Brand Loyalty

Knowledge Center

   

Description of Brand Loyalty. Explanation.

Contents

Premium

 

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 Special Interest Group


Special Interest Group (117 members)


Brand Loyalty Forum  

Recent topics

  Reasons for Switching of Mobile Phone Brand
I will like to known some of the factors that will let a customer switch from one mobile phone brand to another and why? Thanks for your ideas......
     
 
  Brand Loyalty versus Brand Commitment
Hi. Can anyone help me in differentiating brand loyalty from brand commitment?
Thanks for your ideas and help....
     
 
  Mediating Factors in the Satisfaction-Loyalty Relationship
Of course there exists a relationship between Satisfaction and Loyalty. Satisfaction can be seen as consistency between prior expectations of a certai...
     
 

Best Practices - Brand Loyalty
  Relationship Between Brand Loyality and Brand Equity
Are the terms "brand loyality" and "brand equity" different terms for the same thing?...
     
 
  Multi-brand Loyalty Concept
What is meant with Multi-brand Loyalty? Thanks for your help......
     
 
  Brand Loyalty Questionare
Hi, I need a questionaire on brand loyalty. Who can contribute one. Please react.....
     
 
  How to Collaborate with Already Existing Brands
Hi, I need some inputs about approaching the established brands in different fields. I want to know about the collaboration with them, if anyone is go...
     
 
  Customer Versus Brand Loyalty?
Hi to all. Can anyone help me in differentiating brand loyalty and customer loyalty? They are given as separate topics so I am a little bit confused b...
     
 



All you need to know about management


  Brand and Client's Loyalty in Banking
In my countryside (Binh Duong province, Vietnam) we have 55 banks at branch level and 150 at subbranche level that means the competition is so hard. B...
     
 
  Relationship Between Brand Loyalty and Brand Trust
Hi, I need to know about the impact of brand trust to brand loyalty. Who can share some info / ideas... Thanks!...
     
 
  Measuring Brand Loyalty
Companies use different marketing strategies to cultivate loyal customers, through  
   
 

Expert Tips - Brand Loyalty
 

The 22 Laws of Branding (Trout & Ries)

 
 
 

Brand Engagement of Consumers in the Digital Age

 
 
 

Three Dimensions in How Global Brands are Evaluated by Consumers

 
 



Advance yourself in business administration and management



Resources - Brand Loyalty

Brand Stretching and Extension

 

Martin's Trust Model: The Trust Matrix

 

Steve Jobs on Brand Strategy and Core Values

 

The Internet / Social Media Revolution

 

Customer Loyalty: Retaining Customers And Solving Customer Complaints

 

Introduction to Managing Brands

 

How Sponsoring Enhances and Supports other Marketing Elements

 

Understand the Basics Behind Sport Sponsoring

 

Jennifer Aaker on Branding

 

Customer Value, Satisfaction and Loyalty

 

A Consumer Perspective of Cause Related Marketing

 
 

News about Brand Loyalty


     
 

Videos about Brand Loyalty


     
 

Presentations about Brand Loyalty


     
 

Books about Brand Loyalty


     
 

More about Brand Loyalty


     



Accelerate your management career



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

Special Interest Group Leader

 
 

Return to Management Hub: Marketing  |  Strategy


More on Management  |  Return to Management Dictionary  | 

 

This ends our Brand Loyalty summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2018 12manage - The Executive Fast Track. V15.0 - Last updated: 13-11-2018. All names ™ of their owners.