Brand Loyalty
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Transcript of Brand Loyalty
Existence of Brand Loyalty- A Myth Or A Reality ?
Dr. Vijetha S.Shetty
VIDYA JADHAV
RUPALI JADHAV
KUNAL JADHAV
BIBLIOGRAPHY
KOTLER AND kELLER (158,290,261) MARKETING RESEARCH(Gilbert and Dawn)
(110) www.brandimage.com Wikipedia.com www.aolresearch.com
INTRODUCTION Marketing is nothing but Enigma. It is one of the
most dynamic field in the business arena. Earlier lessons of 4Ps have given way to 4Cs .
It is true that in a world of numerous brand choices , consumer buying decision becomes increasingly detail and complicated . Therefore , In the present environment it is necessary to study existence of brand loyalty
To find out the existence of brand loyalty through the presence of the loyal segment in the shampoo market
METHODOLOGY USED
The present study is focused on women, the shampoo selected are women consumers aged 15 and above
For the present study , the sample is mainly divided into age group namely 15-19-20-29-30-39-40 an d above
On the basis of Loyal behavior , the respondents are divided into 4 loyal groups
THE CLASSICS - one who buys the same brand all the time
THE SWITCHERS – One who changes the brand
THE FUSIONSTS – One who alternates between two or three specific brands
THE CONTENPORARIES – One who buys normal brand but who is interested in buying other brand as well
ANALYSIS OF DATA
The data is analyzed using statistical package for social science software ( SPSS )
BRAND
LOYALTY
A brand is a name, term, design symbol or any other feature that identifies a seller’s product from a competitive product.
Brand Names
Brand Marks
--Verbal part of the brandVerbal part of the brand
a symbol, design or distinctive coloring or lettering. a symbol, design or distinctive coloring or lettering. Ex. A brand name written in a distinctive way (Logo)Ex. A brand name written in a distinctive way (Logo)
BRANDING
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 BrandingBenefits of Branding SELLERS 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 BrandsMost Valuable Global Brands
Coca ColaCoca Cola $$ 3636 BillionBillion
NescafeNescafe $$ 1111 BillionBillion
KodakKodak $$ 1010 BillionBillion
MicrosoftMicrosoft $ 9.8$ 9.8 BillionBillion
BudweiserBudweiser $ 9.7$ 9.7 BillionBillion
Kellogg'sKellogg's $ 9.3 Billion$ 9.3 Billion
BrandsBrands Brand valueBrand value
MotorolaMotorola $ 9.2 Billion$ 9.2 Billion
GilletteGillette $ 8.2$ 8.2 BillionBillionBacardiBacardi $ 7.1$ 7.1 BillionBillion
MarlboroMarlboro $$ 3333 Billion Billion
Source: Financial World
What is Loyalty?The consumer is loyal to you is s/he frequently buys yourproduct
LoyalBehaviour
Low High
Desired Behaviour
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.
1. Past Experience
2. Price
3. Quality
4. Recommendations by others
5. Brand popularity
Price + Quality =Value
BRAND LOYALTY CRIRTERIA
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?
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
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.
Table 1 :-Percentage Distribution Showing Switching Behaviour In the Past Six Month
Switching the shampoo brand
No. of Respondents Percent
YES 222 44.5%
NO 277 55.5%
TOTAL 499 100.0
Table 2 : Percentage Distribution of Segment Based On Loyal Behaviour
Loyal Segment No. Of Respondents
Percent
Buy Different Brands most of the time (SWICHERS)
40 8
Buy the same Brand all the time (CLASSICS) 209 41.9
Normally buy the same brand , sometimes purchase other brands as well (CONTEMPORARIES)
181 36.3
Alternate between two or three specific brands (FUSIONSTS)
69 13.8
Total 499 100.0
Table 3 : Cross tabulation Of The Age Groups By Loyal Segment For The Shampoo Brand
Loyal Segment
Age Groups (yrs)
15 -19 20 -29 30 -39 40 and above
Frequency
% Frequency
% Frequency
% Frequency
%
Switchers 10 8 14 8.9 7 6 9 9
Classics 46 36.8 59 37.3
52 44.8 52 52
Contemporarie-s
57 45.6 70 44.3
40 34.5 14 14
Fusionist 12 9.6 15 9.5 17 14.7 25 25
Total 125 100 158 100 116 100 100 100
Thus there is clear difference in the loyal segment based on age factor for shampoos. Moreover , as the age increases, the loyalty effect seems to be getting stronger.
The over all chi square test shows that the value of 37.495 and the difference shown in significant at 995 confidence interval.
Table 4: Mean Scores for Measuring Intensity of Brand Loyalty
Brand Loyalty Measures Mean Std.Deviation
I am satisfied with my brand 4.2 .5
I am loyal towards my brand 3.8 .9
I intend to buy the same brand in future 3.7 .9
I recommend my brand to others 3.4 1.1
In case my brand is not available ,I continue to search for it
3.6 1.1
I would continue to use my brand even if price increase by 10%
3.7 .9
Price discounts offered by alternative brands do not affect me 3.7 1.0
Free gifts/schemes offered by alternative brands do not affect me
3.7 1.1
Table 5:- Correlation between Affective Commitment/Emotional Attachment and Brand Loyalty Measures
Brand Royalty MeasuresAffective /Emotional Measures
My brand is special to me
I am happy to use the brand
My brand is best
I am satisfied with my brand .410 .633(**) .483(**)
I am loyal towards my brand .475(**) .476(**) .595(**)
I intend to buy the same brand in future
.422(**) .418(**) .505(**)
I recommend my brand to others .290(**) .299(**) .305(**)
In case my brand is not available ,I continue to search for it
.352(**) .347(**) .386(**)
I would continue to use my brand even if price increase by 10%
.269(**) .370(**) .403(**)
Price discounts offered by alternative brands do not affect me
.167(**) .242(**) .210(**)
Free gifts/schemes offered by alternative brands do not affect me
.169(**) .177(**) .156(**)
Table 6:-Relationship between Brand Differentiations and Brand Loyalty Measures
Brand Differentiation
Brand Royalty Measures Great Deal Of Difference Within Brands
I am satisfied with my brand .268(**)
I am loyal towards my brand .359(**)
I intend to buy the same brand in future .267(**)
I recommend my brand to others .124(**)
In case my brand is not available ,I continue to search for it
.283(**)
I would continue to use my brand even if price increase by 10%
.175(**)
Price discounts offered by alternative brands do not affect me
.095(*)
Free gifts/schemes offered by alternative brands do not affect me
.102(*)
Table 7 :-Mean Scores And Homogeneous Subset Showing Intensity Of Brand Loyalty Among Loyal Segment
Loyal Segment N Mean
Brand Loyalty Switchers 40 6.75
Classics 209 30.97
Contemporaries 181 24.96
Fusionist 69 25.33
Total 499 26.07
Homogeneous Subset - Brand Loyalty
Loyal Segment N Subset For alpha = .5
1 2 3
Switchers 40 6.75
Contemporaries 181 24.9669
Fusionists 69 25.3333
Classics 209 30.9761
Sig 1.000 .996 1.000
Table 8 :-Mean Scores and Homogeneous Subsets Showing Intensity of Affective/Emotionalcommitment Among Loyal Segment
Loyal Segment N Mean
Affective Commitment
Switchers 40 2.97
Classics 209 12.28
Contemporaries 181 10.16
Fusionists 69 10.39
Total 499 10.50
Homogeneous Subset by Scheffe.Affective commitment
Loyal Segment
N Subset For alpha = .5
1 2 3
Switchers 40 2.97
Contemporaries
181 10.1657
Fusionists 69 10.3913
Classics 209 12.2823
Sig 1.000 .981 1.000
Table 9 :-Mean Scores Showing Brand differentiation Among Loyal Segment
Loyal Segment N Mean
Brand Differentiation
Switchers 33 2.97
Classics 205 4.01
Contemporaries 171 3.49
Fusionist 65 3.74
Total 474 3.71
Homogeneous Subsets Brand Differentiation
Loyal Segment N Subset For alpha = .5
1 2 3
Switchers 33 2.97
Contemporaries 171 3.49
Fusionists 65 3.74 3.74
Classics 205 4.01
Sig 1.00 0.547 .487
CONCULSION
Brand loyalty will always be alive and well. Brand loyalty does not happen . It takes a lot of efforts to sustain it through year. Brand loyalty is Existence in younger group age as well as in older generation
THANK YOU
QUESTIONS???