Existence of Brand LoyaltyA Myth Or A Reality ?

Dr. Vijetha S.Shetty

VIDYA JADHAV RUPALI JADHAV KUNAL JADHAV

BIBLIOGRAPHY
 KOTLER AND kELLER (158,290,261)  MARKETING RESEARCH(Gilbert and Dawn) (110)  www.brandimage.com  Wikipedia.com  www.aolresearch.com

INTRODUCTION
 Marketing is nothing but Enigma. It is one of the most dynamic field in the business arena. Earlier lessons of 4Ps have given way to 4Cs .  It is true that in a world of numerous brand choices , consumer buying decision becomes increasingly detail and complicated . Therefore , In the present environment it is necessary to study existence of brand loyalty

 To find out the existence of brand loyalty through the presence of the loyal segment in the shampoo market

METHODOLOGY USED
 The present study is focused on women, the shampoo selected are women consumers aged 15 and above  For the present study , the sample is mainly divided into age group namely 15-19-20-29-3039-40 an d above

 On the basis of Loyal behavior , the respondents are divided into 4 loyal groups  THE CLASSICS - one who buys the same brand all the time  THE SWITCHERS One who changes the brand

 THE FUSIONSTS One who alternates between two or three specific brands  THE CONTENPORARIES One who buys normal brand but who is interested in buying other brand as well

ANALYSIS OF DATA
 The data is analyzed using statistical package for social science software ( SPSS )

B R A N D L O Y A L T Y

BRANDING
 A brand is a name, term, design symbol or any other feature that identifies a sellers product from a competitive product.

Brand Names
-Verbal part of the brand

Brand Marks
a symbol, design or distinctive coloring or lettering. Ex. A brand name written in a distinctive way (Logo)

Benefits of Branding BUYERS

 Identify products via Brand Recognition  Shopping efficiency is facilitated  - Search time ( )  - Association of quality level ( )  - Perceived risk decrease ( )  - Facilitates repeat purchasing (

Benefits of Branding SELLERS

 Identify products via Brand Differentiation  Selling efficiency is facilitated  - New product introduction/Acceptance  - Promotion of product (awareness)  - Brand loyalty is assisted  - Pricing at a premium  - Legal protection

Most Valuable Global Brands

Brands Coca Cola Marlboro Nescafe Kodak Microsoft Budweiser Kellogg's Motorola Gillette Bacardi
Source: Financial World

Brand value $ 36 $ 33 $ 11 $ 10 $ 9.8 $ 9.7 $ 9.3 $ 9.2 $ 8.2 $ 7.1 Billion Billion Billion Billion Billion Billion Billion Billion Billion Billion

What is Loyalty?
The consumer is loyal to you is s/he frequently buys your product

Desired Behaviour Low High

Loyal Behaviour

Co-Branding

Two companies join to create a new product carrying both their brands.

Co-Branding
Examples:

Pizza Hut & Pepsi McCains cake and KFC Cereal box with other thing inside Pizza Pizza and Blockbuster video rental & Chocolate bar

BRAND LOYALTY
 Brand Loyalty is the consumer's conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually. It occurs because the consumer perceives that the brand offers the right product features, image, or level of quality at the right price.

BRAND LOYALTY CRIRTERIA

1. Past Experience 2. Price 3. Quality Price + Quality =Value

4. Recommendations by others 5. Brand popularity

Challenges of brand loyalty

 How should loyalty be created and sustained ?  Are there different approaches for fast moving consumer goods and durable categories?  How should retail networks be used to build loyalty at the retail outlet level?  How should loyalty programmes be floated so that they are profitable to companies too unlike several programmes which do not get much value for the brand?

How to?
 FAVOURABLE BRAND ATTITUDES TO BE DEVELOPED  DEVELOP AN UNBEATABLE PRODUCT  THESE HABBITS MUST BE REINFORCED.  CONSUMERS REMINDED OF THE VALUE OF THEIR PURCHASE  ENCOURAGE REPEATED PURCHASING  ADVERTISING BEFORE AND AFTER SALE  (eg.TRAVEL) SERVICE 80:20 RULE TREAT THEM BEST

 Mercedes Example.  Having long been at the top of the heap,  Mercedes has crashed in the last ten years, tumbling from first to 28th place on a list of  35 car companies in a reliability survey conducted by J.D. Power, a market research firm.  Mercedes is losing the loyalty game because of the declining quality and reliability of its cars.  "Even German taxi drivers no longer hail a Mercedes," reports the Financial Times, noting that the companys reputation has been tarnished because the vehicles simply arent dependable any more.

Table 1 :-Percentage Distribution Showing Switching Behaviour In the Past Six Month
Switching the shampoo brand YES NO No. of Respondents 222 277 Percent 44.5% 55.5%

TOTAL

499

100.0

Table 2 : Percentage Distribution of Segment Based On Loyal Behaviour

Loyal Segment Buy Different Brands most of the time (SWICHERS) Buy the same Brand all the time (CLASSICS) Normally buy the same brand , sometimes purchase other brands as well (CONTEMPORARIES) Alternate between two or three specific brands (FUSIONSTS) Total

No. Of Respondents 40 209 181

Percent 8 41.9 36.3

69 499

13.8 100.0

Table 3 : Cross tabulation Of The Age Groups By Loyal Segment For The Shampoo Brand

Loyal Segment

Age Groups (yrs) 15 -19 Frequen cy % 20 -29 Frequenc y 14 % 30 -39 Frequenc % y 7 52 40 17 6 44.8 34.5 14.7 100 40 and above Frequenc y 9 52 14 25 100 %

Switchers Classics

10 46

8.9 37. 3 44. 3 9.5

9 52 14 25 100

36.8 59 45.6 70 9.6 100 15 158

Contemporar 57 ie-s Fusionist Total 12 125

100 116

 Thus there is clear difference in the loyal segment based on age factor for shampoos. Moreover , as the age increases, the loyalty effect seems to be getting stronger.  The over all chi square test shows that the value of 37.495 and the difference shown in significant at 995 confidence interval.

Table 4: Mean Scores for Measuring Intensity of Brand Loyalty Brand Loyalty Measures I am satisfied with my brand I am loyal towards my brand I intend to buy the same brand in future I recommend my brand to others Mean 4.2 3.8 3.7 3.4 Std.Deviatio n .5 .9 .9 1.1 1.1 .9 1.0 1.1

In case my brand is not available ,I continue to search 3.6 for it I would continue to use my brand even if price increase by 3.7 10% Price discounts offered by alternative brands do not affect me 3.7 Free gifts/schemes offered by alternative brands do not affect 3.7 me

Table 5:- Correlation between Affective Commitment/Emotional Attachment and Brand Loyalty Measures

Affective /Emotional Measures Brand Royalty Measures My brand is special to me I am satisfied with my brand I am loyal towards my brand I intend to buy the same brand in future I recommend my brand to others In case my brand is not available ,I continue to search for it .410 .475(**) .422(**) .290(**) .352(**) I am happy to use the brand .633(**) .476(**) .418(**) .299(**) .347(**) .370(**) .242(**) My brand is best .483(**) .595(**) .505(**) .305(**) .386(**) .403(**) .210(**)

I would continue to use my brand .269(**) even if price increase by 10% Price discounts offered by alternative brands do not affect me Free gifts/schemes offered by alternative brands do not affect me .167(**)

.169(**)

.177(**)

.156(**)

Table 6:-Relationship between Brand Differentiations and Brand Loyalty Measures Brand Differentiation Brand Royalty Measures I am satisfied with my brand I am loyal towards my brand I intend to buy the same brand in future I recommend my brand to others In case my brand is not available ,I continue to search for it I would continue to use my brand even if price increase by 10% Price discounts offered by alternative brands do not affect me Free gifts/schemes offered by alternative brands do not affect me Great Deal Of Difference Within Brands .268(**) .359(**) .267(**) .124(**) .283(**) .175(**) .095(*) .102(*)

Table 7 :-Mean Scores And Homogeneous Subset Showing Intensity Of Brand Loyalty Among Loyal Segment

Loyal Segment Brand Loyalty Switchers Classics Contemporaries Fusionist Total

N 40 209 181 69 499

Mean 6.75 30.97 24.96 25.33 26.07

Homogeneous Subset - Brand Loyalty Loyal Segment N Subset For alpha = .5 1 Switchers 40 6.75 24.9669 25.3333 30.9761 1.000 .996 1.000 2 3

Contemporaries 181 Fusionists Classics Sig 69 209

Table 8 :-Mean Scores and Homogeneous Subsets Showing Intensity of Affective/Emotional commitment Among Loyal Segment Loyal Segment N Mean Affective Commitment Switchers Classics Contemporaries Fusionists Total 40 209 181 69 499 2.97 12.28 10.16 10.39 10.50

Homogeneous Subset by Scheffe.Affective commitment Loyal Segment Switchers Contemporarie s Fusionists Classics N Subset For alpha = .5 1 40 181 69 209 2.97 10.1657 10.3913 12.2823 2 3

Table 9 :-Mean Scores Showing Brand differentiation Among Loyal Segment Loyal Segment Brand Differentiation Switchers Classics Contemporaries Fusionist Total N 33 205 171 65 474 Mean 2.97 4.01 3.49 3.74 3.71

Homogeneous Subsets Brand Differentiation Loyal Segment N Subset For alpha = .5 1 Switchers 33 2.97 3.49 3.74 3.74 4.01 1.00 0.547 .487 2 3

Contemporaries 171 Fusionists Classics Sig 65 205

CONCULSION
 Brand loyalty will always be alive and well. Brand  loyalty does not happen . It takes a lot of efforts to sustain it through year. Brand loyalty is Existence in younger group age as well as in older generation

THANK YOU

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