What is Brand loyalty
MIT School of Distance
Education
What is Brand Loyalty
What is Brand Loyalty ?
• Brand loyalty is a consistent consumer behavior
characterized by a strong commitment to a
particular brand or product, leading to repeated
purchases.
• It involves an emotional connection, as consumers
make the decision to buy the same brand
repeatedly due to their belief that it consistently
fulfills their expectations.
• This loyalty is rooted in the perception that the
brand possesses qualities that align with the
consumer's needs and establishes a personal
connection.
• In essence, brand loyalty reflects a consumer's
ongoing dedication to a specific brand based on
positive experiences and a sense of identification.
Types of Brand Loyalty
Consumers engage with products and often form a mental perception or image associated with
those products.
Different types of Brand loyalty are as follows –
1) Hard-core loyals - They are customers characterized by their consistent and repetitive
purchasing behavior, demonstrating a strong commitment to a particular brand. These individuals
not only make repeated purchases of the same brand but also actively promote and support the
brand as staunch advocates. In simpler terms, hard-core loyals are devoted customers who
consistently choose and enthusiastically endorse a specific brand.
2) Split loyals – They represent a form of brand loyalty where customers exhibit a distinct
preference for a few select companies or brands, showing strong allegiance to two or three
choices. In other words, these consumers display loyalty by consistently favoring and sticking with
a limited number of brands, showcasing a clear and deliberate preference for specific companies
over others.
Types of Brand Loyalty
3) Shifting loyals – They are customers characterized by their tendency to frequently switch
from one brand to another. In simpler terms, these consumers do not exhibit a consistent
preference for a particular brand; instead, they are inclined to change their choices and try
different brands over time. Shifting loyals are characterized by their lack of long-term
commitment to a specific brand, as they explore and experiment with various options in the
market.
4) Switchers – They represent a form of consumer behavior where customers do not exhibit
loyalty to any specific brand. Instead, they prioritize factors such as affordability, quality, or
effectiveness, irrespective of the brand or company. In simpler terms, switchers are
consumers who make purchasing decisions based on immediate needs or preferences
without being committed to a particular brand. Their choices are driven by seeking the best
value, performance, or price, without a strong allegiance to any specific brand.
Brand Loyalty Factors
Brand loyalty can be solely Providing high-quality products
influenced by customer ensures satisfied customers, fostering Product
psychology, leading to situations brand loyalty in the process.Quality
where excellent products lack
loyal customers, and subpar
products garner a following. Customer Brand
Psychology Image
A brand that is customer-friendly
Brand and maintains a consistent positive
Loyalty image builds loyalty among
Customer loyalty is built when Factors customers.
good products are readily
available when needed, and
excellent after-sales service Availability Perceived
enhances a positive perception. and service value
Customers become loyal to a brand when
they believe the value they receive is
worth the price paid. Companies can
Switching enhance this value perception through
cost loyalty discounts or programs.
Customers may switch brands if a more
affordable option with comparable quality is
available; therefore, pricing is a crucial
factor in brand loyalty.
Advantages of Brand Loyalty
Brand loyalty offers several advantages for both businesses and consumers. Here are some key
advantages:
1) Repeat Business:
Brand loyal customers are more likely to make repeat purchases. This consistent patronage
provides a stable and predictable revenue stream for businesses.
2) Customer Retention:
Building brand loyalty helps retain existing customers. Loyal customers are less likely to switch to
competing brands, reducing customer churn.
3) Word-of-Mouth Marketing:
Loyal customers often become brand advocates, recommending the brand to friends, family, and
colleagues. This word-of-mouth marketing can contribute to acquiring new customers.
4) Long-Term Business Success:
Establishing brand loyalty contributes to the long-term success and sustainability of a business.
Loyal customers provide a foundation for growth and prosperity over time.
Advantages of Brand Loyalty
5) Cost Efficiency:
Brand loyalty reduces the need for extensive marketing efforts and promotions to attract
new customers.
6) Brand Stability:
Brand loyalty contributes to the stability and resilience of a brand, especially during
market fluctuations. Loyal customers may remain loyal even in the face of competitive
challenges.
7) Emotional Connection:
Brands that successfully build loyalty often create emotional connections with their
customers. This emotional bond can deepen the customer-brand relationship.
8) Competitive Advantage:
In competitive markets, having a base of loyal customers can be a significant
advantage. It creates a barrier for competitors trying to attract the same customer base.
Example of Brand Loyalty - Apple
Apple stands out as a brand with incredibly loyal customers. According to
a Morgan Stanley survey, 92% of iPhone users express a strong
likelihood of upgrading to another iPhone in the next 12 months.
Apple's success lies in its emphasis on customer convenience and a
premium image. Rather than focusing solely on technical specifications,
Apple communicates the benefits that customers value.
The company strategically combines these benefits with a unique
operating system (iOS), premium marketing, and pricing strategies,
creating appeal among urban high earners who appreciate standing out
from the crowd of Android users.
Learn Brand Loyalty - PGDM in Marketing Management
A marketing manager is responsible for overseeing the promotion of a company's offerings,
aiming to strategically advertise products or services. The primary objective is to draw in
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The PGDM Marketing Management course aims to empower students with the expertise and
capabilities needed for proficiently devising, executing, and evaluating marketing plans.
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• Develop analytical skills to forecast market movement, competitor strategies
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Potential Careers Opportunities
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roles namely:
1) Advertising Manager 5) Digital Marketing Manager
2) Advertising Art Director 6) Public Relations Manager
3) Market Research Manager 7) Business Development Manager
4) Marketing Manager 8) Brand Manager
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