In contrast, companies love to bring their prices down to influence customer to buy their product. At the same time, they appeal to customer ethos by rhetorically stating “I understand hard time. Therefore, my company lower prices, because we understand and appreciate our customers”. This is not an everyday conclusion. However, there is evidence that shows customers are more likely to buy from a company that have lower prices. Company’s strategies range from repeated advertisement, lowing prices, to teaming up with universities (school), and hospitals etc. The main goal is to a higher percentage of brand loyalty.
Defining Brand Loyalty
Brand Loyalty is customer buying a product over and over again. It is a major component for any business to excel. According to “Not All Repeat Customers Are the Same: Designing Effective Cross Selling Promotion on the Basis of Attitudinal Loyalty and Habit” by Yuping Liu-Thompkins & Leona Tarn discourse covers brand loyalty and habits, that results for contextual cues. The author argues:
“Consumers exhibit behavioral loyalty when they repeatedly patronize a business, often to the exclusion of competing offers. Although such repeat purchases are desirable from a financial perspective, it is not optimal to take behavioral loyalty at face value, because consumers' repeat purchases may be driven by different reasons, such as favorable attitude, switching barriers, and sunk costs (Dick and Basu 1994). Identifying the drivers of behavioral loyalty can help properly allocate resources among marketing tactics (Seetharaman 2004) and enable the creation of customized marketing programs for maximum effectiveness”. (Liu-Thompkins & Tarn 2013)
The authors wish to show customers are unconsciously infl...
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...otal revenue at Britvic rose by 9% to 353.6 million in the estimated six months to April”. (Food & Drink Technology 2007)
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This shift in focus repositions the lens squarely back onto the consumer as a strategy to build more valuable, deeper brand relationships. With this paradigm shift, comes the necessity of a sharper focus upon loyalty: What it consists of and how it can be shaped.
After the use of Reese’s Pieces in the movie E.T. product placement has risen to extreme heights. Some ask the question if product placement was around before the popular use of it in E.T. Research has proven that this form of advertisement has been around and used since the beginning of cinema, Ben Kozary states “the first reported product placement occurred in 1896, with the deliberate integration of Sunlight Soap by Unilever into several Lumière films” (2) from his paper “The Influence of Product Placement Prominence on Consumer Attitudes and Intentions: A Theoretical Framework.” This makes product placement one of the longest running uses of advertisement around. Product placement in movies and television shows, while unethical in some situations, is the most preferred and effective form of advertisement today.
The phrase Brand loyalty refers to consumers sticking with a brand out of feeling of commitment for that brand. "Consumers attachments to certain brands are so powerful that this loyalty is often considered as a product attribute in and of its self”(Solomon). Solomon’s quote, is showing the attachment that people feel when they purchase a product for a long time, and are still very happy with it, is a huge plus in its self. People enjoy the luxury of not having to scavenge around the supermarket in search of a new product. Brand loyalty is also very attractive to the companies since they enjoy their work being easier, and less costly. It is less expensive and less time consuming to keep old customers, rather than spend money and time advertising towards new ones. "Furthermore, companies with faithful customers tend to be less susceptible to economic down turns or new competitors"(Harrell).
Brand Loyalty: By keeping long term vision in mind to regain customer loyalty and overall brand image by retaining current customer...
When a customer is loyal he or she will definitely repeat purchase and even advertise your organization through word of mouth. Customer loyalty is the act of customers buying repeatedly as opposed to choosing those of competitors (Wyse, 2012). The impact of customer satisfaction on customer loyalty was showed in a study conducted by Mitchell (2004) who revealed a positive relationship between customer satisfaction and loyalty. Customer loyalty requires that firms or organizations meet their customers’ needs and demands in order to maintain a long lasting relationship (Campton, 2004). Coldburn (2013) also showed that satisfaction and loyalty goes together. The author indicated in his/her study that as far as customers expectation of a products or services are met, they remain loyal to the organization. An increase in satisfaction then lead to an increase in a company’s profits (Cacioappo, 2000).Eckert emphasizes that loyal customers according to are more likely to purchase or to recommend the purchase of a company’s products and services to someone else. The opposite is also true. Dissatisfied customers are likely to tell others the experiences they had with firms. Firms therefore will need to improve their customer satisfaction in order to grow loyalty and attract new customers (Agarwal,
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Consumers with brand loyalty are indifferent with too many choices in shopping as they tend to ignore other brands and chooses product from their preferred brand.
The marketing skills that these companies possess are the reason both Coca-Cola and Pepsi are so successful. Our research will provide an in-depth look at the marketing tactics that these companies use and how they compare to each other. The use of new technologies, forecasting, advertising, and political environments will all be included when determining what affects the marketing strategies the companies choose to take.
“Organizations should aim to effectively strengthen their marketing position through a loyalty program without compromising on their customer’s perception of fairness.” (3) These programs should be favorable to customers by equitably administering and thoroughly communicating all underlying context relating to how firms use loyalty programs. Keeping all customers aware at a persistent level of und...
In order for a brand to fall under the category behavioral loyalty customers must not only be brand loyal, but also feel that it is the only brand out there that has the product they need (pg.96). For example, if the product
Simon, C.J., & Sullivan, M. W. (1993). “The measurement and determinants of brand equity: A financial approach”. Marketing Science, 12(1), 28-52.
Definition of brand loyalty is quite broad and can build up in various forms depending on the source of research from repeat purchases to favourable attitudes towards a brand (Lofgren and Li, 2010). From Figure3 brand loyalty can be divided into two major characteristics which are attitudinal and behavioural (Lofgren and Li, 2010). There are three types of users classified by frequency of purchase and attitude toward brand. Single user is a group of consumers who have highest purchase rate and most probability to be loyal consumers to one brand in particular, which makes these consumers become the hardest one to influence as marketing tools have minimal impact on them. Multiple users are the largest group, they tend to use
Task 1: Critically evaluate the key concepts/theories on the topic of the effectiveness of loyalty programmes on customer loyalty