Brand Loyalty

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Existence of Brand Loyalty- A Myth Or A Reality ? Dr. Vijetha S.Shetty

Transcript of Brand Loyalty

Page 1: Brand Loyalty

Existence of Brand Loyalty- A Myth Or A Reality ?

Dr. Vijetha S.Shetty

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VIDYA JADHAV

RUPALI JADHAV

KUNAL JADHAV

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BIBLIOGRAPHY

KOTLER AND kELLER (158,290,261) MARKETING RESEARCH(Gilbert and Dawn)

(110) www.brandimage.com Wikipedia.com www.aolresearch.com

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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

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To find out the existence of brand loyalty through the presence of the loyal segment in the shampoo market

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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

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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

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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

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ANALYSIS OF DATA

The data is analyzed using statistical package for social science software ( SPSS )

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BRAND

LOYALTY

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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

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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 (

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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

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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

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What is Loyalty?The consumer is loyal to you is s/he frequently buys yourproduct

LoyalBehaviour

Low High

Desired Behaviour

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Co-Branding

Two companies join to create a new product carrying both their brands.

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Co-Branding

Examples:

Pizza Hut & Pepsi

McCains cake and KFC

Cereal box with other thing inside

Pizza Pizza and Blockbuster video rental & Chocolate bar

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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.

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1. Past Experience

2. Price

3. Quality

4. Recommendations by others

5. Brand popularity

Price + Quality =Value

BRAND LOYALTY CRIRTERIA

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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?

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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

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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.

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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

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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

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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

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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.

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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

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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(**)

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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(*)

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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

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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

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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

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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

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THANK YOU

QUESTIONS???