Brand Loyalty

Akash C.MathapatiAsst Professor – Marketing Area

Kirloskar Institute of Advanced Management Studiesakashcm@gmail.com

Measuring Brand Loyalty

• Behavior Measures• Repurchase Rates• % of purchase• No. of brands purchased

– Loyalty depends on product classes and competing brands

• Switching Costs– analysis can provide insight into the extent to

which switching costs provide a basis for brand loyalty

Akash C.Mathapati 2

• Measuring Satisfaction– Key diagnostic to every levels of brand

loyalty is the measurement of satisfaction

• Liking of the Brand– Positive affect can result in resistance to

competitive entriesGeneral Overall Liking• Liking, Respect, Friendship, Trust

Akash C.Mathapati

• Commitment– Key indicator is the amount of

interaction and communication that is involved with the product

Akash C.Mathapati

The Strategic Value of Brand Loyalty

Brand LoyaltyBrand Loyalty

Reduced Marketing CostsReduced Marketing Costs

Trade LeverageTrade Leverage

Attracting New Customers:•Brand Awareness Created

•Reassurance to New Customer

Attracting New Customers:•Brand Awareness Created

•Reassurance to New Customer

Time to Respond to Competitive ThreatsTime to Respond to Competitive Threats

Akash C.Mathapati

Creating & Maintaining Brand Loyalty

Akash C.Mathapati

Treat the customer rightTreat the customer right

Provide ExtraProvide Extra

Create Switching CostsCreate Switching Costs

Measure/Manage customer satisfaction

Measure/Manage customer satisfaction

Stay close to the customerStay close to the customer

Brand LoyaltyBrand Loyalty

Akash C.MSource: www.mycokerewards.com

Affinity Program:

A marketing effort sponsored by an organization that solicits responses from individuals who share common interests and activities