Abstract

The purpose of this study was to identify the factors that influence brand loyalty among youth for local cafes in a small town. A descriptive research design with a survey method was used to collect data using the online Qualtrics platform. Three hundred and one (301) usable responses using a stratified sampling technique were collected on a 5-point Likert scale as recommended for analysis. Tri-dimensional approach was used to assess behavioral, attitudinal, and cognitive loyalty. Structural Equation Modelling (SEM) using SPSS AMOS was utilized to test the model fit and assess the validity and reliability of the results. The study is unique as it focuses on brand loyalty towards local cafes as compared to national brands such as Starbucks.

Highlights

  • The success of organizations depends largely on how well it attracts consumers towards their brands

  • Brand loyalty has been considered a sustainable competitive advantage that is extremely valuable to businesses, which cannot be imitated by competitors (Ehsan, Warraich, & Sehribanoglu, 2016)

  • Most studies on brand loyalty have focused on big brands, but this concept is important for local brands in a small town such as Clarion, PA

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Summary

Introduction

The success of organizations depends largely on how well it attracts consumers towards their brands. Brand loyalty is an important factor that determines why consumers prefer one brand over the other and greatly benefits a company. Most studies on brand loyalty have focused on big brands, but this concept is important for local brands in a small town such as Clarion, PA. The small town of Clarion is a great example of an area with competitive surroundings for café business. In Clarion there is a local café, Michelle’s Café, amid many global franchises, such as Starbucks and McDonald’s. In this situation, brand loyalty has an important role in the local café. The purpose of this study is to understand brand loyalty towards café in a small college town. The outcome from the study will help cafés to develop marketing strategies based on results from the survey method and constructs including repurchase intention, switching intentions, willingness to recommend, brand preference, price tolerance, and brand identification

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