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Brand Familiarity, Loyalty, and Insistence

Page history last edited by Kristin Abhold 13 years, 7 months ago

Familiarity, Loyalty, and Insistence

 

 

 

Familiarity is defined as both "thorough knowledge and understanding of something" and "closeness and friendliness in a personal relationship."[1] Brand familiarity is buying a product or brand because it is well known (or we have at least heard of it.)  It's easy to see how the definition of 'closeness' in a 'personal relationship' can fit for some of our buying behaviors- I know I buy certain brands because I know them and I feel comfortable and confident with my purchases.

 

          Heuristics

  • Heuristics are mental rules-of-thumb or quick sayings that we use to make speedy decisions.[2] Popular heuristics related to familiarity and loyalty are: "Buy the well known brand" or "Buy XXXX brand because that's the brand my mother always bought." 
 
The Boston Consulting Group conducted a test of the leading brands in 30 different product categories. Twenty-seven of the brands that were at the top in 1930, were still at the top more than 50 years later - therefore, we like to buy the brands we know.[3]
 
          Inertia
  • Inertia is described as buying a brand out of habit simply because it requires less effort. This idea states that consumers are lazy, and are willing to switch brands if a new brand offers a better incentive.[4] Companies try to encourage consumers to switch brands by offering coupons, price reductions, and creating in-store displays. 
 
Loyalty is defined as repeat purchasing behavior that reflects a conscious decision to continue buying the same brand.  Consumers who are loyal to their brands have a strong positive attitude, if not passion about their favorite brands. If the company changes, redesigns, or eliminates a favorite product or brand, these customers react more angrily and loudly than most. [5]
  
Insistence is defined as the stage of brand loyalty where the buyer will accept no alternative and will search extensively for the required brand. [6] 
 
[7]

 

Nike's commercial using the 5 elements:

 

Footnotes

  1. "Familiarity", Encarta Dictionary, North America, Microsoft Word ▲
  2. Solomon, Consumer Behavior, 2011, pg. 329 ▲
  3. Solomon, Consumer Behavior, 2011, pg. 332 ▲
  4. Solomon, Consumer Behavior, 2011, pg. 333 ▲
  5. Solomon, Consumer Behavior, pg 334 ▲
  6. Monash University Business and Economics Definitions, page "Bb", http://www.buseco.monash.edu.au/mkt/dictionary/bbb.html ▲
  7. The Blake Project, Branding Strategy Insider, http://www.brandingstrategyinsider.com/brand_insistence/ ▲

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