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Brand Image and Consumer Loyalty in Nigeria’s Table Water Industry

Nwosu Kanayo Chike PhD

Abstract

This study investigated the effect of brand image on consumer loyalty in Nigeria’s table water industry. In order to determine the relationship between brand image and consumer loyalty, brand image was proxy using brand awareness, perceived brand quality, brand association and brand identity while consumer loyalty was the dependent variable. Four hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using panel least squares regression model operated with E-Views.12. Survey design was adopted and data for the study was obtained through questionnaire survey administered to the targeted audience (consumers of selected table water brands in Anambra State). The findings of the study indicate that brand awareness, perceived brand quality, brand association and brand identity have positive and significant effect on consumer loyalty to table water brands. Based on this, the study concludes that brand image ensures consumer loyalty to table water brands in Nigeria. The study therefore suggests that the management of the table water brands should allocate resources for extensive promotion to motivate customers to choose their brand over those of competitors. Also, the companies should continuously use brand awareness to influence purchasing decision and helps the company to overcome their competitors as consumer purchase products and brands. Keyword: Brand Awareness; Perceived Brand Quality; Brand Association; Brand Identity; Consumer Loyalty

References

for further business actions. Annisa et al. (2022) examined the effect of perceived quality and brand image on brand loyalty through brand trust as a mediating variable. The number of research respondents was 120 respondents with a sampling technique with non-probability sampling, namely the purposive sampling method. The type of research is explanatory research with data processing using the Smart PLS 3.2.9 application. The results showed that both perceived quality and brand image had a positive and significant influence on brand trust. The influence between perceived quality and brand image on brand loyalty directly shows positive and significant results. Meanwhile, brand trust as a mediating variable shows an indirect effect on perceived quality and brand image on brand loyalty, which shows positive and significant results so that the brand trust variable is said to be able to partially mediate this effect. Le et al. (2020) examined the relationship between two main dimensions, Brand Association and Customer Loyalty. 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 they make a great contribution to the development of companies of which Customer’s Loyalty is the lynch pin. Catur et al. (2020) analyzed the effect of brand identity and brand image on customer loyalty. The study used a quantitative approach. Data collection used interviews, observation, and questionnaire distribution. Using the nonprobability method with a purposive sampling approach. The population of the study was Daihatsu car consumers with a sample of 60 respondents. The analytical method used was SPSS v.20. Based on the results of the study, it was concluded that brand identity and brand image have a significant effect on customer loyalty. Abdelbaset et al. (2017) investigated the mediation role of brand commitment in brand awareness and brand loyalty. The data were collected from customers of Islamic bank brand in Mafraq Governorate in Jordan. PLS-SEM techniques were applied to a sample of 90 customers to test hypothesized relationships. The results revealed that brand awareness and brand commitment have a significant and positive relationship with brand loyalty. In addition, brand commitment was found to be a mediator in the relationship between brand awareness and brand loyalty. This paper has discussed the results and an implication compared with prior versions as well as introducing some of recommendations for future research. 3.0 Methodology The study adopted a survey design in order to examine the effect of brand image on consumers’ loyalty in Nigeria’s table water industry using selected table water brands in Anambra State as a reference point. It is a design that incorporates personal interview, observation, and questionnaire to ensure corroboration of facts, thus ensuring the validity and reliability of the data collected. The selected table water brands include; Pelican, Eva, Elkay, Showers, Rock-Tama, Coscharis, Vriis, Event and Samson Table water. These are the most commonly consumed table water in Anambra State with regular rebranding identity by the producers. Thus, the study used the consumers of these table water brands in Anambra State, Nigeria in examining their loyalty to the products. Data for the study was collected through the use of questionnaire survey. The questionnaire survey was designed where respondents were asked to assess the effect of brand image on consumer loyalty in Nigeria’s table water industry using Likert five point scales referred as: (1) To a Very High Extent , (2) To a High Extent (HE), (3) Neutral (N), (4) To a Very Low Extent and (5) To a Low Extent (LE). A sample of 400 respondents (consumers of nine brands of table water) in Anambra State were purposively selected since the population of the study is infinite and cannot be enumerated. Thus four hundred (400) copies of questionnaire were administered to the targeted audience out of which 382 copies were received and were used in the data analysis. The collected data was transformed to scale measurement using Likert five- point scale and the hypotheses were statistically tested using Least Squares Regression Model with the aid of E-Views 12. 3.1 Model Specification In line with the previous studies, the present study designed a model to examine the effect of brand image on consumer loyalty to table water brands. The functional model for the study is shown below as thus: CL = F (BA, PBQ, BAS, BI) The explicit form of regression designed for the study is shown in equation below as thus: CL = ?0 + ?1BA + ?2PBQ + ?3BAS + ?4BI + ? Where: CL = Consumer Loyalty BA = Brand Awareness PBQ = Perceived Brand Quality BAS = Brand Association BI = Brand Identity ? = Stochastic Term ?1 –?4 = Coefficient of Regression Equation ?0 = Constant coefficient (intercept) of the model Decision Rule: accept Ho if P-value > 1%-5% significant level otherwise reject Ho. 4.0 Data Presentations and Analysis Table 1: Result on Effect of Brand Image on Consumer Loyalty in Nigeria’s Table Water Industry. Dependent Variable: CL Method: Least Squares Date: 08/12/25 Time: 10:48 Sample: 1-5 Included observations: 5 Variable Coefficient Std. Error t-Statistic Prob. BA 0.714929 0.255326 2.800062 0.0055 PBQ 0.155472 0.037861 4.106389 0.0004 BAS 3.149192 0.594258 5.299371 0.0000 BI 0.986443 0.143765 6.862212 0.0000 Source: Result Output from E-View 12 (2024). 4.2: Discussion of Findings. The coefficient of determination R2 shows 0.72 indicating that the overall model explained 72 percent of the total variations in the dependent variable (consumer loyalty). Thus, shows that these variables (BA, PBQ, BAS & BI) can only explain 72 percent of change in consumers loyalty to table water brands leaving 28 percent unexplained. This is to say that there are other factors that can contribute to consumers’ loyalty in Nigeria’s table water brand other than brand image. The sig. (or p-value) is .0001 which is below the .01 level; hence, we conclude that the overall model is statistically significant, or that the variables have a significant and joint effect on the dependent variable. With this, the researcher affirms the validity of the regression model adopted in this study. The results of the regression are therefore slated below as follows: H01: Brand awareness has no significant effect on consumer loyalty to table water brands in Anambra State, Nigeria. This hypothesis was tested and the result of this regression as exposited on table 1 indicates that the relationship between BA and CL is positive and significant. This can be justified with the P- value (significance) of 0.0055 which is less than the 1% level of significance adopted. Likewise, the result of positive coefficient of 0.7149 is proving that, brand awareness determines consumer loyalty to table water brands. We therefore rejected the null hypothesis and accepted the alternate hypothesis which contends that brand awareness has significant effect on consumer loyalty to table water brands in Anambra State, Nigeria. H02: Perceived brand quality has no significant effect on consumer loyalty to table water brands in Anambra State, Nigeria. This hypothesis was tested and the result of this regression as exposited on table 1 indicates that the relationship between PB

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