Conception, issues and prospects of BRAND LOYALTY

Conception, issues and prospects of BRAND LOYALTY Student: Punga Yulia Study group: 3154/1

AIM Do an analysis of brand loyalty: issues and prospects, and define factors that influence on brand loyalty

WHAT IS BRAND LOYALTY? the situation in which a consumer generally buys the same manufacturer originated product or service repeatedly over time than buying from multiple suppliers within the category” or “the degree to which a consumer consistently purchase the same brand within a product class” According to American Marketing Association

BRAND LOYALTY vs REPEAT PURCHASE

DISTINCTION BETWEEN REPEAT PURCHASING BEHAVIOR AND BRAND LOYALTY Repeat purchasing behavior is the actual rebuying of a brand Brand loyalty also includes “that behavior’s antecedent”. antecedent This means the reason or fact occurring before the purchase

WHAT TO EXPECT FROM LOYAL CUSTOMERS Behaviors: Come back frequently Buy most expensive products Recommend brand to friends Give important suggestions Emotions: Are attached to the company Trust the company Resist changing despite competitors’ persuasion Are willing to forgive mistakes

Committed to the brand Likes the brand David Aaker Satisfied – with switching costs Habitual – with no reason to change Switcher – price sensitive-indifferent-with no brand loyalty

TWITTER, FACEBOOK AND VKONTAKTE AS A NEW TOOL FOR INCREASING BRAND LOYALTY

THE POTENTIAL OF THESE TOOLS FOR COMPANIES • Attention in the online-world • Distribution of news • Communication • Execution of viral marketing campaigns • Nurturing of reputation • Source of current trends

Social Network Company Customer

LOYALTY TO DOMESTIC BRANDS

73% - prefer Russian chocolate 13% - prefer foreign chocolate According to VCIOM (Russian Public Opinion Research Center)

RELATION BETWEEN CONSUMER AGE AND PREFERENCES (%) 18 -24 25 -34 35 -44 45 -59 60+ Russian 57 64 79 76 82 chocolate Imported 29 24 10 8 3 chocolate No answer 14 12 11 16 15

CONCLUSION

BRAND LOYALTY DEPENDS ON: • Quality and price • Company’s philosophy • Visual appeal • Experience or reputation of the company • Unique character of product • Fresh advertising • Rate of communication with customer • Customer service

THANK YOU FOR YOUR ATTENTION!

Do you have any questions? ? ?