Determination of Brand Loyalty Factors Age Group-18-24

By Srivastava, R. K. | Academy of Marketing Studies Journal, January 1, 2007 | Go to article overview

Determination of Brand Loyalty Factors Age Group-18-24


Srivastava, R. K., Academy of Marketing Studies Journal


ABSTRACT

This paper reports the results of a study of factors determining brand loyalty within the 18-24 age groups. This paper reports the results of a study of brand selection and loyalty within in 150 members of the 18-24 age groups. The study explores brand loyalty behavior across different product categories, and investigates the dimensions that drive loyalty behavior within this age group. First, the construct of brand loyalty is defined, followed by an overview of key research in the area. Finally, the study itself is detailed. The study concludes that there is a significant difference in the degree of brand loyalty exhibited by the 18-24-year-old respondents across product categories. The dimensions of brand selection also vary by product type.

Brand Loyalty in terms of quality, novelty and reputation influence was evident in coffee and toothpaste purchase, with brand as a reflection of self-image being something that is important to mobile handset brands.

INTRODUCTION

The topic of Brand Loyalty holds great interest for market researchers, marketing managers and marketing academics. Brand Loyalty is a key issue for many marketing managers, and companies spend millions each year tracking brand loyalty levels through market research organizations. This interest in brand loyalty is also reflected in the academic literature, where loyalty has also been referred to a commitment and retention. Loyalty is an important concept in strategic marketing.

A base of loyal customers allows marketers to charge a premium price and to reduce the cost of doing business through decreasing acquisition and promotion costs, thus increasing shareholders value and hence profitability (Bennett & Rundle-Thiele, 2005). It has been suggested that it takes a lot less money to increase the retention if current customers than to find new ones (Wood, 2001). Fred Reichheld, formerly with Bain Consulting, defined loyalty in the Harvard Business review, as "the willingness of someone - a customer, an employee, a friend - to make an investment or a personal sacrifice in order to strengthen relationship". Loyalty, therefore, is a big deal - taking lots of thought, planning and consideration on the part of the marketers.

From a firm's perspective, a successful brand enables it to maintain a high level of consumer acceptance, often in the face of considerable competition. In addition, brand loyalty can:

* Provide a solid foundation for new product launch and for licensing

* Offset a decline in market share during price and promotional wars

* Help provide resistance to competitive attacks (Kamakura & Russell, 1991)

Aaker, 1991) wrote, "The brand loyalty of the customer base is often the core of a brand's equity. If customers are indifferent to the brand and, in fact, buy with respect to features, price, there is likely little equity

From the customer's perspective, a brand provides a visible representation of difference between products. Brands allow consumers to shop with confidence in an increasingly complex world. A brand can signify product quality as well as aid consumers in differentiating the product from competitive offerings.

A brand that consumers trust will also serve to reduce perceived risk and post-purchase cognitive dissonance.Modeling of price elasticity effects also demonstrate the importance of loyalty (Guadagni & Little, 1983; Starr & Rubinson, 1978). More loyal consumers, as measured by probability of purchase or "share of requirements" from past purchase panel data, are less likely to switch due to a given price inducement; as a corollary a loyal buyer usually needs a bigger discount to switch than would a less loyal buyer (Baldinger & Rubinson, 1996)

Marketers must understand what brand loyalty is, bearing in mind that brand loyalty will be different for each brand managed. Research suggests that customers can demonstrate loyalty by purchasing, by being willing to recommend, and by providing advice to the company, and finally, customers could demonstrate brand loyalty through an intention to repurchase. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Determination of Brand Loyalty Factors Age Group-18-24
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.