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Global Branding
Unit 2a: Brand Loyalty
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Brand Loyalty 1
• Occurs when consumers make repeat purchases of a
brand

• Can enable reduced marketing costs since consumers are

already loyal.

• Loyal customers demand their preferred brands, regardless

of convenience or price.
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Brand Loyalty 2
• Marketers use programs such as loyalty programs and
rewards to build brand loyalty.
• Research suggests that brand uniqueness does not affect
brand loyalty.
• As loyalty increases, so do emotional connections until no
adequate substitute for the brand exists in the consumer’s
mind.

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Brand Loyalty 3
• Those loyal to a brand exhibit lower sensitivity to price
increase.

• Brand loyalty is always based on trust that the brand will

deliver the consumer’s expectations.

• If the preferred brand is not available, the brand loyalist will

often NOT seek a substitute.
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 Brand Loyalty as a component of
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Aaker’s Brand – Equity Model

Brand Loyalty

• Reduced marketing costs

• Trade Leverage

• Attracting new customers via awareness and reassurance

• Time to respond to competitive threats

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How Brand Loyalty builds Business (1)

The marketer can count on loyal

customers to keep buying
Brand loyalists are unaffected branded products and telling
by any environmental factors their friends about them. Brand
surrounding the preferred brand; loyalty is an indicator of
they will purchase anyway. intangible value as well as a
quantifiable measurement of a
brand’s success to-date and
future performance predictions.
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How Brand Loyalty builds Business (2)

• “In an increasingly crowded marketplace, fools will

compete on price. Winners will find a way to create lasting
value in the customer’s mind.” – Tom Peters

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Measuring Brand Loyalty 1

• Marketers sometimes define brand loyalty as the average
time between purchases of the branded product.

• Marketers also infer brand loyalty from the percentage of

customers who say they will buy again, through direct
questions or surveys.

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Measuring Brand Loyalty 2

• More often, however, they define brand loyalty as the
percentage of customers who buy a second time, and
more. Note especially that loyal customers buy again even
in the face of marketing from competing brands. And, they
do so even if it means inconvenience, such as waiting to
buy when the preferred brand is temporarily out of stock.

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 7 Steps to Changing Consumer
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Behavior to Create Brand Loyalty 1

1. Interrupt the old pattern to make way for the new pattern.

2. Create comfort at the degree that the consumer begins to

appreciate the shift.

3. Lead consumer imagination to a new normal

4. Shift the feeling in favour of the brand

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 7 Steps to Changing Consumer
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Behavior to Create Brand Loyalty 2

5. Follow Up the shift by satisfying the critical mind.

6. Ensure that when doubts begin to surface, answers are

available to quell them.

7. Cement the gains by taking action and changing the

associations.

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 Changing Consumer Behavior to
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Create Brand Loyalty

• Marketers foster loyalty by telling target consumers that the
brand is on their side as opposed to their competitors.

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 6 Factors that Influence Brand
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Loyalty

Corporate social responsibility Social Media Nostalgia

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Trust Discounts and special offers Customer Service
 Why do these Brands rank so highly
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in Customer Loyalty?

Apple Ford Starbucks

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Key Takeaways 1
• Brand Loyalty is one of the components of Aaker’s Brand-
Equity Model.
• Brand loyalty is always developed post purchase and
results in consistent future purchases.
• A company having brand-loyal customers will have greater
sales, lower marketing and advertising costs, and best
pricing.

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Key Takeaways 2
• Brand-loyal customers are less reluctant to shift to other
brands, respond less to price changes, and evangelize the
brand.
• Marketers use psychological tactics to generate brand
loyalty.
• Brand Loyalty is measured in terms of purchasing.

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