A tri-dimensional approach for auditing brand loyalty

Over the past twenty years brand loyalty has been an important topic for both marketing practitioners and academics. While practitioners have produced proprietary brand loyalty audit models, there has been little academic research to make transparent the methodology that underpins these audits and to enable practitioners to understand, develop and conduct their own audits. In this paper, we propose a framework for a brand loyalty audit that uses a tri-dimensional approach to brand loyalty, which includes behavioural loyalty and the two components of attitudinal loyalty: emotional and cognitive loyalty. In allowing for different levels and intensity of brand loyalty, this tri-dimensional approach is important from a managerial perspective. It means that loyalty strategies that arise from a brand audit can be made more effective by targeting the market segments that demonstrate the most appropriate combination of brand loyalty components. We propose a matrix with three dimensions (emotional, cognitive and behavioural loyalty) and two levels (high and low loyalty) to facilitate a brand loyalty audit. To demonstrate this matrix, we use the example of financial services, in particular a rewards-based credit card.

One size doesn't fit all. Exploring marketing strategies for influencing three dimensions of brand loyalty

Brand loyalty is a concept that has garnered considerable interest over recent years from both marketing practitioners and academics alike. While marketers are primarily interested in ways they can generate and increase brand loyalty from their customers, academics strive to conducts research which investigates the antecedents and consequences of customer loyalty (See DeWitt, Nguyen and Marshall 2008; Russell-Bennett, McColl-Kennedy and Coote 2007).

An application of the CBBE model to assess brand loyalty for a long haul travel destination

In the past two decades there has been increasing interest in branding tourism destinations in an effort to meaningfully differentiate against a myriad of competing places that offer similar attractions and facilities. The academic literature relating to destination branding commenced only as recently as 1998, and there remains a dearth of empirical data that tests the effectiveness of brand campaigns, particularly in terms of enhancing destination loyalty. This paper reports the results of an investigation into destination brand loyalty for Australia as a long haul destination in a South American market. In spite of the high level of academic interest in the measurement of perceptions of destinations since the 1970s, few previous studies have examined perceptions held by South American consumers. Drawing on a model of consumer-based brand equity (CBBE), antecedents of destination brand loyalty was tested with data from a large Chilean sample of travelers, comprising a mix of previous visitors and non-visitors to Australia. Findings suggest that destination brand awareness, brand image, and brand value are positively related to brand loyalty for a long-haul destination. However, destination brand quality was not significantly related. The results also indicate that Australia is a more compelling destination brand for previous visitors compared to non-visitors.

Antecedents of Destination Brand Loyalty for a Long-Haul Market: Australia's Destination Loyalty Among Chilean Travelers

Limited extant research examines Latin American consumers' perceptions of holiday destinations. This article measures destination brand equity for Australia as a long-haul destination in the emerging Chilean market. Specifically, it develops a model of consumer-based brand equity (CBBE) to explain attitudinal destination loyalty. The proposed model is tested using data from a sample of Chilean travelers. The findings suggest that brand salience, brand image, and brand value are positively related to brand loyalty for Australia. Further, while brand salience for Australia is strong, as a long-haul destination the country faces significant challenges in converting awareness into intent to visit. Australia is a more compelling destination brand for previous visitors than non-visitors. This implies that a word-of-mouth recommendation from previous visitors, a key component of attitudinal loyalty, is a positive indicator of future growth opportunities for Australia's destination marketers to capitalize on.

Brand loyalty in the Australian wine industry

Consumers are increasingly exposed to a wider range of wine brands as the industry is becoming vastly competitive. Using data from Australian wine consumers, the authors empirically test a model of antecedents of wine brand loyalty. The findings of this study show that wine knowledge and wine experience influence wine brand loyalty indirectly through wine brand trust and wine brand satisfaction. In addition, it is demonstrated that consumer satisfaction with a wine brand is the strongest driver of wine brand loyalty.

Exploring a functional approach to attitudinal brand loyalty

What psychological function does brand loyalty serve? Drawing on Katz’s (1960) Functional Theory of Attitudes, we propose that there are four functions (or motivational antecedents) of loyalty: utilitarian, knowledge, value-expressive and ego-defensive. We discuss how each function relates to the three dimensions of loyalty (i.e. emotional, cognitive, and behavioural loyalty). Then this conceptualisation of brand loyalty is explored using four consumer focus groups. These exploratory results demonstrate that the application of a functional approach to brand loyalty yields insights which have not been apparent in previous research. More specifically, this paper notes insights in relation to brand loyalty from a consumer’s perspective, including the notion that the ego-defensive function is an orientation around what others think and feel. This creates the possibilities for future research into brand loyalty via social network analysis, in order to better understand how the thoughts of others affect consumers’ loyalty attributes. --------------------------------------------------------------------------------

In pursuit of tourism destination brand loyalty : visitor relationship management orientation of destination marketing organisations

The proposition underpinning this study is engaging in meaningful dialogue with previous visitors represents an efficient and effective use of resources for a destination marketing organization (DMO), compared to above the line advertising in broadcast media. However there has been a lack of attention in the tourism literature relating to destination switching, loyalty and customer relationship management (CRM) to test such a proposition. This paper reports an investigation of visitor relationship marketing (VRM) orientation among DMOs. A model of CRM orientation, which was developed from the wider marketing literature and a prior qualitative study, was used to develop a scale to operationalise DMO visitor relationship orientation. Due to a small sample, the Partial Least Squares (PLS) method of structural equation modelling was used to analyse the data. Although the sample limits the ability to generalise, the results indicated the DMOs’ visitor orientation is generally responsive and reactive rather than proactive.

Antecedents of consumer brand loyalty in the Chilean wine industry

The wine industry has become fiercely competitive worldwide, and consumers are increasingly exposed to a wider range of wines in retail outlets. Therefore, wineries need to develop and build consumer loyalty toward their brands. The authors empirically test a model of wine brand loyalty in a Latin American context which considers wine brand trust, brand satisfaction, wine knowledge and wine experience as antecedents. Hypotheses are tested with structural equation modeling (SEM). Findings show that wine experience is positively related to brand trust and brand satisfaction. In addition, results show that consumer satisfaction with a wine brand is the strongest driver of brand loyalty.

Antecedents of consumer brand loyalty in the Australian wine industry

The wine industry has become fiercely competitive worldwide and as a result, consumers are increasingly exposed to a wider range of wines in retail outlets. This expanding consumer choice means that there is a need for Australian wineries to develop and build consumer loyalty toward their brands. This paper aims to empirically examine the factors influencing consumer loyalty to wine brands. Using data from Australian wine consumers, the authors empirically test a model of antecedents of wine brand loyalty. The model considers wine brand trust, wine brand satisfaction, wine knowledge, and wine experience. Hypotheses were tested with structural equation modeling. The findings of this study show that wine knowledge and wine experience affect wine brand loyalty indirectly through wine brand trust and wine brand satisfaction. In addition, it is demonstrated that consumer satisfaction with a wine brand is the strongest driver of wine brand loyalty. The result of this study has value for Australian wineries, wine retailers, and wine marketers.

Examining the role of wine brand love on brand loyalty: A multi-country comparison

This study develops and tests a model through a multi-country study that considers consumer wine knowledge and wine experience, wine brand trust and wine brand satisfaction as antecedents of wine brand love, and wine brand loyalty as a consequence of wine brand love. Data were collected in five wine-producing countries (Australia, Chile, France, Mexico and Portugal) with a final sample of 3462 completed surveys. Hypotheses were tested with structural equation modeling and the findings confirm the importance of brand love as both a mediator and direct influence on brand loyalty for wine consumers. Furthermore, brand satisfaction was positively and significantly related to brand love. In addition, wine experience, rather than wine knowledge, positively influenced brand trust and satisfaction. Finally, results also identify differences between countries thereby providing insights into how companies should focus their marketing strategies internationally.

Loyalty (Brand Loyalty)

Loyalty is a desired marketing outcome for products ranging from fast-moving consumer goods, services, durables, and ideas products such as political parties and social behaviors. Evidence has shown that a base of loyal customers is advantageous for an organization as it reduces the marketing cost of doing business and improves profitability. The approaches to loyalty have varied over the decades with various schools of thoughts toward definitions, conceptualizations, and measurement. The need for understanding the nature of the product and consumer's behavior to determine the appropriate approach to loyalty is emphasized in this article. In this article, we outline the historical development of brand loyalty, the major approaches to the construct (attitudinal and behavioral) and new approaches that deconstruct attitudinal loyalty into its subcomponent parts.

Heart versus mind : the functions of emotional and cognitive loyalty

While there is substantial research on attitudinal and behavioral loyalty, the deconstruction of attitudinal loyalty into its two key components – emotional and cognitive loyalty – has been largely ignored. Despite the existence of managerial strategies aimed at increasing each of these two components, there is little academic research to support these managerial efforts. This paper seeks to advance the understanding of emotional and cognitive brand loyalty by examining the psychological function that these dimensions of brand loyalty perform for the consumer. We employ Katz’s (1960) four functions of attitudes (utilitarian, knowledge, value-expression, ego-defence) to investigate this question. Surveys using a convenience sample were completed by 268 consumers in two metropolitan cities on a variety of goods, services and durable products. The relationship between the functions and dimensions of loyalty were examined using MANOVA. The results show that both the utilitarian and knowledge functions of loyalty are significantly positively related to cognitive loyalty while the ego-defensive function of loyalty is significantly positively related to emotional loyalty. The results for the value-expressive function of loyalty were nonsignificant.

Modeling destination brand equity in an emerging long haul market

The destination branding literature emerged as recently as 1998, and there remains a dearth of empirical data that tests the effectiveness of brand campaigns over time. This paper reports the results of an investigation into consumer-based brand equity for Australia as a long haul destination in an emerging South American market. In spite of the high level of academic interest in the measurement of perceptions of destinations since the 1970s, few previous studies have examined perceptions held by South American consumers. Findings suggest that destination brand awareness, brand image, and brand value are positively related to brand loyalty for a long-haul destination. The results also indicate that Australia is a more compelling destination brand for previous visitors compared to non-visitors.

Perceptions of visitor relationship marketing opportunities by destination marketers : an importance-performance analysis

Customer relationship marketing (CRM) initiatives are increasingly being adopted by businesses in the attempt to enhance brand loyalty and stimulate repeat purchases. The purpose of this study was to examine the extent to which destination marketing organisations (DMOs) around the world have developed a visitor relationship marketing (VRM) orientation. The proposition underpinning the study is that maintaining meaningful dialogue with previous visitors in some markets would represent a more efficient use of resources than above the line advertising to attract new visitors. Importance-performance analysis was utilised to measure destination marketers’ perceptions of the efficacy of CRM initiatives, and then rate their own organisation’s performance across the same range of initiatives. A key finding was that mean importance was higher than perceived performance for every item. While the small sample limits generalisability, in general there are appears to be a lack of strategic intent by DMOs to invest in VRM.