Brand Loyalty

Description of Brand Loyalty. Explanation.

Definition Brand Loyalty . Description.

Brand Loyalty is the situation when a consumer is reluctant to switch from buying and consuming the product from the brand he knows and trusts. It is part of a firm's Relational Capital.

It consists of a consumer's commitment or preference to repurchase the brand and can be demonstrated by repeated buying of the product or service or other positive behaviors such as word of mouth advocacy. It is more than simple repurchasing behavior, since customers may repurchase a brand also due to:

Situational constraints.
A lack of viable alternatives.
Out of convenience.

Such loyalty is then referred to as "Spurious Loyalty".

3 reasons why Brand Loyalty is important:

Higher sales volume. Through reducing customer loss.
Premium pricing ability. As loyal consumers are less sensitive to price changes, generally, they are willing to pay more for their preferred brand.
Lower costs for advertising, marketing and distribution. Brand loyalists are willing to search for their favorite brand and are less sensitive to competitive promotions.

Brand Loyalty Forum (7)

Multi-brand Loyalty Concept
"What is meant with Multi-brand Loyalty? Thanks for your help..."

Relationship Between Brand Loyalty and Brand Trust
"Hi, I need to know about the impact of brand trust to brand loyalty. Who can share some info / ideas... Thanks!"

Measuring Brand Loyalty
"Companies use different marketing strategies to cultivate loyal customers, through loyalty programs or trials and incentives.
In most cases you can measure brand loyalty in two dimensions:
1. Behavioural component, that could be measured through the customer share: the share of the customer category purchases that is related to the brand. In other words, market share at the client level.
2. Emotional component, that can be measured through statements by people who recommend the brand to their friends."

Customer Versus Brand Loyalty?
"Hi to all. Can anyone help me in differentiating brand loyalty and customer loyalty? They are given as separate topics so I am a little bit confused because both of them appear to be the same / similar."

How to Collaborate with Already Existing Brands
"Hi, I need some inputs about approaching the established brands in different fields. I want to know about the collaboration with them, if anyone is going to start a new business."