Brand Loyalty: A Case Study

2.2.3 Brand Loyalty

High product sales can be explained in two different principles; the first concerned by many people buying the brand and the second concerned by that a few buying a lot. Ford (2005) referred the second principle to brand loyalty. A brand loyalty is a core factor in brand equity and should be taken in consideration when setting a value on a brand (Aaker, 1996). He continues saying that a highly loyal customer base is expected to bring in stabile sales and profit streams.

When talking about loyal customer we can archive two important aspects – retain of customers and entry barrier. A loyal customer is also important when considering marketing cost; it is more costly to attract new customers than to retain old ones and customer

Keller (2009) points that brand awareness are related to the strength of the brand node or trace in memory as reflected by consumers’ ability to recall or recognize the brand under different conditions. Brand image is defined as consumer perceptions of and preferences for a brand, as reflected by the various types of brand associations held in consumers’ memory. Reinforcing these two components serve as sources of brand equity that can affect positively loyalty; price premiums and more favorable price elasticity responses; greater communication and channel effectiveness; and growth opportunities via extensions or licensing (Keller

Firmly establishing the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations;

3. Eliciting the proper customer responses in terms of brand-related judgment and feelings;

4. Converting brand response to create an intense, active loyalty relationship between customers and the brand.

According to this model, enacting the four steps means establishing a pyramid of six ‘brand building blocks’ with customers, as illustrated in Figure 1. The CBBE model emphasizes the duality of brands – the rational route to brand building is the left-hand side of the pyramid, whereas the emotional route is the right-hand side. The creation of significant brand equity requires reaching the top or pinnacle of the brand resonance pyramid, which occurs only if the right building blocks are put into place (see Figure 2 for more detail on each building block).

• Brand salience is how easily and often customers think of the brand under various purchase or consumption situations.

• Brand performance is how well the product or service meets customers’ functional needs.

• Brand imagery describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers’ psychological or social