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Brand Loyalty




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).

An example of a major brand loyalty program that extended for several years and spread worldwide is Pepsi Stuff . An example of fervent and sometimes unreasonable brand loyalty is the Cult Of Mac .


REFERENCES

  • Dick, Alan S. and Kunal Basu (1994), "Customer Loyalty: Toward an Integrated Conceptual Framework," Journal of the Academy of Marketing Science, 22 (2), 99-113.

  • Jones, Michael A., David L. Mothersbaugh, and Sharon E. Beatty (2002), "Why Customers Stay: Measuring the Underlying Dimensions of Services Switching Costs and Managing Their Differential Strategic Outcomes," Journal of Business Research, 55, 441-50.

  • Oliver, Richard L. (1999), "Whence Customer Loyalty?," Journal of Marketing, 63 (4), 33-44.

  • Reichheld, Frederick F. (1993), "Loyalty-Based Management," Harvard Business Review, 71 (2), 64-73.

  • Reichheld, Frederick F. and W. Earl Jr. Sasser (1990), "Zero Defections: Quality Comes to Services," Harvard Business Review (September-October), 105-11.



EXAMPLES OF BRAND LOYALTY PROMOTIONS

Pepsi Stuff


SEE ALSO