Brands and Loyalty

by smartamarketing

Brand Loyalty Defined

What is brand loyalty? Brand loyalty implies that consumers bind themselves to products (both goods and service)s as a result of a  commitment.

Bloemer and Kasper further delineate brand loyalty into “spurious” and “true” loyalty. Spurious loyalty exhibits the following attributes:

  • Biased
  • Behavioral response
  • Expressed over time
  • By some decision-making unit, with respect to one or more alternate brands
  • A function of inertia

True brand loyalty includes the above, but replaces inertia with a psychological process resulting in brand commitment (Ref: Journal of Economic Psychology, Volume 16, Issue 2, July 1995).

What drives brand loyalty?

To better understand the process of preference, let’s first look at a basic communications model. The five components of this model are sender, medium, filter, receiver, and feedback. All messages are coded patterns and sensations – colors, sounds, odors, shapes, etc. Those messages deemed recognisable, or a basis for a relationship, are decoded and stored in our memory. A successful convergence between sender and receiver will result in some type of response to a brand’s compelling message (feedback).

Stored experiences in our long-term memory are connected through a series of nodes and networks. This node and connection process, called spreading activation, makes every person different” Since we all have different experiences, connections, and relationships, this supports a theory that the consumer, not the organisation, owns the brand.

Brand Positioning

Organisations seek to develop and project brand perceptions based on internally driven needs and goals.  Although these concepts seem self-evident on the surface, organisations tend to ignore these laws in their daily branding activities.

  • Perceptions are selective
  • Memory is highly selective
  • There is a physiological limitation to processing stimuli
  • A dramatic difference is needed in crowded category
  • How much of your message gets through the clutter depends
  • Minds are both emotional and rational
  • Purchasing decisions are really not known
  • Recall—mind’s remember things that no longer exist