Brand Loyalty

• Why do we discuss brands in consumer behaviour?

  Brands help consumers differentiate similar products
• What do consumers buy according to the lecture?

  Consumers buy brands, not just products
• What is a strategic asset for every company?

  Brand
• How does Susan define brands from a consumer behaviour perspective?

  As collections of perceptions held by consumers
• What do consumers associate with brands?

  Feelings and thoughts about specific brands
• What is the significance of the Rolex watch compared to an unbranded watch?

  Rolex has meaning and value attached to it
• What is brand equity?

  Positive differential effect of a strong brand
• How do strong brands affect consumer attitudes?

  They positively influence perceptions and purchase intentions
• What is the process of branding according to Cindy Levi?

  Extensions of ideas and identities to create a brand
• What do strong brands provide to consumers?

  Financial benefits and lower marketing costs
• What is brand loyalty?

  Pattern of repeated purchase and commitment
• How has the view of brand loyalty evolved?

  It is now seen as deliberate evaluation processes
• What did Jacoby and Chesnut recognize about loyalty?

  Loyalty includes attitudes towards products
• What are the four stages of loyalty according to Oliver?

  Collective, affective, cognitive, action loyalty
• What is the holy grail of loyalty?

  Consumers defend the brand despite issues
• What risks are associated with person brands?

  Mortality, hubris, unpredictability, social embeddedness
• What are the benefits of strong brands for firms and consumers?

  • Financial benefits for firms
  • Lower marketing costs
  • Increased sales
  • Price premium for consumers
  • Trust and reduced perceived risks for consumers
• What are the differences between product brands and person brands?

  • Product brands are goods; person brands are individuals
  • Person brands require risk management
  • Product brands are predictable; person brands can be unpredictable
  • Person brands are part of a social collective
• What are the four attributes that must be balanced for successful person brands?

  1. Mortality
  2. Hubris
  3. Unpredictability
  4. Social embeddedness
• What is the significance of brand loyalty in consumer behaviour?

  • Indicates commitment to a brand
  • Involves attitudes and intentions
  • Reflects a pattern of repeated purchases
  • Essential for long-term consumer relationships
• What is the main focus of effective loyalty?

  Consumer satisfaction with the brand
• How does cognitive loyalty differ from effective loyalty?

  Cognitive loyalty is based on commitment to purchase
• Which brand is cited as an example of loyalty despite scandals?

  Volkswagen
• What criticism did Susan Fournier have regarding traditional views of loyalty?

  It focuses too narrowly on purchase behavior
• How does Fournier describe the nature of brand loyalty relationships?

  They are evolving and based on reciprocity
• What are the key characteristics of brand loyalty relationships according to Fournier?

  • Purposeful and evolving
  • Based on reciprocal principles
  • Can be verbalized and described
• What is an example of an "arranged marriage" brand relationship?

  Relationship with Apple products due to spouse
• What does Fournier mean by "avoidance-driven relationships"?

  Relationships formed to avoid certain brands
• What type of brand relationship is characterized by nostalgia?

  Childhood friends
• What does Fournier suggest about the strength of brand relationships?

  They differ based on emotional attachments
• What type of attachment is associated with affective relationships?

  Love and passion
• How does self-connection relate to brand loyalty?

  Brands display consumer values and attitudes
• What is an example of a behavioral tie in brand loyalty?

  Dependence on Tesco for convenience
• What is the significance of intimacy in brand relationships?

  Based on shared experiences with the brand
• What can lead to withdrawal from a brand?

  Changing behavior or needs
• What is an example of a situation that can cause withdrawal?

  Stopping smoking and quitting a brand
• What role do incentives play in brand loyalty?

  They can encourage consumers to switch brands
• How do sincere brands differ from exciting brands in terms of loyalty?

  Exciting brands recover better from transgressions
• What is a transgression in brand relationships?

  A breach of rules guiding the relationship
• What is a loyalty scheme?

  A program to encourage repeat purchases