Branding and its impact on customer loyalty

Abstract

In response to the intense competitive landscape within the Algerian telecommunications sector, marked by the influx of international brands, this study delved into the pivotal role of branding, specifically focusing on the Mobilis brand. Against the backdrop of global market shifts and increased customer choices, the study aimed to understand the extent to which the Mobilis brand contributed to customer loyalty. Through a mixed-methods approach, encompassing theoretical literature review and empirical investigation, this research sought to explore the nuanced relationship between branding and customer loyalty, shedding light on the complex dynamics in a competitive market. The study was prompted by the urgent need for Algerian institutions, particularly in sectors like energy, automotive, and telecommunications, to adapt to dynamic global market transformations. With international brands entering the Algerian market, customer loyalty became a focal point for organizations. The telecommunications sector, specifically the rivalry between international brands like Ooredoo and Djezzy and the Algerian national telecommunications company, Mobilis, provided a pertinent context for this research. The primary objective was to assess the effect of the Mobilis brand on customer loyalty. The study's sub questions investigated the nature of the association between the Mobilis brand and customer loyalty, the liaison between brand appearance and customer loyalty, the connection between brand quality and customer loyalty, and the influence of the mental image of the Mobilis brand on customer loyalty. The research adopted a meticulous mixed-methods approach, combining theoretical exploration of branding and customer loyalty concepts with practical investigation. Data was gathered from actual Mobilis customers in Tebessa, Algeria, using questionnaires. Statistical analysis, facilitated by SPSS, was employed to scrutinize the correlation between key variables. The study revealed a significant correlation between the quality of the Mobilis brand and customer loyalty. Although there was a relatively weak correlation between brand appearance and loyalty, the mental image of the Mobilis brand had limited influence on customer loyalty. Additionally, an effective agency played a crucial role in establishing a statistically considerable connection between the Mobilis and customer loyalty. In conclusion, this research illuminated the intricate connection between branding and customer loyalty within a competitive market context. The Mobilis brand, by ensuring high-quality services and effective agency interactions, played a significant role in fostering customer loyalty. These findings provide valuable insights for institutions navigating competitive environments, emphasizing the importance of brand quality and efficient customer interactions in building lasting customer loyalty.