Brand loyalty
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Brand loyalty has been proclaimed by some to be the ultimate goal of marketing (Reichheld and Sasser 1990). In marketing, brand loyalty consists of a consumer's commitment to repurchase the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy (Dick and Basu 1994). True brand loyalty implies that the consumer is willing, at least on occasion, to put aside their own desires in the interest of the brand (Oliver).
Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due to situational constraints, a lack of viable alternatives, or out of convenience (Jones, Mothersbaugh, and Beatty 2002). Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior (Dick and Basu 1994). This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm (Reichheld and Sasser 1990; 1993).
An example of a major brand loyalty program that extended for several years and spread worldwide is Pepsi Stuff. An example of fervent and sometimes unreasonable brand loyalty is the Cult of Mac.
References
- Dick, Alan S. and Kunal Basu (1994), "Customer Loyalty: Toward an Integrated Conceptual Framework," Journal of the Academy of Marketing Science, 22 (2), 99-113.
- Jones, Michael A., David L. Mothersbaugh, and Sharon E. Beatty (2002), "Why Customers Stay: Measuring the Underlying Dimensions of Services Switching Costs and Managing Their Differential Strategic Outcomes," Journal of Business Research, 55, 441-50.
- Oliver, Richard L. (1999), "Whence Customer Loyalty?," Journal of Marketing, 63 (3), 33-44.
- Reichheld, Frederick F. (1993), "Loyalty-Based Management," Harvard Business Review, 71 (2), 64-73.
- Reichheld, Frederick F. and W. Earl Jr. Sasser (1990), "Zero Defections: Quality Comes to Services," Harvard Business Review (September-October), 105-11.
Examples of Brand Loyalty Promotions
Pepsi StuffSee also
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