The impact of social identity of brand on brand loyalty development

During the past few years, there have been increasing discussions on the impact of brand in business units. Many researchers have concluded that the best way to increase sales is to introduce the brand in society. In this study, we consider the impact of brand identity on increasing product loyalty in one of Iranian dairy products. The proposed study is implemented in city of Tehran by choosing 475 people. The proposed model is analyzed using structural equation model and factor analysis. The results indicate that there is a direct positive relationship between brand and loyalty and a powerful brand could help setup a long-term relationship between customer and firm, which leads to brand loyalty. In other words, brand identity influences perception value, customer satisfaction, brand trust while perception value influences customer satisfaction and brand trust. In addition, customer satisfaction influences brand trust, brand trust influences customer loyalty and finally brand identity indirectly influences customer loyalty.