Factors Of Power Brand On Consumer Loyalty Essay

A brand is a name, term, design, symbol, or any other feature that identifies one seller 's good or service

Simplified brand loyalty describes a status in which consumers determine their selves in; out of it they become committed to a brand. Thereby they continue purchasing products or services of a specific brand. At this point consumers rather spent more money on a product of a specific brand than buying from multiple suppliers within the same category. Mainly brand loyalty is a result of consumer’s behavior, which is enforced through a company’s measurements regarding branding. Branding is a process that a company runs through in order to establish a new brand. The ambition here is to strengthen a unique name and image for a product in

The definition and importance of brand has been discussed by many scholars. Kotler (2006:334) defined Brand as ‘a name, term, symbol or design which helps the sellers to differentiate its products and services from its competitors’. Duncan (2008:70) claimed that a brand is a perception of a company or a line of products and services which is result from the experience and information. About the importance of brand management, Groucutt (2005:120) stated effective brand management can help a company gain and sustain competitive advantages. According to branding; the corporation can obtain legal protection through copyright, trademarks and patents. In addition, the company can also add value to its product and services. Furthermore, a brand can help the company to differentiate its

Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding.

Ted Baker’s brand differentiation and consumer loyalty can further be related to the characteristics theory, which was developed by Kelvin Lancaster in the mid-60’s and it is based on four key assumptions:

A Brand is a product, service or concept is the other product, service or concept distinguish public so that it can easily to communicate and usually sell. A brand name is the distinctive name of the product, service or concept. Brand is the creation and dissemination of the brand in the process. Brand identity can be applied to the entire enterprise and for individual product and service names. The American Marketing Association (1960) proposed the following company oriented definition of a brand as:

Brand loyalty, long a central construct in marketing, is a measure of the attachment that a customer has to a brand. It reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or in product features. As brand loyalty increases, the vulnerability of the customer base to competitive action is reduced. It is one indicator of brand equity which is demonstrably linked to future profits, since brand loyalty directly translates into future sales.

4. Brand Loyalty: Aaker (1996) defined brand loyalty as the attachment of a customer to a brand. According to the attitudinal perspective, brand loyalty is defined as a deeply held commitment to re-buy a preferred product or service consistently in the future despite situational influences and marketing efforts having potential to cause switching behavior (Oliver, 1997).From the behavioral perspective Odin, Odin and Valette-Florence (2001) suggested that the customer who buys the brand systematically is considered loyal to this brand. Authors may differ in defining the brand loyalty but they all agree on the importance of focusing on loyal customers and trying to increase their number and their loyalty. Managers know that loyal customers do buy more with willingness to spend more, are easier to reach and act as an advocate for the brands’ firms (Chaudhuri and Holbrook, 2001; Odin, et al., 2001; Oliver, 1997).

THE PERCEPTION OF THE BRAND IN THE MINDS OF CONSUMERS. ONE OF THE MAJOR ROLES OF BRAND MANAGEMENT IS TO CREATE POSITIVE PERCEPTIONS IN THE MINDS OF THE TARGET CUSTOMER ‘(OXFORD UNIVERSITY PRESS, 2016 )

When assessing the similarities and differences in branding to consumers as opposed to businesses, it is important firstly, for brands to get to know their buyers. Across the board, business or consumer, the buying process starts

“A power brand is characterized by the distinctive nature of its brand personality, by the appeal and relevance of its image, by the consistency of its communication, by the integrity of its identity and by the fact that it has stood the test of time”

Brand loyalty is one of the hottest subjects in marketing today. Customer’s brand loyalty play an significant role in company’s development. There are a range of definitions of this term, but in this essay ‘brand loyalty’ refers to people being willing to buy products from the same manufacturer repeatedly rather than from other suppliers. More and more companies are tried to investing in optimizing the benefits of their brand externally and internally. Various researchers (Ballester and Aleman, 1999) refer that brand loyalty generates benefits like substantial entry barriers to competitors, better ability to respond to competitive threats, greater sales and revenues and the customers’ lower sensitivity to marketing efforts of competitors. The purpose of this essay is to help the entrepreneur to explore which factor can have important influence for customer’s brand loyalty. Clearly a study of this type is inevitably restricted by various constrains. Because customer’s brand loyalty has been influenced by many factors we can not illustrate all of them. The essay is structured as follows. The first section presents an example on the highly successful Apple company, analyzing the company’s approaches to encourage ‘brand loyalty’ among their customers. The second part focuses on factors distinguish which factors can have a significant influence on customer, make customers to try out products instead of remaining loyalty to brand.

The literature review analyses the general theories surrounding the concept of brand loyalty in previously adapted marketing management guidance, marketing science and the human communication researches with an indication as how understanding the factors contributing brand loyalty can actually help organisations to build brand loyalty amongst consumers. The sources used for the literature review are journal of management, information quarterly, textbooks, academic blogs, and official website publications.

The concept of Brand loyalty is defined in terms of 6 necessary and sufficient conditions. These conditions are as follows: -

The establishment of a unique brand is the target of any given business. A successful brand is that which customers can easily relate to, an aspect that enables a brand to be capable of gaining competitiveness in the market. The creation of a brand that a large percentage of customers can relate to and easily identify with translates to a large consumer base. Branding is primarily directed towards creating a positive perception in the minds of the consumers, an aspect that makes the customers to understand what they would expect from a business. The development of a brand by a business is primarily processual, and ensuring that there is an effective strategy in brand development helps ensure the emotional connectivity and appeal of the brand to the customers (Powers, 341-360).