Brand Loyalty: Definition, Functions and Levels of Brand Loyalty

Brand Loyalty Definition, Functions and Levels of Brand Loyalty

Nikereact.orgBrand loyalty is often referred to as brand loyalty. This means a concept that describes the loyal attitude of consumers to a particular brand so that it benefits the company. Brand loyalty is important in the world of marketing. Of course, those who are already in business are familiar with discussions related to brand loyalty. This is because a brand can show the commitment of consumers to buy a product. For example, several brands such as Louis Vuitton, Burberry, Dior, and others that bind the hearts of the upper middle class. Wow, that’s cool, now for more details, let’s see the explanation below!

Definition of Brand Loyalty

Brand Loyalty Definition, Functions and Levels of Brand Loyalty

Brand loyalty is taken from English. Brand means brand, while loyalty means loyalty. In language, brand loyalty means loyalty to a particular brand or brand.

In terms, brand loyalty is widely defined by experts in the field of marketing and branding. David Allen Aaker defines brand loyalty as a measure that describes the bond between a customer and a brand. The professor in the field of marketing and brand strategy stated that the size of the bond can predict whether the customer will switch to another brand or not when competitors offer changes, such as price.

Loyal customers will not switch to another brand easily. Whatever happens, it has to be the brand. Using a certain brand that they like is a fixed price for them.

On the other hand, John C Mowen and Michael Minor define brand loyalty as a level that describes a customer’s positive attitude towards a brand, builds commitment, and has a tendency to buy again in the future. The researchers in the field of consumer behavior concluded this after taking two approaches, namely behavioral and attitudinal.

The behavioral approach can be seen from the behavior of customers who buy products repeatedly without involving the element of feeling in it. While the attitudinal approach can be seen from repeated purchases due to feelings of liking for the brand.

Thus, brand loyalty can be defined as a pattern of behavior possessed by consumers after purchasing a brand with a certain brand. The behavior shown by consumers tends to display a willingness to buy the product again. The strength of the relationship between consumers’ relative attitudes and repeat purchases can be used as a parameter to measure the level of brand loyalty.

Loyal customers in general will continue to buy products with certain brands even though there are many lures given by other brands. Starting from a more affordable price, more attractive packaging, better taste, and others. If many customers fall into this category, then the brand has strong brand equity.

Brand Loyalty Level

Consumer loyalty to a brand has a level that can be interpreted as a level of loyalty. There are at least five levels that distinguish the level of loyalty between consumers. By understanding this level of loyalty, you can estimate the strength of your brand. Below are the levels of brand loyalty that you need to know.

1. Switcher or Price Buyer

This level is the most basic level of the five existing levels. Consumers who are at this level are not the main target of your product. Consumers of this type are not loyal buyers, they even tend to be disloyal because they are ready to switch to other brands as soon as there are more attractive offers.

The brand you have has no significant effect on consumers at this level. What they are after is not a brand. What they are after is a brand that provides them with the most benefits, for example a product that offers the most competitive price.

2. Habitual Buyer

Buyers who are at this level of brand loyalty buy your product or brand based on habits. They buy your brand because they are satisfied or at least not disappointed by your products and services on previous purchases. As long as there is nothing fatal, this type of consumer will remain loyal to the brand that you build.

This is not without reason. Switching to another brand certainly requires greater effort. If they want to switch to another brand, at least they have to do quality observations, reviews from other consumers, do calculations, to foster trust in brands that are not yet known.

3. Satisfied Buyer

Buyers who are at this level are actually consumers who are loyal to your product. They are satisfied with what you give. However, the possibility to switch to another brand is still open, although the possibility is not great.

In addition, buyers at this level may think that switching to another brand is actually detrimental to them. If they decide to switch to another brand, at least they need a switching cost in the form of money, time, effort, performance risk, and the trust that has been built. Of course this is not a cheap consequence.

This phenomenon is well recognized by competitors. Competitors usually bear the cost of the switch by offering the satisfied buyers the lure of enormous benefits. They consider these costs as compensation costs that must be paid so that buyers want to try their products.

4. Like the Brand

The next level in brand loyalty is liking the brand or liking the brand. Buyers at this level are preferred consumers who really like your brand. At this level, consumers already have a strong emotional bond with your brand.

Consumer preferences may be based on associations formed, for example, experience in using a brand, quality that meets expectations, and symbols. However, the feeling of liking is difficult to identify specifically because these feelings are the result of accumulation of various causes. Consumers at this level can be said to have become friends of your brand.

5. Committed Buyer

Buyers who are at this level of brand loyalty are the most loyal buyers. By using products that use your brand, buyers at a level grow in pride. Not only that, they choose your brand as proof of their identity.

The existence of your brand is important in their lives. Therefore, buyers who are at this level have very strong trust in your brand. Competitors are certainly very difficult to attract committed buyers to want to switch to their brands.

Their loyalty is not enough to be loyal. They will be happy to recommend your brand to people in their circle. Telling about your brand is a matter of pride so they will be happy to do it.

Brand Loyalty Function

Brand loyalty can be a strategic asset in benefiting a company. However, brand loyalty must be managed properly if it is to reach this profit point. The following are some of the functions of brand loyalty so that it can become a company’s strategic asset:

1. Reduced Marketing Cost

Brand loyalty can help a business in reducing marketing costs. This is because customers stay with the product, rather than looking for new customers. The characteristic of reducing marketing costs is that there are customers who buy a product because it is cheap.

2. Trade Leverage (increase in sales)

If a product’s brand loyalty increases, sales will also increase. Buyers will tend to buy a product because of habits and beliefs. This is what is expensive about a brand, namely the belief of buyers to keep repeating a product from the same brand.

3. Attracting New Customers (attracting new customers)

Many customers who believe and are satisfied with a brand can invite other new customers. Usually these consumers will start recommending brands that they believe in to the people closest to them. In addition, the more interest in the product, it will attract new customers to follow and buy a product.

4. Provide Time To Respond Competitive Threats (opportunity to respond to competitive threats)

High brand loyalty in consumers will tend to benefit entrepreneurs in product adjustments due to competition. The consumer will give time for a company to renew, either adjust or neutralize the product when a new competitor arises. In addition, high brand loyalty will not easily shift consumer confidence in a product.

How to Increase Brand Loyalty

Given the importance of brand loyalty for forming bonds with your customers, it is imperative to increase it. By increasing brand loyalty, you can save on marketing costs and of course increase sales. Here are ways you can do to increase consumer brand loyalty to your brand:

1. Understanding Consumer Needs and Wants

Understanding your market segment is an obligation so that marketing can run effectively and efficiently. It is unlikely that you offer baby clothes to teenagers who still like to play online games. Baby clothes should be marketed according to the market segment, for example mothers who have just given birth or middle-aged mothers who are about to have grandchildren.

After understanding who your market is, it’s important to understand their needs. The best intention in doing business is to help as many people as possible to meet their needs. If you offer something they don’t need, people will think twice about buying your product.

A business or marketing needs to understand the character and needs of consumers. People don’t care what you’re selling. But they care more about who can help them in meeting their needs.

Each type of consumer has certain criteria in choosing a product. Your product and brand will be easily remembered by consumers who feel they need your product. The better your efforts to address consumer concerns, the higher your chances of increasing brand loyalty.

2. Increase Brand Engagement

The bond between consumers and brands has a very important role in business continuity. This bond is called brand engagement which discusses how consumers have an emotional bond or feel a need for your brand. Keep in mind, most consumers buy products not determined by their conscious mind, but mostly driven by the subconscious mind.

You can level brand engagement by providing discounts, information, tips, entertainment, free knowledge, and more. What you offer should be conveyed in a two-way discussion. The length of the interaction can foster an emotional bond.

3. Making sure the brand remains consistent

Maintaining brand consistency to consumers is one way that you must do to increase brand loyalty. On the other hand, talking about the brand certainly cannot be separated from the products it covers. Thus, maintaining the quality of the brand and product is the right way to ensure brand consistency.

You need to maintain the quality of products and services at the same time. What consumers love are the experiences and good memories they have had in the past. When they come back to buy your product, they have the hope that they will be served as well as before or even better.

Not only that, all team members or even influencers who carry your brand name are your brand ambassadors. Conducting regular joint evaluations so that they maintain their own good name is certainly an important thing to do. Their attitudes, speech, and behavior are a reflection of the values ​​that your brand carries.

4. Introducing Brand Value

Brand values ​​are values ​​that are carried by your brand while running a business. These values ​​are what you practice and you pass on to your staff and customers throughout your business. Introducing brand value is important because consumer trust will emerge after knowing how your product is, how you work, and how you serve consumers.

All of these things are proof that you have value. Why is brand value so important? Because brand value can explain whether you can or not to give them the best quality.

5. Create an Attractive Logo and Colors

Logos and colors have an important role in a business. Both seem to explain how your business develops. A good logo usually makes an impression on the memory of potential customers because it is easy to remember.

6. Inviting Consumers to Keep Buying

Inviting consumers to continue to buy is an important thing for you to do. Everyone has a tendency to like to be special. You can offer discounts, giveaways, member cards, certain rewards to keep the bond with them.

Conclusion

From the whole discussion above, we can conclude that brand loyalty is very important in the business world. This is related to consumer trust, which creates a deep commitment to repeat purchases of products or services from a particular brand. In addition, this commitment attitude will also build consumer habits that can unknowingly benefit the company.

Over time, this loyalty forms a trusting attitude towards a brand, where the brand is believed to be able to meet consumer needs. Nancy Giddens (2002), also gives a consistent opinion that brand loyalty is a consumer choice for certain brands that are difficult to replace with other brands. Therefore, brand loyalty is very helpful in marketing a company.

Brand loyalty with a high level can make the company have good trust in the hearts of consumers. So that consumers automatically come to a brand without being influenced excessively. Well, it must be fun, , if it can attract such customers.

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