Brand loyalty

There is a close link between habit , learning, and brand loyalty.

Brand loyalty represents a favorable attitude toward and

consistent purchase of a single brand over time.

Two approaches to the study of brand loyalty :

• An instrumental conditioning approach, views consistent

purchasing of one brand over time as an indication of brand
loyalty.

• The second approach to the study of brand loyalty is based on

cognitive theories. Loyalty implies a commitment to a brand
that may not be reflect by just measuring continuous behavior.

Brand Loyalty

Fundamental theories of learning

1)Conditioning theories

Pavlovian classical conditioning explains

behavior based on repetitive stimuli and the
establishment of a close association (contiguity)
between a secondary stimulus (picture of cowboy in
a Marlboro ad) and the primary stimulus (need for a
cigarette).
 Classical Conditioning (cont.)
Classic conditioning
 Extinction
• forgetting occurs when reinforcement for learning is
Unconditioned response
withdrawn
stimulus
 Stimulus generalisation
• Tendency of a stimulus similar to a CS to evoke similar,
conditioned responses
conditioned  Stimulus discrimination
stimulus
• Occurs when a UCS does not follow a stimulus similar to a
CS.
emphasis : association through repetation and contiguity  Retrieval environment
• the stronger the original learning process, the more likely it is
to retrieve the information when needed

Strategic Applications of Classical Problem of Classical Conditioning

Conditioning
 Advertising wear-out is a problem
 Increases the association between the conditioned and
unconditioned stimulus  Helps “me-too” products to succeed
 Slows the pace of forgetting
 Having the same response to slightly different
stimuli
 Useful in product extensions
 Instrumental (Operant) Conditioning A Model of Instrumental Conditioning

A behavioral theory of learning based on a trial-and-

error process, with habits forced as the result of
positive experiences (reinforcement) resulting from
certain responses or behaviors.

Instrumental conditioning views behavior as a

function of the consumer’s assessment of the
degree of satisfaction obtained from the action.

Satisfaction leads to reinforcement and to an

increase in the probability of repurchasing.

Applications of Instrumental Conditioning Principles Cognitive learning theory

 Reinforcement of Consumption:
 Thank you Cognitive psychologists view learning as a problem-
 Rebates solving process rather than the stimulus and response.
 Follow-up phone calls
Cognitive theory emphasizes the thought process
involved in consumer learning;
 Frequency Approach:
 Reinforces regular purchases by giving them rewards Classic and instrumental conditioning
with values that increase along with the amount emphasize the result based on the stimulus
purchased association.
 Components of Observational Learning
Cognitive Learning

 Observational learning:
 Occurs when people watch the actions of
others and note reinforcements received
for their behaviors

 Learning occurs as a result of vicarious,

rather than direct, experience.

Observational Learning CLT – Modeling conditions

 We watch others and note Attention directed at model
reinforcements they receive for
behaviors Model must be desirable to
 Vicarious learning emulate
 Socially desirable
models/celebrities who use the Must remember what model does
products
& says
CLT – Modeling conditions
 Consumer willingness
 to make own reinforcement
Must be motivated to perform
 Saves marketers the task
actions

 Consumers enjoy using models

Must convert information into  for guidance in purchasing
action

Habit versus Complex decision making

Habit Habit Complex Decision Making

Limited informational search Extensive informational search

The functions of habit High frequency of purchase

Low price
Low frequency of purchase

High price
Purchasing by habit provides two important
Low involvement High involvement
benefits to the consumer.
• First, it reduces risk. Intensive distribution Selective distribution

• Second, it facilitates decision making. Less need for service More need for service

People promotion is important People promotion is not important

Habit versus Complex decision making Promotion is important Promotion is not important

Advertising is for reminding Advertising is for providing informations

High sensibility of price Low sensibility of price

Inducing a switch from habit to decision making Situational Determinants of Consumer Behavior
Generally, the market leader in a category is more likely to be purchased by The nature of situational variables
habit.
Type of situations
Various marketing strategies can induce consumers who buy by habit to
consider other brands by: 1.The Communications Situations

2.The Purchase Situation

• Creating awareness of an alternative to the leading brand
(1)In-store situations
• Emphasizing a new feature in the category •Price promotions
•Free sample
• Encouraging consumers to substitute one product category with another •Displays
(2)Gift-giving situations
• Introducing a line extension to offer a new benefit (3)Unanticipated purchase situations

• Using price promotions, free samples etc. 3.The Consumption Situation

The consumption situation is the anticipated usage situation for the brand.

Characteristics of consumption situations

1.The physical surrounding. For example, being indoors or outside;
A model of situational determinants
being in a noisy room.
2.Social Surrounding. Whether guests are present, the social occasion,
SITUATION
the importance of friends and neighbors that are present.
Decision PURCHASING
3.Time. Breakfast, lunchtime, between meals; seasonal factors such as CONSUMER
Making BEHAVIOR
winter versus summer relative to clothing; the time that has passed since PRODUCT
the product was last consumed.
4.Task definition. Shopping for oneself or for the family, shopping for a
gift; cooking for oneself, for the family or for guests.
5.Antecedent States. Momentary conditions such as shopping when
tired or anxious, buying a product on impulse because of an excess of
cash on hand, using a product when in an excited state.
 Use of situational variables in marketing strategy
The situation versus the product
Situational variables have been used most frequently for
1.The greater the degree of brand loyalty, the less positioning products and segmenting markets.
important are situational influence.
Induct the new condition

2.The higher the level of product involvement, the Advertisement can effectively suggest the consumer to induct the new condition
when the new use-occasion consistent with the exist conception of how to use
less likely it is that situational factors will the product.
determine behavior.
Take extant use condition as target market

(1)Subdivide the user based on product use

(2)Develop new product to meet the special situation
(3)Position product in the use of a particular situation though advertising
(4)Distribute product to meet the needs of the situation