Brand Loyalty

Contents Page

1. Introduction Page 1

2. What is Brand Loyalty Page 2-3

3. Levels of Brand Loyalty Page 4-6

4. Phases of Brand Loyalty Page 6-7

5. Drivers of Brand Loyalty Page 7-8

6. Relationship with each brand market presence Page 9-10

7. Measuring Brand Loyalty Page 10-14

8. The importance and Value of Brand Loyalty Page 15-16

9. Conclusion Page 17

10. Referencing Page 18

BRAND LOYALTY

1. WHAT IS BRAND LOYALTY?

According to Keller (1998) maintains that loyalty is a distinct concept that is often measured in a behavioural sense through the number of repeat purchases. Consumers may be in the habit of buying a particular brand without really thinking about why they do so. Continual purchasing of a preferred brand, may simply result because the brand is prominently stocked or frequently promoted.

When consumers are confronted by a new or resurgent competitor providing compelling reasons to switch, their ties to the brand may be tested for the first time. The attachment a consumer has to a brand is a measure of brand loyalty and reflects how likely the consumer is to switch to another brand, especially when the brand is changed, either in price or product features (Aaker, 1991).

If consumers purchase a brand repeatedly without attachment it is then called behavioural loyalty. When a consumer purchase repeatedly and with attachment then the consumer is both behaviourally and attitudinally loyal (Hofmeyr & Rice, 2000).

Loyalty towards buying or using a specific brand of product is created when a brand becomes a consumer’s preferred choice. Consumer brand loyalty is what makes brands worth millions or billions of dollars (Mariotti, 1999).

Many top brands have been market leaders for years despite the fact that there undoubtedly have been many changes in both consumer attitude and competitive activity over a period of time. Consumers have valued these brands – what they are and what they represent – sufficiently enough to stick with...