The Importance of Branding in the Marketing Mix Essay example
Different Branding …show more content…
Brand Loyalty Brand loyalty is when a customer is committed and buys repeatedly the same brand. Brand loyalty only exist when customers have a high relative attitude toward the brand which a customer exhibits repurchasing behavior. Brand loyal consumers cut the marketing costs of the firm as the costs of attracting a new customer was six times higher than the cost of retaining an old one. Customers that are willing to pay higher prices can also bring new customers to the firm, this type of loyalty can be a great asset to the firm. The key to influencing factors of brand loyalty is that customer’s perceived value, customer satisfaction, brand trust, commitment, and repeated purchase behavior. “Brand loyalty is the biased behavioral response expressed over time by some decision-making unit with respect to one or more alternative brands out of a set of such brands and is a function of psychological processes.” (A Review of Brand-Loyalty Measures in Marketing by M. Mellens, M.G. Dekimpe, J.B.E.M Steendamp. Vol. XLI, 4, 1996)
Biased response: there has to be a tendency to buy a group of brands or a certain brand and that brand choice should not follow a zero order process.
Expressed over time: don’t consider the amount of times a specific brand is bought, but you have to also look at the purchase pattern over successive purchases.
Decision-making unit: an individual, a household or a firm is