This chapter presents general concepts related to brand loyalty – the importance of brand in marketing strategy planning, followed by a general review of sales promotions and their perceived benefits. Next, it describes the benefit congruency, low and high involvement buying decisions, stages in consumer buying process, and the debate over the effect of sales promotion on brand loyalty. Value of Brand in Marketing Strategy Marketing research has been the robust tool for marketers to explore the importance of the brand image in customer buying decision making process.
For instance, a recent market research showed that when it comes to choosing favorite makeup line, consumers look for brands they trust rather than brands with appealing displaying attributes. Cover Girls was voted by 14% of the sample population to be the top favorite cosmetic brand out of 60 selected brands in the research. Meanwhile, with 10% of the mentions, Clinique was the second, Maybelline and Mary Kay were the third with 8% each.
When consumers were asked what critical factors that influence their choice, more than two- thirds cited that their decision was not based on actual product attributes, but the brand trust, while the rest of respondents (one-third) claimed loving it “as it feels fabulous”. Factors like “uses human testing/ecologically safe” were not weighted heavily and often placed in the bottom of the list16. In the traditional sense, brand is defined as the design of the logo, the name of the product, the slogan of the company, or the blend of these factors that differentiated goods and/or service of a business from its competitors. However, technology development enables today’s customers to create their own brand definitions from their perceptions and their beliefs towards the business. Therefore, branding now is a process which has become more complex than ever.
Brand is no longer solely defined by its business. Brand lives and evolves with human behavior. Simply, brand is all about how people mentally think about the business when brand is presented to them.