The Impact Of Price On Consumer Brand Loyalty And Perception

In recent years, sales promotion tactics are extensively used to achieve different marketing targets. The aim of this project is to analyze the effectiveness of premiums promotion, limited-time discount and loyalty card promotion according to the marketing targets in the first three phases of product life cycle, which can help companies maximize the effects of sales promotion. The specific marketing targets in the first

Thus, companies seek to strengthen customer loyalty. Brand loyalty is considered to tilt the consumer to purchase the package / product specific brand (Jacoby and Chestnut, 1978). Later, Oliver (1997) defined loyalty as "a deeply held commitment to REBUY or repatronize preferred product / service consistently in the future, thereby causing repetitive same-brand or same brand set purchasing, despite situational influences and marketing activities, which would result in causing switching behavior "(p. 34). This conceptual definition covers two different aspects of loyalty: the behavioral. This is consistent with an integrated conceptual framework proposed by Dick and Basu (1994), that customer loyalty is regarded as a "power relationship between the relative position of the individual and repeat

As mentioned above, despite efforts, the products offered from competing firms are, in the customers mind, indistinguishable. This leads the customer to shop primarily on price making brand loyalty difficult. Attempts have been made to increase differentiation and loyalty through frequent flyer programs. Despite these attempts the product remains viewed as a commodity.

Promotional strategy can be described as the function of notifying, persuading, and influencing the decisions of a customer regarding a particular product and/or service. Notably, certain promotional strategies are geared towards creating primary demand or desire for a general product category. The most common objectives of the use of promotional strategies across organizations include creating the primary demand for a product, expanding markets, maintaining the current market position, and presenting a corporate view on a public matter. The other important aspect in the marketing mix is developing an appropriate pricing strategy for the product and/or service. The main objective a suitable pricing strategy is to ensure that the product and/or service are provided at reasonable prices while the

Brands - we see them everywhere. Nowadays advertisement has become so common, that it is normal for us to see promotions all around from the moment we get up from bed and up until we go to sleep. We do like some of those advertised brands, and in order buy their production and stay loyal to them. However, some of them we do not and just try to ignore their output. Nevertheless, is it possible to influence people through loyalty programs and why do people choose to stay loyal in the first place? Some believe that companies want to make their customers happy and money is not the main goal for them, but I reckon that it is profitable for companies to have loyal and dependents consumers and it is the main reason of why now we have loyalty programs in our society.

We feel that a 15% discount rate is more adapted to the brand’s premium identity than the 30% discount rate suggested by Brown. Indeed, it shows more consistency with the high-end pricing strategy of the group ($200 rather $199.99) and seems fairly adapted to consumers’ expectations since even at a rate of 10% -that half of the retailers ran in 2004- the promotion remained successful. A 15% discount rate should encourage retailers to maintain the suggested discount rate rather than lowering it because Culinarian would request a lower contribution from retailers: from a 4% to a 3% loss in their margin. We believe that the best way to enhance sales and to maintain the premium identity of the brand is to run that price promotion on the two lower priced products: CX1 and DX1. This would avoid cannibalization between these two products that target high

Sales promotion objective vary widely. Sellers may use consumer promotions to urge short-term customer buying or

The brand loyalty reflects a customer's commitment to remain in a long‐term relationship with a brand (Jing, Andrew and Sheau, 2013; Reichheld, 1996). This loyalty can attract customer re-buy and re-patronize the same brand product again, no matter of convenience or price. The brand loyalty is very important of the brand and company, it is because when the customer decision to buy this brand, they will often loyalty to that brand, keep buying on future, recommend to friends and choose this product to others, even other brand have more better features or lower price (Assael, 1991). So if no customers to support the brand, it will decrease the brand

Store brands saw a rise during the recession, but many consumers continue to buy them. With the recession over, consumers purchase store brands for different reasons other than cost savings. Store brands are now competing with national brands. Both, store and national brands, need to focus on what they can do for their consumers and offer them value plus brand promises. How is this accomplished? This paper explains the causes behind the rise of store brands and how national and store brands create brand loyalty by focusing on consumer needs as they compete for consumers, along with how brands achieve success.

Text Exchange is a small online/smart phone textbook company. Their primary objective is to provide college students with the opportunity to buy and sell textbooks with the least amount of hassle as possible. They would like to gain market share as well as become a major player in the textbook sales/exchange industry. Currently there are two primary outlets to purchase textbooks: college book retailers and online book stores. There are many competitors in the textbook market and brand loyalty is difficult to overcome so we believe by having a product that differentiates itself from the others, we can really shine through. We have a highly motivated work force and an innovative idea. The price of the books sold

This study tests the Hypothesis 1 mentioned above regarding how product type (hedonic vs. utilitarian) moderates the positive influence of discount level on promotional effectiveness, such that the effect is stronger for utilitarian than for hedonic products.

Brand E has a Market Share of 7%, a Penetration rate of 17% and a Purchase Frequency of 3.65, in comparison to the market leader Brand A, which holds a 35% Market Share. The table demonstrates how larger brands (A, B and C) have higher penetrations compared to the smaller brands. This establishes that the Double Jeopardy Law is in action. The larger brands have more consumers who purchase more often, in comparison with smaller brands, like Brand E, which have fewer customers, which purchase less often (Sharp 2010). This demonstrates that Brand E will have lower loyalty metrics in comparison to the market leaders.

In highly competitive markets with increasing unpredictability and decreasing product differentiation, brand loyalty is a central element of marketing strategies and tactics. Brand loyalty generates benefits like substantial entry barriers to competitors, better ability to respond to competitive threats, greater sales and revenues and the customer’s lower sensitivity to marketing efforts of competitors. In the context of product and brand management, a number of studies have shown various effects of risk aversion on consumers’ decision making. This conceptual paper aims to discuss about how risk-averse consumers behave in choosing particular brand in smarthphone market and how that risk aversion lead to the brand loyalty, brand

Coca-Cola is regarded an established well-known company with a century of existence. Coca-Cola’s global brand awareness permits to position itself as a “Premium” brand and so, it can charge premium prices to its products. Coca-Cola’s products appear to have almost double the cost of no name products. But, it does not deter people from buying them. On the contrary, it creates positive perceptions and values about Coca-Cola’s products. When people buy Coca-Cola, they do not only buy a soft drink but also the image that goes with it. Thus, having a higher price means that Coca-Cola’s products have better quality than the rest and so, people must pay more in order to savor them. This pricing strategy is known as value-based pricing and is used by many companies in order to appeal customers.

The behavior in which a consumer keeps buying a product time and again instead of buying products from other competitive companies is called Brand Loyalty. Brand loyalty can often be termed as Customer Loyalty, Brand Commitment, Product Loyalty etc. Brand Loyalty is seen among consumers when they realize that the product is better than the other products that are available in the market. This affinity of a consumer towards a particular product is considered to be brand loyalty. Although, this consumer behavior is not limited to a simple repetition of a purchase, there is also a psychological reasoning behind the consumers’ affinity towards behavior.