What is Brand Loyalty? Meaning.
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:
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:
-
Satisfaction (brand reputation): BL is often seen as a way for consumer to show that they are satisfied with certain goods and services.
-
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.
-
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:
-
Higher sales volume. Through reducing customer loss.
-
Premium pricing ability. As loyal consumers are less
sensitive to price changes, generally, they are willing to pay more for
their preferred brand.
-
Lower costs for advertising, marketing and distribution.
Brand loyalists are willing to search for their favorite brand and are less
sensitive to competitive promotions.
Brand Switching can be defined as the process of moving loyalty from one brand of a certain type of product/service to another brand by the customer, due to dissatisfaction, inconvenience, or other problems.
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 (126 members)
|
|
Forum about Brand Loyalty.
|
|
Best Practices
|

|
The top-rated topics about Brand Loyalty. Here you will find the most valuable ideas and practical suggestions.
|
|
Expert Tips
|

|
Advanced insights about Brand Loyalty. Here you will find professional advices by experts.
|
The Relationship Between Loyalty and Satisfaction Customer Loyalty, Brand Loyalty, Customer Satisfaction, CRM Of course there is a relationship between Satisfaction and Loyalty. Satisfaction can be seen as consistency between prio...
|
|
The 22 Laws of Branding (Trout & Ries) Branding, Brand Recognition 1. The Law of Expansion: The power of a brand is inversely proportional to its scope. Trying to be all things to all peo...
|
|
Brand Engagement of Consumers in the Digital Age Branding, Brand Management, Marketing, Advertising Edelman argues that nowadays people are connecting with brands in a different way than before. This is cuased mainly bec...
|
|
Three Dimensions in How Global Brands are Evaluated by Consumers Global Branding, Corporate Reputation, CSR, Globalization Holt et al. (2004) researched how people evaluate and value global brands. They found out that 3 main characteristics ar...
|
|
|
Information Sources
|

|
Various sources of information regarding Brand Loyalty. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.
|
Brand Stretching and Extension Brand Management, Brand Identity, Global Brand, Meta Brand Presentation that is mainly about Brand Stretching and branding in a Global Context. The presentation includes many exam...
|
|
Martin's Trust Model: The Trust Matrix Trust, Corporate Reputation, Corporate Branding, Corporate Image An important determinant of the reputation of your brand, company or sector is TRUST. In the financial sector for exampl...
|
|
The Internet / Social Media Revolution Social Media, Internet Strategy, Internet Impact, Digital Revolution Video shows how fast social media is growing. And gives a clear status of the position of social media by 2014.
Great s...
|
|
Customer Loyalty: Retaining Customers And Solving Customer Complaints Customer Loyalty, Customer Retention, Brand Loyalty Presentation about loyalty that also include strategies to retain consumers and the identification and management of con...
|
|
Introduction to Managing Brands Brand Management, Brand Loyalty, Brand Equity Presentation about brand management. Table of content:
MANAGING BRANDS FOR COMPETITIVE ADVANTAGE
- Brand Loyalty: bra...
|
|
How Sponsoring Enhances and Supports other Marketing Elements Initial Understanding of the Added Value of Sponsoring Fiona Green explaines that sponsoring is valuable to support and enhance other marketign elemenets such as CRM, PR, adve...
|
|
Understand the Basics Behind Sport Sponsoring Initial Understanding of Sport Sponsoring A sponsorship is a business contract between a company and an individual, a club, a team or an event in which the compan...
|
|
Jennifer Aaker on Branding Jennifer Aaker on Branding Jennifer Aaker explains the difference between brand and branding:
- "Branding" is just the tip of the iceberg (the mar...
|
|
Customer Value, Satisfaction and Loyalty Customer Retention, Consumer Managment Simple presentation about Customer Value, Satisfaction and Loyalty. The presentation includes the following:
1. Manager...
|
|
A Consumer Perspective of Cause Related Marketing Initial Understanding of Cause Marketing Delanie Nielsen explains that for consumers not only the price, quality, brand loyalty determine the purchases they make...
|
|
|
Research Links
|

|
Automatically jump to further useful sources regarding Brand Loyalty.
News
|
Videos
|
Presentations
|
Books
|
Academic
|
More
|
|
|
|
Compare also:
Brand Personality
| Brand Identity
Prism | Unbranding | Unaided
Recall | Brand
Recognition | Nielsen Ratings |
Relationship Marketing
| Customer Relationship
Management | Ambient Advertising
|
|
|