Brand loyalty, Brand Relationship and Brand Equity - Introduction to Branding
Brand loyalty, Brand relationship
and Brand equity
• When consumers become committed to a brand and make repeat purchases
• Brand loyalty is a result of consumer behaviour and is affected by a person's
• Loyal customers will consistently purchase products from their preferred
brands, regardless of convenience or price.
• Companies will often use different marketing strategies to cultivate loyal
customers, be it is through loyalty programs i.e. rewards programs
Factors affecting brand loyalty
Different measurements of brand attitude and purchase habits are expressed by
The distribution decision of the company is also valuable element
It is very important to provide the product to the consumer at convince place.
Brand loyalty has been defined as an attitudinal and behavioural concept
Relationship between brand loyalty & uniqueness that was not statistically
significant indicating that the business people should not focus their efforts on
the uniqueness of the brand name because this factor does not affect brand
loyalty at all.
Brand loyalty is determined by several distinct psychological processes of
the consumers and entails multivariate measurements.
Product features (Fragrance / Skin care / Germ fight features / Colour) is
one of the most important factors that affect brand loyalty.
Benefits from brand loyalty
Dramatic effects on profitability
Longer tenure as a customer
Lower sensitivity to price increases
Multidimensional theory of brand loyalty
Multidimensional theory is determined by several distinct psychological
processes and it entails multivariate measurements.
Simple measurement in terms of frequency and pattern of repeated brand
purchase behaviour is not sufficient to fully represent the brand loyalty
In fact it drastically limits the realm of products and services in which brand
loyalty exists but cannot be measured by repeated observations.
For example, in the case of once-in-a-lifetime consumer decisions for housing
and mobility behaviours.
A consumer brand relationship also known as a brand relationship, is the
relationship that consumers, think, feel, and have with a brand.
Brand relationship is the interactions between a brand and a customer
It reflect similar characteristics of relationships between people, such as love,
connection, interdependence, intimacy, and commitment.
Different concepts of brand relationship
Brand attachment : it is define as “the emotional connection between
humans and brands.”
Thus, just as people can be attached to a person, they can also by and for a
host of reasons become attached to a brand.
Three elements into the forming of a brand attachment are:
Affection: (They got me with their names.)
Connection: (with their sustainable practices)
Passion: (for my favourite flavours)
Brand community : A brand community is a community formed on the basis of
attachment to a product.
Recent developments in marketing and in research in consumer behaviour result
in stressing the connection between brand, individual identity and culture
Brand hate : Brand hate, a new marketing construct that assesses consumers’
negative attachment to a brand, can be considered as the ‘‘dark side’’ of
Brand hate can be a serious risk for companies, since it can damage the brand
image and reputation of the company.
Brand engagement : it is the process of forming an emotional or rational
attachment between a person and a brand.
Engagement with the brand means real emotional engagement with the brand
should be the ultimate objective
consumers “see” the brand as better meeting the expectations they hold for the
Ideal in the category where the brand competes.
Brand equity is a phrase used in the marketing industry which
describes the value of having a well-known brand name
It is based on the idea that the owner of a well-known brand name
can generate more money from products with that brand name than
from products with a less well known name
A brand's power derived from the goodwill and name recognition
that it has earned over time, which translates into higher sales
volume and higher profit margins against competing brands
Allow you to charge a price premium compared to competitors with less brand
Strong brand names simplify the decision process for low cost and non-essential
Brand name can give comfort to buyers unsure of their decision by reducing
their perceived risk.
Maintain higher awareness of your products.
Use as leverage when introducing new products.
Often interpreted as an indicator of quality.
High Brand Equity makes sure your products are included in most
consumers’ consideration set.
Your brand can be linked to a quality image that buyers want to be
It can lead to greater loyalty from customers. Offer a strong defence against
new products and new competitors.
It can lead to higher rates of product trial and repeat purchasing due to
buyers’ awareness of your brand, approval of its image/reputation and trust
in its quality.
How to Measure Brand Equity
To measure the value (utility) of a product’s features and price level and also
measure the overall utility of a product when including brand name.
The difference between total utility and the utility of the product features is the
value of the brand.
In other situations, the utility of the brand is measured directly and added to the
feature utilities to produce an overall utility for the product.
Besides utilities, contributing factors such as current awareness levels of each
Brand, overall perceptions of each Brand, and Brands currently used should be