There is an ongoing tension between different viewpoints around pretty much every aspect of marketing ,and recently we have been discussing on Twitter whether brand loyalty exists(@paulmarkbailey) , those who are seemingly always down on our own discipline(@derekwalker) and points inbetween.
I'm concentrating my comments around packaged consumer goods as it is my field of useful experience ; if you know or think different from elsewhere do please chip in.
The question of preference vs loyalty is interesting because the debate highlights the need to embrace not only the ambiguities of human behaviors and the limitations of data to tell us what not why , but the importance as ever of context , shared understanding of the marketing lexicon and at a more fundamental level the future of the world... or brands anyway.
To over simplify / dramatize : If there's no such thing as brand loyalty and by extension no such thing as brand added value why isn't everyone just buying the cheapest , usually a perfectly good enough private label (I'm talking lemonade not luxury look at me status brands )?
The main vectors potentially to this are :
* Consumer indifference and repertoire purchase : when consumer brand indifference meets product parity, you get a risk of wholesale substitutability. Strong brands do exist in my experience even in categories with little product differentiaton or status , be it eg staple products like cheddar cheese here in Britain and elsewhere in my professional travels.
*preference vs loyalty: arguably loyalty is a somewhat loaded, psychological term which does not belong in debate about eg prepackaged cheese or toilet cleaner.
'Loyalty is preference' seemed to be one marker in the debate , but I don't think that goes quite far enough. Loyalty is a feature of (some ) human relationships and for me it goes beyond a transactional relationship which is what most consumers have with brands; if brand x isn't available they'll happily buy brand y as we all know. Preference as a concept is unburdened by any sense of obligation to follow through with purchase, unlike loyalty anyway so at a nuanced minimum it is a more binding notion ?
I would suggest loyalty goes beyond logic and reason and may entail a personal cost ; just ask long suffering supporters of long term unsuccessful sports teams. By contrast if a brand of say mobile phone comes up with an altogether better functional product unless the pain of switching is too high it is likely it will steal users from other brands or systems tied into its ecosystem of eg of apps and software.
*The importance as ever of context:
It is not loyalty if the barrier to switching is too high for consumers, see internet providers , banks , utility providers, such that laws have been introduced to protect consumer freedom to switch provider. In packaged goods switching meets the time pressured repurchase habit with consumers spending literally only seconds in front of a typical or virtual display shelf to find their usual choices, the vagaries of negotiated physical distribution and on shelf visibility eg pack location and number of facings, display within category eg eye level vs top shelf or bottom shelf also play a role ; and private label often using similar designs to leading brands, supposedly not copying as such but using established category ie brand leader visual design colour codes ...
*The commercial value of targeting loyalists vs all category consumers.
Whilst I get and agree with aspects of the prevailing belief in the wisdom of targeting all consumers and that penetration is the key objective , it begs one question for me which is : what are the consequences then for differentiaton and targeting products against specific target consumers and their needs or CEPs?
Look to the cola brands as an example of wrestling with the right balance between brand campaigns and brand block dominated designs vs more product specific approaches. It may well be true that consumers of full fat cola will also buy light variants ( not gonna pick a fight with Prof Byron Sharp am I ..), but as a traditional marketer I would argue they as products meet different need states and have different benefits ,even though the consumer profiles may overlap in the same person at some points , whether it be same person consuming or as someone purchasing for a family unit.
Hope this contributes to the debate in some way ; do let me know what you think ...
Thanks again to marketing Twitter for sparking this piece, acknowledgements and attributions * :Tina Turner; @paulmarkbailey ,@johnnieego,@andywheatley,@clayton_phillip,@derekwalker,@Jonlombardo ,@bruceclarkprof,@keerti007,@AtomicAdMan
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