21-01-2013, 10:15 AM
Sony Company
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Brand Loyalty: - The degree to which a consumer consistently purchases the same brand within a product class. Brand loyalty is a step above of simple repurchasing. True brand loyalty exists when customers have a high relative attitude toward the brand, which then exhibit through repurchase behaviour. This kind of brand loyalty is very much important for a firm.
Store Loyalty: - According to Jacoby and Kyner (1973) “behavioural response...as a function of psychological process”. The concept of store loyalty is derived from the brand loyalty concept, which refers to the tendency to repeat purchase the same brand. Store loyalty refers to the tendency to repeat purchase at the same store. Store loyalty is very much important for a store same as firms.
Marketers must study Customer Brand and Store loyalty to fulfil these objectives: - There is few reasons mention why are marketers interested in the study of customer brand and store loyalty. These reasons are explained as follows:-
1. To Earn Brand or Store Loyalty: - It is very much important for a company or store to earn loyalty of customers. A loyal customer is a step ahead from just a customer. A loyal customer always purchases the same product and never switches to the other brand’s product.
2. To Understand Needs of Customers: - Customer is the boss of the market and if boss is not satisfied then cannot get promotion. A marketer must access the needs of the customers. When a marketer knows what its customers are requiring from him then he can provide a better product.
3. Trust of Customers:-First, you have to win the trust of customers, and then you can earn loyal customers. To earn the trust of the customers a marketer should provide a quality product that is not harmful for the customer. If the product is difficult for use then use instructions should also provide on the product. A helpline number must be given on the product for any enquiry.
4. To Provide Better Services:- A marketer always try to provide better services to its customers but sometimes marketer doesn’t know what its customer is demanding from him. A marketer can study the feedback given by the customer about the brand and store. This study can help a marketer to understand what services should provide to its customer to earn the loyalty of customers.
5. To Survive in the Competition: - A loyal customer always helps brand or store to survive in the market. A store or brand that is holding a large number of loyal customers can help to beat the competition in the market. So the marketers study the brand or store loyalty to survive in the market.
6. To Increase the Profits:- If customers are loyal for the brand or store then the brand or store can survive in the market. Loyal customers purchase the same product of the brand or from the same store. Therefore, the company or store can earn profits from the customers.
7. To Know the Problems of the Product: - A marketer must compare own product with other companies’ product whose customers are loyal towards it. The comparison let the marketer know why customers are not purchasing his product.
8. To Reduce Inventory Cost: - A marketer should know how many customers are using the product of the brand or purchasing from the store. On the basis of this information, a marketer can store a right amount of stock in its warehouse and can reduce the excess stock cost.
Example of LED TV of Sony: - Sony is a well known company in Indian market. Sony Company has earned a large number of loyal customers. Customers who are loyal to company never switch to the other company for purchasing any product. The reasons behind being loyal customer are :-
1. Quality Product: -
Most of times we have find out that why Sony’s customers are loyal and the reason is Sony is providing quality product. Customers are going to purchase Sony’s Led TV because they trust that it is quality product of brand. The thing marketers have found out in the research about loyal customers of Sony that they trust the brand.
2. Customer Services:
The second reason the marketers have found that the customer services are very good for its customers. It has opened so many service centres in India. It is charging 200-1200 for provided services of led TV. So the good services also attract the customer to be a loyal customer.
3. Good Quality at Cheap Price:
The Sony Company has never provided a cheap product to its customers. Sony Company’s slogan was we can sell our product at high prices but we will never compromise with the quality of product and that’s what they did. However, when competition entered in the TV market it reduces the prices because customers weren’t able to afford it. Now the company has made market research so that they can earn more customers that are loyal.
4. Changed According to Technology:
Sony Company understands the change in technology that was why it has shifted from simple TV to Led TV. Customers are changing themselves according to the technological environment so the company made necessary changes in it time-to-time.
5. Social Responsibility:
Whenever possible, Sony is involved in a wide variety of social contribution activities. One of the most important involvements is education. Sony Company is also helping various communities to fulfil its social responsibility. Fulfilling social responsibility creates the brand of company in the customers and this leads to earn loyal customers.
6. Give Concern to Design:
Company has researched that people are more interested in the design of TV then its quality. Therefore, the company has collected information and lunched designed TVs with better shape in the market to retain loyal customers.
7. Treating Loyal Customers with Respect: -
Sony treats its customers with respect. A loyal customer always desires to be treated with respect, that’s what Sony is doing, and this attracts the loyal customers.
8. Provide Problem Solution:
Sony Company has also provided the problem solution to its customers. If the customers of the Sony’s Led TV are facing any problem related to the Led TV then they have to take his/her TV to the service centre of Sony. They solve the problem and charge very less price is problem is made by customer. If it is a mistake of company while manufacturing then they don’t charge any penny for their services.
Conclusion:-
Sony company has earned many loyal customers who prefer to purchase only Sony’s products and that thing also helped the Sony when it lunched Led TVs in the market. The loyal customers of Sony who want to purchase the Led TV go to their favourite brand and Sony Company has earned profit. Sony Company is in the market just because of its loyal customers. Sony company has earned these customers by studying the brand loyalty that why customers purchase the same brand’s products again and again? What are those strategies that are helpful to retain loyal customers? They also studied that what are products and services are providing by other brands to earn loyal customer. On the basis of these methods, the company earns their brand name and survive in the market.