Brand Loyalty

Over a million managers and consultants are working together on management issues via 12manage each month...

Description of Brand Loyalty. Explanation.

Definition Brand Loyalty . Description.

Brand Loyalty is the situation when a consumer is reluctant to switch from buying and consuming the product from the brand he knows and trusts. It is part of a firm's Relational Capital.

It consists of a consumer's commitment or preference to repurchase the brand and can be demonstrated by repeated buying of the product or service or other positive behaviors such as word of mouth advocacy. It is more than simple repurchasing behavior, since customers may repurchase a brand also due to:

• Situational constraints.

• A lack of viable alternatives.

• Out of convenience.

Such loyalty is then referred to as "Spurious Loyalty".

3 reasons why Brand Loyalty is important:

1. Higher sales volume. Through reducing customer loss.

2. Premium pricing ability. As loyal consumers are less sensitive to price changes, generally, they are willing to pay more for their preferred brand.

3. Lower costs for advertising, marketing and distribution. Brand loyalists are willing to search for their favorite brand and are less sensitive to competitive promotions.

Forum

Ariful Islam - Bangladesh

Relationship Between Brand Loyality and Brand Equity

"Are the terms "brand loyality" and "brand equity" different terms for the same thing?"

0

Ambreen Bhatti - Pakistan

Brand Loyalty Questionare

"Hi, I need a questionaire on brand loyalty. Who can contribute one. Please react.."

0

Comment on this Page

Compare also: Brand Personality  |  Brand Identity Prism  |  Unaided Recall  |  Brand Recognition  |  Nielsen Ratings  |  Relationship Marketing  |  Customer Relationship Management  |  Ambient Advertising

Return to Management Hub: Marketing  |  Strategy

More on Management  |  Return to Management Dictionary  | 

End of description Brand Loyalty . An explanation.