Brand loyalty is a pattern of consumer behavior where consumers become committed to brands and make repeat purchases from the same brands over time. Loyal customers consistently purchase products from their preferred brands, regardless of convenience or price.

1. BRAND LOYALTY
Consumer Behaviour
Presentation

2. Important Key Terms:
• Brand
• Brand Equity
• Brand Awareness
• Brand Aversion

3. Definition
The American Marketing Association (2011)
defines brand loyalty as:
The degree to which a consumer consistently
purchases the same brand within a particular
product class.

4. Brand loyalty Includes:
• Attitudinal Components
• Behvioural Components
• A mixture of both leads to the Composite
Components of Brand Loyalty.

5. Brand Loyalty Tree
Top
of the Mind
Brand Awareness
Brand Recalling
Brand Ignorance

6. True Brand Loyalty
• Spurious Loyalty: When customer repurchase
a brand due to situational constraints such as:
I. vendor lock-in,
II. a lack of viable alternatives,
III. Inertia due to habit or out of convenience.
• True brand loyalty exists when customers
have a high relative attitude toward the brand
which is then exhibited through repurchase
behavior.

7. Rate of Usage
• Based on rate of usage, suppliers often segment
their customers into:
I. Heavy Users
II. Medium Users
III. Light Users
• Pareto 80-20 Rule

8. Types of Loyal Customer
• Hardcore Loyal
• Split Loyal
• Shifting Loyal
• Switchers(e.g. Deal Prone)

9. Benefits

10. Benefits of Brand Loyalty
• Acceptance of product extensions.
• Defense from competitors cutting of prices.
• Creating barriers to entry for firms looking to
enter the market.
• Customers willing to pay high prices.
• Existing customers cost much less to serve.
• Potential new customers.

11. Factors affecting Customer’s Loyalty

12. Factors which determines the degree
of Customer Loyalty
• Behavioral Loyalty:
1. Choice reduction, Habit
2. History with the company
• Attitudinal Loyalty:
1. Satisfaction
2. Emotional Bonding
3. Trust, Risk Reduction

13. How to Boost Brand Loyalty
• Deliver value
• Segment loyalty levels and reward accordingly.
(By giving Loyalty Points)
• Run integrated promotions campaigns
• Encourage sharing of reviews and customer
success stories(word of mouth marketing)

14. Thank You
Presented By:
• Abik Samaiya(64)
• Pramesh Jain(96)
• Pranshul Maheshwari(105)
• Mohit Sarohi(120)