The Influence of Customer-Based Brand Equity on Customer Loyalty in Uganda

Abstract

The purpose of the study was to examine the influence of customer-based brand equity on customer loyalty using the Café Javas rat-milkshake saga as a case study. The specific objectives of the study were to examine how public perception of customer-based brand equity influences customer loyalty; to examine how customer brand perception influences the brand’s crisis communication strategies; to examine the role of customer loyalty on brand market performance in the fast-food industry. A qualitative approach was used, with data collected through in-depth interviews, which allowed respondents to express their views in an open-ended manner. The data were analyzed thematically, involving processes such as coding and transcription. Fritz Heider’s attribution theory was used to understand how individuals attribute causes to events and how these attributions influence their perceptions and behaviors. The findings revealed that customer-based brand equity, particularly trust built over years of positive experiences, played a significant role in maintaining customer loyalty during the crisis. The study also showed that Café Javas' crisis management strategies, such as transparent communication and professionalism, helped mitigate reputational damage and preserve customer loyalty. Furthermore, the research highlighted the critical role of customer loyalty in sustaining brand performance, as loyal customers continued to support the brand and contribute to its market resilience despite the scandal. These results emphasize the importance of brand equity, crisis management, and customer loyalty in ensuring a brand’s long-term success.”