriminate analyses were used in
this study. The variable used in this study consumers decision making,
Demographics and post-purchase satisfaction on brand loyalty. The result
indicates that consumers are loyal to the brand according to satisfaction about the
product offerings. Purchase decision back by the past experience of the product.
The researchs suggestion assist the retailers and manufacturer to maintain the
desired satisfaction of the consumer which make them purchase different products
and build there loyalty for he other products.
Quester and Lim (2003), explore the linkage between brand loyalty and product
involvement. The research took place through 253 respondents. The factor
analysis, multivariate analysis, principle component analysis, orthogonal rotation
method and regression analysis were used in study. The variable used in research
involvement (interest and pleasure, risk probability, sign and risk importance) on
brand loyalty. Result shows that brand loyalty doesnt only depend upon the
product involvement it may also contain other factors in consideration.
Davis et al. (2003), has identifies the difference between online and offline
consumer Brand Loyalty. The sample size of this study to examine the problem is
730 are offline and online data were collected. The variable were used to solve the
study i.e. Internet shopping Probability Models and Brand Choice.
Dirichlet' model was used this study. The outcomes show that watched Brand
unwaveringness for heightened piece of the pie marks acquired connected is quite

14

more stupendous than wanted, with the opposite consequence for small partition
Brands. As far as mark reliability, presently commonplace marks, with a solid
disconnected from the net presence, do far better in the Internet nature than
disconnected from the net
Merisavo and Raulas, (2004) examine the impact of email marketing and
preference of email content among the users toward the establishment of brand
loyalty of consumers. 890 samples were used in the study. Cronbachs Alpha was
used in this study to check the reliability of the measurements. Variables consist
of Single brand loyal consumer, Multiband loyal consumer, and Experimental
brand switchers Routinized brand Switchers and Loyalty groups were constructed
from usage of brands of company, brand preference, and variety seeking to check
their impact. The finding of this study tells us that the connection with consumers
via e-mail contacts have a positive effect on loyalty. The study encourages
marketers to build some email based activities through which customers gets
motivated and updated with the new offerings.
Boas (2004) has studied about the consumers learning and Brand Loyalty in
competitive era. This paper recognizes a model in which shoppers study in the
first period concerning the item they purchase and after that settle on decisions in
the second period concerning the contending items, given what they studied in the
first period. The paper likewise portrays the imperativeness of customer picking
up impacts on the business sector result.
D. Schoenbachler et al. (2004), examine the possible outcome for create long term
brand loyalty that is not straightly impact to the marketing of the attracting new
customers to fulfill the needs of buyers through new product for individual

15

investors in the brands corporate parent. The data were collected through 500
investors. The regression analysis was used. Individual investor, brand loyalty,
companys stock, and product experience. The result identified that the likelihood
of stock purchase based on product/service use, except holdings outside of
stock/mutual funds, are also significant predictors of the likelihood of purchasing
products/services because of stock ownership. In this study researcher make know
for the each inventors may establish

to be some extend to increase brand

preference and repeat buying purchase behavior of target customers (which show
that, but are not state-of-the-art of brand loyalty), they do not typically exhibit
brand loyalty.
Bandyopadhyay et al (2005), examine the Twofold Jeopardy (DJ) impact is
likewise affected by the connection between customer decision precursors and
customer getting conduct. Sample size of this study was 1,800 respondents. The
z-test for comparison of population parameters was applied and chi-square used in
this study. Attitude, Opportunity, Brand Choice, and Purchase frequency are
variables are used in this study Results show that small brands are endangered
twice. To start with, they experience less- good mean esteem on both lifelong and
transaction particular forerunners. Second, the switching buyers of small brands
have weaker mentality- decision connection as contrasted with the faithful
customers. The exploration proposes that twofold danger of small brands should
not be as irreversible sensation set. A more in- profundity grasping of the singlelevel precursors of shopper decision might as well encourage small brands to

16

improve creative unpleasant and guarding techniques pointed at positive single

decision precursors of steadfast and switching purchasers.
Ballester and Aleman (2005) consumed an exploration study to break down the
commitment level of mark confide in the structuring of mark value. Through the
utilization of telephone calls, 271 polls were rounded out on two feature
classifications, cleanser and brew. Structure Equation Model was utilized to
measure variables: Consumer fulfillment, trust and mark steadfastness. The
statistical outcomes demonstrate mark value has extraordinary reliance on mark
faithfulness which drives from mark trust. Suggestion of the study incorporates
associations fabricating mark trust through steady positive experience of clients
with items. The study's suggestions are to raise confide in mark through satisfying
the make a guarantee to it can convey. Additionally, associations might as well
take a shot at making clients' experience tasteful and charming to point at
assembling trust in this manner mark value.
Pappuet al., (2005) directed an exploration to upgrade the estimation of shopper
based mark value. The specimen size for the study was 539 complete surveys on
six marks which were obtained to run statistical dissection. Structure Equation
Model and affirming variable dissection were utilized to make inference on the
variables: mark devotion, mark cooperation, discerned value, and mark
mindfulness. The effects of element dissection affirmed the fourth dimensional
model of mark value. It furnished observational proof of different components of
client based mark value. The study proposes incorporating to survey mark
mindfulness and use constant scale to measure mark value to increase more
impartial information.

17

Brink et al. (2006) examine the impact on brand loyalty by tactical and strategic
cause-related marketing and customer involvement. The sample size was design
with 240 participants. One-way ANOVA was used to interpret the data. The
variables were used in this study tactical CRM and Brand loyalty, strategic CRM,
control group. Study concludes that strategic cause related marketing had been
significantly enhanced the level of brand loyalty of low level product where
tactical cause related marketing does not have any effect on brand loyalty.
Researcher suggested that organization should involve in CRM campaigns for
expanding the brand loyalty.
Shang et al. (2006) examine the relationship between posting behaviors and
consumers lurking among consumer group of specific brand loyalty. The sample
size of this study was 350. Techniques which are used to test the model are
principal components analysis and hierarchical regressions. Variables through
which the research took place are attitudes, trust, Involvement, loyalty and toward
the brand exist in messages. Research concluded in the way that all the alternative
hypothesis is accepted and the proposed model didnt explain the cause of the
relation ship among he variables. This study found explanation of brand loyalty
can be contributed by the lurking behavior of consumer.
Huber et al. (2006), has worked on how to determine the Brand loyalty purpose in
competitive era. The variable were used in this study to identify the gap i.e.
Loyalty intention Affective Commitment, Perceived Value, Brand Equity
towards Brand Loyalty. The sample size of this study is 2990. The outcomes have
imperative suggestions for supervisors who are answerable for enhancing

18

observed worth and administrators who are answerable for raising Brands and
associations.
Martensen, (2007), examine the relation ship of with the sample size of 1000
interviews with (8-12 years-old) students were conducted. They used Regression
Analysis technique. The variables were used in study dependent variables (overall
satisfaction, impulse buying) and independent variables (fulfillment of
expectation, psychosocial consequences and abstract product attributes .The study
indicates that teen agers are highly satisfied with their mobile phones as compared
to the adults.
Paswan et al. (2007), examine the factors on which the consumer accept or reject
service brand and also the facts about how consumer evaluates substitute brands..
The Sample size of this study is 4000 students. Factor analysis and multiple
regression techniques were used to evaluate the data. The dependent variables are
consumer satisfaction and attainment of preferred brand where the independent
variables are features of brand, brand loyalty. The study results indicate that the
consumer who preferred the alternate brand are not very satisfied where as
satisfaction level is very high in selecting the brand of their own choice which
also shoe the loyalty towards that brand.
Kim et al. (2007), examine the impact of co-branding on customer satisfaction
which ultimately turn in to the brand loyalty. The sample size was used in study
350. The Correlation Matrix, confirmatory factor model and structural equation
modeling was used for the desired result. Research indicates that Post-purchase
services and co branding had a significantly effect on brand loyalty and customer
satisfaction where as premium promotion technique didnt respond to any of the
focused variable of the research.

19

K. Alexandris et al. (2008) examine the effect of brand association on brand

loyalty and also study the impact of service quality for the development of brand
association. Study carries out through 165 respondents. The exploratory factor
analysis and regression analyses was used in this study. The variable was used to
identify the research is brand association with eight factors of service quality and
brand loyalty. Results indicates that brand association had great impact on
creating brand loyalty and quality service gives more comfort to the consumers
for building the Brand association. This research navigate the marketer to cope the
strategy relating brand association and build strong elements related to the brand
which made positive image in the consumers mind.
Jensen and Drozdenko (2008), explore the facts that why consumer pay premium
for the brand is it creates loyalty of that brand. Research carried out by 385
respondents. The variables used in this study are situation and product on brand
loyal. Manova analysis technique was used to get the results. Research concluded
that paying premium prices shows the brand loyalty and it also depend upon the
product category and how well the marketer communicate with the consumer to
create value proposition of that product.
Matzler et al. (2008), examine the relationship between the factors of customers
brand loyalty risk with aversion. Data were collected from 145 participate. Partial
least squares (PLS) and Correlation Matrix were used to test the hypotheses. The
variables used in this study Brand trust, attitude loyalty, Purchase loyalty, Brand
affect and Risk aversion. Research conclude in the manner that attitudinal loyalty
and brand loyalty is significantly predicted by risk aversion. Brand affect and
brand trust diminishes the risk factor in the mind of the customers which also

20

been shown by the statistical results. Researcher suggested that by targeting more
risk aversive customers which resulted in to building stronger brand loyalty.
Shukla (2009), examine the three concepts to explore his idea regarding the
impact of behavioral intentions towards the brand loyalty and how consumers
switching in young adults market. Secondly he discover the how consumers
choosing criteria on behavioral intentions. Thirdly, he also investigates the effect
of contextual factors as well as behavioral intentions towards purchase decisions.
Sample size was of this study 380. The covariance matrix was used in this study.
The variables used in this study are Brand switching, Brand loyalty and Purchase
Decision. The research findings showed that, as predicted, variable contextual
factors increase

brand loyalty, switching behavior and purchase decisions. The

study has significantly brand loyalty, brand switching positive impact of

contextual factors, on purchase decision was likewise found. Research also
provides broader information to Brand Loyalty.
Ogba and Tan (2009) examine the effect of brand loyalty by brand image, Brand
image; Quality, Customer satisfaction and Customer loyalty have been used.
Research was carried out by 250 respondents and data concluded by the Factor
analysis and Anova techniques. Research concluded that there is significant
relationship between brand image on customer expression of loyalty and
commitment to market.
Lin, (2010), explores the relationship among brand loyalty brand personality and
consumer personality trait. The sample size of this research was 400 adults
consumers. Regression analysis techniques used to test the model. The variable

21

was used in this study, Personality trait (extroversion, agreeableness,

conscientiousness, neuroticism; and openness), Band personality (excitement,
competence, peacefulness, sincerity and sophistication) and Brand loyalty
(affective and action loyalty). Research indicates that extroversion personality
trait, agreeableness personality trait, sincerity brand personality and competence
brand personality had a significant relationship with excitement brand personality.
And brand loyalty (effective and action), personality and consumer personality
traits have a significant relations among themselves. Researcher suggested that
manager should consider all the above concepts while making marketing
strategies for maximize profit.
Hur et al. (2011), examine two approaches, first studied the relationship between
Trust and brand community then analyze the relation between trust brand
community and increased varied loyalty behavior. Sample size of 200 targeted.
Partial Least Squares (PLS) analysis used in this study. The variables used in this
study brand community affect, positive brand community trust word-of-mouth,
repurchase intentions brand community commitment, constructive complaints.
The results conclude that there is significant effect among the variables brand
community development, community commitment brand community affect and
community trust. The study suggests that to broaden their appeal in the female
market should have the significant ways to increase brand loyalty behaviors.
D. Nguyen et al. (2011) studied the background and root cause of brand loyalty in
Thailand and Vietnam. The study conducted through 603 samples. The variables
used in this research are brand awareness, advertising, attitudes, Perceived quality

22

and distribution intensity on brand loyalty. Structural equation modeling

technique is used to test the hypothesis. The research concluded that between
perceived quality brand awareness and, between advertising attitudes and brand
awareness. The positive links between brand loyalties perceived quality and
between distribution intensity and brand awareness in both markets. The links
between brand awareness and brand loyalty was found only in the Vietnamese
market, and the relationship between advertising attitudes and perceived quality
was only found in the Thai market. Finally there is no relationship between
perceived quality and distribution intensity found in either market in this study.
Liu et al. (2012) examine the effect of brand equity brands usage imagery
congruity brand personality congruity on consumers attitude and brand loyalty.
The sample size of this study is 391 students. The variables used in this study is
brand user imagery congruity brand personality congruity, brand usage congruity,
brand attitude on brand loyalty. The Confirmatory factor analyses using the alpha
factoring extraction method with varimax rotation are conducted to test the
constructs and Structural Equation Modeling (SEM) using. This study finds that
brand attitude and brand loyalty are strongly predicted by user and usage imagery
congruity in fashion luxury brand as compare to others. The researchers suggested
that these self-congruity concepts may represent different imageries that lead to
different effects in brand attitude and brand loyalty.
Z.Dehdashti et al. (2012) examine the effect of brand and brand identity in
building product loyalty of dairy products of Iran. Research conducted through
the sample size of 475 respondents. Factor analysis and structural equation
modeling techniques are used. Study suggested that brand had a significant effect

23

in building brand loyalty. In other words the powerful brand leads to the brand
loyalty. In their study independent variables are customer satisfaction, perception
value, brand trust and brand identity where dependent variable is brand loyalty.
Study concluded that value perception, satisfaction of the customer and brand
trust influence by brand identity. Therefore, Brand identity also has an impact
over customer satisfaction which also increases the brand loyalty.

24

CHAPTER # 3
METHODOLOGY

3. METHODOLOGY
3.1 Research Approach:
In the research environment there are three types of research approaches
Quantitative, Qualitative and Mixed approach. The different research approaches
have different characteristics. The Quantitative approach is based on numeric
values i.e. Salary, temperature and Age etc. The Qualitative approach is based on

25

non-numeric values and we cannot count and measure it for example Love,
Relation Hate and so on. On the other side, mixed approach is based on both
Quantitative and Qualitative approaches. In this study we are using numeric data
to find out the relationship between dependent and Independent variable
therefore, we are using Quantitative approach. In Quantitative approach we define
our research and explore the data then call it exploratory design. The Exploratory
Design to find out the best research design to data collection method and selection
of subjects and investigate something in our culture.
3.2 Research purpose:
Our research based on exploratory because we are trying to find out Brand loyalty
in FMCG product is Tetra Pack Milk with one of leading brand of Tetra Pack
Milk industry. We will find out what factors influence to loyal with particular
brand.

3.3 Research Design:

In this research is designed to check the correlation to examine the relationship of
dependent and independent variables. In this research we check the relationship of
Brand Trust, Brand Identity, Brand Perceived Value, Brand Awareness, Customers
Satisfaction, and Word of mouth, on Brand loyalty. The variables help to identify
that there is any relationship exit among independent and dependent variable.

26

3.4 Research Technique:

In our research the Regression Analysis is used in the data to analyze the impact
of independent variable on dependent variable. The regression analysis followed
by Factors Analysis.
3.5 Research Tool:
In our study the research tool used in the research is Statistical Package for Social
Sciences (SPSS) to signify the findings.
3.6 Data Source:
The research has been conducted using primary data for independent and
dependent variables. The questionnaire filled out for this research is 300.

3.7 Target Population:

The target population is a population of where researcher wants to study to find
out their behavior. Our target population is liquid milk consumers in Karachi
Pakistan.
3.8 Sample Size:

27

The sample is represents the whole population. The respondents of this research
are 300 of Karachi Pakistan.
3.9 Data Collection:
The data collection is to obtain information from our respondents. The research
the data collection from liquid milk users based on questionnaire.
1. Strongly Agree

2. Agree 3. Neutral

4. Disagree

5.Strongly
disagree

3.10 Sampling Technique:

The our research based on Quantitative approach which has been used so the
appropriate sampling would be non probability sampling in which convenience
sampling would be applied because it is easily accessible and low cost. The
respondents of our research would be those who are user of Tetra Pack Milk with
no gender restriction when filling out the questionnaire.
3.11 Model Hypothesis:
In this research have six independent variables which is Brand Trust, Brand
identity, Brand Perceived Value, Brand Awareness, Customer Satisfaction and
word of mouth and only one dependent variable which is Brand Loyalty. These
variables are used to examine the impact of dependent variables on the
independent variables.
The model is as follow:
BL= + 1 BT+ 2BI+ 3BPV+ 4WOM+ 5BA +e

28

Where: BL, represent Brand Loyalty, BT represent at Brand Trust, BI represent

Brand Identity, BPV represent Brand Perceived Value, WOM represent Word of
mouth and BA represent Brand Awareness. The other sign used in this section
where represent Beta, represent Alpha and e represents Error.
3.12 Research Hypothesis:
Ho1: Brand Trust has insignificant Impact on Brand Loyalty.
Ho2: Brand Identity has insignificant Impact on Brand Loyalty.
Ho3: Brand Perceived Value has insignificant Impact on Brand Loyalty.
Ho4: Word of mouth has insignificant Impact on Brand Loyalty.
Ho6: Brand Awareness has insignificant Impact on Brand Loyalty

3.13 Variable Description:

Brand Loyalty:
The Brand Loyalty means that at what level of and what company has loyalty rate
of customers and consumers towards brand.
Brad Trust:
The Brand Trust means that whether customers or consumers trust particular
companys brand.

29

Brand Identity:
The Brand Identity shows that how brand identify in their targeted market and
what image of brand in their customers and consumers.
Brand Awareness:
The Brand awareness means that customers and consumers are aware of
companys brand. If the customers and consumers are aware of that brand is good
for company.
Brand Perceived Value.
The Brand Perceived Value is that the customers and consumers think that value
of a brand before he or she purchased in term of Price.
Word-of-mouth: The word of mouth means that when we tell others of particular
thing which we wants to tell.

30

Chapter 4
Data Analysis

4. Data Analysis
In the Data Analysis chapter contains different Statistical test to complete the
study. The software being used in this study is SPSS. With the help of SPSS the
first test applied in software which is Reliability because first we need to verify
the data reliability of overall data as well as individual variable. The second test is
Factor Analysis which is called data reduction and last and important test is
Regression Analysis which shows the relationship between dependent and
independent variables. The detail information of test and their results as discuss
below.

31

4.1 Reliability
The first test has been applied in SPSS is Reliability test; it shows the consistency
and acceptability of data through questionnaire from target respondent. In this
study the 6 variable were used in this study which is 1 dependent variable and 5
are independent variables. The questionnaire comprised 24 questions, including 4
questions of dependent variable which is Brand Loyalty and 20 question of
independent variables which are 4 question of Brand Trust, 4 questions of Brand
Awareness, 5 question of Brand Perceived Value, 4 questions of Brand Identity
and last question have 3 question which is Word-of-Mouth. The Reliability of data
confirm from Cronbach's Alpha which should be more than 0.50 which means
50% from prescribed parameter. In this study the below mention table 4.1.1,
Cronbach's Alpha values shows .868 means 86.8% reliability of data which is
more than 0.50 as per requirement. Therefore, data is acceptable for complete this
study.
Table 4.1.1

The second table 4.1.2 shows the each variable numbers of Items and its
Cronbachs Alpha value to check the individual variable. The first variable is
Brand Loyalty that is dependent variable and its Cronbachs Alpha values is 0.860
convert in percentage which is 86.0%. In the independent side the Brand Trust

32

alpha value 91.6%, Brand Awareness is 85.2%, Brand Perceived Value 91.3%,
Brand Identity 88.2% and last word-of-mouth 90.1%.
Table 4.1.2

4.2 Factor Analysis

In the Factor Analysis test using for data reduction of variables because we need
to make variables in the shape of factors. The purpose of Factor Analysis is
exploratory and confirmatory of data. The first table of Factor Analysis is KMO
and Bartletts test. In this table the KMO value shows the adequacy of data. The
requirement of KMO value as per statistical satisfactory level or acceptable level
is 0.50 which means greater than 50%. In this study KMO value is .817 which
means 81.7% which is good for this research. The KMO result shows the 81.7%
of variance between independent variables. The very important value for any
research is significant value in KMO and Bartletts test should be less than 0.05
which means less 5%. As per below mention table 4.2.1 shows the sig.value is .
000 which is significant for this study and suitable for factor analysis.
4.2.1

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4.2.2
Rotated Component Matrix

S.N
O

Items

Cronbach'
s Alpha

Component
Brand
Perceived
Value

Brand
Trust

I prefer X brand to others ones.

I like the features of X brand.

The X brand has better performance

compared with other brands.
I always wish to examine the X brands
product.
I never had bad experience on X brand.
The X brand has a nice image among
consumers.
If X brand claim good features, that
would be true.
The X brand is honest brand.

Brand
Identity

Brand
Loyalty
.802
.898
.820

0.860

.762
.755
.898
0.916

.923
.885

WordofMouth

Brand
Awareness

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When I think of Tetra Milk Pak brands,

the brand X is one of the brands that
come to mind.
The X is a brand of Tetra Milk Pak
provider I am very familiar with.
I know what brand X looks like.
I can recognize brand X amongst other
competing brands of Tetra Milk Pak
providers.
I am happy about X what I paid and the
value I gained
The products of this brand have been
priced, properly.
The price of X is fair which I perceived.

.702
.803
0.852

.789
.881
.830
0.913

Brand X offers very reliable quality when

I paid.
Brand X offers excellent features when I
paid.
The X brand is superior to other brands.

The X brand is a high quality brand with

high prestige level.
The X brand is very famous brand.

.802
.838
.844
0.882

I will leave positive comments about X

.792
.841

I often tell others about X brand.

.674
.873

I can quickly recall the X brand.

I recommend X brand to others.

.686

.901
0.901

.938
.914

The above table 4.2.2 is factor loading of the dependent and independent variables
in which 1 dependent variable and 5 independent variables. The first variable is
dependent variable which is Brand Loyalty, it has four items and its alpha value is
0.860. The second is independent variable it have four items which is Brand Trust
and its alpha values is 0.916, third is Brand Awareness and it have four items and
its alpha value is 0.852, fourth is Brand Perceived Value and it have five items and
its alpha value is 0.913, fifth is Brand Identity and it have four items and its alpha
value is 0.882 and in the last variable of this study is Word-of-Mouth and it have
three items and its alpha value is 0.901. The overall factor loading is good for
making factor of variable. After loading the Factor Analysis and its output of

35

Rotated Component Matrix can help us to make a factor from variable.

Therefore, researcher called the Factor Analysis is Data Reduction.
4.3 Regression Analysis
Regression Coefficient (Brand Loyalty)
Table 4.3.1
Model

(Constant)

.740

4.272

.000

Brand Trust

.179

1.947

.053

2.836

Brand
Awareness

.226

2.274

.024

2.838

Brand
Perceived Value

.106

1.850

.065

1.212

Brand Identity

.152

2.221

.027

1.160

Word-of-Mouth

.002

.039

.969

1.112

Adjusted R Square = 0.171

Sig. =
0.000

VIF

F-Statistics = 11.696

The Regression Analysis use to identify the relationship between dependent and
in dependent variables and it explain the how relationships are strong or weak.
The Regression Analysis is very important test to check the relationship.
Therefore, the Regression Analysis applied in this study. The above table 4.3.1
contains the different value and results i.e. Beta, t, P (Significance) and VIF
(Variance Inflation Factor). The Beta () values show the power or strength and
nature of relationship dependent and independent variables. In the beta value have
two characteristics in relationship nature negative relationship and positive

36

relationship towards dependent and independent variables. The beta also shows
the direction of relationship either they are moving same nature or opposite
direction means negative or positive. In regression analysis test, the all
independent variables (Brand Trust, Brand Awareness, Brand Perceived Value,
Brand Identity and in last Word-of-Mouth) are making positive relationship
towards dependent (Brand Loyalty). The beta values convert into regression
equation: Brand Loyalty (.740) = Brand Trust (.179) + Brand Awareness (.226) +
Brand Perceived Value (.106) + Brand Identity (.152) + Word-of- Mouth (.002).
The second column is t shows the importance of each variable while the P value is
the significance level of the contribution of the variables to the model. The third
column is significance level and it shows whose variable are significant in this
model and who is insignificant in this model. We have found the five items are
significant impact in this model which is constant, Brand Trust, Brand Awareness,
Brand Perceived Value and Brand Identity and their P. Value is less 0.05, but the
last variable Word-of-Mouth has insignificant value which is greater than 0.05
that is .96. It shows the relationship between dependent and independent are
positive, but their impact is insignificant. The fourth column is VIF (Variance
Inflation Factor) help us to find out multicollinearity among independent
variables. The VIF value as per researcher should be less than 10 which mean no
multicollinearity. If the VIF value greater than 10 that will be shows high
collinearity exist among independent variables. The Adjusted R square = 0.171
shows the percent of variation explain by model. In this study the model are
explain 17.1% by the independent variables. The R square also shows the 17.1%

37

independent variables can predict the dependent variable. However, a low R

square value in common in cross sectional studies as this study. The F-Statistic
=11.696 shows the how model are fit.

38

Chapter 5
Conclusion/Recommendation

5.1 Conclusion
The research objective of this study was to evaluate which components from
Brand Loyalty towards Tetra Milk Pak industry in Karachi Pakistan. The
questions of model to find Brand Loyalty factor and set of questions was adopted
from pervious and other empirical studies to design a likert scale questionnaire to
collected from our target audience with sample size 260 from Karachi, Pakistan.
For this study convenient sampling were used in this study. The study based on

39

six variables, Brand Loyalty as the dependent variable and Brand Trust, Brand
Awareness, Brand Identity, Brand Perceived Value and Word-of-Mouth as
independent variables.
The collection of sample size and the check the results from different statistical
analysis through applied in SPSS software. The first test is Reliability test to
measure the consistency of the responses. The result shows that the value of
Cronbachs alpha is 86.8% which is good and acceptable for this study. The next
test is Factor Analysis was run in SPSS on the collected data. The KMO was
assessed and it shows the satisfactory level and adequacy of the sample size. In
the Factor Analysis the Rotated component Matrix showed the loading factors
with high and enough level correlation with items in each factor and forming
factors properly. Finally, the Linear Regression Analysis was run in SPSS to asses
to check the impact of independent variables on the dependent variable. The
Statistical result obtained revealed that, all independent variables have positive
relationship on dependent variable towards Tetra Milk Pack industry in Karachi,
Pakistan. The Regression also shows the impact between dependent and
independent variables. As per result, the Brand Trust, Brand Awareness, Brand
Perceived Value and Brand Identity have significant results, but the Word-ofMouth is showing insignificant result in target research. In the previous study the
Word-of-Mouth was not used in study in one of Iranian city is Tehran on Dairy
Products. The overall variation of the model explained by R square is relatively is
lower which indicates that other variables, not included in this study, may explain
a higher level of variation.

40

From the above result, its concluded the Brand Trust, Brand Awareness, Brand
Perceived Value and Brand Identity play vital role and significant impact in
building Brand Loyalty and the Word-of-mouth play an insignificant impact in
building Brand loyalty in Tetra Milk Pack industry in Karachi, Pakistan. The
significant variables are weighing heavily to provide the much needed
information for Marketers to focus on these variables to building Brand Loyalty.
5.2 Recommendation
In the recommendation side, the determining factors of Brand Loyalty in the Tetra
Milk Pack industry in Karachi, Pakistan. The numbers of recommendation are
deemed to deliver for the decision makers in this industry. As Brand Trust, Brand
Awareness, Brand Perceived Value and Brand Identity in terms of Top of mind of
the consumers, they all weighed significant for establish Brand Loyalty from
target Customers or end-consumers. These are strongly recommended for Tetra
Milk Pack and Marketing Strategies who want to increase new and retention of
old consumers. The Strategies to build and increase of Brand Loyalty should
include:

Marketer should start building Brand Trust Programs via television with

celebrity and house wife for Brand Loyalty.

Increase Brand Awareness through road shows, exhibition stall and start

outlets of Brand.
Allocate most part of advertisement to increase Brand Awareness
The Marketers should also focus on Brand quality because consumers
think about price.

41

The Customer or Consumer as mind set for price and it relate to quality

which is called Brand Perceived Value.

The Marketer should add something new in their Brand that consumer

easily recall.
Brand Identity help to touch consumer Top of Mind through unique color,

Logo, Sound, Packing Design etc.

The Brand should have USPs (Unique Selling Propositions) to retain and
increase consumer for building Brand Loyalty.

While the marketing managers main focus on Brand Trust, Brand Awareness,
and Brand Identity to building Loyalty with consumers.
5.3 Future Recommendation
The Future Recommendation on the based this study, the numbers of area to be
focus for researcher before setting out for future studies.

As per Regression Analysis Test of this study show very low variation
defined by the independent variables, its recommended that future
researcher include other variable in this model to improvement higher total
variation and determine which other factors are playing significant role in

Tetra Milk Pack industry in Pakistan.

The sample size was collected of this study on Karachi, Pakistan prospect
only, but future researchers should collect more data sampling form all

Pakistan big cities.

The future study can apply to Cross-Industry to find Brand Loyalty level
on different FMCG (Fast Manufacturing Consumers Goods) products.