28-11-2012, 02:22 PM
A discussion of brand loyalty approaches and their applicability for different markets
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Abstract
Seeks to enhance our understanding of the suitability of loyalty measurement
techniques by proposing a classification of brand loyalty based on varying market
types. Distinguishing between market types is important because the very nature of
markets indicates that the measures used to capture loyalty should be very different.
This paper, in effect, argues against a single brand loyalty measure for all market
types. Marketing practitioners wishing to predict future levels of loyalty would need
to use different loyalty measures. In consumable markets where the market is stable
and where there is high switching and low involvement and risk, behavioral measures
are appropriate for predicting future brand loyalty levels. However where the market
is not stable, there is a propensity towards sole brands and attitudinal measures may
be better predictors of future behavior in such cases.
Introduction
(Strategic Marketing)
Loyalty is an important concept in strategic marketing. Loyalty provides fewer
reasons for consumers to engage in extended information search [I] among
alternatives (Uncles and Dowling, 1998). Solomon (1992) also indicates that purchase
decisions based on loyalty may become simplified and even habitual in nature and
this may be a result of satisfaction with the current brand(s). A base of loyal
customers will be advantageous for an organisation as it reduces the marketing cost of
doing business. In addition, loyalty can be capitalised on through strategies such as
brand extension and market penetration. Finally a large number of loyal customers is
an asset for a brand, and has been identified as major determinant of brand equity
(Dekimpe et al., 1997).
(Distinguishing between market types)
This paper suggests that the concept of loyalty to be considered should be dependent
on both market type and situations. Distinguishing between market types is important
because the very nature of markets indicates that the measures used to capture loyalty
should be very different, as will the antecedent variables. Therefore this paper argues
against a single brand loyalty measure. Ideally, there would be a uniform measure,
which would make life easier for researchers; however there is no ideal, cure-all
notion of brand loyalty but a number of appropriate measures which are context
specific and are all appropriate for the situation.
(Starting point for further study)
While the authors would like to be able to propose the “best” measure of brand
loyalty for each market, this is not possible without empirically testing each measure
in each market. This paper is designed to be a starting point for further study, which
will empirically examine the approaches.
To support the proposition that there is no one single best measurement of brand
loyalty, this paper will first commence by discussing the conceptual definition of
brand loyalty.
The state of brand loyalty research
Brand loyalty has been largely defined and measured in either behavioral or
attitudinal terms (Mellens et al., 1996). While researchers agree that loyalty is a very
complex construct (Javalgi and Moberg, 1997) and most utilise the composite
definition of brand loyalty which was originally proposed by Jacoby (1971), there is
little consensus on the approach to be taken when measuring the construct.
(Lack of agreement)
This lack of agreement has seen many articles promoting a single approach over
another approach with published responses usually forthcoming. This debate has
encouraged other researchers to join the fray with their own view on this issue
(Baldinger and Rubinson, 1996, 1997; Ehrenberg, 1997a, 1997b; Farr and Hollis,
1997). This debate is not recent; it first surfaced 20 years earlier between Jacoby
(1975), Jacoby and Kyner (1973) and Tarpey (1974, 1975), and the same issues are
again being argued.