Brand Experience Customer Satisfaction Customer Loyalty Model

Journal Article

 AghaSeyedHosseini, SeyedReza     ;    Hamelin, Nicolas

The role of brand experience in customer satisfaction and customer loyalty

Abstract

Many marketing executives are looking for a comprehensive plan for delivering quality services and products that will create a distinct and unforgettable long-term experience for customers when dealing with their brand. Various brand management experts believe that a company looking to enhance its brand experience in the minds of customers should have a plan to increase customer satisfaction as well as customer loyalty. The purpose of this research was to investigate the role of brand experience in customer satisfaction and customer loyalty in Ayandeh Bank branches in Tehran. The study employed quantitative methodology. For data gathering, a questionnaire was utilised to measure all the variables of the research. The statistical population of the study consisted of all the customers of Ayandeh Bank branches in Tehran, and the study data was gathered from 400 respondents. The findings indicate that brand experience has a direct and meaningful impact on customer satisfaction and customer loyalty; furthermore, customer satisfaction has a direct and significant effect on customer loyalty, in the branches of Ayandeh Bank in Tehran.

INTRODUCTION

 Introduction

The pace of change in the shape and diversity of the service market at the beginning of the 21st century is so great that it is not easily understood, and banking services are no exception (Shafiei, Zabihi, & Sadeghian, 2019). Every day, the world is witnessing the introduction of new forms of banking services through public media and social networks, demonstrating the increasing choice available to customers. Bank managers need to adapt to this change (Aalaie & Maleki, 2017). Creating a customer-centric culture among bank employees is one of the factors contributing to the success of these organisations (Safarai, 2010). The culture of banks should allow them to focus more heavily on customer needs and brand experience in order to secure customer satisfaction and, ultimately, loyalty (Hassania, 2019).

Nowadays, customer satisfaction is not sufficient, and organisations (including banks) should not be happy with merely customer satisfaction (Jazini & Asgar, 2013). They need to ensure customer loyalty as it can reduce marketing costs, attract more customers and increase business effectiveness. Thus, maintaining and enhancing customer loyalty towards a company’s products or services are the most important goals of marketing activities (Alhazmi, 2019).

Brand loyalty leads customers choose one brand over its rivals, routinely buy from that brand and not give their attention to other brands. Customer loyalty refers to a situation in which a customer generally purchases or receives similar products and services from a particular company over time. Furthermore, consumer loyalty towards a particular brand leads to an increase in the brand’s special value. Customers having successful experiences of a brand promotes word-of-mouth (WOM) advertising and allows the company to compete with the strategies of competitors and achieve better outcomes. Customer satisfaction is achieved when there is no gap between a customer’s expectations and their actual experience of using a product (Zhang, et al., 2020).

The goal of increasing customer satisfaction levels is to build long-term relationships with customers and consequently to gain long-term benefits for the company. Thus, in the modern market, bankers must try to see themselves through their customers’ eyes, understand them and work hard to ensure their satisfaction. However, over time, the situation is becoming increasingly complicated for banks (Zamani Moghaddam & Lahiji, 2012).

For any organisation in the manufacturing or service sector, customers are the most critical factor in the company’s survival; if an organisation succeeds in building customer satisfaction and loyalty, the ground will be prepared for its long-term growth and survival (Khorshidi & Kargard, 2010). This cannot be achieved except through study and management planning, which begins with developing a complete understanding of customers and, in particular, the requirements for obtaining their satisfaction and loyalty (Akbarpour & Zangooi, 2017). Customer loyalty is thus a significant issue in marketing research, a challenging problem for managers and a vital strategic mental attitude for all managers and employees (Talebloo & BahmanPoor, 2012). This is a result of intense market competition, especially in the service industries, and the increased focus on the relationship between customers and organisations (Khorshidi & Kargard, 2010).

Research Model : 

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