Consumers camp where they can derive as much value as possible for their money and minimize or do away with the regret realized with post-spending . builds in the mind which can be transferred to generations hence shaping the behavior of those consumers towards the brands . The brand can recruit loyalists by continuously improving on quality of their products . Manufacturers or dealers need to understand that such consumers react negatively to price reductions and launching promotional deals to their market may have little or no impact on brand uplift and in some cases , if not strategically executed , then , they risk losing their loyal consumers .
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Diving Into Consumer Behavior : Brand Vs Price Loyalty
By Patrick Maninga
Consumers react and act on different market parameters while making choices and shaping their tastes and preferences for products in the market . The different market parameters are used to decide whether a consumer will give up brand A for B while making purchasing decisions . Whilst the power to purchase lies solely on the consumers , it is shaped by underlying factors in the market like disposable incomes , economics of the land , culture both social and religion , age , competition and even availability of the brands . All these factors when combined by the consumers come to affect consumer budgeting and in the long run consumer market behavior . It is the wish of every consumer to derive as much utility as possible from the purchase or consumption of a particular good or service subject to the underlying budget constraint .
In this case , consumer behavior when it comes to market choices , tastes and preferences is shaped by consumer loyalty to a particular parameter . Consumers can be brand loyalists or price loyalists . The manufacturers , vendors , retailers or product and service providers need to study their market and segment their consumers based on their purchasing behavior on whether they are brand loyalists ( brand owners ) or price sensitive ( super bargainers ). Consumers camp where they can derive as much value as possible for their money and minimize or do away with the regret realized with post-spending .
Brand Loyalists
Consumers can be loyal to a particular brand such that any change in price for that product upwards has no negative impact on decision of the consumers to consume the same product - in fact , high prices tend to attract such consumers to that product . This kind of consumer segment lives in world of brand ownership such that introduction of substitute or competing brand in the market do not influence their choice for the brand . Consumer can be brand owners because the product addresses or appeals to their local or social setting say state or class - if brand A is associated to class D in a society while brand B is associated to class C of the same state or community , then , the likelihood for a consumer in Class C to switch to Brand A is minimal not unless such consumer has changed a class . Also , if brand A is locally made while brand B is of foreign setting then consumers tend to take ownership of brand of their state as opposed to the foreign one if the culture or mentality of supporting local brands is deep rooted . The same applies to if a brand is associated with a certain cultural or religion or sectoral setting then consumer switching brands is almost impossible to minimal .
Consumers who are brand loyalists become brand affiliated due to the trust the brand
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Consumers camp where they can derive as much value as possible for their money and minimize or do away with the regret realized with post-spending . builds in the mind which can be transferred to generations hence shaping the behavior of those consumers towards the brands . The brand can recruit loyalists by continuously improving on quality of their products . Manufacturers or dealers need to understand that such consumers react negatively to price reductions and launching promotional deals to their market may have little or no impact on brand uplift and in some cases , if not strategically executed , then , they risk losing their loyal consumers .
Promoting a product whose consumers are brand loyalists is perceived that there could be a change in the quality of the product by removing key ingredients or raw materials during the production of the product . If that is not the case , then , manufacturers or vendors need to provide clear information that their costs of production or operations have gone down by cracking a certain formular or through technological advancements that will continuously improve the quality and increase production levels hence saving on time as a resource while using high quality raw materials . There needs to be information symmetry to brand loyalists . These consumers need to understand this because to them , they take pride in the consumption of that brand .
Instead of reducing quality of the product or service , the vendors can either reduce quantity and maintain the price , a bad gamble or increase prices and maintain quantity by having a slight improvement in quality which is highly encouraged since this type of consumer segment , is not threatened by the price . The providers can introduce a slight attribute and increase the price to this consumer segment . To these consumers , they prefer paying a higher price provided they get a brand of their choice , taste and preference .
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