Brand Loyalty
Fundamentals of Marketing
9/14/08
Abstract
Brand loyalty is when people choose to buy selectively one brand in a particular product category. This occurs when customers feel that they have a product at the right quality for the right price. All companies are looking for brand loyalty because it saves them time and money. This project focuses on Mountain Dew, my daughter-in-law, and why she is loyal to that brand. It will also discuss how marketing effects brand loyalty.
Brand Loyalty
Brand loyalty is something that most people practice when they shop. For some people it is brands of what they eat or drink, for others it is toiletries or household supplies. In this case I interviewed my daughter-in-law, Pearl; she is incredibly loyal to Mountain Dew. She will not buy any other soda other than Mountain Dew.
Brand loyalty is when a customer is willing to repeat a purchase, to commitment to brand, or the willingness to pay more for a particular brand than the others. All companies strive to create a brand loyalty because 80% of all their sales will come from the top 20% of their customers. Brand loyalty is important to the companies bottom-line. This is because it creates a higher sales volume, premium pricing ability, and they retain customers rather than seek them out. (Giddens & Hofmann, 2002)
For this project I interviewed my daughter-in-law, Pearl, she told me that her only loyalty to any brand is to Mountain Dew. Her loyalty is all about the taste. She has bought the “store” brand, such as Mountain Lightning, but nothing could compare to the taste of Mountain Dew. She is willing to pay for more Mountain Dew, or go to a different location to get the soda that she wants. She will not buy any othe ...