Is brand variety replacing brand loyalty
Is brand variety replacing brand loyalty? ... With the proliferation of brands and a variety of brand personality exercises being tried out, the Indian scenario presents the ‘challenging moment’ for marketers to create and retain brand loyalty. Brand Loyalty When a customer thinks of a product category he is familiar with (like soaps, toothpastes, tea, automobiles etc.), he/she is able to spontaneously remember a few brand names. In all probabilities there may be the brand names these consumers may buy whenever a need arises. These consumers have been conditioned by brand loyalty. Brand loyalty is a consumer’s preference to buy a particular brand in a product category. It occurs because consumers perceive that the brand offers the right product features, images, or level of quality at the right price. ... Basically, consumers initially will make a trial purchase of the brand and, after satisfaction, tend to form habits and continue purchasing the same brand because the product is safe and familiar. Brand loyalists develop a mindset wherein they are likely to make the following statements: “I am committed to this brand.” “I am willing to pay a higher price for this brand over other brands.” “I will recommend this brand to others.” Importance of Brand Loyalty The main reasons why brand loyalty is important are: Higher Sales Volume – In a competitive economy like United States, an average company loses half of its customers every five years, equating to a 13% annual loss of customers. ... It highlights the importance of customer retention in dramatically improving business growth and brand loyalty, which leads to consistent and even greater sales since the same brand is purchased repeatedly. Premium Pricing Ability – Studies show that as brand loyalty increases, consumers are less sensitive to price changes. Generally, they are willing to pay more for their preferred brand because they perceive some unique value in the brand that other alternatives do not provide. Additionally, brand loyalists buy less frequently on price-discount deals. ... Retain Rather than Seek – Brand loyalists are willing to search for their favorite brand and are less sensitive to competitive promotions. ... Brand Variety When a market is flooded with a number of brands in a product category and a consumer doesn’t perceive any difference in between them i. ... Then we can say that consumer is facing ‘brand variety’ situation. Brand variety is the availability of number of brands in a particular product category, which position themselves in same or overlapping segments and advocate to fulfill the same type of need in an identical manner. Is the brand variety concept in India for real? ... The owners too were fairly brand loyal and stuck to either of the two cars. ... How is loyalty being challenged by brand variety? ... Let us trace the factors that have led to the apparent humbling of brand loyalty and the rise of brand variety: Technology and the changing consumer: Over the last 25-30 years, humankind has made immense progress in the areas of technology and engineering.