Brand Equity to Customer Loyalty
Brand Equity to Customer Loyalty
An examination of brand equity leading to customer loyalty in the clothing industry using the Loyalty Ladder model.
Abstract
Purpose - The aim of this paper is to examine if there is a correlation between brand equity and brand loyalty. The author will research the sources of brand equity for three international clothing companies: Abercrombie & Fitch, Marks & Spencer, H&M and apply each company to the Loyalty Ladder.
Methodology – Secondary literature was used throughout this study, mainly including; Annual Reports, Academic Journals & Datamonitor reports.
Findings – All three companies have a strong brand image and they do have many customers’ who are loyal to their products. All companies experienced growth in revenue in 2010. The companies examined are now in the process of growing their businesses in emerging markets. The loyalty of customers does remain but it is mainly due to the companies innovative marketing strategies, which have resulted in increased revenues within the companies. Constant brand re-enforcement is extremely important to keep customers loyal to a brand.
1.0 Introduction
Keller (1993) recognised two reasons to study brand loyalty; for financially based reasons and to improve marketing productivity. Tolba & Hassan (2009) studied the correlation between brand equity and customer loyalty which has seen significant research over the years. The authors conducted an in-depth study of 17 brands within the automobile industry. The findings showed that loyalty and satisfaction were the strongest predictors of brand preference and intention to purchase. The research was broken down into three areas; those who had never tried the brand, those who had tried once and those who had purchased the product. (See Figures 1.0-1.2). For those who had never tried the brand, they would not have been satisfied or loyal to a brand as they had never tired it.
An examination of brand equity leading to customer loyalty in the clothing industry using the Loyalty Ladder model.
Abstract
Purpose - The aim of this paper is to examine if there is a correlation between brand equity and brand loyalty. The author will research the sources of brand equity for three international clothing companies: Abercrombie & Fitch, Marks & Spencer, H&M and apply each company to the Loyalty Ladder.
Methodology – Secondary literature was used throughout this study, mainly including; Annual Reports, Academic Journals & Datamonitor reports.
Findings – All three companies have a strong brand image and they do have many customers’ who are loyal to their products. All companies experienced growth in revenue in 2010. The companies examined are now in the process of growing their businesses in emerging markets. The loyalty of customers does remain but it is mainly due to the companies innovative marketing strategies, which have resulted in increased revenues within the companies. Constant brand re-enforcement is extremely important to keep customers loyal to a brand.
1.0 Introduction
Keller (1993) recognised two reasons to study brand loyalty; for financially based reasons and to improve marketing productivity. Tolba & Hassan (2009) studied the correlation between brand equity and customer loyalty which has seen significant research over the years. The authors conducted an in-depth study of 17 brands within the automobile industry. The findings showed that loyalty and satisfaction were the strongest predictors of brand preference and intention to purchase. The research was broken down into three areas; those who had never tried the brand, those who had tried once and those who had purchased the product. (See Figures 1.0-1.2). For those who had never tried the brand, they would not have been satisfied or loyal to a brand as they had never tired it.
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