CONSUMER BEHAVIOUR

vis-à-vis
BRAND LOYALTY
BIBLIOGRAPHY

 KOTLER AND kELLER (158,290,261)

 MARKETING RESEARCH(Gilbert and Dawn)
(110)
 www.brandimage.com
 Wikipedia.com
 www.aolresearch.com
B
R
A
N
D

L
O
Y
A
L
T
Y
 BRANDING

 A brand is a name, term, design symbol or any

other feature that identifies a seller’s product from
a competitive product.

Brand Names
-Verbal part of the brand

Brand Marks
➤a symbol, design or distinctive coloring or lettering.
Ex. A brand name written in a distinctive way (Logo)
Benefits of Branding
BUYERS

 Identify products via Brand Recognition

● Shopping efficiency is facilitated
 - Search time ( )
 - Association of quality level ( )
 - Perceived risk decrease ( )
 - Facilitates repeat purchasing (
Benefits of Branding

SELLERS

● Identify products via Brand Differentiation

● Selling efficiency is facilitated
 - New product introduction/Acceptance
 - Promotion of product (awareness)
 - Brand loyalty is assisted
 - Pricing at a premium
 - Legal protection
 Most Valuable Global Brands
Brands Brand value

Coca Cola $ 36 Billion

Marlboro $ 33 Billion
Nescafe $ 11 Billion
Kodak $ 10 Billion
Microsoft $ 9.8 Billion
Budweiser $ 9.7 Billion
Kellogg's $ 9.3 Billion
Motorola $ 9.2 Billion
Gillette $ 8.2 Billion
Bacardi $ 7.1 Billion
Source: Financial World
What is Loyalty?
The consumer is loyal to you is s/he frequently buys your
product

Desired Behaviour Loyal

Behaviour
Low High
 Commitment/desired behaviour

The actively
loyal customer
High

Potentially Actively
is the only (long
Commitment

Loyal Loyal
Emotional Behaviour Behaviour term) profitable
bonding customer
Passively
Loyal
Low

Behaviour
Low High

Desired Behaviour
 Extend the relationship from
Product to Brand

High
Commitment
Low
Depth of Involvement
reflects moving from a
narrow relationship with ent
e m Low High
an individual product to
ol v uct
broad usage of the nv od Desired Behaviour
f I P r
full range of h o
p t
products
De n d
marketed r a
under the brand B
Co-Branding

Two companies join to create a new

product carrying both their brands.
 Co-Branding

Examples:

Pizza Hut & Pepsi

McCains cake and KFC
Cereal box with other thing inside
Pizza Pizza and Blockbuster video rental &
Chocolate bar
BRAND LOYALTY

 Brand Loyalty is the consumer's conscious or

unconscious decision, expressed through
intention or behavior, to repurchase a brand
continually. It occurs because the consumer
perceives that the brand offers the right product
features, image, or level of quality at the right
price.
BRAND LOYALTY CRIRTERIA

1. Past Experience
2. Price
Price + Quality
3. Quality =Value

4. Recommendations by others
5. Brand popularity
 Brand loyalty FACTS

 As perceived risk increases, the preference

for branded products increases

 Tends to increase with age

 Higher among heavy users

 Decreases as inter-purchase time increases

Challenges of brand loyalty

 How should loyalty be created and sustained ?

 Are there different approaches for fast moving
consumer goods and durable categories?
 How should retail networks be used to build loyalty
at the retail outlet level?
 How should loyalty programmes be floated so that
they are profitable to companies too unlike several
programmes which do not get much value for the
brand?
 IMPORTANCE

 VARIETY

 HIGHER SALES VOLUME (COMPETITIVE U.S. MARKET)

 PREMIUM PRICING
 RETAIN RATHER THAN SEEK
How to?

 FAVOURABLE BRAND ATTITUDES TO BE DEVELOPED

 DEVELOP AN UNBEATABLE PRODUCT

 THESE HABBITS MUST BE REINFORCED.

 CONSUMERS REMINDED OF THE VALUE OF THEIR PURCHASE

 ENCOURAGE REPEATED PURCHASING

 ADVERTISING BEFORE AND AFTER SALE

 (eg.TRAVEL)

SERVICE

80:20 RULE TREAT THEM BEST

LATEST TREND
 Mercedes Example.
 Having long been at the top of the heap,
 Mercedes has crashed in the last ten years,
tumbling from first to 28th place on a list of
 35 car companies in a reliability survey conducted
by J.D. Power, a market research firm.

 Mercedes is losing the loyalty game because of the

declining quality and reliability of its cars.

 "Even German taxi drivers no longer hail a

Mercedes," reports the Financial Times, noting that
the company’s reputation has been tarnished
because the vehicles simply aren’t dependable any
more.
THANK YOU

 QUESTIONS???