Does Brand Loyalty Exist Anymore?
In an era where it is so easy to search around to find the best deal or sale, it is becoming more apparent that terms like “Brand Loyalty” are dying out. However, if you turn on the TV or go almost anywhere we know that the idea of a “brand” and Brand recognition still defiantly exists.
When you go to the grocery store for example the lack of brand loyalty is becoming very apparent, now more than half of all sales in grocery stores are being driven by promotion or sales and not the “brand. ” Discount dealers like Groupon and Living Social also encourage consumers to catch a good deal. “We train consumers to buy our brands on deal and then wonder why we have so many brand switchers. To exacerbate the challenge, many categories feature very little difference across competing products, making it even easier to substitute brands.” Tomfishborne.com
Recent studies are beginning to conclude that only about 25% of people dictate their choices based on Brand loyalty. Which means that the remaining 75% of people are more inclined based on price, ten years ago this wasn’t so much the case. “Most of a brand’s customers think and care little about the brand, but the brand manager should care about these people because they represent most of the brand’s sales; the brand needs these people if it is to increase its sales.” Byron Sharp, author of “How Brands Grow”
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