Loyalty/Relationship
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Presentation of Fournier (1998) and Oliver (1999) in the course Consumer Marketing, Uppsala Universitet.
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Loyalty/Relationship
- 1. SEMINAR 3 Relationship/Loyalty. ---------------------------------Erik Abelsson Lars Ohlson Ann-Katrin Bartel Thomas Vareilhes
- 2. AGENDA. ---------------------------- TODAY’S 1. Recap 2. Articles Fournier 1998 Consumers and Their Brands: Developing Relationship Theory in Consumer Research. Richard 1999 Whence Consumer Loyalty? 3. Comparison (and summary) 4. Break (hand in your questions!) 5. Discussion
- 3. Costumer based brand equity Brandscape (starbucks case) ---------------------------- Brand Personality RECAP BRANDING. (seminar 2)
- 5. ARTICLES ---------------------------- TODAY’S Fournier 1998 Consumers and Their Brands: Developing Relationship Theory in Consumer Research. Oliver 1999 Whence Consumer Loyalty?
- 6. Fournier 1998 Consumers and Their Brands: Developing Relationship Theory in Consumer Research. ------------------------------------- The concept of Relationship & it’s legitimation Brand as a relationship-partner Relationships add and structure meanings Relationships are: Polymorph Dynamic
- 7. Fournier 1998 Consumers and Their Brands: Developing Relationship Theory in Consumer Research. ------------------------------------- Empirical Study: 3 women, 12-15 hours interview, $100 tailor gifts • • • • Jean 59 years old Married mother Barmaid Italian origins Karen • 39 years old • Recently divorced • Working mother Vicki • 23 years old • Master student • Living away from home
- 10. Fournier 1998 Consumers and Their Brands: Developing Relationship Theory in Consumer Research. Buzz QUESTION ------------------------- ------------------------------------- The development of ICT and in particular the internet has enabled new types of relationships: « virtual relationsips ». Having in mind the Brand Relationship theory of Fournier (1998), how should those new types of relationships be interepreted/included in this model?
- 12. Oliver 1999 Whence Consumer Loyalty? ------------------------------------ Loyalty ≠ satisfaction; but the concepts are strongly linked Satisfaction: pleasurable fulfillment Loyalty: A deeply held commitment to rebuy a preferred product or brand consistently in the future. Ultimate loyalty as an enhanced form of loyalty
- 13. Oliver 1999 Whence Consumer Loyalty? ------------------------------------- Loyalty Phases and Obstacles to Loyalty Cognitive loyalty Affective loyalty Conative loyalty Action loyalty • Create dissatisfaction on different levels of vulnerability • Switching incentives: Price reductions, coupons, disc ounts, induced unavailability • Variety-seeking consumers
- 14. Oliver 1999 Whence Consumer Loyalty? ------------------------------------- The four loyalty strategies • Product superiority as the weakest form of loyalty • Determined self-isolation: The consumer s desire to rebuy a brand can be based on determined self-isolation; comparable to the concept of love. • Village envelopment: The consumer is a passive acceptor of the brand environment within a social alliance that shelters from outside influences. • Immersed self-identity: This form represents a form of ultimate loyalty as the consumer found a “natural match” with the brand and its environment.
- 15. Buzz QUESTION ------------------------- Oliver 1999 Whence Consumer Loyalty? ------------------------------------- Considering Oliver s theory that some firms will struggle achieving true loyalty among consumers and should thus focus on achieving satisfaction only, what indicators do you think determine if a firm/brand should create a loyalty program?
- 16. LET’S COMPARE Fournier 1998 Consumers and Their Brands: Developing Relationship Theory in Consumer Research. Oliver 1999 Whence Consumer Loyalty?
- 17. Oliver 1999 Fournier 1998 Consumers and Their Brands… Whence Consumer Loyalty? Create a Framework To better understand the relationships between consumers and brands ----------- Purpose Interaction Investigates the interaction between consumer satisfaction and loyalty. Relationship Loyalty and it’s nuances have been lost in traditional brand loyalty research. -------------- Main points Loyalty/Satisfaction A shift from satisfaction to loyalty.
- 18. Oliver 1999 Fournier 1998 Consumers and Their Brands… Ex. Casual Friends, buddies, marriage etc. Stress -Enviromental Stress -Partner-Oriented Stress -Dyadic/relational Stress ----------- Relationship types = -------------- Relationship Whence Consumer Loyalty? Loyalty Growth of loyalty -Congnitive -Affective -Conative -Action Obstacles -Consumer idiosyncrasies -Switching incentives
- 19. Innovation Oliver 1999 ---------------------------- Relationship Szmigin 2003 ---------------------------- Fournier 1998 Loyalty + Satisfaction
- 20. Oliver 1999 Fournier 1998 Consumers and Their Brands… Indicators of relationships ----------- Active, practical Brands as partner ≠ -------------- Lived experience Whence Consumer Loyalty? The village More passive Interaction consumers Ultimate loyalty
- 21. OWN REFLECTIONS E-commerce? Innovation = Loyalty and satisfaction + relationship? Broader picture What are the costs of relationships- and loyalty programs? Fourier (1998) and Oliver (1999) in black and white?
- 23. EMPIRIC FINDINGS
- 24. QUESTION Group A2 Some consumers are multiloyal to several brands and some enjoy seeking diffrent alternatives. How should companies that aim to have a high level of costumer loyalty deal with this? (Think about the articles!)
- 25. QUESTION Group A4 Fournier (1998) states that « Consumers do not choose brands, they choose lives », this indicates that brands define people and the self-identity they pursue. Do you believe this is applicable to all types of products and services? In which cases is this not applicable?
- 26. QUESTION Group A3 Have loyalty programs become a hygien factor as Oliver (1999) was touching upon, and if this is the case: How should companies diffrentiate themselves through loyalty/relations?
Editor's Notes
- I written interaction –but it is relationFournier believes that …