An Investigation on Impact of Brand Trust on Customer Repurchase Intension A case of Dangote Industrial Ltd.

 

STELLA MARIS UNIVERSITY COLLEGE

(A constituent college of Saint Augustine University of Tanzania)

 

FACULTY OF BUSINESS ADMINISTRATION

An Investigation on Impact of Brand Trust on Customer Repurchase Intension

 A case of Dangote Industrial Ltd.

 

 

A Research Proposal  Submitted to Faculty of Business administration in Partial Fulfillment of the Requirement of    Award of Degree in Business Administration at Stella Maris University Collage.

 

 

MATEZA JUDITH

 

STE/BBA/123106

 

 

 2018CHAPTER ONE

1.0 Introduction

This chapter deals with the background of the problem, statement of the problem, general objectives, specific objectives, and research questions, the scope of the study, significance of the study, and the definition of the key terms.

1.1Background of the study

In the business world today, one of the main concerns of marketing managers is searching for ways to increase sales and profitability products. Successful brands try to establish a sense of trust because creating strong ties to the customer is one of the main bases of trade ( Jing et al.,2015).

One of the most common strategies to achieve this goal is to understand the relationship between consumer behavior and brand and brand trust and equity, because the brand trust and equity is often an indication of its quality which affects the choice of consumers. In recent studies, the importance of emotional relationship between the customer and the brand has been approved (Gianfranco Walsh et al., 2015). Ballantyne, Varey,( 2006).strongly emphasize that the brand equity is not only achieved by the goods and services, but also by interactions between buyers and sellers.

It seems that brand trust from the perspective of consumer is an appropriate starts to assess product equity which contains a lot of interrelated dimensions such as brand awareness, brand quality, brand association and brand loyalty (Jing et al., 2015). This relationship includes mutual exchanges between the brand and consumers by a duplicate set of actions that has many advantages for both sides (Huang, Kandampully,2012).The goal of any brand is to attract and retain customers to ensure the success of the brand and the product (Zavattaro et al., 2015 and it is observed that consumers are looking for brands that have specific features (Garsvaite, Caruana,2014; Londoño et al., 2016). Brand trust and equity is a powerful tool to improve marketing productivity (Cai et al., 2014) and evaluating brand equity is an effective way to measure customers’ satisfaction and brand performance by marketing managers (So, King, 2010; Sung Ho et al., 2015).

Ballester and Aleman (2001) expressed, in their study that brand trust constitutes an important construct in marketing as it affects consumer‘s positive and favourable attitudes, and results in brand commitment. Also analysed, that brand trust is a predictor of consumers brand commitment, even stronger than overall satisfaction. Chaudhuri and Holbrook (2001) examined, and linked Brand Trust directly to purchase and attitudinal loyalty with the brand. Morgan and Hunt (1994) projected, Brand trust on the basis of commitment-trust theory considers trust as a key variable in developing and maintaining enduring and highly valued brand relationships.

 Jian (2003) found, that brand trust and brand emotion influenced a customer's attitude for brand after studying, in his research he proof that brand trust will have positive influence to the customer loyalty.

 Thomas (2009) further defined trust as an expectancy of positive outcomes, outcomes that one can receive based on the expected action of another party. Trust is defined as the expectation of the parties in a transaction with any organization during service experience and even it relates to the risks associated with assuming and acting on such expectations by the concerned organization. An individual has trust in the occurrence of an event if he or she expects its occurrence .Trust is the willingness to rely on another party in the phase of risk. This eagerness comes from an understanding of the other part based on past experience. It also raises an expectation that the other party will create a positive outcome, without being affected by the possibility that the effort may cause a negative outcome (Worchel, 1979). Trust is an expectation set within particular contextual parameters and constraints. Lewis and Weigert (1985) argued that trust is not only having the predictability but also the confidence in the face of risk.

Rusbult, 1980) explains repurchase intention in social psychology perspective as intention to continue or, to stay in a relationship referred to as relationship maintenance. Customers‘ Repurchase Intention is referred to as a key to Defensive Marketing strategies that decides business success (Cronin et al., 2000). Companies are relying more on defensive strategy as cost of attracting a prospective customer is becoming more expensive (Barlette, 2007). Companies are focusing on existing customer to persuade them to make repurchase instead of opting for an Offensive marketing strategy (Fornell, 1992). Repurchase Intention refers to the probability or, chance of using the previous service provider again in the future (Fornell, 1992).

Hellier, Geursen, Carr and Rickard, (2003) explained that customers‘ intent to rebuy a particular service depends on present situation and several possible circumstances. Doina Olaru, Sharon Purchase and Nathan Peterson (2008), stated that Customers‘ repurchase behavior depend largely on benefit received in their past encounters. Patterson et al., (1997); Durvasula et al., (2004) stated the repurchase behavior in related with customer satisfaction or, dissatisfaction.

Wathne et al., (2001) argued that the customers repurchase intentions mainly depends on their past experiences during several service encounters and presupposition of future services. Kaynak, (2003) found that value added benefits will generate satisfied loyal customers, thus will strengthen the competitive position. Hong-Youl Ha, Swinder Janda and Siva K. Muthaly (2010), repurchase intentions show the existing customer‘s self judgment prospective nove to engage in rebuying from the previous service provider.

 Jones and Taylor, (2007) deduced that repurchase intention indicates customer long term relationship with am organization and aim for his next purchase move with the same. Spreng et al., (1995) found that searching a new customer is much costlier than retaining the old customer, so the continued buying behavior is an important issue of concern for most of the companies.

Chiu et al. (2008) observed that Repurchase Intention is usually improved on customer‘s purchase experiences and trustworthiness of retailers. Kwek, Lau, and Tan (2010) found that retailers should furnish right information to improve the level of trust. Zhang, (2011) stated, As Repurchase Intention is mostly influenced by the relationship quality with the perception of customers.

Seiders et al, (2005) stated that, repurchase intentions showcase the customer‘s prospect of repurchasing from the same company. Preis (2003) find increased customer satisfaction is one factor leading to such increased repurchase intentions.

1.2. Statement of the Problem

It is a promise of brand with their customers to fulfil their expectations. Brand trust is an important item that helps customer loyal to the brand. Without the trust on brand customer can’t enter in loyalty set. To build a trust it’s important for the Consumer to take and asses the information from the product. Companies can build emotional trust if they can prove that the brand is only for the customers and meet their expectations (e.g. brand is trustworthiness and friendly for the family use).Consistent brand demonstrate this specific behaviour. The customers trust on specified brand functions and willingness to purchase the brand from the product class (Moormal et al 1993). The vagueness in the situation can be diminishes by the trust through which customer can rely on the specific trusted brand product. Brand loyalty is a result of brand trust or promises that build the highly valued connections Morgan and Hunt 1994, Chaudhuri and Holbrook, 2001).Some scholars defined commitment as "an enduring desire to maintain a valued relationship" (Moorman, Zaltman, and Deshpande 1992).So promises are the cause of constant on going and retaining a relationship build between company and consumer.

Focusing on brand trust  creates a close relationship between the brand and the customer and will lead to the selection of the brand by making a good image of the particular organization and its services in the mind of consumers. Also, in today's technological age, customers have more interactions with each other and convey their purchase information which influence on their brand repurchase decisions.

Many studies show that much research on the challenge brand, trust and repuchasing. However there is no study that reported on the Impact of brand trust on customer repurchases intentionin Dangote Industry Limited which research is going to concentrate on. Therefore this study intended to bridge the gap by An Assessment of the Impact of brand trust on customer repurchases intention in Dangote Industry Limited..

1.3 Research Objectives

1.3.1 General Objectives

The general objective of this study is to investigate on the Impact of brand trust on customer repurchases intention. A case study of Dangote Industry Limited.

 

1.3.2 Specific Objectives

i) To determine the impacts of quality on customers repurchase intention.

(ii) To determine the impacts of sales promotion on customers repurchase intention.

(iii) To asses on how price play a mediating role on customers repurchase intention.

1.4 Research Questions

i) Does quality have an impact on customer’s repurchase intention?

(ii) Does sales promotion have impacts on customer’s repurchase intention.?

(iii) Does price play a mediating role on repurchases intention?

1.5 Significance of the Study

The research will be useful to the Government to put efficiency and effective measures, policies and effort that will strengthening the companies in providing good services.

 

 

 

 

 

 

 

 

 

 

 

The research will be useful to University College to make references on study to see how the college can help the organizations as experts to the growth of the organizations dealing with.

The research will useful for me to pursue a Bachelor Degree of Business Administration as University Student at STELLA MARIAS University College.

1.6. Scope of the study

This study will deal with is to investigate on the Impact of brand trust on customer repurchases intention in Dangote Industry Limited. The study will use respondents from the organization found in Dangote Industry Limited.

1.7 Limitations of the Study

The researcher expect to face the following challenges when collecting the data and also a research will find the alternative way so as to solve them, so as to make sure the data will be successful collected, as follows;

Shortage of enough time, still the research will be conducted while classes, the researcher will balance the time and use the time which lesson will not be conducted so as to collect the data.

Shortage of fund, because to conduct a research needs fund, but the research will balance the money for meals so as to make sure the data are successful collected, analyzed and presented.

Poor cooperation from the cruel respondents, the researcher will use polite language and convincing them so as to get the data from the respondents who will not be able to provide the data.

1.8 Definition of the key term

Brand trust

Brand trust is an important item that helps customer loyal to the brand. Without the trust on brand customer can’t enter in loyalty set. To build a trust it’s important for the Consumer to take and asses the information from the product. Companies can build emotional trust if they can prove that the brand is only for the customers and meet their expectations (e.g. brand is trustworthiness and friendly for the family use).Consistent brand demonstrate this specific behaviour. The customers trust on specified brand functions and willingness to purchase the brand from the product class (Moormal et al 1993).

 

Customer Repurchase intention

Rusbult, 1980) explains repurchase intention in social psychology perspective as intention to continue or, to stay in a relationship referred to as relationship maintenance. Customers‘ Repurchase Intention is referred to as a key to Defensive Marketing strategies that decides business success (Cronin et al., 2000). Companies are relying more on defensive strategy as cost of attracting a prospective customer is becoming more expensive (Barlette, 2007). Companies are focusing on existing customer to persuade them to make repurchase instead of opting for an Offensive marketing strategy (Fornell, 1992) that tries to acquire new customers and increase the market share. Repurchase Intention refers to the probability or, chance of using the previous service provider again in the future (Fornell, 1992). Jackson (1985) explained ―repurchase intent‖ is a consumer behavioral intention that indicates the tendency to stay, continue or, leave the service from a current supplier. The Repurchase Intention measures can be obtained from

surveys assessing tendency of current customers to repurchase used or, bought brand, product/service belonging to the same company.(Cronin et al., 2000).

 

 

 

 

 

 

 

 

 

2.4 Conceptual Framework

Independent variable                                        Dependent variable

Customer repurchasing intention

Loyal customer Customer preference Customer commitment

Brand trust

Quality Sales promotion Price

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter presents the related literature review, empirical review, research gap from information related to the problem of research in the study, and theoretical frame work.

2.1 Related literature review

Weun, (1997) found that satisfaction level determines repurchase intention of a customer that affect customer‘s relationship with a company, its profitability and even its success. Hellier et al., 2003; Zeithaml et al., (1996) defined Repurchase Intention as the individual‘s estimation to rebuy a service and involve in future transaction with the same parent company. Lin et al , 2005, Cronin et al. (2000) found a direct relationship of perceived value with word-ofmouth communication and repurchase intentions.

Kuan, Bock, & Vathanophas, (2008) mentioned that possibility of customer to repurchase from previous retailer again and again in future. Cronin, Brady, and Hult (2000) depicted that quality of service quality parameters have direct significant effect on customers‘ behavioral intentions. Mummalaneni & Meng, (2009) deduced that the quality of service provided by the company in terms of timeliness, responsiveness, accuracy, empathy, feedback etc. persuade the customers to repurchase the products. Ranaweera & Neely (2003) affirmed the same stating it even inspirit customer retention.

Jackson (1985) explained ―repurchase intent‖ is a consumer behavioral intention that indicates the tendency to stay, continue or, leave the service from a current supplier. The Repurchase Intention measures can be obtained from surveys assessing tendency of current customers to repurchase used or, bought brand, product/service belonging to the same company. The ―behavioral intentions‖ and ―repurchase intention‖ are synonymous constructs (Cronin et al., 2000).

Kotler (1998) observed   that customer satisfaction  depends  on the extent  to which customers’ expectations about the services are fulfilled and these expectations are not static.kotler futher  noted  that good customer service among other things entails keeping the promises  made to customers and not guaranteeing things that cannot  be possible given  the nature  of the operating  environment .To provide  an excellent  service  to customers  the organization  should  deliver beyond  the expectation s of the customers.

Buil et al., (2013) states that,  A strong brand can make more money based on perception of quality, uniqueness and its other associations. basic idea of using a brand refers to the enhancement of the value of a product when the producers realized that competition through price leads to lower profitability. Profitability reduction through price competition made them to apply methods to increase loyalty and brand value.

One of the factors that indicate the individuals’ willingness to determine the extra costs is the consumers’ perspective towards brand equity (Zavattaro et al., 2015).

Tolba, Hassan,(2009) states that,.Brand preference can be the start for the consumers’ decision to buy. Some studies show that there is a positive correlation between brand preference and consumers’ decision to buy. brand is valuable in the eyes of customers when customers prefer them to other brands, and have the name of brand and its attributes in mind for a long time (Kumar et al., 2004). Over time, services and products become more similar to each other, because competitors imitate the new products quickly. This makes it difficult for consumers to differentiate products(Chang et al., 2015).The main purpose of advertising and promotion operation is to achieve excellence, a place where a brand is more favorable than its competitors. Brand excellence is essential to consumers in the purchase of products (Buil et al., 2013).

Belch Vilch, 2004) stated that, Purchase intention pints to the consumer’s willingness to purchase the product of a brand . When purchase intention is higher, it is also more likely to purchase. So, purchase intention is the most important predictor of purchase behavior (Long- Yi, Jui-chi, 2012). Branding studies show that brand equity is an important factor in the consumers’ purchase intention increase and encourages them to buy more (Jing et al., 2015). Purchase intention is one of the steps of purchase intention, because it studies the behavior of the consumer to purchase a particular brand. Consumer’s intention to buy a brand is formed not only by the attitude toward the brand, but also by considering a series of other brands (Shah et al., 2012).

Oliver (1999) recommended that in most scenarios customers calculate price by contrasting the benefits or facilities presented by the supplier in exchange that results in satisfaction or dissatisfaction. In businesses, price is well thought-out as most important aspect in creating revenues for the organizations. It affects satisfaction as the consumers evaluate the merits or benefits received against the given fair price (Cronin et al., 2000). Malik et al. (2012) found in their research that fair price directly affects customer satisfaction. Virvalaite et al. (2015) indicated that fair price is the dominant factor leading towards the customer loyalty. They also argue that fair price is the most influential element of loyalty than of satisfaction.

Aaker, (1996), stated that Brand awareness is the aptitude of a potential purchaser to categorize or memorize the brand associated to a specific product type. Brand awareness encompasses a scale from an unclear sensation that the brand is unknown to faith that it is merely one in the product group. Aaker and Keller (1990) thought that brands with higher awareness and good image can encourage brand loyalty in consumers, and the greater the brand awareness is, the greater the brand trust and purchase intention are to consumers.

Oliver, 1999) stated that, Loyalty is explained as an exceptionally held assurance of a customer purchasing a particular product repetitively in upcoming time regardless of the promotion and conditional efforts, and is prone to shifting of brands. The challenges faced by the firms due to anticipated customers' needs are: (1)the improved choice, (2) greater value of their money and (3) increased level of service (Kandampully and Suhartanto, 2000). Loyalty can be advantageous for both the organizations and the customers. Consumers are prepared and ready to submit their loyalty and ready to repurchase the products of the firm that is able to deliver them high value products and services in contrast to competitors' offerings (Reichheld and Teal, 2001).

According to Kan, (2002)Trust is the guarantee that a customer will get what he wants from the organization or the company, instead of what the company offers. Trust includes hope that other party will generate outstanding returns regardless of the chances that the action may generatebad returns. Delgado-Ballester and Luis Munuera-Alemán (2005) suggested that if an organization want to maintain a long-term relationship with its consumers, it should build trust among the company and its customer as when trust is involved, both will act at their best to take advantages of this good relationship and will result in loyalty. Sarwar et al. (2012) stated that trust has positive relationship with customer loyalty, but they are unable to find any relationship between trust and customer loyalty in service industry.

 

Repurchase intention indicates the customers' keenness to purchase persistently from the firm or company.

Lacey and Morgan (2008) described the repurchase intention as persons' decisions for purchasing a particular product or service from the identical company/ firm for second time, keeping in view of his present condition and surroundings. Customer satisfaction, customer loyalty, perceived value and trust all of these are the driving forces of consumer repurchases intention (Hellier et al., 2003). Customer retention is a decisive step for a firm; this in return can directly impact the firms' bottom line. So most firms seek different ways to develop more customer retention. Olaru et al. (2008) proposed that perceived value positively influence the repurchase intention. He also recommended that repurchase intent will show the way to give suggestions to others to purchase the same product. Mosavi and Ghaedi (2012) suggested that trust has a progressive association with repurchase intention. Sarwar et al. (2012) supported that there is a bond linking trusts and repurchase intend.

Rowley, (2005) stated that Customers demand of differentiated offerings or, benefits at different stages define the level of service satisfaction given to a customer that help in generating loyalty among customers. It‘s a trusted attribute that loyalty is function of two reciprocal actions that is expectation and actual experiences. Brown (1952) referred loyal customer are those who buys more, willing to pay more, and a great supporter of firms. Lip Stein (1959) and Kuehn (1962), defined loyalty as a measure of probability of product repurchase. Oliver (1997) defined Customer Loyalty as a deep commitment which merely get influenced by any situational behavior caused by several marketing efforts of different brands, it shows re-buy intent or re-patronize the same preferred product or service consistently and repeatedly in future.

 Hayes (2008) explored that loyal customers are profitability drivers of a company. It even indicates a repurchase commitment and long term relationship. Bowen and Shoemaker, 2003) argued that loyal customers are likely to less price sensitive and do not switch like non-loyal customers. Blackton, (1995) stated that loyal customers are important assets to a company. Tseng, (2007) emphasized on same stating that vendors should keep loyal customers to generate long term profit from them. Hayes, (2008) observed that a company‘s effort to persuade existing customers to repurchase will strengthen its position. Wulf et al. (2001) elaborated the behavioral loyalty construct as a combined measurement of money spent at a retail outlet and repurchasing patterns with the same in comparison of the other outlets. Morgan and Hunt (1994) found buyer‘s commitment and behavioral outcomes of that relationship like acquiescence, propensity to leave and cooperation have a positive significant relationship. Oliver, (1999) & Reichheld and Sasser, (1990) found that growth and profitability is mainly effected by a prime factor and that is customer loyalty. Berry, (1995) suggested in his findings that loyalty ultimately result in improved profitability through reduction in promotional activities and increasing sales. Dwyer et al., (1987) and Hennig -Thurau et al., (2002) observed that markeing expenses on promotional activities reduces due to positive word of mouth publicity by loyal customers.

Customer Loyalty on repuchasing indicates a long term relationship between customers and the company that supports increase in sales with no promotional investment. Faullant et al. (2008), customer satisfaction is an important driver of loyalty. Lee, Lee, and Feick (2001) examined the cost effect on the satisfaction and loyalty level in the service and found that switching costs have a moderating effect on customer loyalty. Hirschman (1970) explained that Customer Loyalty is a conscious, calculated behavior towards a service or, a company. Chaffey (2008) defined consumer loyalty as a conduct of customer to take continued service with a particular company. Kotler and Armstrong (2008) viewed repeated purchasing behavior as an indicator to measure customer loyalty to repurchase the product.

Parasuraman et al, 1988) stated that, service quality contains the exchange of relationships between salesperson and the purchasers. Due to the better services provided customer wants to avail the services at shop. This resulted in the extensive coordination between salesperson and consumer. Service quality can be defined as the divergence between customer image about the service presentation and his/her expectations for services. Service quality is an essential item in building the brand trust and defined in other words as the decisions that are resultant from estimation process in which customers differentiate the service provided to them and the services they perceived (Gronroos (1984). The customer’s decision about the whole performance of the service product ( Zeithaml 1988). If the quality experienced by the customer is according to the quality they expect about the brand this resulted in a better service and perceived quality Gronroos (1988). Some scholars suggested that only those elements have major effect on brand loyalty that is not intangible but gives response (Kayaman and Arasli 2007). The quality perceived by the customer and their satisfaction level the indirect link among brand trust and service quality can be defined (Chitty et al., 2007).

The customer’s perception about the product and services quality. It is the perception of the customer created by the companies through the advertising publicities, and other social media intend to purchase the product. In general it is the feeling of customer about product quality and its features provided to them such a performance and reliability of the product. The promises made by the brand product to meet the expectations of the customers (Zenithal, 1988). Basically there are two phases of the quality objective and perceived quality. According to, Zeithaml (1988) objective quality has no validity and valuations of the quality. Furthermore from this point of view perceived quality is significant among them which are also a second phase or part of the quality. The customer valuations for the product quality and services either product meets the expectations (Olsen, 2002). It is a relative concept that can change the people’s experiences and expectations of that product brand.

2.2 Empirical studies

Bramall, Schoefer, & Mc Kechnie (2004) found that customers‘ needs in acheiveing satisfaction, long term profitability and the customer‘s retention can be gained through promise, reputation and offline presence.

Swaen & Chumpitaz (2008) stated that, there are three major aspects of Customer repurchases which includes perceived credibility, perceived integrity, and perceived benevolence. Chiu et al.(2008) concluded e-retailers and online buyers repurchase intentions mainly depend on purchase experiences during transactions and trust levels generated by e-retailers. Chiu, Chang, Cheng, and Fang (2008) and Compeau (2009) found that customers‘ Repurchase Intention in online shopping is having a significant relationship with customers trust. Chun Ha, Yang-Kyu, &Cho (2011) affective trust includes the characteristics of openness, benevolence, liking, honesty, understanding, and respect. Butler (1991) deduced ten antecedents of customer trust, namely, availability, competence, consistency, discreetness, fairness, integrity, locality, openness, promise fulfillment and receptivity. McKnight et al. (1998) mentioned that a person‘s trustworthiness includes benevolence, honesty, and competence as the core cognitive beliefs that one individual during evaluation of others.

Practical studies illustrate that satisfaction is the predecessor of brand trust, intention to rebuy the product and behavior of brand towards its customers (Russell- Bennett et al., 2007). Brand trust can increased by the satisfaction of customer and repeat the purchase of the same product services (LaBarbera and Mazursky, 1983). In the research repurchase and consumption of the product leads to the two phases of loyalty that are as, loyalty to purchase and loyalty towards attitude or behavior through which it can be determined either consumers will purchase those services or move to other that are more preferable (Bennett, Härtel, and McColl- Kennedy, 2005)

Lu and Lin (2002) analyze customer purchasing behaviors in Internet media under the structure of “belief-attitude-behavior tendency”. The cognition part of “belief-attitude-behavior tendency” relates to the cognition of brand equity, these include three parts: the cognition of products and service content, the cognition of the servicescape in which products and services are provided and the cognition of hardware facilities for providing products and services. These three factors will directly impact the customer attitude toward products and services, meanwhile customer cognition and attitude will affect repurchase behaviors.

 

Chung (2002) studies the impact of brand image and country of origin on brand evaluation, purchase attitude and purchase intention. Conclusions show, in most product categories, brand image is more important than country of origin. Ataman and Ulengin (2003) think brand image is the major reason that customers make choices from different brands. Hsieh et al. (2004) consider the corporate image and country of origin have significant impact on customer choice, while local culture features and traditions can adjust the effect of product image. Oliver (2010) thinks customer satisfaction is the concentrated performance of customer expectation on quality, the perception of actual quality, the perceived service quality, the perception of brand image and the perception of cost performance.

 

Cronin et al. (2000) consider service contact, service environment and product quality will influence the overall customer perceived service quality; while the level of perceived quality will influence customer satisfaction and customer value; perceived quality, customer satisfaction, customer value will have impact on customer post-purchase behaviors. The study of Olsen (2002) verifies that satisfaction is the mediator between perceived quality and repurchase intention.

 

Baker and Crompton (2000) make an analysis on tourism, indicating customer perceived quality is not in significant correlation with complaining behaviors, but is in significant positive correlation with repurchase intention, customer loyalty and willingness to pay premium price. Sivadas and Baker-Prewitt (2000) receive different conclusions in a study of the department store industry: service quality influences the customer attitude orientation and satisfaction of the department store industry, while satisfaction has impact on attitude orientation, repurchase and recommendation but no direct impact on department store loyalty.

 

Bearden and Teel (1983) discover in a study of automobile services, attitude plays a mediator role on the impact of customer satisfaction on purchase intention. Jones and Sasser (1995) consider the relationship between customer satisfaction and customer repurchase behaviors will be influenced by the competitive condition in the industry. Spreng and Mackoy (1996) think satisfaction has significant impact on brand attitude and brand loyalty. Fournier (1998) studies the impact of six kinds of customer-brand relationships on customer repurchase intention, habitual purchase and the willingness of WOM communication. Roberts et al. (2003) analyze the impact of customer-enterprise and customer-brand relationship on customer behaviors, suggesting the services provided by companies in the service industry influence the formation of relationship to some extent.

 

The study of Chaudhuri and Holbrook (2002) discover, an active emotional response against a brand has a relatively high positive correlation will brand loyalty and will reduce the customer sensibility on price. Ataman and Ulengin (2003) consider customer-brand relationship to be the key factor that influences customer acceptance and recognition degree of a brand. Erdem and Swait (2004) study the impact of brand trustworthiness and brand expertise on customer choice in different product categories, proving brand trustworthiness has greater impact on customers.

Bertoncelj and Moisescu (2010) points out that one way to persuade the customers and increase the market share is to create a powerful brand and reinforce it which would lead to establish long-term and interactive relationships among stakeholders and more importantly the customers. In addition, some researchers believe that focusing on some features of brand could be as an important factor in persuading the customers and success of organisations.

 

Many factors are involved in the purchase intention of a customer and having them in mind could persuade the customer to use and buy the brand. They include brand personality (Aggarwal,

2004), brand equity (Aaker, 1991) and eWOM (Park & Lee, 2009).

Rekom, Jacobs and Verlegh (2006) believed that when customers know the product quality self-right and competitors can easily copy the product features, the strong brand identity and personality can be high valuable in shaping of brand equity.

 

The research by Roberts et al. (2003) verifies that perceived quality influences post-purchase behaviors indirectly by influencing relationships. Zeithaml et al. (1996) think overall perceived quality has a significant relationship with customer behavioral intentions.

In a study entitled “Studying the effect of brand equity on consumer response, Hosseini et al. (2009) concluded that there is a positive significant relationship between the four dimensions of loyalty, quality, awareness and willingness to spread brand.

Karbaspour ,Yardel (2009) conducted a study entitled “Evaluation of brand equity and the affecting factors from the consumer’s perspective. The results showed that brand loyalty and association factor have direct impact on brand equity, and the factor of perceived quality has indirect impact on brand equity through loyalty.

 In a study entitled “Evaluation of the impact of brand equity on the continuation and promotion of customer relationship in the banking industry” Bavarsad et al. (2013) found that the willingness of customers to adopt Internet banking services is under the direct influence of brand equity.

In a study entitled “Evaluation of the impact of brand equity on the consumer behavior in cellphone and computer shopping malls”, Anaraki et al. (2013)discussed the proposed model and confirmed the role of brand equity dimensions on customer reactions.

 

2.3 Research gap

Many studies show that much research on the challenge brand, trust and repuchasing. However there is no study that reported on the Impact of brand trust on customer repurchases intentionin Dangote Industry Limited which research is going to concentrate on. Therefore this study intended to bridge the gap by An Assessment of the Impact of brand trust on customer repurchases intention in Dangote Industry Limited.

2.4 Theoretical framework

2.4.1 Social Exchange Theory

Social Exchange Theory (Thibaut and Kelley, 1959) explains repurchase intention in social psychology perspective as intention to continue or, to stay in a relationship referred to as relationship maintenance. Customers‘ Repurchase Intention is referred to as a key to Defensive Marketing strategies that decides business success (Cronin et al., 2000). Companies are relying more on defensive strategy as cost of attracting a prospective customer is becoming more expensive (Barlette, 2007). Companies are focusing on existing customer to persuade them to make repurchase instead of opting for an Offensive marketing strategy (Fornell, 1992) that tries to acquire new customers and increase the market share.

2.4.2 Motivation Theory:

A motivated and qualified workforce is crucial to increase productivity and the quality of the organisational services in order to achieve organizational objectives. The challenge and dilemma for many managers is how to create this type of motivation (Dieleman and Toonen, 2006:1). While there are many theories surrounding the notion of motivation, two distinct areas of motivation are usually mixed (Dieleman and Toonen, 2006:1). That is the emphasis placed on motivation to be rooted in a job and motivation to perform (Dieleman and Toonen 2006:1). Both are very vital and managers have to critically understand the impact of their activities in both areas (Dieleman and Toonen 2006:1).

Motivation is significant because even people with the required knowledge, skills, and abilities will perform poorly if they are not motivated to devote their time and effort to work (Harris in Milapo, 2001: 29). Workers have needs which a workplace must fulfil in order to avoid demotivation. When workers lack motivation they tend to resort to anti-work behaviours such as

absenteeism, negligence of duty, late-coming, failure to meet deadlines, display of open frustration and all these factors work negative to the performance and credibility of an organization. Organizations need to place all efforts to ensure that incentives such as intrinsic motivators, extrinsic motivators and performance management approaches are used in order to retain, attract, increase workers efforts, satisfaction and commitment.. Therefore, motivation theory will be basis for this study because achieving higher levels of performance on ensuring customer care in order customer to repurchase requires attending to how best individuals can be motivated through quality services, incentives and performance management approaches. thus will bring satsification of customer.

2.3.1THEORY OF REASONED ACTION (TRA)

 TRA is proposed by Fishbein and Ajzen (1975) and is widely used in the consumer behavior literature and purchase intention studies (i.e. Botha & Atkins, 2005; Beadnell, Baker, Gillmore, Morrison, Huang & Stielstra, 2008; Alsughayir & Albarq, 2013). This theory assumes an individual's intention to perform a behavior as a function of; his or her attitude towards that behaviour in a special situation; the norms governing the behavior in such situation and the motivation to follow these norms (subjective norms).

Since TRA is very instrumental and practical where the individual is personally responsible for his or her purchase intentions (Hakkak, Vahdati, & Mousavi Nejad, 2015), it seems that it is a suitable framework to study the effects of brand trust on customers' repurchase intentions.

2.3.2 PRODUCT EVALUATION MODEL (PEM).

Chung and Pysarchik (2000) believed that TRA may not be absolutely accurate and others such as Collen & Hoekstra (2001) stated that the other external variables could be used to explain the purchase intention.

One of these variables is the perceived value of customer which is clearly provided in PEM proposed by Dodds, Monroe and Grewal (1991) and has been recently noted as a constant factor in predicting the repurchase intention (Chi, Yeh & Tsai, 2011; Ainscough, Trocchia & Gum, 2009). This model regards the repurchase intention as a function of the perceived value and indicates that the customer's perception of quality and credibility initially influences on the perceived value and then, this perceived value affects on their evaluation of the repurchase intention. It should be noted that if the customers do not maintain a good attitude toward the product or ignore the behavioral norms, then they will not have any tendency to repurchase. Therefore, we tried to combine TRA and PEM to evaluate and predict the customers' intentions more accurately. Moreover, a range of attitude, subjective norms and perceived value are considered to evaluate the customers' intentions.

 

 

 

 

 

 

 

 

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This chapter deals with research design, research approach, targeted population, sampling techniques, sample size, area of study, data collection techniques and data analysis and approach.

3.1 Research Design

Research design is the framework that has been created to seek answers to research questions. (Creswell, J.W (2012). Therefore, the research design refers to the overall strategy that you choose to integrate the different components of the study in a coherent and logical way. Therefore a researcher will use descriptive design in order to make comparisons among the respondents so as to attain accurate information from the respondents, and to assess the impact of brand trust on customer repurchases intention in Dangote Industry Limited.

3.2 Research Approach

Research approach refers to the arrangement of conditions for collection and analysis of data in manner that aims to combine relevance to the research purpose with (Kothari 2004). The study will applied mixed research approach which is defined as a procedure of collecting, analysis and mixing both, qualitative data and quantitative data in a single study to understand a research a problem. Mixed method research is a methodology for conducting research that involves collecting, analyzing and integrating (or mixing) quantitative and qualitative research (and data) in a single study. (Creswell et al 2003)The importance of using mixed approach provides a more complete and comprehensive understanding of the research problem, also helps to explain findings.

The qualitative data will be presented in words while quantitative data will presented in statistics through tables and numbers. Through this procedure the researcher will be able to obtain accurate data which will be easily to describe, analyze and present them.

3.3 Targeted Population

A population is a summation of all the organism of the same group or space, who lives in the some geographical area and have the capability of interbreeding or group of people of an individual from which sample size are taken for measurement example army, students and teachers (Donald 2006). Therefore, the population of study will marketing department, supply department and customers.

3.4 Sample Size

Kothari (2004) defines sample as a collection of some parts of the population on the basis of which judgment is made small enough to convenient data collection and large enough to be true representative of the population from which it had been selected. Sample size refers to the number of items to be selected from the universe to constitute a sample (Kothari2004). The study will comprise of 50 respondents; as 10 sales persons, 8 distributors, and 32 transporter/driver. This study will be having total of (50) respondents. All respondents will be given questioner by the researcher by using the instruments which will be provided.

 

 

Table 1 Shows a Chart of Respondents who will be used

S/N		RESPONDENTS	NUMBER OF RESPONDENTS
1		Sales persons	10
2		Transporter/drivers	32
3		Distributors	8
		TOTAL	50

        Source : researcher 2017

3.5 Sampling and sampling techniques.

Sampling is a procedure a researcher uses to gather people, places or things to study. It is a process of collecting a number of individuals or objects from a population such that the selected group contain elements of representative of the characteristics found in the inter group (Kombo and Tromp, 2006). Sampling techniques is the procedure used to select sample, Kothari (2004). This study will use purposive sampling techniques.

 

 

3.5.1 Purposive Sampling

This involves on picking unity of most relevant or knowledge in the subject matter and study them (Omari, 2011).This is choosing the particular units of the universe for constituting a sample on the basis that they are selected out of the huge one would by typical or represent the whole (Kothari, 2004), Hence  this technique will be used by a researcher to select the drivers of Dangote trucks, distributors of Dangote cements and sales persons of Dangote, because these respondents have detail information about the impact of brand trust on customer repurchases intention.

3.6 Area of Study

This study will be conducted in Dangote industry limited. This is saturated in Mtwara region in southern part of Tanzania. The Municipal is boarded by Indian Ocean in East and Mtwara district council in all other direction. The region occupies 16720 km or 1.9% of Tanzania mainland area of 8859 87 square km. Mtwara-Mikindani Municipality council is one among six district council of Mtwara region. Other districts includeTandahimba, Newal, Masasi, Nanyamba and Mtwara rural district (Municipal profile 2008). The main economic activities are; fishing, mining, agriculture, industries and trade development. The study will be conducted so as to identify the Impact of brand trust on customer repurchases intention in Dangote Industry Limited.

 

 

 

 

 

3.5 Data collection instruments

The study will use both primary data and secondary data collection methods during the study. Kothari (1990) defines primary data as those data which are collected a fresh and for the first time and thus happen to be original in character. Also Secondary data are those data which have already collected by other researchers, documentary review Kothari (2004) Therefore, this will involve data from respondents through questionnaires and interview as well as documentary review.

 3.5.1 Interview

Kothari (2004) contends that Interview is very useful because it carries out at the same time to the respondents and interviewer. Is the method of collecting data which involve presentation of oral-verbal stimuli and reply in terms of oral-verbal responses. This method will help the researcher to get information from respondents because it paves the way to oral discussion between the respondents and interviewer or a researcher. This is because it allows the respondents who have detailed information and knowledge to give more explanation to the research problem. Both structured and unstructured interview will be used so as to obtain data from the respondents as far as to collect the data or information from the targeted population. In this study, this method will be used to interview marketing depertment and supply department, because the researcher need explanation in details as they will be the key informants in this study for the purpose of knowing their suggestions and opinions towards the Impact of brand trust on customer repurchases intention in Dangote Industry Limited.

3.5.2 Questionnaire

Kothari (2004) state that questionnaires; are questions that have to be filled by the respondents.  in this study questionnaires will be used to ask customers, marketing department and supply department, the researcher will need details to be fulfilled to the question papers. The researcher will use two types of questionnaires, the closed form and open form questions. The closed form questions demand for short check mark responses to show one’s reply yes/no or items demands brief   statement   to fill an empty line. The open form questions need the free responses of the participants own words, it aims at collecting the participants’ ideas towards the problem in the questions. The   questions will be addressing   the specific objectives of the study and research questions.

3.5.3. Documentary Source

The researcher will collect data from different documentary sources which had already been collected by other researchers. Researcher will visit Library to gather data that are already in existence and form the base for general review to develop and understand on the situation. Also information will be gathered from published and unpublished document such as past report on research done on similar subject. However, researcher collected secondary information such as organization structure, mission, and vision. The main aim of getting secondary data is to compare with, and complement the primary data about the Impact of brand trust on customer repurchases intention.

3.8 Data Analysis and Presentation.

Data analysis is the process of interpreting data, data processing entails; editing,coding and classification (Kothari,2004). Therefore, data analysis refers to the process of bringing orders,

structure and meaning to the mass. Hence the study will use mixed approach method due to the fact that qualitative method involves description and explanation while quantitative method used average, chart and percentage in analyzing data. The data obtained from the field of study will be coded and analyzed through content analysis by which explanation provided by respondents will be analyzed through its contents in relation to the study objectives. MS-excel will be used to prepare table that show the finding result through frequency and percentages.

3.9 Validity and reliability of data

3.9.1 Validity

Validity is the degree to which results obtained from the analysis of the data actually represents the phenomenon under study. Kothari (2004) states that validity measures the accuracy of the instruments in obtaining the anticipated data which can meet the objectives of the study. To ensure validity, the researcher will Data will be collected from the reliable sources.

3.9.2        Reliability

According to Saunders et al. (2003) reliability refers to the degree to which data collection method or methods yield consistent findings, similar observations would be made or conclusions reached by other researchers or there is transparency in how sense is made from the raw data. Kothari (2004) defines reliability as the ability of a measuring instrument to provide consistent results. The followings will be used as ways so as to ensure consistency results, as: different respondents will be asked the same questions in different times to see if they would produce the same answers when asked several times, ad questionnaire will be divided into parts in order for respondents to concentrate more on each question.

 

 

2.3.1.2. Price

In view of Smith and Carsky (1996) in today’s markets, price is the most salient factor contributing to making choices. Assuncao and Robert (1990) is of the view that when faced with a buying decision in a product category consumers observe a price and considers their current budget position towards that product before making a purchase decision. In most cases when a consumer is exposed to alternatives there is a tendency to select a product that maximizes greatest utility based on the available brands. Price alone in the absence of other cues is a powerful contributing factor in considering how the brands were perceived. Consumers face brands with varying prices and perceived quality levels and they make a choice consistent with the relative value attached to both attributes.

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