Brand loyalty is the degree to which a customer purchases the same brand within a product category. It is the positive feelings towards a brand and dedication to purchase the same product or service repeatedly. It is more than simple repurchasing. People feel certain level of connection to the brand when they are loyal to it. For example: The people using IPhone do not prefer using androids. Similarly, people who are loyal to Nike always purchase products of same brand. The brand loyalty has three major approaches: behavioral approach, attitudinal approach and composite approach. The behavioral approach refers to the consumer’s repetitive and systematic purchasing behavior of a given brand. Attitudinal approach refers to consumer’s positive beliefs and feelings towards a brand among a set of competing brands. The composite approach refers to the combination of both the behavioral and attitudinal approaches (Temessek, 2009).
I think brand loyalty was not as important factor before 10 -15 years as it is today. It is because at that time there was not many choices and people were forced to buy whatever was available. The competition was not as fierce as it is today. Products were developed to satisfy the need rather than creating brand image. For example: When Nokia was first introduced, people did not have other choices so whoever need cellphones bought it. But now brand loyalty is important to keep customers entertained and engaged, foster stronger relationships, and ultimately increase customer lifetime value and Return on Investment (Lafley & Martin , 2017).
In addition, loyal base of satisfied customers can reduce the costs for marketing and promotion by spreading positive word of mouth. The company can increase the profit margin by charging premium price for the product. Brand loyalty is important not only to sustain and retain the customers but also to acquire new customers by marketing from the satisfied customers. Customers today want the companies to co-create with them and the companies want customers to taking active part in product development and advocate about product. So brand loyalty is of great importance.
In order to maintain the brand loyalty and prevent the customers from shifting to other competitive brands, the companies should support customers with valuable content and wonderful customer experience. Allowing discounts, being consistent, introducing loyalty programs and offering freebies can help in maintaining brand loyalty. Furthermore they should have a strong storytelling and social networking for this.
References
Lafley , A. G., & Martin , R. L. (2017). Customer Loyalty Is Overrated. Harvard Business Review .
Temessek, M. T. (2009). Brand Loyalty: Impact of Cognitive and Affective Variables. Journal of Marketing and Applied Informatics , 34-89.
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Brand loyalty is the degree to which a customer purchases the same brand within a product category. It is the positive feelings towards a brand and dedication to purchase the same product or service repeatedly. It is more than simple repurchasing. People feel certain level of connection to the brand when they are loyal to it. For example: The people using IPhone do not prefer using androids. Similarly, people who are loyal to Nike always purchase products of same brand. The brand loyalty has three major approaches: behavioral approach, attitudinal approach and composite approach. The behavioral approach refers to the consumer’s repetitive and systematic purchasing behavior of a given brand. Attitudinal approach refers to consumer’s positive beliefs and feelings towards a brand among a set of competing brands. The composite approach refers to the combination of both the behavioral and attitudinal approaches (Temessek, 2009).
I think brand loyalty was not as important factor before 10 -15 years as it is today. It is because at that time there was not many choices and people were forced to buy whatever was available. The competition was not as fierce as it is today. Products were developed to satisfy the need rather than creating brand image. For example: When Nokia was first introduced, people did not have other choices so whoever need cellphones bought it. But now brand loyalty is important to keep customers entertained and engaged, foster stronger relationships, and ultimately increase customer lifetime value and Return on Investment (Lafley & Martin , 2017).
In addition, loyal base of satisfied customers can reduce the costs for marketing and promotion by spreading positive word of mouth. The company can increase the profit margin by charging premium price for the product. Brand loyalty is important not only to sustain and retain the customers but also to acquire new customers by marketing from the satisfied customers. Customers today want the companies to co-create with them and the companies want customers to taking active part in product development and advocate about product. So brand loyalty is of great importance.
In order to maintain the brand loyalty and prevent the customers from shifting to other competitive brands, the companies should support customers with valuable content and wonderful customer experience. Allowing discounts, being consistent, introducing loyalty programs and offering freebies can help in maintaining brand loyalty. Furthermore they should have a strong storytelling and social networking for this.
References
Lafley , A. G., & Martin , R. L. (2017). Customer Loyalty Is Overrated. Harvard Business Review .
Temessek, M. T. (2009). Brand Loyalty: Impact of Cognitive and Affective Variables. Journal of Marketing and Applied Informatics , 34-89.