Brand
loyalty is defined as positive feelings towards a brand and
dedication to purchase the same product or
service repeatedly now and in the future from the same brand, regardless of a
competitor’s actions or changes in the environment.
Benefits:
Brand loyalty has shown to profit firms by saving them a lot of
money. Benefits associated with loyal consumers include:
·
Acceptance of product
extensions.
·
Defense from
competitors cutting of prices.
·
Creating barriers to
entry for firms looking to enter the market.
·
Customers willing to
pay high prices.
·
Existing customers
cost much less to serve.
·
Potential new
customers.
Generally speaking, brand loyalty will increase profit over time
as firms do not have to spend as much time and money on maintaining
relationships or marketing to existing consumers. Loyal long-term customers
spend more money with a firm.
Philip Kotler, again, defines four patterns of behavior
regarding brand loyalty
1. Hard-core Loyals - who buy the brand all the
time.
2. Split Loyals - loyal to two or three brands.
3. Shifting Loyals - moving from one brand to
another.
4. Switchers - with no loyalty
No comments:
Post a Comment