According to Souiden, Kassim and Hong (2006, p. 838), Corporate image affect the consumer’s behavior and perception of a company’s product as qualitative and credible and hence giving the value to their offerings. So, when the product is valued as qualitative, the consumer have tendency to choose the brand most often. But it is debatable whether the corporate image of a product remains same over the period? This loyalty can be observed under two cases as below
Nokia, once a leader in mobile phones, has now shrunk with market sales of 2.58 % in 2015 (Bradley, 2016). As per my knowledge, there had been good times for Nokia as it had a lot of Loyal Customers, who would prefer only Nokia the quality phones but, that corporate image didn’t take long to shift. Nokia shifted from the market leader to 2nd and now at the third position
On the other hand, brands like coca-cola, wai-wai and Samsung are being popular. Coca-cola has extended its market penetrating the rural areas also. Meanwhile Wai-wai has added different flavor of instant noodles and soups to the brand. Samsung also has added different product to its basket, notably note-books and swatch among others.
Torres-Moraga, Vasquez-Parraga and Zamora-Gonza (2008, p. 312) puts forth the idea that loyalty depends on the type of product and there will be its significance with traditional foods and drinks but is significant with innovative products ( mostly autmobiles and electronic). If we analyze the above examples on the basis of this assumption, it make a clear sense that innovation can not be an option for a product that need innovation.
Innovation clearly is a factor that impacs the brand loyalty, but again if we consider the recent awareness in health, environmental protection or similar causes and right activism, they also have caused many to switch to another brand. Indian Yoga guru had a great push on cause of health, yoga and natural food consumption and later when he came up with the basket of consumer products with brand "Patanjal Ayurvedic, that became an instant hit and saw a shift of consumer to its product. Patanjali’s market share is likely to be around 5%, which has just three players until now (Rukhaiyar, 2016). Beside this, his denounciation of chemical products in foods and cold-drinks by Ramdev was also a big shock to the multinationals after which there were high concerns for safe food in India. Recently, India had also banned Maggie for short time with the growing concerned of it containing high MSG and recently Coca-cola also has closed its 3 factories, and it is anticipated to be closed due to declining demand of coke.
Basing on all those examples, I can say that brand loyalty matters until the product gives the maximum value to the consumer. In short run, with limited products and with specialized products, the brand loyalty may be possible but I do not think in the long run, brand loyalty is possible. Consumer are sensitive to change in perception with various changes in the environment. As long as the brand keeps innovating, adjusting to the changes in the business environment and satisfying the consumer’s need, they can be the loyal customer else, there are high chances of customer switching.
Reference
Bradley, T. (2016, January 29). Forbes . Retrieved from Windows Phone Can Be Saved If Microsoft Copies The Competition: forbes.com/sites/tonybradley/2016/...
Torres-Moraga, E., Vasquez-Parraga, A. Z., & Zamora-Gonza, J. (2008). Customer satisfaction and loyalty: start with the product, culminate with the brand. Journal of Consumer Marketing , 25 (5), 302–313.
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According to Souiden, Kassim and Hong (2006, p. 838), Corporate image affect the consumer’s behavior and perception of a company’s product as qualitative and credible and hence giving the value to their offerings. So, when the product is valued as qualitative, the consumer have tendency to choose the brand most often. But it is debatable whether the corporate image of a product remains same over the period? This loyalty can be observed under two cases as below
Nokia, once a leader in mobile phones, has now shrunk with market sales of 2.58 % in 2015 (Bradley, 2016). As per my knowledge, there had been good times for Nokia as it had a lot of Loyal Customers, who would prefer only Nokia the quality phones but, that corporate image didn’t take long to shift. Nokia shifted from the market leader to 2nd and now at the third position
On the other hand, brands like coca-cola, wai-wai and Samsung are being popular. Coca-cola has extended its market penetrating the rural areas also. Meanwhile Wai-wai has added different flavor of instant noodles and soups to the brand. Samsung also has added different product to its basket, notably note-books and swatch among others.
Torres-Moraga, Vasquez-Parraga and Zamora-Gonza (2008, p. 312) puts forth the idea that loyalty depends on the type of product and there will be its significance with traditional foods and drinks but is significant with innovative products ( mostly autmobiles and electronic). If we analyze the above examples on the basis of this assumption, it make a clear sense that innovation can not be an option for a product that need innovation.
Innovation clearly is a factor that impacs the brand loyalty, but again if we consider the recent awareness in health, environmental protection or similar causes and right activism, they also have caused many to switch to another brand. Indian Yoga guru had a great push on cause of health, yoga and natural food consumption and later when he came up with the basket of consumer products with brand "Patanjal Ayurvedic, that became an instant hit and saw a shift of consumer to its product. Patanjali’s market share is likely to be around 5%, which has just three players until now (Rukhaiyar, 2016). Beside this, his denounciation of chemical products in foods and cold-drinks by Ramdev was also a big shock to the multinationals after which there were high concerns for safe food in India. Recently, India had also banned Maggie for short time with the growing concerned of it containing high MSG and recently Coca-cola also has closed its 3 factories, and it is anticipated to be closed due to declining demand of coke.
Basing on all those examples, I can say that brand loyalty matters until the product gives the maximum value to the consumer. In short run, with limited products and with specialized products, the brand loyalty may be possible but I do not think in the long run, brand loyalty is possible. Consumer are sensitive to change in perception with various changes in the environment. As long as the brand keeps innovating, adjusting to the changes in the business environment and satisfying the consumer’s need, they can be the loyal customer else, there are high chances of customer switching.
Reference
Bradley, T. (2016, January 29). Forbes . Retrieved from Windows Phone Can Be Saved If Microsoft Copies The Competition: forbes.com/sites/tonybradley/2016/...
Rukhaiyar, A. ( 2016, February 3). The Hindu . Retrieved from The Hindu website: thehindu.com/news/cities/mumbai/bu...
Torres-Moraga, E., Vasquez-Parraga, A. Z., & Zamora-Gonza, J. (2008). Customer satisfaction and loyalty: start with the product, culminate with the brand. Journal of Consumer Marketing , 25 (5), 302–313.