The role of brand identity in the formation of brand loyalty

Abstract. This thesis studies the role of brand identity in the formation of brand loyalty. This is done in the form of a literature review, more specifically the integrative variant of the method. By integrating together the findings received from various previously conducted pieces of scientific research, this thesis forms a model of brand loyalty creation in order to study brand identity’s role in it. By analyzing the aforementioned model it can be concluded, that brand identity does indeed have a significant role in the process, although it is indirect in nature in terms of affecting brand loyalty. The role of brand identity is to affect the formation of brand loyalty through first affecting brand image, which then in turn is the factor that the customers of a brand potentially form brand loyalty based on. Explaining this in more concrete terms, brand identity’s role is to affect the behavior of the internal stakeholders of the brand in a way that furthers the development of a brand image that is likely to entice brand loyalty within the target customer base of the brand