Brand Loyalty Is a Myth: Factors and Examples

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Table of Contents

Introduction
Brand loyalty as a myth
Examples of how brand loyalty is a myth
Cultural diversity and brand loyalty
Conclusion
References

Introduction

In the marketing world, the term brand loyalty can be defined as the commitment of customers to continue using or repurchase a particular brand and this is normally portrayed by repeated buying of a good or service (Jacoby & Chestnut, 1978). It is also portrayed through different positive behaviors which include promotion of the good or service by word of mouth.

However, it has been noted that brand loyalty is more than simple repurchasing in that customers may be led to repurchase a particular brand as a result of lack of feasible alternatives, situational constraints as well as out of convenience (Berg, et al., 2010). Therefore, brand loyalty that is perceived to be true exists in situations where the customers have high relative attitudes towards a particular brand which as a result is demonstrated through repurchase behavior (Newman, 2008).

Brand loyalty as a myth

Businesses and companies in the market world have had a notion which states that brand loyalty is a myth. Marketing theories perceived as traditional have always emphasized the importance of brand loyalty, with marketers believing that it would eventually lead them to relationships with their potential customers (Carolyn, 2010). Moreover, the statement has some truth in it in that customers are bound to move on to the next best alternative product or good once the current one has been overtaken in terms of durability and improved quality standards (Hunt, 2009).

Repurchasing of a particular brand largely depends on how well service has been provided as well as its ability to offer updated features to ensure that customers do not get lost to competition (Uncles, et al., 2002). Researching to find out whether customers desire updated features because such features are being offered by competitive brands or because they require it, is an important consideration by marketers to enable a particular brand to define what incorporates value for a loyal customer (Datta, 2003). The majority of marketers also tend to believe that brand loyalty is formed much earlier in life and determines customers’ purchases at retails for years to come. They have also made the assumption that the older individuals get, the less experimental they are and thus brand loyalty is lost at this point (Keiningham, et al., 2005).

Examples of how brand loyalty is a myth

An example of how brand loyalty is a myth is in the case of the health and beauty category where deodorants and shampoos are involved. It has been observed that brand loyalty to such products declines with age (Jacoby & Chestnut, 1978). This can mainly be attributed to physical changes causing individuals to rethink the products and/or services they have used throughout their adult lives (Keiningham, et al., 2005). Health and beauty products of similar nature are more popular with individuals between the ages of 18 years and 30 years as compared to those individuals over 40 years of age who opt for a variety of brands (Uncles, et al., 2002).

Another example is that of soft drinks. Brand loyalty as concerns soft drinks lies with customers aged between 18 years to 30 years where approximately 46% of these individuals have one specific favorite soft drink brand (Datta, 2003). On the other hand, individuals who are above the age of 40 experience brand loyalty decline and finally becoming non-existent as time goes by. These examples are proof enough that indeed brand loyalty is a myth and does not exist throughout the lifespan of a product’s brand (Davis, 2009).

Cultural diversity and brand loyalty

Cultural diversity or cultural background has been observed in the recent past to have a huge influence on customer’s brand loyalty, for instance, according to some cultures, the price of a particular hotel might influence a customer’s preference to lodge there (Berg, et al., 2010). Moreover, the socio-economic status of the customer within the strata will greatly determine the selection of the particular hotel, merging with the status to which the individual belongs. Modern-day marketers are becoming more diverse as concerns distinctive customs and cultural values amongst numerous ethnic groups (Hunt, 2009). They are thus making efforts to entice these ethnic markets by ensuring that products and services made available relate to customers’ ethnic and cultural backgrounds (Carolyn, 2010). In this way, they can maintain brand loyalty with consumers.

Conclusion

Several factors have been seen as affecting brand loyalty for instance pressure from peers and attitudes of the customers. However, it is easier for already established products and services to maintain brand loyalty as compared to new and upcoming products and services. Those loyal to particular brands have the power to make or break the brands and therefore marketers need to have advanced marketing tools to ensure that brand loyalty concerning their brand is built and maintained.

References

Berg, J. D. et al. (2010) Measuring Brand Health to Improve Top-Line Growth. MIT Sloan Management Review. Pp. 61 – 68.

Carolyn, S. (2010) The Myth and Reality of Brand Loyalty – Guest Column – Brief Article. DSN Retailing Today.

Datta, P. R. (2003) The Determinants of Brand Loyalty. Journal of the American Academy of Business, 3(½). Pp. 138 – 145.

Davis, J. (2009) First Principles or Old Principles? The Cambridge Law Journal. Cambridge University Press. Pp. 441 – 443.

Hunt, E. (2009) Retail Services: Would you Like that Gift-wrapped? Journal of Intellectual Property Law & Practice. Oxford University Press.

Jacoby, J., and Chestnut, R. (1978) Brand loyalty Measurement and Management. New York: Wiley.

Keiningham, T. L. et al. (2005) Loyalty Myths. John Wiley and Sons, Inc.

Newman, D. E. (2008) Portraying a Branded World. J. L. Tech. & Pol’y, 2(4). Pp. 22.

Sloan, A. E. (2008) Step Right Up: Using Consumer Decision Making Theory to Teach Research. SCL Rev. Pp. 289 – 290.

Uncles, M. D., Dowling, G., and Hammond, K. (2002) Customer Loyalty and Customer Loyalty Programs. Journal of Consumer Marketing, 20(4). Pp. 294 – 316.

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