UNIVERZITET U SARAJEVU

EKONOMSKI FAKULTET U SARAJEVU

[pic]

BRAND LOYALTY

GRAD PAPER
CONTENTS:

BRAND LOYALTY 1

CONTENTS: 2

INTRODUCTION 3

The concept and definition of Brand 4

Brand Building Activities 6

Brand Loyalty 7

The definition of Brand Loyalty 7 The concept of Brand Loyalty 10 Factors of brand loyalty 20 1.Brand awareness 21 2.Perceived quality 21 3.Brand personality 22 4.Brand identity 22 Brand equity 24

MEASURES OF BRAND LOYALTY 25

Conclusion: 34

REFERENCES: 35

NOTES: 36

Abstract:

Even though the number of brands has strongly increased in recent years, only a few managed to endow themselves with significant brand loyalty. Besides the actual proprietary brand assets, such as patents and trademarks, other major elements like brand loyalty, perceived quality, brand associations, and others, underlie brand equity. A successful brand strategy must be based on creating brand loyalty. For achieving this goal consumers must be classified on a loyalty basis, while marketing strategies and mixes must be shaped accordingly.

INTRODUCTION

The success of a firm depends largely on its capability to attract consumers towards its brands. In particular, it is critical for the survival of a company to retain its current customers, and to make them loyal to the brand. Brand loyal consumers reduce the marketing costs of the firm as the costs of attracting a new customer have been found to be about six times higher than the costs of retaining an old one. Moreover, brand loyal consumers are willing to pay higher prices and are less price sensitive. Brand loyalty also provides the firm with trade leverage and valuable time to respond to competitive moves.[1]

In sum, loyalty to the firm's brands represents a