Relationship between brand association and customer loyalty: The case of online retail industry

Abstract

The purpose of this paper is to examine the relationship between two main dimensions, Brand Association and Customer Loyalty. Besides, the research is also conducted to test other relevant networks of Brand Awareness, Brand Equity and Customers’ Willing To Pay. A survey of which questionnaires using Likert Scale to online retailers’ customers in the North, Central, and the South (8 largest cities in Vietnam) was conducted to collect the data including 380 personally responded answers. Scale Test, Exploratory Factor Analysis, Confirmatory Factor Analysis and Structural Equation Modeling were used to prove concrete relationships amongst variances, understand factors, analyze the Goodness of Fit of the Measurement model and bring about regression weights, respectively. The results authenticated that Brand Association and Brand Awareness produce remarkable effects on Customer Loyalty. Brand Association holds a cardinal importance to Customers’ Willing To Pay. Not only can the findings be of substance for academic purpose but also they make a great contribution to the development of companies of which Customer’s Loyalty is the lynch pin.