Brand reputation and relationship with customer loyalty in the retail pharmacy sector: A case study

Abstract

Purpose – This study aims to evaluate the relationship between the reputation of the retail brand and customer loyalty in the retail pharmacy sector. Theoretical framework – This article is based on the relationship between customer loyalty and brand reputation. It uses some of the brand reputation variables from the brand equity model (Aaker, 1991) to arrive at an explanatory framework that can differentiate key variables for the most frequented retail pharmacy brands to remain in the market, as well as the differentials of the most frequented retail pharmacy brands. Design/methodology/approach – To achieve the objective of the study, exploratory factor analysis and linear multiple regression were used as the analysis techniques. A survey was carried out to collect data from 469 retail pharmacy customers in a municipality of Santa Catarina, located in the South Region of Brazil. The sample is non-probabilistic. Findings – The results suggest that popularity, level of knowledge, and familiarity significantly and positively affect loyalty to the most frequented brands. In the case of the least frequented ones, level of knowledge and familiarity have a significant and positive impact on loyalty to the brand. These findings reveal different perceptions regarding the most frequented and the least frequented pharmacies. However, the most relevant aspects remain the same regardless of how frequented the retail pharmacy is. Practical & social implications of research – Theoretically, the study has positive implications as it demonstrates the items that have the greatest and least impact in terms of brand reputation and customer loyalty. As practical implications, this study can help pharmacy managers to choose and better focus their strategies. As for social impacts, it was noted that brands that are considered to be less frequented have a lower level of loyalty, which was expected; however, this loyalty is more constant than for more frequented brands. Originality/value – This study contributes to the advancement of research involving brand reputation and customer loyalty in retail, especially in the pharmaceutical sector. Keywords – customer loyalty, brand reputation, retail pharmacy.