THE IMPACT OF BRAND IDENTITY ON CUSTOMERS’ LOYALTY AND SALES PERFORMANCE IN LOCAL COMPANIES

Abstract

This study aims to determine the impact of brand identity on customer loyalty and sales performance in local companies, Kingdom of Saudi Arabia focus on Munch and Helens bakeries. This study has been done by evaluating both bakeries’ brand identities and customers’ awareness of the brands, along with examining the results of this evaluation on the impact that it has on the customers’ loyalty and sales performances represented in both bakeries. The method adopted for the study is a descriptive quantitative study. Nevertheless, results have shown that Munch bakery carries a stronger brand identity than Helens bakery. Respondents have chosen Munch bakery among a list of competitors as their most familiar brand, which positively influenced the customers’ loyalty level and the sales performance of the bakery. Moreover, Munch bakery has received a higher percentage of loyal customers; as respondents have stated that they would extremely likely to recommend the brand to their friends and families as well as having a higher percentage of long-term lasting customers. After evaluating the sales performance of both companies, results have indicated that Munch bakery is accomplishing more sales than Helens bakery even though the customers’ are not completely satisfied with the prices that both bakeries are offering. Munch bakery’s stronger brand identity has influenced its sales performance in a more positive way than Helens’ sales performance. Respondents’ opinion was that they would be definitely more interested to purchase a product from Munch than Helens. Results have also added that the amount of purchase and re-purchase operations occurring at Munch is higher than Helens. The finding implies that the brand identity definitely has an influence on the customers’ loyalty and the sales performance at every company, the stronger the brand is; the higher customer loyalty and sales levels it accomplishes.