Classification Analysis for Brand Loyalty Determination

Abstract

This research article attempts to determine brand loyalty by classifying current and potential customers in the commercial paints industry based on eight promotional parameters. It is a prerogative to understand customer response towards brand promotions, which necessitates exploring the concept of brand loyalty determinants. Primary data of these eight parameters are collected (paints industry contractors) as factors contributing to brand loyalty. Parameters are ranked according to their order of importance using analytic hierarchy process (AHP). Factors having their priority vectors greater than 10 per cent are selected for further analysis. This study further uses discriminant analysis to examine if the parameters are capable of classifying the respondents into two distinct groups based on brand loyalty. Five-point Likert scale was used for each variable to collect the response on the perception of its importance in deciding whether to remain loyal to the brand or not. Five out of eight parameters are finally selected for discriminant analysis to determine if it is possible to distinguish the two groups significantly. The five parameters are preview, free sampling, perceived brand value, training and word-of-mouth communication. Analysis of the responses collected reveal that there exists a significant difference between the two groups based on the parameters. The results of this study are expected to help practitioners expand and execute customer-centric promotion strategies to prevent customers from switching to other brands.