RETAIL ADVERTISING’S ROLE IN CONSUMER BRAND LOYALTY FORMATION
DOI:
https://doi.org/10.18623/rvd.v22.n3.3496Keywords:
Branding, Brand Loyalty, Advertising Spending, Marketing Strategy, Retailer IndustryAbstract
This paper examines the role of advertising spending in shaping brand loyalty at FPT Shop, a leading retail chain in Vietnam. The study analyzes how advertising expenditure functions as an external stimulus that influences consumer perceptions using the Stimulus-Organism-Response model and signaling theory. Primary data were collected from 1,036 respondents across 12 FPT Shop outlets. Several data analysis techniques were executed to validate the measurement scales and test the proposed model. The results indicate that advertising spending has a significant direct positive effect on brand loyalty, while its impact is also mediated by improvements in store image and customer satisfaction. The mediating effect of perceived quality was observed to be relatively modest, its contribution to the overall influence of advertising on loyalty is acknowledged. These findings provide valuable insights for retail practitioners seeking to optimize advertising strategies, enhance customer perceptions, and strengthen brand loyalty in a competitive market environment.
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