A discussion of brand loyalty approaches and their applicability for different markets.

Essay by katerina729University, Bachelor'sB-, August 2003

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The concept of loyalty to be considered should be dependent on both market and

situations. Distinguishing between market types is important because the very

nature of markets indicates that the measures used to capture loyalty should be

very different. In behavioral terms, brand loyalty is simply a customer¡¯s

consistent repurchasing of a brand. Every time a customer repurchases a

product(shampoo, cologne, wine, jeans, shoes, frozen pizza, motor oil,

automotive tools, computers, mail delivery service, cable company, plumbing

service, car insurance, or whatever), if the customer buys the same brand of

that product, we can consider for that product category. The problem with

behavioral brand loyalty is that simply shows that customers repurchase the same

brand, not whether they actually like the brand more than other brands. Only if

the customer attitude for a brand is more favorable than for the competing

brands should that customer be considered brand loyal to that brand.

This way of

looking at brand loyalty¡ªthat is , a greater liking for the brand¡ªcan be

termed attitudinal brand loyalty.

Brand loyalty has been largely defined and measured in either behavioral or

attitudinal terms (Mellens et al., 1996). Brand loyalty is the biased behavioral

response, expressed over time by some decision-making unit, with respect to one

or more alternative brands out of a set of such brands, and is a function of

psychological processes (Jagdish N.Sheth, 1999). Brand loyalty is one or

combination of attitudinal or behavioral. Different types of markets may require

different methods of measuring loyalty.

Manufacturers want to enhance the loyalty to their brand and use this loyalty to

increase profits.This has led to emphasis on a number of strategies such as

brand extension, good complaint handling ,loyalty schemes and other techniques

using database methods to stay close to the customer. People...