The value of having a well-recognized brand identity is called the brand equity, and it supports the concept that the brand’s founder can generate more revenue or profits from the reputation of the company as compared to its less famous competitors. It can give a positive and a negative value.
On the other hand, brand loyalty indicates the customers’ commitment to repurchase the products of a famous company. This concept of loyalty exhibits the symbolism or imagery for a no. of commodities. It is up to the consumers’ attitude towards the organization, and it can create a positive or negative image of a product or a brand.
Types of Brand Loyalty
Jill Griffin described the four types of brand loyalty in his book “Customer Loyalty: How to earn it, how to keep it,” and they are:
• No Loyalty
• Inertia Loyalty
• Latent Loyalty
• Premium Loyalty
Some consumers do not develop loyalty to many products or brands because of different reasons. Let’s take the instance of shampoo brands, no matter how excellent they are in their marketing strategies, some people always switch to other products. These consumers add nothing or little to the financial assets of the business organization, and it is better to avoid them and targets the more loyal audience.
Inertia loyalty is that when consumers buy out of habit like “because we have always used it,” and this shows the low level of attachment. The main reason for this type is non-attitudinal or situational factors, and it is for frequently bought products. The best examples are dry cleaning from the store, shoe repair from the nearby cobbler, and consumers who buy gas at the station.
If a consumer has a latent loyalty, it is because of situational factors rather than attitudinal impacts that determine repetitive purchases. For instance, a customer who likes Chinese food, but his friend doesn’t like it, so they both go occasionally to their favorite restaurants. The above example shows the situational factors that influence the brand loyalty.
It shows the high level of attachment, and customers are so loyal to the brand that they never buy any other products. Many companies prefer this type of loyalty that every company wants to boost their value in the competitive market like Samsung, Netflix, and other brands.
Impact of Brand loyalty on brand equity
Consumer loyalty about the brands has an impressive and positive impact on the brand equity as it is the essential component to determine the net worth of the businesses. It can achieve through various strategies like promotional events, high-quality products, and positive brand identity.
Brand loyalty makes the brand equity complete because the company prefers those customers who are willing to buy the products again and again. It is the best way to raise the sales and profits of an organization in the long-run. It must be positive, or the brand will face loss in the business.