...Abstract Brand loyalty is one of the most powerful marketing tools available, and it ensures that your products will be desired again. Many consumers develop loyalty to products of all types. Cars, electronics, clothing, and even groceries are often chosen based on prior experiences with particular brands. There are many ways to create and maintain brand loyalty. Three of those ways include rewards programs, customer satisfaction, and advertising. This report covers the definition, creation, and influence of social media on brand loyalty. How Businesses Develop Brand Loyalty All companies strive to create brand loyalty. It is one of the most powerful marketing tools available, and it ensures that your products will be desired again. Many consumers develop loyalty to products of all types. Cars, electronics, clothing, and even groceries are often chosen based on prior experiences with particular brands. How do companies develop this loyalty? In this report I will cover the definition, creation, and influence of social media on brand loyalty. The Hutchinson Unabridged Encyclopedia (2014) defines Brand Loyalty as “the attachment of the consumer to a particular brand, even though that brand may be more expensive than competing brands.” It is a psychological contract between the consumer and the brand, and is the target for all marketers. Consumers tend to develop devotion to specific brands. They buy what they have already bought in the past and opt for the brands that they...
Words: 1175 - Pages: 5
...ultimate goal. Marketing can be defined as “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others” (Kotler: 2002). Nowadays most of the consumers buy products with the help of brand rather than by inspection of the products. It means successful marketing of product means successful marketing of the brand of that product, moreover, every manufacturer or producer or marketer always seeks to get positive attitude towards the brand of his product. “A product is anything that can be offered to market to satisfy a want or need. After producing a product we should give the identification of the product for this brand is used to identify the product. Branding constitutes an important part of product. So building brands require a great deal of time, money, promotion and packaging. A brand is a name or mark intended to identify the product of one seller or group of sellers and differentiate the product from competing produces.” (Kotler: 2002) 1.2 Focus of the Study Brand encourages repeat purchase of products. This promotes brand loyalty among customers. Organizations can achieve stable market share. They get protrusion from competition and greater control in planning the marketing mix. They decrease importance of price. Success of an industry is the main function of successful...
Words: 2006 - Pages: 9
...Differentiating Between Market Structures Lydia Moore ECO 365 Eugene Gotwalt May 11, 2015 Differentiating Between Market Structures The competitive balance between forms is unique in every industry. A single company, while others, dominates some industries, have thousands of small companies competing for the market share. The composition of competitive forms is known as the market structure. For the purpose of this essay, I will focus on a firm called, Safeway Incorporated. This company works in the grocery industry, which would be an example of monopolistic competition. An analysis of the market structure wil be described and competitive strategies’ will be recommended for the company. Implementing these strategies will help this company in being successful in the market structure. Defining Monopolistic Competition Monopolistic competition occurs when there are many different firms competing for market share of similar products. These are generally low barriers. Which means that it is relatively easy for small companies to become a competitor in the market. All of the companies in this system sell similar products and must make a strong effort towards product differentiation. Products and services are considered to have a high elasticity of demand; meaning consumer has many comparable alternatives to choose from. If a firm decides to raise prices, a consumer in a monopolistic competition market should find it easy to find a similar alternative in their local area...
Words: 1224 - Pages: 5
...Introduction Brand commitment is the degree of psychological links between consumers and service or products they purchase. In fact, commitment towards a brand is the loyalty of consumers towards certain services and products produced by distinct businesses. Brands are a vital component of businesses, this is because they develop customer relationships which eventually results in performance of the business (Eisingerich & Rubera, 2010). Customer brand loyalty is repetitive purchasing of the particular service or product with biasness over other commodities attributed to the psychological evaluation by the consumer. Businesses are thus tasked with cultivating high brand commitment by using brand drivers to enhance performance. Brand drivers are attributes which generate strong impacts on the customer purchasing behaviors (Perrey, Spillecke & Armstrong, 2011). Brand commitment can be further elaborated as a consumer’s psychological pledge to have a long term attachment in terms of relationship towards a service or product they purchase into future times (MacInnis, Park, & Priester, 2014). Brand commitment is the supportive longevity behavior that a consumer exudes intentionally for a service or product. Initially, brand commitment starts with a consumer wanting to possess the particular service or goods which later results into an attachment with the brand. Next, attitudes of the consumers are generated in which after purchasing the service or goods they form an attachment...
Words: 3478 - Pages: 14
... EKONOMSKI FAKULTET U SARAJEVU [pic] BRAND LOYALTY GRAD PAPER CONTENTS: BRAND LOYALTY 1 CONTENTS: 2 INTRODUCTION 3 The concept and definition of Brand 4 Brand Building Activities 6 Brand Loyalty 7 The definition of Brand Loyalty 7 The concept of Brand Loyalty 10 Factors of brand loyalty 20 1.Brand awareness 21 2.Perceived quality 21 3.Brand personality 22 4.Brand identity 22 Brand equity 24 MEASURES OF BRAND LOYALTY 25 Conclusion: 34 REFERENCES: 35 NOTES: 36 Abstract: Even though the number of brands has strongly increased in recent years, only a few managed to endow themselves with significant brand loyalty. Besides the actual proprietary brand assets, such as patents and trademarks, other major elements like brand loyalty, perceived quality, brand associations, and others, underlie brand equity. A successful brand strategy must be based on creating brand loyalty. For achieving this goal consumers must be classified on a loyalty basis, while marketing strategies and mixes must be shaped accordingly. INTRODUCTION The success of a firm depends largely on its capability to attract consumers towards its brands. In particular, it is critical for the survival of a company to retain its current customers, and to make them loyal to the brand. Brand loyal consumers reduce the marketing costs of the firm as the costs of attracting...
Words: 14383 - Pages: 58
...www.ccsenet.org/ijms International Journal of Marketing Studies Vol. 3, No. 2; May 2011 The Influence of Brand Loyalty on Cosmetics Buying Behavior of UAE Female Consumers Dr. Hamza Salim Khraim Marketing Department, Faculty of Business Middle East University, Amman, Jordan E-mail: hkhraim@meu.edu.jo Received: January 24, 2011 Abstract The worldwide annual expenditures for cosmetics is estimated at U.S. $18 billion, and many players in the field are competing aggressively to capture more and more markets. The purpose of this article is to investigate the influence of brand loyalty on cosmetics buying behavior of female consumers in the Emirate of Abu Dhabi in the UAE. The seven factors of brand loyalty are brand name, product quality, price, design, promotion, service quality and store environment. Questionnaires were distributed and self-administered to 382 respondents. Descriptive analysis, one-way ANOVA and Pearson Correlation were used in this study. The findings of this study indicated that brand name has shown strong correlation with brand loyalty. The research results showed that there is positive and significant relationship between factors of brand loyalty (brand name, product quality, price, design, promotion, service quality and store environment) with cosmetics brand loyalty. Keywords: Female buying behavior, Brand loyalty, Cosmetics, UAE 1. Introduction The history of cosmetics spans at least 6,000 years of human history, and almost every society on earth...
Words: 6729 - Pages: 27
...Differentiating Between Market Structures Anne Giorno ECO/365 Principles of Microeconomics February 16, 2015 Jong Yi Differentiating Between Market Structures The competitive balance between firms is unique in every industry. Some industries are dominated by a single company, while others have thousands of small businesses competing for market share. The composition of competitive firms is known as the market structure. The grocery industry is an example of monopolistic competition. This type of market structure can have a positive and a negative impact on the structures competitive strategies. Monopolistic Competition Monopolistic competition occurs when there are many different firms competing for market share over similar products. There are generally low barriers to entry, which means it is easy for a small company to become a competitor in the market. All of the companies in this system sell similar products and must make a string effort towards product differentiation. Products and services are considered to have a high elasticity of demand; meaning a consumer has many comparable alternatives to choose from. If a firm decides to raise prices, a consumer in a monopolistic competition market should find it easy to find a similar alternative in their local area (Corcelli 2006). This differs from monopolies and oligopolies. A monopoly market is only one single seller. An oligopoly market is dominated by a small number of larger companies selling slightly different...
Words: 1421 - Pages: 6
...Market Segmentation Of Apple Iphone 4s Marketing Essay In this report, it aims to analyze and evaluate the market segmentation of Apple iPhone 4S. First of all, based on the theory of means end chain, the product is analyzed through product attributes, consequences of use and personal values. Special features of the product lead to the consequence of use, which finally stand for the value of the product. Besides, consumer markets are segmented according to different groups. Therefore, in this report, based on the analysis of four different categories including demographic, psychographic, use-related and benefit sought, it states consumers have different characteristics in terms of different items in each category, and then it identifies three groups of iPhone 4S consumers, including the primary targets of iPhone 4S are people who are loyalty to this brand with some knowledge of it, another two big groups are people who are interested in new high tech phones and people who are chasing social acceptance. It indicates that groups with special features share the same choices when they are making the purchase decisions. Furthermore, based on two reference groups, friends who are using the same products and other people who are interested in discovering applications in smart phones and give comments on the products, this report shows that purchasing decision from reference groups may have very important influence to target customers’ decision-making process. This report has given five...
Words: 3951 - Pages: 16
...WeeK 1 DQ 2 Market Orientation BUS 620 WeeK 2 DQ 1 Consumer Decision Process BUS 620 WeeK 2 DQ 2 ( Organizational Consumer Markets ) BUS 620 WeeK 3 DQ 1 ( Market Segmentation ) BUS 620 WeeK 3 DQ 2 ( Generic Marketing Strategies ) BUS 620 WeeK 4 DQ 1 ( New Products ) BUS 620 WeeK 4 DQ 2 ( Pricing Methods ) BUS 620 WeeK 5 DQ 1 ( New Economy Ventures ) BUS 620 WeeK 5 DQ 2 ( Market Pioneer Follower ) BUS 620 WeeK 6 DQ 1 ( Marketing Plan ) BUS 620 WeeK 6 DQ 2 BUS 620 Managerial Marketing Week 1-6 All Assignments BUS 620 Week 1 Assignment Amazon Reaching for Consumer Loyalty BUS 620 Week 2 Assignment U.S. Construction Industry “Its Return to Glory” BUS 620 Week 3 Assignment The New Apple, Inc. BUS 620 Week 4 Assignment ( Advertising ) BUS 620 Week 5 Assignment ( Space And Place ) BUS 620 Week 6 Assignment PebbleBee 2015 Marketing Plan BUS 620 Entire Course Managerial Marketing http://hwguiders.com/downloads/bus-620-entire-course-managerial-marketing/ BUS 620 WeeK 1 DQ 1 Value BUS 620 WeeK 1 DQ 2 Market Orientation BUS 620 WeeK 2 DQ 1 Consumer Decision Process BUS 620 WeeK 2 DQ 2 ( Organizational Consumer Markets ) BUS 620 WeeK 3 DQ 1 ( Market Segmentation ) BUS 620 WeeK 3 DQ 2 ( Generic Marketing Strategies ) BUS 620 WeeK 4 DQ 1 ( New Products ) BUS 620 WeeK 4 DQ 2 ( Pricing Methods ) BUS 620 WeeK 5 DQ 1 ( New Economy Ventures ) BUS 620 WeeK 5 DQ 2 ( Market Pioneer Follower...
Words: 4094 - Pages: 17
...“Discuss the concept of perceived value and its importance to consumer behaviour and marketing. Discuss the theory and then give practical examples of how customers perceive various brands and how this impacts on their behaviour” Background The perceived value is “the worth that a product of services has in the mind of the costumer. The costumer’s perceived value of a good or service affects the price that he or she willing to pay for it. For the most of the part, costumers are unaware of the true cost of production for the products they buy. Instead, they simply have an internal feeling for how much certain products are worth to them. This in order to obtain a higher price for their products, procurers may pursue marketing strategies to create a higher perceives value for their products. Perceived value is often used with perfumes, for example. Perfumes tend to be associated with a glamorous celebrity in order to create a mystique and perception of luxury. As a consequences of the social and economic development of modern societies, the study of consumer behaviour has undergone a strong development process, during the past years consumer behaviour acquiring its own status among sciences. However scientists concern with the study of consumer behaviour covers a time span of many decades. There have been several approaches related to consumer behaviour concertized In fundamental theories and models, such as Marshall “economic model”. And marketing is the management process...
Words: 1730 - Pages: 7
...current target market. While, the secondary problem being lack of partnerships with stores to give the consumer the option to collect loyalty points. The primary problem of market segmentation arises because the bank is not targeting all types of consumer markets in India. The bank separates its consumers into four types of consumer segments; super-affluent, affluent, emerging affluent and mass market. The first two segments consist of families with high-salaried income and the last two segments consist of households with self-employed individuals. Currently, the bank has a strategy of targeting the high-salaried households as they have the ability to spend significantly more than the mass-market. This segment, the super affluent and affluent only consists of about 15 million households, and it is very saturated as it has slow growth rate. While, on the other hand, the self-employed individuals tend to spend less compared to the high-salaried individuals, however they make up more than 50 million households. This consumer segment is growing and with the rising household disposable income, they are going to have more spending power by 2015. Other foreign banks in India also segment their consumer; however, they provide services to all of the four consumer segments. As these banks have realized that current consumer trend in India, and know that adapting the consumer trend is only going to benefit the bank. Banks build partnerships with stores to give consumers the opportunity...
Words: 582 - Pages: 3
...developed rapidly. This is because of the increasing number of working women, increased urbanization, and the increasing self-awareness due to education. Due to the trend of globalization, the markets of cosmetic not only develop in western area but has been spread to Asian area such as Eastern Europe and South America which represent a progressive consumption in the cosmetics markets (Kumar, 2005).Therefore, with the growth of global economics, the cosmetic and fragrance industry show a successful performance with an average of 5% growth rate among the industries every year (Kumar, 2005). According to Britannica (2011) the word "cosmetics" is derived from the Greek word Kosmetikos, which means "skilled at decorating". It refers to any of several preparations (excluding soap) that are applied to the human body for beautifying, preserving, or altering the appearance or for cleansing, coloring, conditioning, or protecting the skin, hair, nails, lips, eyes, or teeth. Besides that, when people hear the word ‘cosmetic’, they tend to think of makeup and perfume design for women. Actually, cosmetics come in many forms, which are powder, soap, shampoo, body makeup, toothpaste and others (Kumar et al., 2006). According to Wikipedia, brand loyalty can be defined as the situation in which the consumer usually...
Words: 4242 - Pages: 17
...increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons,freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, andrebates Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are calledconsumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Some sale promotions, particularly ones with unusual methods, are considered gimmicks by many. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers, wholesalers, retailers, or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial, or purchase. Examples of devices used in sales promotion include coupons, samples, premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.[1] |Content| |s | | [show| |] | [edit]Consumer sales promotion techniques ▪ Price deal: A temporary reduction in the price, such as 50% off. ▪ Loyal Reward Program: Consumers collect points, miles, or credits for purchases and redeem them for rewards. ▪ Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage marked on the package. ▪ Price-pack deal: The packaging offers a consumer a certain...
Words: 2464 - Pages: 10
...Dallas-Fort Worth and San Antonio. These Texas cities were often referred to as one single market area, although they were some of the fasted growing in the nation. Southwest recognized that Pacific Southwest Airlines had a similar business plan in California servicing Los Angeles to San Francisco, so they took this similar concept, and set their goals to provide quick, reliable service that local passengers sought to utilize. Within this Texas market included two other airlines, Braniff and TI. Both did not originally specialize in short distance air travel, and most short distance flights started at a larger location such as New York and traveled through the Texas cities as a multiple stop trip. Southwest’s choice to enter the market initiated a quick process to implement their strategy. Within 4 months, they would implement a marketing strategy and begin servicing the area. The problem with the Texas market was as soon as Southwest implanted a strategy and promotion, Braniff and TI would closely follow and form a very similar strategy. Southwest’s third phase of their advertising campaign led to Braniff once again matching the promotion that they are offering, and Southwest’s response to Braniff’s move would help establish southwest as a successful company. Within the Texas market, Southwest has created many strengths that will help set them apart from the current brand leaders. Many consumers are gravitating towards Braniff and TI because their brands are common. Southwest’s...
Words: 945 - Pages: 4
...- 73 Predicting Brand Loyalty and Product Involvement Behavior of Indian Teenagers Incorporating the Moderating Effect of Brand Influence Score. *Debasis Bhattacharya, ** Dipak Saha and ***Shuvendu Dey Creating and maintaining strong brand and a band wagon of loyal customers have become increasingly difficult in today's competitive environment due to proliferation of numerous brands in a generic product category. Brand loyalty has been shown to be associated with higher rates of return on investment due to increase in the market share. Past studies in this area reveal the dependence of researchers to administer the scale developed by Kapferer and Laurent as well as the scale developed by Zaichkowsky to capture product involvement facet. Studies reveal that teenagers in India spend more than Rs 66000 million in a year only on clothing items. Astonishingly, very few studies have been undertaken to relate the brand loyalty and product involvement behavior of teenagers. The data for this study is gathered from a cross section of teenagers drawn from different socioeconomic backgrounds from the major metros of Indi during the third quarter of 2010. In this paper apart including only involvement from including product involvement brand influence scores, brand trust and the size of the consideration set have been incorporated to predict brand loyalty of teens. The findings of the study reveal that multi-dimensional measure is a better predictor of loyalty behavior than a unidimensional...
Words: 4634 - Pages: 19
