Brand Loyalty is a scenario where the consumer fears purchasing
and consuming product from another brand which he does not trust. It is
measured through methods like word of mouth publicity, repetitive buying, price
sensitivity, commitment, brand trust, customer satisfaction, etc. Brand loyalty
is the extent to which a consumer constantly buys the same brand within a
product category. The consumers remain loyal to a specific brand as long as it
is available. They do not buy from other suppliers within the product category.
Brand loyalty exists when the consumer feels that the brand consists of right
product characteristics and quality at right price. Even if the other brands
are available at cheaper price or superior quality, the brand loyal consumer
will stick to his brand.
Brand loyal consumers are the foundation of an organization. Greater loyalty levels
lead to less marketing expenditure because the brand loyal customers promote
the brand positively. Also, it acts as a means of launching and introducing
more products that are targeted at same customers at less expenditure. It also
restrains new competitors in the market. Brand loyalty is a key component of
brand equity.
Brand loyalty can be developed through various measures such as
quick service, ensuring quality products, continuous improvement, wide
distribution network, etc. When consumers are brand loyal they love “you” for
being “you”, and they will minutely consider any other alternative brand as a
replacement. Examples of brand loyalty can be seen in US where true Apple
customers have the brand's logo tattooed onto their bodies. Similarly in
Finland, Nokia customers remained loyal to Nokia because they admired the
design of the handsets or because of user- friendly menu system used by Nokia
phones.
Brand loyalty can be defined as relative possibility of customer
shifting to another brand in case there is a change in product’s features,
price or quality. As brand loyalty increases, customers will respond less to
competitive moves and actions. Brand loyal customers remain committed to the
brand, are willing to pay higher price for that brand, and will promote their
brand always.