Brand Loyalty

Knowledge Center

• About
• Home
• Dictionary
• Encyclopedia
• Question?
• Views

• Register
• Log in
• Help

• Change & Organization
• Communication & Skills
• Decision-making & Valuation
• Ethics & Responsibility
• Finance & Investing
• HRM
• Knowledge & Intangibles
• Leadership
• Marketing
• Program & Project
• Strategy
• Supply Chain & Quality

Description of Brand Loyalty. Explanation.

Definition Brand Loyalty . Description.

Brand Loyalty (BL) 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".

Factors Leading to Brand Loyalty

Studies have been conducted how BL is created or what factors determine BL. The most common mentioned antecedents to BL are the following:

1. Satisfaction (brand reputation): BL is often seen as a way for consumer to show that they are satisfied with certain goods and services.

2. Perceived Quality: This is the perception that customers have about the ability of certain goods to satisfy their needs and wants. In other words, it is about a customer’s perception about the quality a certain product has with regard to its intended purpose. Perceived quality is a factor often seen as indirectly affecting BL through overall satisfaction.

3. Brand Trust: Although the relationship between brand trust and BL is difficult to analyze because brand trust measurements are lacking, several studies have found that brand trust creates positive attitudes towards brands which in turn causes increased commitment and BL. Furthermore, brand trust might also lead to an increased desire to create a long-term relation with a brand.

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.

Source: Delgado-Ballester, E. And J.L. Munuera-Alemán (2001) “Brand trust in the context of consumer loyalty” European Journal of Marketing Vol. 35 Iss. 11/12 pp 1238-1258.

Brand Loyalty Forum   Reasons for Switching of Mobile Phone Brand I will like to known some of the factors that will...           Mediating Factors in the Satisfaction-Loyalty Relationship Of course there exists a relationship between Sati...           Brand Loyalty versus Brand Commitment Hi. Can anyone help me in differentiating brand lo...           Brand and Client's Loyalty in Banking In my countryside (Binh Duong province, Vietnam) w...           Multi-brand Loyalty Concept What is meant with Multi-brand Loyalty? Thanks for...           Relationship Between Brand Loyalty and Brand Trust Hi, I need to know about the impact of brand trust...           Measuring Brand Loyalty Companies use different marketing strategies to cu...           Customer Versus Brand Loyalty? Hi to all. Can anyone help me in differentiating b...           How to Collaborate with Already Existing Brands Hi, I need some inputs about approaching the estab...           Relationship Between Brand Loyality and Brand Equity Are the terms "brand loyality" and "brand equity" ...           Brand Loyalty Questionare Hi, I need a questionaire on brand loyalty. Who ca...         Start a new topic

Brand Loyalty Special Interest Group Special Interest Group

Best Practices - Brand Loyalty Premium

Expert Tips - Brand Loyalty Premium   The 22 Laws of Branding (Trout & Ries) 1. The Law of Expansion: The power of a brand is i... Usage (application): Branding, Brand Recognition       Brand Engagement of Consumers in the Digital Age Edelman argues that nowadays people are connecting... Usage (application): Branding, Brand Management, Marketing, Advertising       Three Dimensions in How Global Brands are Evaluated by Consumers Holt et al. (2004) researched how people evaluate ... Usage (application): Global Branding, Corporate Reputation, CSR, Globalization

Resources - Brand Loyalty Premium Brand Stretching and Extension Presentation that is mainly about Brand Stretching... Usage (application): Brand Management, Brand Identity, Global Brand, Meta Brand   Martin's Trust Model: The Trust Matrix An important determinant of the reputation of your... Usage (application): Trust, Corporate Reputation, Corporate Branding, Corporate Image   Steve Jobs on Brand Strategy and Core Values In this video Steve Jobs gives a presentation on M... Usage (application): Marketing, Branding, Strategic Vision, Core Values   The Internet / Social Media Revolution Video shows how fast social media is growing. And ... Usage (application): Social Media, Internet Strategy, Internet Impact, Digital Revolution   Customer Loyalty: Retaining Customers And Solving Customer Complaints Presentation about loyalty that also include strat... Usage (application): Customer Loyalty, Customer Retention, Brand Loyalty   Introduction to Managing Brands Presentation about brand management. Table of cont... Usage (application): Brand Management, Brand Loyalty, Brand Equity   How Sponsoring Enhances and Supports other Marketing Elements Fiona Green explaines that sponsoring is valuable ... Usage (application): Initial Understanding of the Added Value of Sponsoring   Understand the Basics Behind Sport Sponsoring A sponsorship is a business contract between a com... Usage (application): Initial Understanding of Sport Sponsoring   Jennifer Aaker on Branding Jennifer Aaker explains the difference between bra... Usage (application): Jennifer Aaker on Branding   Customer Value, Satisfaction and Loyalty Simple presentation about Customer Value, Satisfac... Usage (application): Customer Retention, Consumer Managment   A Consumer Perspective of Cause Related Marketing Delanie Nielsen explains that for consumers not on... Usage (application): Initial Understanding of Cause Marketing     News about Brand Loyalty         Videos about Brand Loyalty         Presentations about Brand Loyalty         Books about Brand Loyalty         More about Brand Loyalty

Compare also: Brand Personality  |  Brand Identity Prism  |  Unbranding  |  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  | 

This ends our Brand Loyalty summary and forum.