What is brand loyalty, how can you use it, and is it a useful concept?
Brand Loyalty Definition: Brand loyalty is the feelings of the consumer or the tendency of a consumer behavior where consumer shows their commitment to purchase the product or repurchase the product. It tends to be the repeat purchase by a consumer several times to the similar brands. It is the behavior of consistent purchasing by a consumer of the same brand product over the time. The consistent purchasing of the same brand over time tends to the proof of their buying behavior to the specific brand and having emotional attachment as well as love for the product. All these happen because the customer is happy to use the same brand product over the time and satisfied with the product that he or she is using over the time. (Dahlgren, 2011)Due to the preference of the same brand product using over the time as well as the satisfaction to the brands, sometimes price does not a big matter to them. Though the companies as well as marketing people have different strategies to keep the loyal customer by providing different offers, discount, gift as the part of the promotion of the product. These strategies are called the loyalty program or reward program which is more effective to retain the loyal customer. As it has already been mentioned that brand loyalty depends on the consumer behavior that means consumer behavior plays a vital role to the area of brand loyalty. So, it is very essential to know the concept and practical aspiration of the consumer behavior by the companies or marketing people. The aspect of consumer buying behavior towards the brand loyalty is like that they do not prefer to buy another brand if they do not get the preferential brand in the super shop or outlays. Rather, they like to wait to get the preferred brand product. They have the buying behavior of the tendency to repeated purchase of the same product brand over the time. They think as well as believe that preferred brand fulfill their expectations. Thus the buying behavior of the consumer works in the decision making process which is more conscious about to get the product but the product should deliver the consumer’s expectations.
Brand Loyalty Definition and Its Usage: Brand Loyalty can be used by applying different strategies. Maintenance of quality is the prime strategies to keep the brand loyalty. Keep quality high. Though there are a price bracket with the quality product but the matter of quality should be ensured first by the companies or marketing people. Consumers do not like to excuse with the quality. If they are getting quality product, then price of the product are not a big headache to those loyal customer (Vishwas Maheshwari, 2014)
There is an argument regarding the emotional attachment. Is always emotional attachment can keep the customer loyal? This is the major findings because brand royalty is related to the emotional attachment. In that case the question or the argument could be demonstrated by the way of product quality. That means, if the product is not quality product and the customer is royalty the product but in case the product quality is found below standard several times. Then the emotional attachment will not work because consumer does not compromise with the quality as they paid for consuming goods. So, it should be quality product for the first considerations regarding the Brand Loyalty Definition and Its Usage.
The companies or the marketing people should be engaged with their loyal customer and keep the regular communication with them by the way of sending wishes on their special occasions, sending or sharing new product information, sending or sharing product features to them. It is very required to keep the loyal customer in touch because of it the customer made a inner belief that the company is giving value to him, it is the great inspiration from the customer point of view. Customer always wants to be valuable to this atmosphere. The strategies like the loyalty program or reward program which is more effective to retain the loyal customer. Brand Loyalty is the matter of taking the feedback of the loyal customer and getting the opinion of the customer in positive thought. After getting the opinion it is very required to develop those areas which the customer told to reform or restructured. They can suggest this kind of opinion to the marketing people as they have a love and belief to the product. But it should be taken positively. On the other hand, it could be review the customer experience regarding the product as they were satisfied or not. They service had fulfilled their expectations or not. According to demand of the customer, the product was delivered or not. Customer complain was solved properly and then he or she was satisfied or not. The customer should be given priority in the aspect of brand loyalty and there must have to create a field by which customer got the reason to come back to the same brand. It could be done by the way of promotional offers like provide incentives for consumers to return to your company (Zerellari, 2015).
There is also another argument regarding the purchaser and influencer. Is it purchaser or influence, who is loyal? It is basically a consumer buying behavior. There are some consumer only buy product and they do not be influenced by the other factor like loyalty or reward program. As a general purchaser he has no interest to this area as he is satisfied by using any product. But there are influencers who are influenced by the other factor that derived him to be loyal to the consumption of the product. They are influenced by the marketing people, different promotional offers, and reward or loyalty programs. In that case it is totally a consumer buying behavior by which they behave in accordance to the product to be loyal regarding the Brand Loyalty Definition and Its Usage.
To arrange reward loyalty programs towards the branding purpose. All these could be happened by providing different offers, discount, gift as the part of the promotion of the product. These strategies are called the loyalty program or reward program which is more effective to retain the loyal customer. When the customers go for the first repeat purchase, it means a lot about the product. In that response it is very required to use the branding concept o keep them loyal towards the product. In response to this, it should be given value to the customer. Customer loyalty is the valuable factor in the brand loyalty under the aspect of Brand Loyalty Definition and Its Usage as they could be the media without pay to promote the product. When they feel that they are getting the value form the companies then they develop their mind as customer loyalty. Customer always wants to be valuable to this atmosphere. The strategies like the loyalty program or reward program which is more effective to retain the loyal customer. Customer loyalty in response to brand royalty is one kind of mouth to mouth product branding by the user of the product when they told to their friends, families, colleagues, neighbours about the good things about the product and for which those customers are not paid. They share about a product to the near and dear ones when they are satisfied with product. In response to the brand loyalty to keep the loyal customer it is required huge appreciation to show to the customer. (Ghani, 2015)Appreciation could be in the manner to address them as sir or madam, providing warm welcome like saying good morning sir or good afternoon madam, it could be added with asking for how may I help you sir or madam. This appreciation means a lot to them they feel they are special and in the mind they got an inner peace to be the valuable customer. The consumer’s perception is that the brand fulfils some kind of physical need or emotional want in such a unique way that some kind of emotion is evoked during the purchase process and while using the brand (Ramrez, 2016).
There is another argument regarding the loyalty as “Do they mean that if you are loyal you will buy anything they sell?” Whatever the factor, it is involved to have loyalty program or reward program and through which what the offer a customer will buy it. The buying behaviour of consumer is varied in response to these but it is true through this program if they do not offer quality product then the customer will not buy it. That, a seller cannot sell anything by using the term loyal customer to the customer in the sense customer are not interested to get the quality less product or bad product or illegal product regarding the Brand Loyalty Definition and Its Usage.
However, brand loyalty is obviously a useful concept as it is less expensive to be reduced marketing costs, so far it is diagnosed as the Brand extensions are less risky to the loyalty purpose where there is brand loyalty to attract the customer to give them value, it is associated with higher rates on ROI that the feedback of it huge to marketing as well as financial concept, through increases in market share of the product valuation with brand valuation. On the aspect of Brand Loyalty Definition and Its Usage, Brand loyalty is one kind of mouth to mouth product branding by the user of the product when they told to their friends, families, colleagues, neighbours about the good things about the product and for which those customers are not paid. They share about a product to the near and dear ones when they are satisfied with product. Brand loyal customers have fewer reasons to be loyal to the brand to engage in information search for alternatives to get the satisfaction of the inner mind. Brand loyalty is a major determinant of brand equity that increase the market share in huge aspect to retain the customer with proper branding and increase the market share as well (Yorick Odin, 2001)
Real Example on (Brand Loyalty Definition and Its Usage):
There is real scenario example of the Automobile Industry in the early 70s. There was huge market share of American Automobiles in the market by the US manufacturers. Since 1970, it had the market share by the US manufacturers about 86%. But what about the market share of the Japanese manufacturers of the automobile. Since 1970, they had only 3% market share. That means, since 1970 it was the attitude of the oligopoly market captured by the US manufacturers. But the things were going to be changed over the time. The technological developments of Japanese manufacturers have made them huge changes in the market of the automobile industry. Within the span of time or the extensions of time, the market share of Japanese manufacturer was increasing. So, in the time of 2005, it has been found that US manufacturers have the market share of 42% that is decreased over the time and the Japanese manufacturer market share of 40% that is increased over the time. The statistical information shows the way of growing market share by the Japanese automobile manufacturer. There were too many findings regarding the losing market share by the US manufacturers and capturing more market share by the Japanese manufacturers. First of all, technological development was too much extensive by the Japanese manufacturers, but US manufacturers cannot develop the structure so far in competition with them. The product quality of the US manufacturers was decreasing day by day. It could be another prime factor because consumer do not excuse with the quality. As they are paying money to get the product or services thus they are sensitive about the product quality. If they found, the product quality is not up to the mark or standard, then it basically tend to witch of the customer to another brand. And this is the criteria that attracted consumer to the Japanese automobile. Their quality was too good; the product size was different from the US manufacturer. All modern technology was installed to the Japanese automobiles. There were differences in the price, quality, technology, power, size, body shape, design, operating cost, body type and transmission type. In all these area, US manufacturers were legging behind though they have improved some of their vehicles attributes but not like that Japanese automobile as up to the mark or standard. Thus from the above statistical or qualitative research the major findings that could be summarized is all about brand Loyalty. Brand loyalty can defined according to the price, quality, technology, power, size, and body shape, design, operating cost, body type and transmission type of the automobile manufacturer. As it is the consumer buying behaviour and when they will not find any sorts of satisfaction by using the product for which they paying, then there is a breakdown of the brand loyalty. This circumstance is actually happened with US manufacturers as they damage their brand loyalty. On the other hand, Japanese manufacturers increase their brand loyalty over the time to keep satisfied their customer in response to price, quality, technology, power, size, body shape, design, operating cost, body type and transmission type. Brand loyalty is one kind of mouth to mouth product branding by the user of the product when they told to their friends, families, colleagues, neighbours about the good things about the product and for which those customers are not paid. They share about a product to the near and dear ones when they are satisfied with product. As a result, the market shares of Japanese automobiles manufacturers have been increased day by day. In the increasing of the market share brand loyalty played a vital role for them because consumer were loyal to use the product as they found that the Japanese manufacturers are providing the less price, better quality, modern technology, better power support, unique size, unique body shape, attractive design, lower operating cost, attractive body type and better transmission type in the market than the US automobile manufacturers.
So, Brand Loyalty is a metaphor to keep the relationship with the customer and retain the customer to the brand with proper branding. It is the continuous process by the marketing people to keep their customer loyal by the way of loyalty program as well as reward program as the customer became loyal to the particular brand. It is a great tool to have the loyalty program like that offering discount offers, gifts, quality product service, maintaining communication, giving the customer value, taking the feedback of the customer positively and work on it. As there is moral attachment of the consumer it should not be broken down otherwise it may turn negatively. So, it should keep the ethical practice in the business to keep the customer loyal.
Dahlgren, S. (2011). Brand loyalty and involvement in different customer levels of a service concept brand. Journal of Economics, 6-106.
Ghani, F. I. (2015). A Review of the Literature on Brand Loyalty and Customer Loyalty. Jouranl of Utara University, 186-198.
Ramrez, S. A. (2016). A Systematic Literature Review of Brand Commitment: Definitions, Perspectives and Dimensions. Athens Journal of Business and Economics, 1-28.
Vishwas Maheshwari, G. L. (2014). Determinants of Brand Loyalty: A Study of the Experience-Commitment-Loyalty Constructs. International Journal of Business Administration, 13-23.
Yorick Odin, N. O. (2001). Conceptual and operational aspects of brand loyalty An empirical investigation. Journal of Business Research, 75-84.
Zerellari, E. T. (2015). BRAND LOYALTY AND LOYALTY PROGRAMS; A LITERATURE REVIEW. Romanian Economic and Business Review, 72-86.
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