Business PME is a gate of free information bound for the companies in the United States of America. This website offers thousands of contents as well as a companies directory.
The group’s other BtoB websites
-- Professional Networking
Friday Janu. 9th 2009
Searcharticles Search
companies
- Strategy
- Marketing
- Advertising
- Trade
- Human Ress.
- Law & Rights
- Economics
- Finance
- Production
- Technologies
Brand loyalty | ||
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). For example is Joe has brand loyalty to Company A he'll purchase Company A's products even if Company B's are cheaper and/or of a higher quality. An example of a major brand loyalty program that extended for several years and spread worldwide is Pepsi Stuff. Perhaps the most significant contemporary example of brand loyalty is the fervent devotion of many Mac users to the Apple company and its products. From the point of view of many marketers, loyalty to the brand - in terms of consumer usage - is a key factor...Usage status Philip Kotler groups 'users' into a number of categories: non-users, ex-users, potential users, first-time users and regular users. Usage rate Most important of all, in this context, is usually the 'rate ' of usage, to which the Pareto 80:20 Rule applies. Kotler's `heavy users' are likely to be disproportionately important to the brand (typically, 20 per cent of users accounting for 80 per cent of usage -- and of suppliers' profit). As a result, suppliers often segment their customers into `heavy', `medium' and `light' users; as far as they can, they target `heavy users'. Loyalty A third dimension, however, is whether the customer is committed to the brand. Philip Kotler, again, defines four patterns of behaviour: Hard Core Loyals - who buy the brand all the time. Soft Core Loyals - loyal to two or three brands. Shifting Loyals - moving from one brand to another. Switchers - with no loyalty (possibly `deal-prone', constantly looking for bargains or `vanity prone', looking for something different). Industrial Markets In industrial markets, organizations will regard the `heavy users' as `major accounts', to be handled by senior sales personnel and even managers; whereas the `light users' may be handled by the general salesforce or by a dealer. Copyright 2008 - France BtoB from Wikipédia
|
• Types of marketing research
• Cold calling • Marketing Practice • Employee branding • Customer retention • Brand : concepts • Unaddressed mail and direct response | |
