Loyalty is a commitment to a product, a brand or a service based on the rational or emotional decision -molded by their needs and demands at that time by the customer at the time of the purchase (Tucker, 1964). Moreover, brand loyalty is the topic interest to both the academicians and practitioners involved with marketing. Here, brand loyalty occurs when a customer chooses to repeatedly purchase a product by the same company of the same brand instead of the substitute product produced by the competitors. For e.g. some people will always buy Nike products while others will buy Reebok (Kyner, 1973).
There are various reason why brand loyalty is important one of the major aspects is that it reduces the cost of production because the sales volume will be higher. Similarly, companies with brand-loyal customers don’t have to invest a lot of money while marketing the products which will permit the companies to either retain more earnings or to invest the resources elsewhere. Likewise, Brand loyalty is important as companies may use premium pricing that will increase the profit margin. Here, the loyal customer will recommend the products and do word of mouth marketing (Advani, 2005). Brand loyalty is important for marketers because it helps in retaining customers and often requires less marketing resources than acquiring new ones. Furthermore, it has a positive implication on brand equity. However, there are mainly three approaches to brand loyalty which are the behavioral approach, attitudinal approach and the composite approach (Temessek, 2009).
Here, 10-15 years ago there was less competition the customers had no choice but to stick to one brand and purchase that product. However, in today’s age due to the competitive nature people can easier switch their interest from one particular brand to another. Here, for examples before 10-15 years I had no choice but to buy Nokia cell phones but due to the technology enhancement and new innovative ideas now in this age, I can easily switch from one brand to another.
References
Advani, S. R. (2005). Factors affecting Brand Loyalty: A Study in an Emerging Market fast moving consumer goods. Journal of Customer Behavior , 251-257.
Kyner, J. J. (1973). Brand Loyalty vs. Repeat Purchasing Behavior. Journal of Marketing Research , 1-9.
Temessek, M. T. (2009). Brand Loyalty: Impact of Cognitive and Affective Variables. Journal of Marketing and Applied Informatics , 34-39.
Tucker, W. (1964). The Development of Brand Loyalty. Journal of Marketing Research , 32-35.
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Loyalty is a commitment to a product, a brand or a service based on the rational or emotional decision -molded by their needs and demands at that time by the customer at the time of the purchase (Tucker, 1964). Moreover, brand loyalty is the topic interest to both the academicians and practitioners involved with marketing. Here, brand loyalty occurs when a customer chooses to repeatedly purchase a product by the same company of the same brand instead of the substitute product produced by the competitors. For e.g. some people will always buy Nike products while others will buy Reebok (Kyner, 1973).
There are various reason why brand loyalty is important one of the major aspects is that it reduces the cost of production because the sales volume will be higher. Similarly, companies with brand-loyal customers don’t have to invest a lot of money while marketing the products which will permit the companies to either retain more earnings or to invest the resources elsewhere. Likewise, Brand loyalty is important as companies may use premium pricing that will increase the profit margin. Here, the loyal customer will recommend the products and do word of mouth marketing (Advani, 2005). Brand loyalty is important for marketers because it helps in retaining customers and often requires less marketing resources than acquiring new ones. Furthermore, it has a positive implication on brand equity. However, there are mainly three approaches to brand loyalty which are the behavioral approach, attitudinal approach and the composite approach (Temessek, 2009).
Here, 10-15 years ago there was less competition the customers had no choice but to stick to one brand and purchase that product. However, in today’s age due to the competitive nature people can easier switch their interest from one particular brand to another. Here, for examples before 10-15 years I had no choice but to buy Nokia cell phones but due to the technology enhancement and new innovative ideas now in this age, I can easily switch from one brand to another.
References
Advani, S. R. (2005). Factors affecting Brand Loyalty: A Study in an Emerging Market fast moving consumer goods. Journal of Customer Behavior , 251-257.
Kyner, J. J. (1973). Brand Loyalty vs. Repeat Purchasing Behavior. Journal of Marketing Research , 1-9.
Temessek, M. T. (2009). Brand Loyalty: Impact of Cognitive and Affective Variables. Journal of Marketing and Applied Informatics , 34-39.
Tucker, W. (1964). The Development of Brand Loyalty. Journal of Marketing Research , 32-35.