Decline and variability in brand loyalty

In this paper, we examine the over-time behavior of brand loyalty for a large set of brands drawn from 21 consumer packaged goods categories. Using the brand-loyalty operationalization of Colombo and Morrison (1989), the following conclusions are obtained. First, little support is found for the often-heard contention that brand loyalty is gradually declining over time. Second, while the short-run variability around a brand's mean loyalty level is not negligible, no evidence is found that this variability has systematically increased over time, and it can be reduced considerably through a simple smoothing procedure. Finally, the brand-loyalty pattern for market-share leaders is found to be more stable than for other brands. The study findings were robust to variation in the time interval used to construct the switching matrices, and to different treatments of multiple purchases.     

Involvement, satisfaction, and brand loyalty in a small business services setting

Considerable resources are expended annually on building business brands, yet the literature is virtually silent on brand loyalty in a business setting. This study examines the relationship between attitudinal loyalty and behavioral loyalty in a business services context, and attempts to identify two key antecedents of loyalty in this context. In particular, little is known about small businesses as customers, despite their significant contribution to the economies of developed nations. A longitudinal design is implemented, and data are captured on both attitudinal loyalty and subsequent loyalty behaviors (i.e., actual purchase behavior). The findings demonstrate the value of conceptualizing and measuring both attitudinal and behavioral components of brand loyalty. Specifically, the results indicate that attitudinal loyalty mediates the effects of the antecedents studied (category involvement and purchase satisfaction) on behavioral loyalty. Implications for marketing theory and practitioners are discussed, and possible directions for future research are sketched.     

Smartphone preferences and brand loyalty: A discrete choice model reflecting the reference point and peer effect

Brand loyalty and interest have significant impacts on consumers' smartphone choices. What about brand loyalty and interest of smartphone in South Korea where Samsung originates from? This study investigates brand loyalty and interest and how they are affected by the satisfaction of innovative peers in South Korea. An asymmetric discrete choice model with reference-dependent preferences is applied for the analysis. The estimation results show that in South Korea the brand is the most important attribute of smartphone and Apple is the strongest in brand loyalty. Whether consumers who are currently owners of Apple smartphones continue to maintain the same brand in their next purchasing depends not only on their brand loyalty but also on the satisfaction of their highly innovative peers who currently own the Apple. On the other hand, Samsung's brand loyalty is lower than that of Apple, but the brand interest is the highest. Additionally, in all smartphone brands, satisfaction with smartphone brands owned by innovative peers has a significant impact on consumers' interest.     

The impact of sales encounters on brand loyalty

Gaining and sustaining brand loyalty is a key challenge in increasingly competitive markets. Many marketing researchers as well as practitioners emphasize the critical role of the interpersonal interaction between the customer and the salesperson in influencing customer satisfaction, generating favorable brand attitudes and strengthening the bond between the customers and the brand. So far, empirical research that investigates how sales encounters impact brand loyalty by enhancing customer satisfaction with the sales encounter is lacking. Using data from 154 dyads of customers and salespersons of a large automobile brand, this study shows the perceptions of both the customer and the salesperson regarding the impact of sales encounter performance on satisfaction. Sales encounter satisfaction, in turn, leads to brand loyalty by enhancing brand attitude and salesperson loyalty.     

The effects of service brand dimensions on brand loyalty

The present paper uses a modified version of the Service Brand Verdict (SBV) model. The objective of the study is to incorporate service brand loyalty as an ultimate dependent measure seen as the outcome of consumers' evaluation of various service brand dimensions and communication, and test the generalizability of the modified SBV model in two different service sectors and cultural settings. Two studies using on-line survey data were conducted in Denmark and Norway in two different service industries (airlines and banks respectively). Previous findings suggesting that brand evidence significantly influences consumer satisfaction, attitude and behavioural loyalty towards service brands were confirmed. Moreover, contrary to previous findings, controlled communication elements (i.e. advertising and promotions) did not have any influence on customer satisfaction with service brands. However, the same communication elements directly and significantly shaped customers' perceptions of the various brand dimensions and their overall attitude towards the brand.     

Reviving brand loyalty: A reconceptualization within the framework of consumer-brand relationships

This paper uses the perspective of interpersonal relationship theory to critically examine, reposition, and extend the notion of brand loyalty. Depth interviews among eight coffee-consuming adults who qualified as brand loyal by traditional criteria provide the data. The result is a deeper appreciation of the character of loyal consumer-brand relations and a sharper awareness of the limitations to understanding that current theoretical frameworks impose. Specifically, the authors suggest that: (1) not all loyal brand relationships are alike, in strength or in character; (2) many brand relationships not identified as ‘loyal’ according to dominant theoretical conceptions are especially meaningful from the cunsumer's point of view; and (3) current approaches to classification accept some brand relationships that, upon close scrutiny, do not possess assumed characteristics of ‘loyalty’ or ‘strength’ at all. Ideas stemming from a reframing of loyalty as one component in a multifaceted construct of relationship strength are put forth, encouraging a move from the metaphor of ‘loyalty’ to the broader notion of ‘relationships’ that encompasses it.     

Is your brand''s loyalty too much, too little, or just right?: Explaining deviations in loyalty from the Dirichlet norm

This paper formally investigates the factors that relate to the deviations of brand's actual loyalty levels from theoretical norms in packaged goods markets. An aggregate measure of brand loyalty, share of category requirements, commonly tracked by marketing managers is used for this analysis. The comparison is conducted against the estimated share of requirements provided by the well established Dirichlet model of purchasing behavior. We posit that a brand's positioning strategy and marketing mix can influence the magnitude and the direction of the deviation from the norm. We use a two step modeling procedure where we first compute the deviation from the norm for each brand and subsequently conduct a regression analysis of this brand-level data to test the proposed hypotheses. We find that on average, brands that cater to some market niche, are bought in higher quantities, have lower prices, promote to a lesser extent, and have shallower price-cuts and enjoy higher than expected loyalty levels. We discuss possible implications of these results and offer guidelines that managers can use to better assess both the actual and the theoretical loyalty levels of their brands.     

Fostering international brand loyalty through committed and attached relationships

The relationship-building approach, focused on the building of brand-to-consumer relationships conducive to brand loyalty formation, has become an extensively investigated topic in international brand management studies. However, the theoretical development of this approach manifests obvious diversities, causing managerial uncertainty about how to take appropriate strategic actions to put the relationship-building approach to best use. The current study, orchestrating the main concepts derived from three relationship-building paradigms with necessary adaptations and modifications, develops and validates the Relationship-Building for Strategic Brand Management Model. Its most noteworthy contribution lies in the coalescence of pragmatic utilitarianism, emotionalism and social symbolism, orienting the relationship-building approach to correspond to the principle of holistic consumer experience management. As explicated by the model, committed and attached relationships built upon the relationship foundation mirroring the holistic essentiality of holistic consumer experience are convertible into powerful driver of international brand loyalty. The model structure and causal path pattern prove to be applicable to different international product brand categories in different regions. Strategic implications are deduced from the research findings, which the international brand manager may take into consideration to maximize the effectiveness of relationship-building strategies for fostering brand loyalty in the international market.     

Building value co-creation with social media marketing,brand trust,and brand loyalty

Value co-creation has emerged as a critical challenge for fashion brands in the age of social media. Despite its importance, scholars have not adequately explored the role of social media marketing (SMM) in enhancing value co-creation (VCC) intentions among fashion brand consumers in mainland China. SMM encompasses five hierarchical elements: entertainment, customization, interaction, electronic word-of-mouth (EWOM), and trendiness. This study developed a theoretical framework based on attribution theory and employed the partial least squares–structural equation modeling (PLS-SEM) method to analyze the value co-creation process. The results indicate that SMM positively impacts brand loyalty (BL), brand trust (BT), and VCC. Furthermore, BT positively affects BL and VCC, while also serving as a positive mediator between SMM and BL and VCC. Finally, BL positively enhances the VCC intentions of fashion brand consumers. Our study's unique insights, derived from the attribution theory's advantage point, enrich the marketing literature. These findings also offer practical guidelines and tips for marketing managers seeking to optimize their SMM mix for VCC.     

Proactive versus reactive apparel brands in sustainability: Influences on brand loyalty

Building on the literature in brand loyalty and sustainable consumption of apparel, this study compares the loyalty formation mechanism between sustainable fashion and fast fashion brands. A series of hypotheses proposing the difference in the loyalty formation between the two types of apparel brands were developed. A structural equation modeling tested the research model with a sample of 556 U.S. respondents. Although somewhat inconsistent, the results suggest that consumers form brand loyalty toward sustainable versus fast fashion in a different manner. Implications for marketers as well as directions for future research are discussed.     

Retailers with traits of consumer: Exploring the existence and antecedents of brand loyalty in small unorganized retailers

Retail in most emerging countries, like India, is dominated by the informal sector consisting of small unorganized retailers and marketers selling through them desperately want to win them over because it can be a powerful competitive advantage in these markets.Small unorganized retail store is a unique setting because most of these stores are owned and managed by individual proprietors who are neither schooled in systematic business decision making and nor have access to professional expertise and scientific tools to assist in taking business decisions in a systematic way. With loads of decisions to be made by this individual, it can be assumed that heuristics and common sense drive a lot of their business decisions and this makes them very similar to the decision making done by the end consumers, who also engage in buying decisions but are not scientific in their approach.Based on this similarity, this study attempts to explore a simple but profound question that like individual consumers, do these retail customers’ buying decisions also get affected by brand loyalty? In that direction, the study assesses the role of three variables - salesperson quality, self-experience with the brand and perceived company support, for predicting brand loyalty in small unorganized retailers.Using Structured Equation Modelling on data collected from 543 retailers, the proposed hypothesized paths have been tested. The results strongly support the proposition made. This study extends the application of the existing attitudinal – behavioural framework of brand loyalty to retailers and puts forward a vital and a unique way for marketers to get these retailers on-board and work as an influencer to push their brand.     

Cigarette brand loyalty and purchase patterns: An examination using US consumer panel data

This study analyzes data on cigarette purchasing using an extensive panel dataset. Major findings are: (1) cigarette purchasing in this market exhibits a reverse-J, or NBD (Negative Binomial Distribution)-like shape: many infrequent buyers and fewer frequent buyers; (2) Cigarette brands do exhibit high loyalty compared to other consumer categories, and show a trend to higher brand loyalty over time coinciding with fewer price promotions; (3) The data shows a weak double jeopardy pattern of smaller brands enjoying somewhat lower loyalty; (4) Smokers of a given brand are on average more likely to purchase another large cigarette brand than another small brand; (5) A straightforward analysis method identifies occurrences of excessive cross-brand cannibalization in the portfolio of one of the major tobacco corporations; and (6) Certain brands enjoy particular appeal among specific demographic groups. The study sheds more light on consumer behavior towards a product with addictive qualities and known harmful effects.     

Consideration set influences on consumer decision-making and choice: Issues,models, and suggestions

This paper affords a stylized view of individual consumer choice decision-making appropriate to the study of many marketing decisions. It summarizes issues relating to consideration set effects on consumer judgment and choice. It discusses whether consideration sets really exist and, if so, the factors that affect their composition, structure, and role in decision-making. It examines some new developments in the measurement and modeling of consideration set effects on decision-making. The paper concludes with suggestions for needed research. The authors wish to acknowledge the numerous ideas and perspectives contributed by the other members of the Banff Symposium workshop:Mukesh Bhargava (University of Alberta),Bill Black (Louisiana State University),Gary Gaeth (University of Iowa),Hotaka Katahira (University of Tokyo, Japan),Gilles Laurent (Centre HEC-ISA, France),Irwin Levin (University of Iowa),David Midgley (Australian Graduate School of Management),Thomas Novak (Southern Methodist University), andJames Wiley (University of Alberta). This paper has benefited greatly from their contributions.     

The influence of pre-decisional constraints on information search and consideration set formation in new automobile purchases

We propose that the manner in which a purchase decision is initiated has an important influence on subsequent product evaluation and choice. Specifically, we propose that the problem recognition “event” and the consequent retrieval of pre-decisional constraints from memory significantly influence the ensuing processes of external information search and consideration set formation. Several hypotheses are developed to model these interrelationships. The data were collected from a national probability sample of new automobile buyers. Log-linear, logistic regression and linear regression analyses were used to test the hypotheses. The results suggest that the type of pre-decisional constraints that are activated as a consequence of the problem recognition event significantly influences the “route” consumers follow through the remainder of the purchase process. The findings have important theoretical and practical implications for understanding the consumer decision process for consumer durables.     

Brand loyalty among Norwegian car owners

Obtaining brand-loyal customers has been demonstrated to be vital for profitability and survival of firms. Loyal customers generally have a higher willingness-to-pay and lower price sensitivity compared to other customers. In this article, we study brand loyalty among car owners using empirical data on 35,000 car changes in Norway from 1985 to 2013. In contrast to earlier studies on loyalty within this industry that aimed at revealing the attitudes of customers, our data discuss the actual behaviour. As a supplement to our behaviour data set, we use satisfaction measures produced by Autoindex. Average loyalty, as measured by the consecutive purchase of the same brand, amounts to 26.4%. By including returning customers and measuring the repurchase of the same brand as one of the customer's three previous cars, the average loyalty increases to 36.7%. In general, the most prevalent brands attract the most loyal customers. A logit model is applied to describe the factors that have the strongest influence on brand loyalty. The information obtained by this study is of interest to several parts of the automotive industry value chain. Moreover, the analysis is relevant for researchers conducting attitudinal studies on loyalty and satisfaction by comparing this information to the actual behaviour of customers.     

What induces online loyalty? Online versus offline brand images

This study investigates the effect of the interplay between a multi-channel retailer's offline and online brand images on consumers' online perceived risk and online loyalty within the framework of a theory of cognitive dissonance. A sample of 671 female college students participated in an experiment using a 2 (prior offline brand image) × 2 (online performance) between-subjects design. Results reveal that offline brand image exerts significant effects on online brand image - which, in turn, significantly explains online perceived risk - and online customer loyalty. However, online perceived risk has no significant effect on online customer loyalty after controlling for the effects of online and offline brand images. These results provide implications for the direct and indirect halo effects of offline brand image and the direct effect of online performance that may influence consumers' perceptions, expectations, and loyalty regarding multi-channel retailers.     

Factors that influence manufacturer and store brand behavioral loyalty

This study examines the factors that are linked to consumer goods brands having unusually high or low behavioral loyalty, after controlling for the association between brand size and loyalty that occurs due to the ‘double jeopardy’ effect. Behavioral, or repeat-purchase loyalty is measured as the brand's average share of category requirements (in volume) among its buyers over a 12-month period. We examine a range of factors that theory or past evidence suggests are associated with higher or lower behavioral loyalty, including brand type (store brand/manufacturer brand), price level, promotion intensity, as well as average brand volume per occasion and pack size. Using extensive US panel purchasing data, we find that store brands exhibit relatively higher behavioral loyalty than manufacturer brands. We explain the theory behind this result. We also find that the brand's average pack size and volume bought per occasion has a markedly positive association with behavioral loyalty. Finally, we find that the effect of low price on excess loyalty is moderated via a positive association with average volume purchase per occasion. These findings add to the body of knowledge relating to patterns in behavioral brand loyalty for both manufacturer and store brands, as well as the marketing-mix factors that influence it.     

Importance of offline service quality in building loyalty of OC service brand

Customer management becomes increasingly important as consumers have more flexible shopping process and options and competition become intensified in omni-channel (OC) retail environment. OC retailer can facilitate customer communication of OC service with OC service brand. This study evaluates an OC service brand (i.e. SSG OC service brand) to explore the effectiveness of integrated OC service platform which has a standing brand identity, and to determine the importance of selected offline characteristics of OC service on loyalty of OC service brand. Survey of 127 respondents was collected to test Partial Least Squares-Structural Equation Modeling (PLS-SEM). Findings show that tangibility and empathy of offline OC service directly affect customer satisfaction and attitude toward overall OC service brand, confirming the importance of offline service quality of OC in the OC service brand management.     

A comparison of brand loyalty between on the go and take-home consumption purchases

This paper compares consumer brand purchase loyalty for food products bought either ‘on the go’ (OTG), or for take-home consumption. The study uses two UK consumer packaged goods datasets. The first dataset comprises consumers' purchasing of brands in three product categories: soft drinks, crisps, and savory snacks for on the go consumption. The second contains consumers' purchasing of the same brands for take-home consumption. Analysis uses the polarization index as a behavioral loyalty measure, estimated from the Beta Binomial – Negative Binomial Distribution. This measure controls for the difference in purchase rate and brand market share across on the go and take-home. The study finds that consumer loyalty to brands is markedly higher in purchasing for on the go consumption than for take-home consumption; and that the effect is even stronger for larger brands in on the go.     

Service brand coolness in the construction of brand loyalty: A self-presentation theory approach

As service brands need to find new methods to overcome consumers' distrust of physical spaces in the post-COVID-19 era, we explore how niche and mass service brands can recover their experiential value through perceptions of coolness. In three studies, we evaluate service brand coolness and its consequences for communal–brand connection and loyalty. In Studies 1 and 2, we examine consumers’ thoughts on coolness and communal connection when describing their encounters with service brands. In Study 3, we test the relations among service brand coolness, communal–brand connection, and loyalty. Our findings show that for both niche and mass firms, service brand coolness similarly enhances communal–brand connection and loyalty.