Page 308 - Foundations of Marketing

Product, Branding, and Packaging Concepts | Chapter 10 275

Products with Brand Loyalty
Many consumers are extremely
brand loyal to Harley-Davidson
motorcycles and are unwilling
to accept a substitute.

© iStockphoto.com /gianlucabartoli

loyalty to that brand. Development of brand loyalty in a customer reduces his or her risks
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and shortens the time spent buying the product. However, the degree of brand loyalty for
products varies from one product category to another. It is challenging to develop brand loy-
alty for some products, such as bananas, because customers can readily judge the quality of
these products and do not need to refer to a brand as an indicator of quality. Brand loyalty also
varies by country. Customers in France, Germany, and the United Kingdom tend to be less
brand-loyal than U.S. customers.
There are three degrees of brand loyalty: recognition, preference, and insistence. Brand
recognition occurs when a customer is aware that the brand exists and views it as an alternative
purchase if the preferred brand is unavailable or if the other available brands are unfamiliar.
This is the mildest form of brand loyalty. The term loyalty is clearly used very loosely here.
Brand preference is a stronger degree of brand loyalty. A customer defi nitely prefers one brand
over competitive offerings and will purchase this brand if it is available. However, if the brand
is not available, the customer will accept a substitute brand rather than expending additional
effort fi nding and purchasing the preferred brand. When brand insistence occurs, a customer
strongly prefers a specifi c brand, will accept no substitute, and is willing to spend a great deal
of time and effort to acquire that brand. If a brand-insistent customer goes to a store and fi nds
the brand unavailable, he or she will seek the brand elsewhere rather than purchase a substitute
brand. Brand insistence also can apply to service products such as Hilton Hotels or sports teams
brand recognition
such as the Chicago Bears or the Dallas Cowboys. Brand insistence is the strongest degree of
A customer’s awareness that
brand loyalty; it is a brander’s dream. However, it is the least common type of brand loyalty.
the brand exists and is an
Brand loyalty is an important component of brand equity because it reduces a brand’s
alternative purchase
vulnerability to competitors’ actions. It allows an organization to keep its existing customers
brand preference The degree
and avoid spending signifi cant resources to gain new ones. Loyal customers provide brand vis-
of brand loyalty in which a
ibility and reassurance to potential new customers. And because customers expect their brands
customer prefers one brand
to be available when and where they shop, retailers strive to carry the brands known for their over competitive offerings
strong customer following.
brand insistence The degree
Customers associate a particular brand with a certain level of overall quality. A brand name
of brand loyalty in which a
may be used as a substitute for actual judgment of quality. In many cases, customers cannot customer strongly prefers a
actually judge the quality of the product for themselves and instead must rely on the brand as specific brand and will accept
a quality indicator. For instance, Toyota was able to survive as a company, despite the massive no substitute

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