I would like to start by stealing the words of David Mamet “What I value most in my friends is loyalty”. A friendly relation exists only when the persons are loyal to each other. In the same way what customers expect from a business is loyalty. Brand Loyalty is directly proportional to customer satisfaction.
A customer buys the product which has strong loyalty than a product of lower price and high quality but with weaker brand loyalty. New customers are also attracted to brands with strong brand loyalty.
Moreover the brand loyalty has a great effect on advertising and trade promotions. A brand with strong loyalty needs less advertising and more sales promotion whereas brand with weaker loyalty needs more cost for advertising and less for promotions.
The reason behind is that the customers of products with higher brand loyalty cannot be attracted by any other competitor products and new customers will also be attracted to it automatically. Thus results in less investment in advertisement but will have more promotional activities.
Achievement of strong brand loyalty is the success of business and helps to face the competition of present era.
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