Consumer Marketing - Loyalty Seminar

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Consumer Marketing - Loyalty Seminar

  1. 1. Loyalty and Relationship Seminar 3 – Consumer Marketing – Spring 2014
  2. 2. Team B3 Oscar Adissa Ding Minea
  3. 3. Agenda 1. Intro… 5. Discussion 3. Oliver: Consumer Loyalty 2. Fournier: Relationship Theory 4. Research: Loyalty Cards
  4. 4. Last week: Brand Personality Text Aaker (1997): •  Sincere! •  Exciting! •  Competence! •  Sophisticated! •  Rugged!
  5. 5. Text “Animals matter because they get to the human element. Cats are not about cats, they’re about telling human stories.” – Jonah Peretti, CEO
  6. 6. Relations with brands? Text
  7. 7. Relation with…? Loyal to…? OJBECTS WITH FEELINGS ? IKEA vs. LAMP Text SATISFAC -TION VS. LOYALTY ?
  8. 8. Relationship Theory Consumers and Their Brands: Developing Relationship Theory in Consumer Resarch Journal of Consumer Research (1998) Who? Susan Fournier, Assistant Professor at Harvard Graduate School. (Now: Boston University) Study? A deep case study on three different women and their relationships with brands. Takeaway? A preliminary model on Brand Relationship Quality (BRQ).
  9. 9. Brands as relationship partners Interdependence Between Consumers and Their Brands •  Brands are: 1.  Humanized 2.  Animated 3.  Personalized •  Anthropomorphizing Relationships with Inanimate Objects •  Relationships add meaning to peoples lives
  10. 10. Case Studies Case Study #1: Jean, 59 year old barmaid with Italian heritage Case Study #2: Karen, 39 year old working mother of two (runner aswell!) Case Study #3: Vicki, 23 year old graduate student doubting her career
  11. 11. Typology of ConsumerBrand Relationship
  12. 12. Case Study #1 – Jean, 59 years Committed partnership: •  Loyalty and Commitment •  Strong and Faithful Partnerships •  Need for belonging and Constancy ”Things made 20 years ago are better than the junk they sell you today!”
  13. 13. Case Study #2 – Karen, 39 years Overall: •  Desire to change, but still likes stability •  Has a new sense of independence and a new identity •  Lowest emotional attachment to brands in general Dependencies relationship: •  Mary Kay, “I can’t live without it now” Best Friends: •  Reebok and Coke Classic are cornerstones in her – “new identity” Enmities: •  Brands that were Arranged marriages adopted from her ex-husband
  14. 14. Case Study #3 – Vicki, 23 years Overall: •  Generation X •  Cares a lot about what others think •  Brands are a way to create her identity – “Ivory girl” Compartmentalized friendships: •  Perfumes for different occasions Courtships: •  Trial-periods for new perfumes and products, Musk Flings: •  Trials of different shampoos
  15. 15. Brand Relationship Quality
  16. 16. Highlight of the article “Consumers don’t choose brands, they choose lives” – Fournier (1998)
  17. 17. Consumer Loyalty Whence Consumer Loyalty? Journal of Marketing (1999) Who? Richard Oliver, Professor of Management Emeritus at Vanderbilt University. Study? Even when you’re satisfied you “betray” the brand. Takeaway? Loyalty is attitude based but can be attained with loyalty programs.
  18. 18. Starting of… •  Oliver's (1997) Framework of Loyalty •  New Issues in Loyalty •  What Is the Relation Between Satisfaction & Loyalty? •  Conclusion
  19. 19. Four Loyalty Phases •  Cognitive: Loyalty to information (such as price, features) •  Affective: Loyalty to a liking ( I buy it because I like it) •  Conative: Loyalty to an intention (I'm committed to buying it) •  Action: Loyalty to action inertia (Karen's habits-action of loyalties) Obstacles: Variety-seeking & switching Incentive (Vicki s volatile sense of self)
  20. 20. Four Strategies and Three New Perspectives on Loyalty 1. Self-Isolation as a Sustainer of Loyalty 2. The Social Organization: The Village Karen use the Hellman's because that was the brand her husband wanted 3. Individual and Social Integration: Fully Bonded Loyalty
  21. 21. Relation between Satisfaction and Loyalty
  22. 22. Conclusion and Limitation •  What is Loyalty? Attitude-Based + Behavior States •  How to Attain the Loyalty? Institute loyalty programs
  23. 23. Highlight of the article Naïve puppies? “Consumers can become near-zealots on the basis of adoration and devotion and can be placed in self-sustaining social environments that reinforce their brand determination” – Richard (1999)
  24. 24. Summary Insight: Loyalty and Satisfaction is separate. Relating: Levy’s “Symbols” = Buying a product is not simply about being satisfied with the utilitarian aspects. Relationship Theory (Fournier, 1998) Criticism: Isn’t it possible to be loyal without being satisfied? Insight: The context is important when forming relationships with brands. Consumer Loyalty (Richard, 1999) Relating: Aaker’s Brand Personality = Relate to brand depending on our own context. What brands fit into our own life fantasy? = Holbrook & Hirschman’s on experiential aspects. Criticism: Describe relationships, but how do they transform and change over time?
  25. 25. Research: Loyalty Cards One of the fundament in loyalty/relationship building for fast-moving consumer goods (FMCG) companies is loyalty cards. Investigate the use of loyalty card among your friends. •  Do they perceive to be loyal to that specific firm if they have their loyalty card? •  Do they feel that they have a relationship with a specific firm if they have their card in their wallet? •  On a more general level, can companies have relationships with their customers and in the end create loyal customers?
  26. 26. Research: Loyalty Cards Women, 56 years old: Marriages of convenience (Satisfaction rather than loyalty!): “I use the Åhlen’s and NK cards because with my commitment to work, those are the only places that are open at the times when I need to shop… and they really have everything there.” Women, 22 years old: Committed partnership: (Loyalty rather than satisfaction!): “Well, I buy all my clothing at H&M and all my food at ICA, and have both their cards. I am a student, and therefore don’t have that much money… but I feel smart when I use my member card at those places.”
  27. 27. Research: Loyalty Cards Arranged marriage: (Satisfaction….or?) “”When I met my husband he introduced me to which toothpaste brand to use, which was of course Pepsodent, so I started using Pepsodent toothpaste and I have never gone back!”
  28. 28. Research: Loyalty Cards Women, 30 years old: Dependencies: (Loyalty!) “I use this skincare brand all the time. Even if I can’t get the product over here I get it from overseas.”
  29. 29. Research: Loyalty Cards Man, 46 years old: Enslavement: (Loyalty? Forced Loyalty?) “FUCK COMHEM!” Women, 55 years old: Commiserate: (Remember the IKEA lamp?) “I am loyal to ICA but sometimes I shop at Coop because I feel sorry for them. When I think that nobody like’s a brand, I just have to buy it to support them.”
  30. 30. Question #1 Relationship Theory (Fournier) Fournier describe relationships with brands, but how do they transform and change over time? What do you think? What did your interview persons say?
  31. 31. Question #2 Consumer Loyalty (Richard) Is it possible to be loyal without being satisfied? When? How?
  32. 32. Question #3 xxx xxxx.
  33. 33. Question #4 xxx xxx
  34. 34. Question #5 xxx xxx
  35. 35. Question #5 xxx xxx
  36. 36. Please love me…

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