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 let a customer switch mobile phone brand and why? Thanks for your ideas......           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 certain product and the perceived performance. Correspondingly, the probability that a SATISFIED cons...           Brand Loyalty versus Brand Commitment Hi. Can anyone help me in differentiating brand loyalty from brand commitment? Thanks for your ideas and help....           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. Banks use many promotion policies for their mobilization and give loan to clients (business and perso...           Multi-brand Loyalty Concept What is meant with Multi-brand Loyalty? Thanks for your help......           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 loyalty programs or trials and           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 because both of them appear to be the same / similar....           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 going to start a new business....           Relationship Between Brand Loyality and Brand Equity Are the terms "brand loyality" and "brand equity" different terms for the same thing?...           Brand Loyalty Questionare Hi, I need a questionaire on brand loyalty. Who can contribute one. Please react.....         Begin 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 inversely proportional to its scope. Trying to be all things to all people undermines the power of th... Usage (application): Branding, Brand Recognition       Brand Engagement of Consumers in the Digital Age Edelman argues that nowadays people are connecting with brands in a different way than before. This is cuased mainly because of an increased number of... 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 and value global brands. They found out that 3 main characteristics are critical in the evaluation o... Usage (application): Global Branding, Corporate Reputation, CSR, Globalization

Resources - Brand Loyalty Premium Brand Stretching and Extension Presentation that is mainly about Brand Stretching and branding in a Global Context. The presentation includes many examples and contains the followin... 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 brand, company or sector is TRUST. In the financial sector for example, the abuse of public trust h... 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 Marketing and Core Values. He argues that in this noisy and complicated world companies do not have m... Usage (application): Marketing, Branding, Strategic Vision, Core Values   The Internet / Social Media Revolution Video shows how fast social media is growing. And gives a clear status of the position of social media by 2014. Great starter for a discussion, p... Usage (application): Social Media, Internet Strategy, Internet Impact, Digital Revolution   Customer Loyalty: Retaining Customers And Solving Customer Complaints Presentation about loyalty that also include strategies to retain consumers and the identification and management of conflicts with customers. The fol... Usage (application): Customer Loyalty, Customer Retention, Brand Loyalty   Introduction to Managing Brands Presentation about brand management. Table of content: MANAGING BRANDS FOR COMPETITIVE ADVANTAGE - Brand Loyalty: brand recognition, brand ... Usage (application): Brand Management, Brand Loyalty, Brand Equity   How Sponsoring Enhances and Supports other Marketing Elements Fiona Green explaines that sponsoring is valuable to support and enhance other marketign elemenets such as CRM, PR, advertizing, etc., but can not rep... Usage (application): Initial Understanding of the Added Value of Sponsoring   Understand the Basics Behind Sport Sponsoring A sponsorship is a business contract between a company and an individual, a club, a team or an event in which the company provides money and equipment... Usage (application): Initial Understanding of Sport Sponsoring   Jennifer Aaker on Branding Jennifer Aaker explains the difference between brand and branding: - "Branding" is just the tip of the iceberg (the mark, the name, the icon, the... Usage (application): Jennifer Aaker on Branding   Customer Value, Satisfaction and Loyalty Simple presentation about Customer Value, Satisfaction and Loyalty. The presentation includes the following: 1. Managerial Paradigm 2. Amazo... Usage (application): Customer Retention, Consumer Managment   A Consumer Perspective of Cause Related Marketing Delanie Nielsen explains that for consumers not only the price, quality, brand loyalty determine the purchases they make, but also the company associa... Usage (application): Initial Understanding of Cause Marketing     News Brand Loyalty         Videos Brand Loyalty         Presentations Brand Loyalty         More 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.