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Brand loyalty conceptual framework
Theories of brand personality
Brand loyalty research paper
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In Indonesia, especially in big cities such as Jakarta, Bandung, Surabaya, and Jogjakarta, several sportswear brand is very well-known among the citizens and sportswear customers. Worldwide brands such as Nike, Adidas, Reebok, and New Balance could be found in malls, shopping centers and many customers that uses their products, especially the sport footwear or sport shoes.
2.1 Brand Loyalty
2.1.1 Definition
According to Investopedia.com, brand loyalty is when the consumers became committed to their favorite brand and repeat their purchases over time. Brand loyalty is the result of consumer behavior and is affected by consumer’s preferences. Brand loyalty could also be defined as the strength of preference for a brand compared to other available
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The second perspective is from the attitude that supposes the necessary condition of brand loyalty, which is the consistent buying, which is not enough to prove the authenticity of the brand loyalty. It has to be supported by a good attitude toward the brand to confirm the continuation of the behavior.
There are differences in the middle between repeated purchase and brand loyalty, according to Jacoby and Kyner (1973). According to Jacoby and Kyner, a set of six essential and mutual satisfactory conditions could be defined as brand loyalty. The six essentials are: non-random, behavioural reaction, expression over time, some unit’s decision making process, comparison to some other brands and finally is the function regarding the psychological (evaluation, decision making etc.) procedures. They also stated several added statements, such as verbal reports of loyalty are not enough to explain loyalty because verbal reports must be pooled with the customers’ loyal behaviour of purchasing to be defined as brand
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Switchers – Customers with no loyalty (possibly 'deal-prone', constantly looking for bargains or 'vanity prone', looking for something different).
2.2 Factors affecting brand loyalty
Lau et al. In 2006 has distinguished that customers’ brand loyalty towards particular sportswear brands is influenced by seven factors. The factors include: name of brand, quality of product, style, price, environment of store, promotional activities and quality of service.
2.2.1 Brand Name
Famous brand names can disseminate product benefits and lead to higher recall of advertised benefits and more product benefits than brand names which are not popular (Keller, 2003). Many alternatives are available with a lot of different unfamiliar brand names in the market. As a customer myself, we customers prefer bigger brand names with more powerful and trusted brand names with good reputation. Brand names that are prestigious attract more consumers to the brand with their image, and encourage customers to purchase the product of the brand and bring repeat purchasing behavior. These behaviors also provide the consumers with reduced price related switching behaviors (Cadogan and Foster, 2000). Furthermore, any links to the brand’s emotional and self-expressive utilities of differentiation are given by brand personality. This is crucial for brands that are consumed in a social setting and have minor physical differences where a visible image is created about the customer by brand
Mise, J. K., Nair, C., Odera, O., & Ogutu, M. (2013). Determinants of Brand Loyalty and Product Quality of Soft Drink Consumers. Asian Journal of Business and Management , 1 (1), 8-13.
Companies realize what people need and they take it as sources to produce commodities. However, companies which have famous brands try to get people’s attention by developing their products. Because there are several options available of commodities, people might be in a dilemma to choose what product they looking for. In fact, that dilemma is not real, it is just what people want. That is what Steve McKevitt claims in his article “Everything Now”. When people go shopping there are limitless choices of one product made by different companies, all choices of this product basically do the same thing, but what makes them different is the brand’s name. Companies with brands are trying to get their consumers by presenting their commodities in ways which let people feel impressed, and that are some things they need to buy. This is what Anne Norton discussed in her article “The Signs of Shopping”. People are often deceived by some famous brands, which they will buy as useless commodities to feel they are distinctive.
In every given business, the name itself portrays different meanings. This serves as the reference point and sometimes the basis of customers on what to expect within the company. Since personality affects product image (Langmeyer & Shank, 1994), the presence of brand helps in the realization of this concept. Traditionally, brand is a symbolic manifestation of all the information connected with a company, product, or service (Nilson, 2003; Olin, 2003). A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons (Gillooley & Varley, 2001; Laforet & Saunders, 1994)). It is believed that a brand puts an impression to the consumer on what to expect to the product or service being offered (Mere, 1995). In other application, brand may be referred as trademark, which is legally appropriate term. The brand is the most powerful weapon in the market (LePla & Parker, 1999). Brands possess personality in which people associate their experience. Oftentimes, they are related to the core values the company executes.
The global sports clothing industry is heavily fragmented with many different companies competing in it. Such brands range from basic discount brands to largely distinct high-end fashion names. Even the bigger already well-established brands have to change and adapt in order to keep up with the fluctuating needs of both wholesale and retail customers. This is extremely difficult, as consumers’ demands are becoming more and more versatile in terms of comfortable and functional apparel. This means that companies have to produce new styles of sport equipment to match those specific requirements. And pursuing such a strategy will ultimately preserve companies` market share in the industry.
Nike’s brand strategy focalizes upon the “emotional branding based upon the story of heroism” (Newell 2014), which creates the most success for Nike as they relate the struggle to everyone and makes us want to prove strength for ourselves and win our inner battle with their products. This message plays powerfully in the market showing strength vs weakness and the battle between success and failure where nobody wants to fall under the weak category so they need to work and alternatively purchase Nike’s products to avoid this failure playing off their motivation. Surely the competition in the athletics market is high with competing products and value, which is why Nike is leading with their product innovations and inventions with material innovations such as Dri-Fit and inventions like their Fuelbands and trackers that cooperate with their Nike apparel. Nike is always targeting the professional athlete markets and the current athlete markets; however, Nike is also aggressively targeting consumers who aspire to be “Fit” and are even increasing their focus (by brand sector) on skateboarders, surfers and much of the youth population who may not be viewed as huge athletes but rather athletic individuals. Nike is very prominent in advertising their products to spark the message of increased athleticism in the motivation towards fitness. Advertising by Nike can be seen throughout many different mediums, including social media, internet, television broadcasting, and branding throughout stadiums, gyms as well as on a massive portion of the populations clothing. Because of the massive success of the brand Nike can have a slightly inflated price over that of their competitors with their association with quality in the mind of the consumer. Considering that Nike has made some effort to increase brand equity in companies like Apple
SHORT CASE SUMMARY Nike, Inc. (503-671-6453, www.nike.com) is the worlds #1 athletic shoe and apparel seller. Nike currently employs 20,700 employees, with total sales of $8.78 billion. Nike and the athletic shoe industry have evolved into one of the most competitive market in recent years. But, analysts believe that athletic shoe sales will slow down over the next few years. The slowdown will come with the change in consumer trends. For instance, the younger market is beginning to buy more casual shoes and work boots. Another reason for the slowdown is that people are buying more medium priced athletic shoes and not going for the high price brand name shoes. As a result, this is bringing Nike a lot more competition to surpass. In order for Nike to remain on top of the athletic shoe industry they must establish an exceptional global strategy. If Nike penetrates the global market successfully than this will give the company an overall competitive advantage. Nike doesn't only sell athletic shoes, but a wide variety of sporting goods and clothing. They also design, develop, and market high quality active sports apparel, equipment, and accessory products. Their huge lines of products are designed for just about every sport in existence. Their products are made for men, women, and children of all ages. Nike has 20,000 retail accounts throughout the U. S. using independent distributors and also has contracts with 110 other countries. The company also has agreements with Internet companies and subsidiaries. Nike, Inc. has many retail outlets around the world, including their famous outlet "NIKETOWN" located in major cities. "NIKETOWN" gives customers the experience to become more educated on the company's goals and objectives for their products. The store educates its customer while at same time entertaining them too. This store gives customers a chance to become more brand loyal to Nike, Inc. Over the years Nike has gained an enormous amount of consumer awareness that they have eliminated the company name from all other products. The "swoosh" logo is automatically associated with the company name by just about anyone in the world. The meaning for Nike has lived up to the company's expectations. Nike means "the goddess of victory," which is exactly what the company has had since its creation. HISTORY A competitive runner, Ph...
Distinguishing one product from another depends on the target market’s ability and in turn the success of any business or consumer product (Lamb, Hair & McDaniel 2009). In the marketing industry and the business world, brand is defined as “a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of others.” (Bennett, P.D., 1995). Brands are a common part of marketing and they serve as value to consumers. Brands also give firms a competitive edge over another and a certain leverage over its customers.
Everybody has heard of the brand Nike. Since Nike’s founding in 1972, the company has been able to build a strong foundation and generate a large amount of revenue through its ingenious strategies. Nike is a very popular brand for athletic apparel, sportswear and footwear as well. Through its infamous popularity, Nike now poses amongst some of the most successful companies today. The success that Nike has attained throughout the years comes from the characteristics within the cultural markets, meaning: Nike tends to pay its undivided attention to its product and for whom that specific product will be marketed towards.
There are as many brands as there is ants in the world, but the two brands that pop out are adidas and nike. Those two brands have been going head to head for ages to see who is the better brand. It’s been tested, compared, and debated which brand is better. Whether it’s the quality of the materials or the cost of it, the debate is ongoing. Both brands have been fighting for the top ever since they were both created and I don’t blame them it’d be fantastic to be the best brand in the world. When Nike and adidas are contrasted, it becomes clear that the Adidas brand are better for the overall consumer and enhances sport performance than Nike.
When customer identify with specific brand and has emotional attachment they form a psychological attachment and relationship with the brand and try tell those thing of the brand which he/she like and work instinctively to the benefit of the brand (Kuenzel & halliday, 2010). Thomson et al, (2005) argued that brand identification such as brand attachment, brand connection and bond with brand, has strongly predicts the frequency of past and future purchase of the brand. The intense relation and attachment also drives consumer toward the benefit of the brand by purchasing the specific brand. Kuenzel et al. (2010) identify that the brand identification concept is built on social identity theory in which consumer are engaged with the brand and extensively of the brand concept in other self-restraints. Identification based on social identity theory is in core a perception of oneness with a group of persons and make an identity in marketing we can also say that customer make their brand as an identity of their self-mean people identify someone with their brand (Albert et al., 2013). The customers who they uses the brand and they emotionally attached to the brand make the brand their identity, those customer called evangelist.. Stronger brand identification with consumer disposed to emotional attachment in pro-brand activities. Their self as an evangelist with the brand and also with the manufacturer (Bhattacharya &Sen,
The source of the brand features is in a connection between customers and companies that sell services or products. Consumers who choose a specific company fundamentally acknowledge to prefer that brand more than other brands rooted from the recognition of the brand’s worth.
The practice of brand management is a key component of marketing and performs an integral function by motivating the wants and needs of consumers. It is known that marketing can shape consumer needs and wants, however, consumers today appear to be more knowledgeable about the information regarding products. Consumers lead busy lives and have therefore gone to the internet as one of the many channels to learn about products in order to make informed decisions. This paper will discuss the argument that marketing should reflect the needs and wants of consumers rather than shaping these attributes. Due to the speed and ease of obtaining information, consumers do not take at face value strong marketing efforts that appear to be overly aggressive and push a brand rather than just being informative. Brand managers have to be aware of these changing dynamics and carefully craft brand management practices to meet the demands of consumers.
Nowadays, there are so many famous sportswear companies that exist in the market globally, which make people have more product varieties that they can choose. In addition, most of those companies have become very important for its host countries, in terms of supporting their economic development. Yet, the existence of those companies can also possibly bring some problems to the host countries, as well as negatively affect the countries’ people (Pettinger, 2008). In order to explain it better, the existence of Adidas in Indonesia is used in this report to give more information about what makes Adidas becomes a successful company in the world, as well as providing problems that Adidas has in Indonesia.
From the study it is clear that people often purchase branded products since they are aware of the brand performance or perhaps they have a good past experience about the brands. This makes customer’s become loyal with the specific brand.
Even with commodities, there are quite a few parameters which brands can use to position themselves to capture a place in the consumer’s memory and consequently in their shopping basket. A few of the more widely accepted of them are: Consistency of Product Quality, Customization of the product to the extent possible, Providing a wider range of products, Identifying the most profit generating segments of the market and modifying or adding an offering to cater to their specific needs, Unique packaging, Emotional Branding and even basing branding on building a unique image to the extent of professing to have a brand personality. In fact focusing on getting consumers to build an emotional identification with the brand and its personality has a far longer lasting effect and builds far greater loyalty than focusing on just functional and utility attributes which a competitor would also able to easily match if not surpass.