Brand Loyalty

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Summary

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:

  • 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.

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.


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Relationship Between Brand Loyality and Brand Equity
Are the terms "brand loyality" and "brand equity" different terms for the same thing? (...)
6
 
1 comments
Multi-brand Loyalty Concept
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BL Questionare
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BL versus Brand Commitment
Hi. Can anyone help me in differentiating BL from brand commitment?
Thanks for your ideas and help. (...)
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Is there BL in Banking?
In my countryside (Binh Duong province, Vietnam) we have 55 banks at branch level and 150 at subbranche level that means (...)
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Relationship Between BL and Brand Trust
Hi, I need to know about the impact of brand trust to BL. Who can share some info / ideas... Thanks! (...)
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🔥 NEW Reasons for Brand Switching
I will like to known some of the factors that will let a customer switch between brands, for example from one mobile pho (...)
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Customer Versus BL?
Hi to all. Can anyone help me in differentiating BL and customer loyalty? They are given as separate topics s (...)
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Presentation that is mainly about Brand Stretching and branding in a Global Context. The presentation includes many exam (...)

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Simple presentation about Customer Value, Satisfaction and Loyalty. The presentation includes the following: 1. Manager (...)

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

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