Brand Loyalty

Knowledge Center

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.

Special Interest Group - Brand Loyalty Special Interest Group (121 members)

Forum - Brand Loyalty   Here you will find interesting and educational discussions.   Relationship Between Brand Loyality and Brand Equity (1 reactions) Are the terms "brand loyality" and "brand equity" different ...           Multi-brand Loyalty Concept (1 reactions) What is meant with Multi-brand Loyalty? Thanks for your help...           Brand Loyalty Questionare Hi, I need a questionaire on brand loyalty. Who can contribu...           How to Collaborate with Already Existing Brands Hi, I need some inputs about approaching the established bra...           Brand Loyalty versus Brand Commitment (1 reactions) Hi. Can anyone help me in differentiating brand loyalty from...           Is there Brand Loyalty in Banking? (1 reactions) In my countryside (Binh Duong province, Vietnam) we have 55 ...           Relationship Between Brand Loyalty and Brand Trust (1 reactions) Hi, I need to know about the impact of brand trust to brand ...           Dimensions of Measuring Brand Loyalty Companies use different marketing strategies to cultivate , ...           Reasons for Switching of Mobile Phone Brand (2 reactions) I will like to known some of the factors that will let a cus...           Customer Versus Brand Loyalty? (3 reactions) Hi to all. Can anyone help me in differentiating brand loyal...

Best Practices - Brand Loyalty Here you will find the most valuable ideas.

Expert Tips - Brand Loyalty Here you will find high-quality advice from experts.   The Relationship Between Loyalty and Satisfaction Customer Loyalty, Brand Loyalty, Customer Satisfaction, CRM...       The 22 Laws of Branding (Trout & Ries) Branding, Brand Recognition...       Brand Engagement of Consumers in the Digital Age Branding, Brand Management, Marketing, Advertising...       Three Dimensions in How Global Brands are Evaluated by Consumers Global Branding, Corporate Reputation, CSR, Globalization...

Resources - Brand Loyalty Here you will find powerpoint presentations, micro-learning videos and further information sources. Brand Stretching and Extension Brand Management, Brand Identity, Global Brand, Meta Brand...   Martin's Trust Model: The Trust Matrix Trust, Corporate Reputation, Corporate Branding, Corporate Image...   The Internet / Social Media Revolution Social Media, Internet Strategy, Internet Impact, Digital Revolution...   Customer Loyalty: Retaining Customers And Solving Customer Complaints Customer Loyalty, Customer Retention, Brand Loyalty...   Introduction to Managing Brands Brand Management, Brand Loyalty, Brand Equity...   How Sponsoring Enhances and Supports other Marketing Elements Initial Understanding of the Added Value of Sponsoring...   Understand the Basics Behind Sport Sponsoring Initial Understanding of Sport Sponsoring...   Jennifer Aaker on Branding Jennifer Aaker on Branding...   Customer Value, Satisfaction and Loyalty Customer Retention, Consumer Managment...   A Consumer Perspective of Cause Related Marketing 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.