This essay True Brand Loyalty has a total of 1538 words and 10 pages.
True Brand Loyalty
True Brand Loyalty
A company’s main question in relation to
selling their products or services use do be:
,,How do I get people to buy my product?"
Nowadays companies still greatly appreciate the answer to this question
but they have also realized that getting customers is not the only thing
they need to do. In today’s rapidly moving world consumers don’t stick
with products for life. Advertisements and an increased feeling of independence
have created consumers that will switch brands or products as soon as the
feel the need to do so. What company’s look for in this consumer environment
is creating a so-called brand loyalty.
This paper will explore the ways
companies go about in creating this brand loyalty and it will investigate
the circumstances and effects that come with it. It will start of by thoroughly
explaining what brand loyalty exactly is. After that an overview of key
success factors stimulating brand loyalty will be given and we will have
a look at how these factors are influenced by different conditions. Examples
will be provided. The relationships between brand loyalty and brand
commitment and satisfaction will be explored. Finally a conclusion will
be reached on how important brand loyalty is to companies and for what
What is Brand Loyalty?
Before one can give a definition
of brand loyalty one first has to make the distinction between repeat purchasing
behavior and brand loyalty. ‘Repeat purchasing behavior is the actual rebuying
of a brand.’ So the behavioral aspect of this action. Brand
loyalty also includes ‘that behavior’s antecedents’. This means the
reason or fact occurring before the behavior. When talking about brand
loyalty we can yet again make a distinction between two types: On the one
hand we have spurious brand loyalty and on the other true brand loyalty.
The former was defined by Bloemer and Kasper as the ‘(1) biased (2) behavioral
response (3) expressed over time (4) by some decision-making unit (5) with
respect to one or more alternative brands out of a set of such brand, (6)
which is a function of inertia.’ The key word here is inertia meaning
without commitment towards the brand. Their definition the latter, and
the most important one in this paper, is exactly the same on the first
five points but differs for the sixth adding ‘is a function of psychological
(decision making, evaluative) processes resulting in brand commitment.’
In this definition brand commitment is the key word.
In laymen’s words true brand loyalty refers
to consumers sticking with a brand out of feelings of commitment towards
that brand. For instance, when you bought a tube of Prodent toothpaste
and you found it ok, you will not have to spend any valuable time on looking
for other toothpaste brands, because you are already familiar with it.
However, for a more brand-loyalty-sensitive product class like beer, the
probability that a consumer will stick to one brand (like Grolsch Beer)
is much higher.
In the next paragraph we will now look
at the relation between brand commitment and brand loyalty.
Brand loyalty is based on the amount
of brand commitment. The amount of commitment is not fixed, but can be
considered as a continuum. The amount of commitment is based on the type
of brand satisfaction. In this article, two types of satisfaction are taken
into account. For the sake of this paper, a distinction has to be made
between manifest and latent brand satisfaction.
First, what is brand satisfaction?
Bloemer defines it as "the outcome of the subjective evaluation that the
chosen alternative (the brand) meets or exceeds the expectations" (pp 314).
Bloemer then makes a distinction between manifest and latent satisfaction.
The distinction basically rests on the degree of elaboration. This in turn
depends on the level of motivation and capacity that a certain consumer
needs in order to evaluate the product. Manifest satisfaction is the result
of a high degree of elaboration. Latent satisfaction is based on the fact
that "the consumer is not fully aware of his/her satisfaction, because
of a lack of motivation and/or ability of the consumer to evaluate his/her
brand choice" (pp.315).
The linkage between satisfaction and brand
Many literatures have been written
on the relation between brand loyalty and consumer satisfaction. This relation
seems quite obvious. Later on we will deal with an article from Bloemer
and De Ruyter (forthcoming) in which they introduce some moderating effects
on this relation. But before we do this, we will describe factors that
influence consumer satisfaction. In this respect Oliver (1981 & 1993)
provides us with some interesting insights. Oliver describes the process
of consumer (dis)satisfaction with help of the disconfirmation theory.
Shortly explained, this theory assumes that consumer satisfaction
Abraham (Bram) Stoker was born November 8, 1847 atAbraham (Bram) Stoker was born November 8, 1847 at 15 The Crescent, Clontarf, North of Dublin, the third of seven children. For the first 7 years of his life Stoker was bedridden with a myriad of childhood diseases which afforded him much time to reading. By the time he went to college, Stoker had somehow overcome his childhood maladies and while at Trinity College, Dublin, the honor student was involved in soccer and was a marathon running champion. He was also involved in various literary and
Bram StokerBram Stoker Bram Stoker Abraham (Bram) Stoker was born November 8, 1847 at 15 The Crescent, Clontarf, North of Dublin, the third of seven children. For the first 7 years of his life Stoker was bedridden with a myriad of childhood diseases which afforded him much time to reading. By the time he went to college, Stoker had somehow overcome his childhood maladies and while at Trinity College, Dublin, the honor student was involved in soccer and was a marathon running champion. He was also involved
Web AdvertisingWeb Advertising annon Web advertising, not to mention the Internet itself, finds itself in a stage of relative infancy and therefore provides marketers with novel challenges and situations which need to be dealt with caution . The realm of Web advertising is unchartered terri tory! In terms of South Africa, the country finds itsef somewhat behind technologically. However, this may not prove to be a disadvantage as the uncertain nature of Web advertising may make a policy of \'watching and learni
BP AmocoBP Amoco BP Amoco British Petrochemical Corporation registered on April 14, 1909, as the Anglo-Persian Oil Company, Ltd. It was named the Anglo-Iranian Oil Company, Ltd., in 1935 and changed its name to the British Petroleum Company Limited in 1954. The current name was adopted in 1982. The company’s headquarters are in London. The Anglo-Persian Oil Company was formed in 1909 to take over and finance an oil-field concession granted in 1901 by the Iranian government to an English investor, Willia
Skoda AutoSkoda Auto Skoda Auto The story of Skoda is one of struggle and success. Skoda enjoys a century-long history of motor vehicle manufacturing in a small town in the Czech Republic, about sixty kilometers outside the cultural and tourist center of Prague. Despite early achievements, times became much harder during the former socialist era. The physical plant fell into disrepair and quality declined. However, this tale in one of transformation, and Skoda has once again become very successful in a jo
Zorlu Holding And Vestel ElectronicsZorlu Holding And Vestel Electronics Zorlu Holding The Vision Of The Company Mehmet Zorlu, established their Group\'s first company in the early 1950s, he laid the ground rules for the Zorlu Group\'s subsequent growth: integrity, perseverance’ and unconditional commitment to quality. Integrity is the Group\'s cornerstone value and they expect it to govern every aspect of their business. Hard work and perseverance are essential for the day-to-day success of their enterprises as they are for the u
International MarketingInternational Marketing International Marketing A firm’s international marketing program must generally be modified and adapted to foreign markets. This international marketing program uses strategies to accomplish its marketing goals. Within each foreign nation, the firm is likely to find a combination of marketing environment and target markets that are different from those of its own home country and other foreign countries. It is important that in international marketing, product, pricing, d
True Brand LoyaltyTrue Brand Loyalty True Brand Loyalty Introduction A company’s main question in relation to selling their products or services use do be: ,,How do I get people to buy my product? Nowadays companies still greatly appreciate the answer to this question but they have also realized that getting customers is not the only thing they need to do. In today’s rapidly moving world consumers don’t stick with products for life. Advertisements and an increased feeling of independence have created consumers t
Coca-Cola and its EvolutionCoca-Cola and its Evolution The Coca-Cola company started out as an insignificant one man business and over the last one hundred and ten years it has grown into one of the largest companies in the world. The first operator of the company was Dr. John Pemberton and the current operator is Roberto Goizueta. Without societies help, Coca-Cola could not have become over a 50 billion dollar business. Coca-Cola was invented by Dr. John Pemberton, an Atlanta pharmacist. He concocted the formula in a thr
Coke vs Pepsi Fighting for Foreign MarketsCoke vs Pepsi Fighting for Foreign Markets Introduction The soft-drink battleground has now turned toward new overseas markets. While once the United States, Australia, Japan, and Western Europe were the dominant soft-drink markets, the growth has slowed down dramatically, but they are still important markets for Coca-Cola and Pepsi. However, Eastern Europe, Mexico, China, Saudi Arabia, and India have become the new hot spots. Both Coca-Cola and Pepsi are forming joint bottling ventures in the
Ben and Jerrys marketing stratgiesBen and Jerrys marketing stratgies Ben & Jerryˇ¦s was experiencing a steady growth within their sales figures from 1990 to 1993. However, In March 1994, Cost of Sales increased approximately $9.6 million or 9.5% over the same period in 1993, and the overall gross profit as a percentage of net sales decreased from 28.6% in 1993 to 26.2% in 1994. This loss might have been a result of several reasons, such as high administration and selling costs, a negative impact of inventory management, and star
Affirmative ActionAffirmative Action Matchmaker.com: Sign up now for a free trial. Date Smarter! Affirmative Action Affirmative action works. There are thousands of examples of situations where people of color, white women, and working class women and men of all races who were previously excluded from jobs or educational opportunities, or were denied opportunities once admitted, have gained access through affirmative action. When these policies received executive branch and judicial support, vast numbers of peopl
The Telephone And Its CorporationThe Telephone And Its Corporation The Telephone And Its Corporation The phone is easily one of man’s most important, useful and taken for granted inventions. The telephone has outgrown the ridicule with which it first received, now in most places taken for granted, it is a part of many people’s daily lives. It marvelously extended the ways man converses that it is now an indispensable help to whoever would live the convenient life. All disadvantage of being deaf and mute to any persons, which wa
The New InternetThe New Internet The New Internet Without a doubt, the Internet is undergoing a major transition as it experiences a tremendous influx of new users. Due to the anarchic, distributed nature of the net, we cannot even begin to enumerate the population of the Internet or its growth. As more of the world\'s population moves on-line, new concerns will arise which did not confront the earlier generations. The new culture will demand different resources, services and technology than the old generations
Strategic challenges of the 21st CenturyStrategic challenges of the 21st Century Introduction This module describes \'what is strategy\' and \'what kind of strategic challenges can be faced by the organisation in the next century\' by the impact of globalisation. The module of \'Strategic Challenges\' consisted of 10 weeks time. During these sessions, I will be able to understand the strategy and its positive implementation and how to plan a strategic plan. The different seminar and presentations helped me in the development of person
In 1993 worldwide illegal copying of domestic andIn 1993 worldwide illegal copying of domestic and international software cost $12.5 billion to the software industry, with a loss of $2.2 billion in the United States alone. Estimates show that over 40 percent of U.S. software company revenues are generated overseas, yet nearly 85 percent of the software industry\'s piracy losses occurred outside of the United States borders. The Software Publishers Association indicated that approximately 35 percent of the business software in the United States