1.

2 Background of the study

Brand loyalty is one of the desired objective of every marketing professionals which

deliver benefits in the form of tangible and intangible (Parida & Sahney, 2017 ). In this age of

globalization, where competition is very high, maximizing profits and retaining market shares

are very difficult for marketers as they are struggling for it. Moreover, brand loyalty is

considered as the company’s main goal setup for branded products. Nowadays customer gives

priority to make purchase towards particular brand. Giddens and Hoffman (2010) stated that,

the realization of customer about the brand which offering right product features, conditions,

images, quality at the right price indicating the existence of brand loyalty.

Brand loyalty level is considered as the success measurement scale of marketing

strategy (Knox & Walker, 2001). Jacoby and Chestnut (1978) mentioned that, loyalty concept’s

origin is very old and started with the study of Copeland in 1923. However, Brand loyalty is a

deep commitment to re-purchase or re-patronize a product or service continuously, as a result

despite having situational affect and marketing efforts, repeat purchase happened to the same

brand (Oliver, 1999). Furthermore, Oliver discussed various stages of loyalty, like “cognitive

loyalty, affective loyalty, conative loyalty and action loyalty”, and indicated that every stage

of loyalty can be affected by many different factors. Brand loyalty concept has lot of

explanations and perceptions which illustrates the significance of brand loyalty in marketing

discipline.

The initial belief of people about brand loyalty was same as repeat purchasing (Day,

1969; Chaudhuri & Holbrook, 2001) where behavioural aspects was more important. But,

situational factors like less or no alternatives, tendency of inertia and high cost of switching

was being observed which could play important role in influencing customer behaviour
(Cooper & Withey, 1989). On the other hand, Gremler and Brown (1996) stated that, almost

75% consumer’s purchasing decision is based on their attitude and emotions. So, brand loyalty

was being proposed by many authors and researchers as a dynamic process rather than

proposing as a static behavioural characteristic (Jacoby & Chestnut, 1978).

Customers preference toward a brand is being leaded by the basis of positive and strong

brand and it becomes brand loyalty over the period (Viktor, 2015). Marketers prefer to develop

and maintain the base of customer loyalty because its considered as cost effective and it needs

less efforts. Apart from this, some common technics are used to create loyal customers such

as branding, promotion, prices and product differentiation (Brakus, Schmitt, & Zarantonello,

2009; Carroll & Ahuvia, 2006; Jalees & DeRun, 2004).

Brand loyalty as a combination of both attitudinal as well as behavioural characteristics

which is consist of six points, such as “Biased (non-random); Behavioural response (purchase);

Expressed over time; By some decision-making units; With respect to one or more alternative

brands out of a set of such brands and is A function of psychological (decision making,

evaluative) process” (Jacoby & Kyner, 1973). At present, brand loyalty is being constructed as

multidimensional model where lot of factors having bearing on it or getting influenced by it.

Besides, Loyalty has significant relationship with several variables; one of the key

factor is the practice of use (Aaker & Keller, 1990). Customers may be loyal because high

barriers of switching, nominal, technological and psychological factors make transformation

costly. Moreover, factors such as name of brand, quality of product, price, promotion and

quality of service can affect customer brand loyalty towards the brand (Lau et al., 2006).

However, culture has a great impact on consumer behaviour and it is impossible to

separate customer completely from his or her own culture (Parida &
Sahney, 2017). Besides, culture is ingrained with every individual as a part of our DNA.

Moreover, McCracken (1988) explained culture as “the lens through which all phenomena are

seen which regulates how these phenomena are apprehended and included. Secondly, culture

is the blueprint of human activity. It determines the coordinates of social action and productive

activity, specifying the behaviours and objects that issue from both”.

The behaviour of the customer, action and their perception are influenced by their culture

(Trompenaars, 1994; Chow et al., 2000). Moreover, customer’s personality, thinking process

and their behaviour influenced by their culture which is extensively accepted. Consequently,

the way customers are oriented toward their culture influences their product and decision of

brand choice (Parida & Sahney, 2017).

Roy (2011) stated that, customers, who are loyal to the specific brand are the potential

source of income. So, every brand should give priority to their customer to maintain the

relationship. Willingness to pay of a loyal customer is comparatively high to the particular

brand as his or her perceive value towards the brand is positive and alternative cannot provide

it (Chaudhuri & Holbrook, 2001). Though, according to Campbell (1991) it is tremendously

accepted that, customers might act sometimes not because of a conscious choice, as the

consequence of unconscious behaviours or emotions.

Consciousness depends on the theory of cognitive learning, where intrinsic mental

processes important (Solomon et. al., 2006). Moreover, Consciousness as “Subjectivity,

awareness, the ability to feel or to experience, wakefulness, having a sense of selfhood, and

execution of the controlling system of mind” (Farthing, 1992). On the other hand, a conscious

consumer’s behavior and attitude as controlling customer’s desire, self-control, sharing habit,

and analyzing the economic system (Sziming, 2003). Besides, “a customer’s conscious
behavior and/or attitude is brand loyalty” (Jacoby & Chestnut, 1978; Huang & Yu, 1999;

Solomon et al., 2006, Kotler

& Keller, 2006).

brand loyalty between Malaysian students and international students where culture will be the

mediator.

Moreover, now a day, young generations are very conscious about what they are using,

and it makes more difficult situation to understand their attitude towards brand. Therefore, it is

very important to identify the relationship of customer consciousness towards brand loyalty,

especially between Malaysian students and

International students in University Malaysia Sarawak, Kota Samarahan Campus, Sarawak,

Malaysia

1.3 Problem statement

Recently, the development of marketing environment is shifting gradually and

becoming very multifaceted and more competitive (Gillani, 2013). Moreover, the

empowerment of customer and increasing competition forcing marketing professionals to find

out creative modes and methods to gain the advantage of competition and get consumer

attention (Rajumesh, 2014). Consequently, the necessity of looking new way to gain and

maintain loyalty by building customer believes and give a personal identity to brand loyalty is

essential for business. To establish communication with consumers, companies require

practical and efficient methods.

According to Cheung et al. (2008) lots of customer use to share product information by

discussing online forum, reviewing products, bloggings, and exchanging social network sites.
Additionally, social media formed a new era for companies and brands, imposing them to seek

interactive ways of reaching and engaging their customers (Gallaugher & Ransbotham, 2010;

Kozinets, de Valck, Wojnicki & Wilner, 2010). Moreover, Kelly, Kerr, and Drennan, (2010)

stated that, marketers have a great opportunity to reach their customers easily in their social

communities and build individual relationship with their customers by the introduction of social

media. So, customer can be more aware about their lifestyle and fashion.

Customer of modern age are getting more conscious about the products they are using

because of the level of their consciousness is increasing with the rapid change of lifestyle. The

attitude towards a particular brand in now not only depends on the necessity and the utility of

that products, but also its reveals a customer’s personality and the social status. Moreover, the

psychology of customer is changing day by day. A customer’s conscious attitude and/or

behaviour can be defined as loyalty (Jacoby & Chestnut, 1978; Huang & Yu, 1999; Solomon

et al., 2006, Kotler & Keller, 2006). So, consumers make brand choice by showing positive

attitude towards brand while keep purchasing same products with identical name despite

changing conditions. Moreover, the same idea assumes that unconscious customers shift their

brand choice frequently.

Capmbell (1991) mentioned that, sometimes customers might not act as a consequence

of conscious choice but, as the consequence of unconsciousness habits as well as emotions.

Consequently, one might perceive that customer having problem of behaving consciously

might experience a same problem of consciousness about brand loyalty as well (Akın, 2015).

Based on examination, the intention of this study is established and tested a model of

more better understanding about the relationship of customer consciousness toward brand

loyalty between Malaysian students and international students where culture has a mediation

effect on it. In this study, the relationship among price consciousness, brand consciousness,
quality consciousness, social consciousness towards brand loyalty would be tested and

evaluated.

1.4 Research Objectives

1.4.1 General objective

To identify the relationships of customer consciousness towards brand loyalty between

Malaysian students and International students of University Malaysia Sarawak.

1.4.2 Specific objective

1. To investigate a relationship of customer consciousness and brand loyalty.

2. To detect a relationship between price-consciousness and brand loyalty.

3. To analyze a relationship between brand-consciousness and brand loyalty.

4. To inspect a relationship between quality-consciousness and brand loyalty.

5. To investigate a relationship between social-consciousness and brand loyalty.

1.5 Research Questions

1. What is the relationship of customer consciousness towards brand loyalty?

consciousness, social-consciousness and brand loyalty?

According to the objective of the research, this research has been emphasised on the

relationship of customer consciousness towards brand loyalty. In this research, the study has

been initially concentrated on some major factors that makes a customer more consciousness

towards the brand to be loyal. Besides, in the conceptual framework, independent variables are

Price Consciousness, Brand Consciousness, Quality Consciousness and Social Consciousness

where the dependent variable is Brand Loyalty. The target population as the sample of the study

are university students, both of male and female students who are studying Bachelor, Master

or Doctorate degree, to examine the relationship of customer consciousness towards brand

loyalty. The researcher will collect 100 questionnaires respondent from one public universities

in Kota Samarahan, Sarawak, Malaysia: University Malaysia Sarawak. The questionnaires

applied in this research have been collected from some past studies and they are having three

main parts; the first part is screening question for consumers whether they are conscious

towards brand or not, then the second part is consisting of five points liker scale questions for

every variable and finally, the last part is about the demographic factors of respondents.

There are total (--) questions in questionnaire part for this study.

1.7 Limitation of the Research

Unlike every study effort, the present study has some limitations which should be noted.

First of all, this study has limited independent variables and it could not cover the whole field,

link to the dependent variables ‘priceconsciousness’, ‘brand-consciousness’, ‘quality-

consciousness’ and ‘socialconsciousness’ are examined as experiences with Malaysian

students and international students. Then, the generalizability of the outcomes may be limited

because of its present research has been used university students as a sample. Because of the
time limitation and cost, the study has been limited to the size of the sample as well as the

instruments of the research. Consequently, data measurement of the study might not be able to

disclose the entire population of Malaysia customers. Additionally, the research has been

conducted about customer consciousness towards brand loyalty in Malaysia, between

Malaysian students and International students and hence, might not be generalized to other

research area in Malaysia or other countries. Finally, the primary data have collected (date of

2017), so, the final findings might not be generalized to over the times and it will cover just

only for 2017.

1.8 Significance of the study

This research will expressively deliver the involvement of well idea for the company

to understand better on the relationship of customer consciousness towards brand loyalty

between Malaysian and International students. Different company from different sector like,

Smartphone, Smartwatch, Notebook, Fashion and Lifestyle might gain essential data about the

consciousness of the customer which drive to brand loyalty and understand the attitude toward

the specific brand. Consequently, particular company will assume more better strategic plan

with more appropriate data and certainty on customer. Moreover, Understanding the

relationship of customer consciousness towards brand loyalty, in future researchers and

companies of all over the world may refer to this study to understand more what Malaysian

students’ think, especially the young generations. Thus, marketers will have clear evaluation

of their own strategies and produce more effective strategy to target more customers. In the

conclusion, this study intended to examine as well as evaluate the role of price consciousness,

brand consciousness, quality consciousness and social consciousness towards brand loyalty.

This research might help different companies’ managers to set the company goals and achieve
that profit certainly. What’s more, this study might advance their perceptions about brand

loyalty and customer consciousness. Furthermore, this research also has been used to determine

the variables employed and examining them for finding the relationships of customer

consciousness towards brand loyalty.

1.9 Definition of Terms

1.9.1 Customer Consciousness

Farthing (1992) defined consciousness as “Subjectivity, awareness, the ability to feel

or to experience, wakefulness, having a sense of selfhood, and execution of the controlling

system of mind”.

1.9.2 Culture

McCracken (1988) explained culture as “the lens through which all phenomena are seen

which regulates how these phenomena are apprehended and included. Secondly, culture is the

blueprint of human activity. It determines the coordinates of social action and productive

activity, specifying the behaviours and objects that issue from both”

1.9.3 Price-consciousness

Lichtenstein, Ridgway and Netemeyer (1993) describe price-consciousness as the scale

of measurement, used to measure customer decision towards price in negative way. In different

way, “customer who has price consciousness is not willing to pay a higher price for a product

or he only centers on searching for low price products” (Lee, 2008).

Customers who give more consideration to brand names and interested in buying

renowned branded products are called brand-conscious customer (Yaşin, 2009). So, the

consciousness of a brand can be explained as “an intellectual direction to choose brand-name,

services and products that are renowned and extremely promoted” (Sproles & Kendall, 1986).

1.9.5 Quality-consciousness

“Quality is a conceptual state and more depending on consumer expectations as well

as, consumers who always tend to discover the products of high quality and make their decision

of preference over quality, without comprising from quality for price” are defined as quality-

consciousness (Ailawadi et al., 2001). Moreover, products’ or services’ performance is highly

effected by the expectation of consumer (Churchill, Jr & Brown, 1982).

1.9.6 Social-consciousness

According to Eastman et al, (1999) social-consciousness is “the process of motivation

to improve customer’s social standing through exposed consumption of consumer products that

deliberate or symbolize status for both customer’s and their surrounding”. To maintain the

social status, customers want to develop their status so their decisions about purchasing depend

on the product attributes.

Brand loyalty has been defined as; “a deeply held commitment to rebuy or re patronize a

preferred product/service consistently in the future, causing repetitive same-brand or same

brand-set purchasing, despite situational influences and marketing efforts having the potential

to cause switching behaviour” (Chaudhuri & Holbrook, 2001:82; Oliver, 1999).