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3.
The
third
level
includes
of
those
who
are also satisfied and, in addition, have
switching
costs
(costs
in
time,
money,
or performance risk associated with
switching). To attract this buyers, competitors need to overcome the switching
costs by offering a benefit large enough to compensate
4.
The fourth level. They might be termed friends of a brand because there is an
emotional feeling attachment.
5. The
top
level
is
committed
customers.
They
have
a
pride
of
discovering
and/or
being users of a brand.
The strategic value of brand loyalty:
Reduced Marketing Costs
It is simply much less costly to retain customers than get the new ones. Because
potential new customers lack motivation to change from their current brands, they
will
be
expensive
to
contact,
in
part
because
they
are
not
making
an
effort
to
locate brand alternatives.
Trade Leverage
At the extreme, brand loyalty may dominate store choice decisions. Trade
leverage
is
particularly
important
when introducing new sizes, new varieties,
variations, or brand extensions.
Attracting
new
customers
by
creating
brand
awareness
and
reassurance
to
new
customers
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