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The Consumer’s Loyalty Theory
The nature of brand loyalty
The Consumer’s Loyalty Theory
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A true brand loyalty can be called when consumers are both inclined to these two factors, otherwise, it can only be called a spurious brand loyalty if only attitude or behavior factors are found (Baldinger & Rubinson, 1996). Loyalty can also be separated from short term loyalty and long term loyalty. Short term loyalty is not a real brand loyalty because a long term customer will not buy other brands even if there is a better choice (Jones & Sasser, 1995). In addition, Bloemer and Kasper (1995) argue that a real brand loyalty should include brand preferences and repurchase behaviors that present in a long term commitment, brand commitment and psychological processing (decision making and evaluation) function while Fornell (1992) proposes that …show more content…
Many researches also maintain that the higher the brand awareness is, the higher perceived quality is (Monore, 1990; Dodds and Grewal, 1991; Wall, Liefeld, & Heslop, 1991; Lo, 2002; Lin, 2006 ). Kan (2002) further suggest that the higher the brand awareness is, the higher the consumers’ quality evaluation is. Besides, Aaker and Keller (1990) mentioned that a brand with high awareness and good image can promote brand loyalty to consumers, and the higher the brand awareness is, the higher brand trust and purchase intention are to consumers. Peng (2006) indicates that brand awareness has the greatest total effects on brand loyalty. When businesses develop a new products or a new market, they should promote their brand awareness in order to receive the best result because brand awareness is positively related to brand loyalty (Aaker & Keller, 1990; Peng, 2006; Wu, 2002; Chou, 2005). Chang and Wildt (1994) submit that value can facilitate loyalty. Parasuraman and Grewal (2000) propose that the more positive customer transaction perceptions are, the stronger customer loyalty is. Sirdeshmukh, Sigh and Sabol (2002) also deem that value will bring a positive influence toward customers. Wu (2007) identifies that the perception of consumers will increase or reduce brand loyalty. Judith and Richard (2002) further indicate that perceived quality and brand loyalty have a highly connection, they will positively influence purchase intention. Chi, Yeh and Chiou (2009) a new view and evidence to the study of brand loyalty that customer perceived quality will influence brand trust and brand affect, and further to influence brand attitude and purchase behavior. Thus, perceived quality and brand loyalty are positively correlated, and brand loyalty will increase if perceived quality
Mise, J. K., Nair, C., Odera, O., & Ogutu, M. (2013). Determinants of Brand Loyalty and Product Quality of Soft Drink Consumers. Asian Journal of Business and Management , 1 (1), 8-13.
When the consistency of the information is built, the credibility of the brand becomes higher (Bengtsson, Bardhi and Venkatraman, 2010). It is suggested that asymmetric information leads to consumer uncertainty, which would therefore have a negative impact on brand image (Erdem and Swait, 1998, p. 138). Accordingly, consistency of the information has become a key factor that leads to the successfulness of a global brand since it reduces the uncertainty and the thinking process time of consumers (Lee et al., 2007). Several effects have been found regarding to standardization of a brand (Erdem and Swait, 1998, p. 138). Marketers will have a better control of the brand if the brand meaning has been consistent over the time (Erdem and Swait, 1998, p. 138). First of all, it increases brand equity, which would therefore improve consumer’s brand awareness (Erdem and Swait, 1998, p. 138). Second, it would reduce consumers’ uncertainty of the brand, which would thus increase the reliability of the brand and brand loyalty (Erdem and Swait, 1998, p. 138). Third, it greatly reduces the conflict of consumers’ cognitive structures, which would lead them to trust more on the brand (Erdem and Swait, 1998, p.
I am a compassionate, reliable, caring, and dedicated health care professional, who enjoys caring for the welfare of patients, in order for them to have the best quality of care.
A customer’s response falls in two categories, judgment and feelings. Consumers are constantly making judgments about a brand. These judgments fall into four categories: quality, credibility, consideration, and superiority (Keller, 2001). Customers judge a brand based on its actual and perceived quality, and customers judge credibility using the perception of the company’s expertise, trustworthiness, and likability. To what extent is the brand seen as “competent, innovative, and a market leader,” “dependable and sensitive to the interest of customers,” and “fun, interesting, and worth spending time with” (Keller,
There are a number of brands that I hold loyalty: Tide (laundry detergent), Dawn (dish detergent), and along with Samsung for TV, and Apple for electronic devices. Tide and Dawn are products of Proctor & Gamble. My mother used these; so I naturally used them. Proctor & Gamble was a local company were I grew up so naturally support local business. Using Tide, my laundry is cleaner than using generic. I will be Tide even if it not on sale. Probably, if Tide didn’t work, I would still use it because of Proctor & Gamble reliability. Dawn is another product that I would use regardless. Again, Mom knows best.
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 review of relevant literature is to identify what's brand awareness and how to carry out in strategic marketing, and consumers' behavior. The study prove that the significant factors on brand awareness as a perception of product, service, and image of the company and has a tremendous effect on consumers’ evaluation of system results. From reading all of the relevant journals, it is understandable that the significant factors on building a successful brand image and awareness is consumers and their relationship with the brand, company, service and the product. Brand awareness is the vital importance to marketing strategy and marketing communications because it links customer behavior to firms’ financial metric. Keller (2001), noted, customers’ reaction toward brand awareness is associated profitably brand equity.
Marketing and branding, two of the most common used words in the contemporary world, is closely linked to each other without doubts, but the importance of branding to successful marketing is enquired to measure in term of the question. In fact, various people have different ideas on marketing and branding. For most of people, or customers, the two are normally combined in their minds or even equal to each other. For example, people could raise Apple as the answer for both questions of "what is good branding" and "what is successful marketing". In fact, they are two separate topics on academic, and branding is just one of the numerous marketing activities apparently. However, the perception of consumers might be a good guide to answer the question.
The practice of brand management is a key component of marketing and performs an integral function by motivating the wants and needs of consumers. It is known that marketing can shape consumer needs and wants, however, consumers today appear to be more knowledgeable about the information regarding products. Consumers lead busy lives and have therefore gone to the internet as one of the many channels to learn about products in order to make informed decisions. This paper will discuss the argument that marketing should reflect the needs and wants of consumers rather than shaping these attributes. Due to the speed and ease of obtaining information, consumers do not take at face value strong marketing efforts that appear to be overly aggressive and push a brand rather than just being informative. Brand managers have to be aware of these changing dynamics and carefully craft brand management practices to meet the demands of consumers.
People are buying the product which gives them prestige. Marketers have interest on consumer psychology and they are playing with every day by showing that their product will give prestige in the society. It’s true that the transparent societies now needs brands image. Marketers analyze the interest and needs of consumer than create the product according to the need of the society. Brand can attain the people attraction and the business can have the good reputation by giving satisfaction to consumer. If the brand gives satisfaction and function are according to the expectation of consumer than the brand gets good image on the mind of consumer. brand image is great weapon to use for the competitors it builds in years , at once the business gets brand image it has competitive edge from other brands in the market. When consumer rely on the brand the company can create the long term relation with the consumer, in other words (CRM) consumer relationship management. The brand image has effect on the choice of every individual there believe and attitude change their preferences. Brand image can be effected by price as price is an important part for consumer when they are making purchase decision if they find the value of brand is equal to the pricing they purchase that brand if not they refuse it. Similarly the image of brand can be effected by the attributes and features or
This article studies the relationship between advertising and sales promotions and their impact on brand equity. A main priority for most companies is to establish and achieve a strong and powerful brand name. A company can build a strong brand name by creating the market for their customers want. By creating a strong brand name, a company will become more established. Brand equity is important to the producer, retailer and consumer. The consumer knowledge of the brand says how the producer will produce and market the product. The consumer knowledge of the brand name also determines the quantity the retailer will sale. Brand equity can have a positive or negative effect. A positive effect would be for everyone to recognize the name and purchase the product. The negative effect would be to have the product recalled. Brand equity is important because it can offer many advantages for a company. Brand equity can create a high demand for your product, reduce marketing cost and the company’s brand name will have high credibility.
Each of the senses, are an element that connects us to the outside world. The senses, from time to time can be a guide to the mind and time to time the mind can be more po...
From the study it is clear that people often purchase branded products since they are aware of the brand performance or perhaps they have a good past experience about the brands. This makes customer’s become loyal with the specific brand.
Once in a while they would prefer not to take a risk by attempting to go for another brand. Perceived quality of a brand impacts the decision making process of a consumer. It also straightforwardly impacts the brand dedication of the purchasers. Perceived quality has a more prominent impact in a customer’s buying procedure and in brand loyalty. This impact is essential when customers are in a condition, which makes them not able to make an investigation of the quality. Perceived quality can be utilized as a helping tool when organization plans to use a valuing system with premium cost and further amplify a brand in a few markets. All customers are conscious about the item
At the point when huge organizations work under numerous distinctive brands, administrations and organizations, a brand portfolio is utilized to incorporate every one of these substances under one umbrella. Regularly, each of these brands has its own different trademarks and works as an individual business element. In any case, for advertising purposes, a brand portfolio is utilized to assemble them all together. Brand portfolios are additionally used to decrease purchaser disarray with respect to who possesses specific brands. Brand portfolio is by and large made on the grounds that each brand has certain limit past which it can't satisfy every one of the necessities of various market segments. The preferred standpoint of brand portfolio is the administration can keep beware of the considerable number of brands all in all and edge the approaches with a more extensive viewpoint. Likewise, the assets can be apportioned to the needs of brand.