Brand loyalty
As brand loyalty the behavior of people is referred to, which are inspired mainly to products of a brand in their purchase or usage activities. This experience, ratings and characteristics of a very specific product be transferred to other products of a brand. Brand loyalty is thus a sequence of brand trust and brand awareness.
Manufacturers and sales organizations use the phenomenon of brand loyalty through a broad product-group cross-border use of certain trademarked terms to increase sales and brand awareness. Often the company or a previously known especially single brand of the product range is selected for shipping mark and determine the marketing strategy of the company.
But brand loyalty can also be produced artificially, if the offer of alternative similar products is reduced to the extent that a comprehensive cross- range is covered only by the house brand of the company. This tendency can be observed especially in the food discount. Lack of alternative providers, the consumer can be brought into direct brand dependency.
- As a completely brand loyal a buyer is referred to when he accessed in a certain product exclusively to a single brand (see also Mono loyalty )
- When completely markenuntreu applies a buyer if he keeps changing the brand.
Metrics for brand loyalty developed by the modern marketing science in large numbers in the loyalty research and used in marketing research:
- Share of the brand most commonly purchased on the total purchase volume
- ( Euclidean ) distance from the mark completely unfaithful buyer ( the farther away from the unfaithful buyer, the brand- loyal )
- Guadagni -Little- Index
- Herfindahl index ( brand loyalty as a concentration )
- Trade-off between risk aversion and Abwechlungsappetenz
Especially in highly competitive markets, the construction of a brand-loyal customer base may be the only way to keep market share. These are discounts and other incentives for frequent buyers.
Brand loyalty is also an important factor influencing the brand value.