Internet technologies are redefining brand loyalty by giving consumers more information and choices, making them less reliant on brands and more brand agnostic. As shoppers increasingly turn to comparison tools and seek personalized experiences, brands must adapt their strategies to meet consumer needs or risk losing loyalty. Additionally, the ability for consumers to publicly share opinions can significantly impact brand reputation, highlighting the necessity for companies to engage with customer feedback actively.

1. DO INTERNET TECHNOLOGIES THREATEN
BRAND LOYALTY ?
DO INTERNET TECHNOLOGIES
THREATEN BRAND LOYALTY ?
By :
SUNIEL KUMAR
SYED WASEEM
NIKI BENN
Suniel Kumar
Syed Wassem
Niki Sean Benn

2. • Internet technologies may not kill off brands, but they certainly magnify both the
bad and good decisions of marketers. - James Heskett
• Experts say, "If you have more information to make what you consider to be an
informed choice, why would you have to be brand loyal?" Consumer loyalty, they
continue, "will vary and fluctuate on a technological innovation/change (loyal one
day and maybe not the next).
• “ Based on personal experiences, experts also say that superior product and service
on the Internet could never have happened before and poses a threat to brand
loyalty."

3. Don Dea's Insight
There are two predominant sides to the discussion of this question.
• One is that the amount of information about products and services is becoming so
voluminous that it will lead to increased consumer confusion. As a result, the use of
surrogates (such as brands) in our purchasing decisions will lead to greater brand
loyalty, justifying today's massive expenditures to preserve brands.
• The other view is that the quality of Internet "technologies," such as search and
feedback mechanisms, is improving faster than the proliferation of information. This
will give users of the Internet the upper hand in the battle for access to information
and the ability to organize it, value it (based on feedback from users), and use it for
decision-making.

4. Technology Erodes Brand Loyalty
• Rapid innovations in consumer technology have provided buyers with new tools for
discovering, comparing, evaluating, choosing and experiencing brands.
• Smartphone app ShopSavvy literally expands buyers’ choices on the spot and offers
alternative products .
• Ex : Amazon’s customers have increasingly become loyal to the channel rather than to the
products within.
• Shopping sites like Bizrate, Google Products or Expedia offer shoppers both product and
channel comparisons, increasing the likelihood shoppers will find a new brand or a better
deal to entice them away.
• Armed with these technologies, customers are becoming increasingly brand agnostic( non-believers
nor values the power of a brand).

5. Loyalty Redefined
•Loyalty needs to be redefined in the current marketing and technology
environment. Rather than the consumer being loyal to the brand, the brand
now needs to be loyal to the consumer.
•One example of being consumer-loyal would be providing hyper-customized
customer service, such as using all the data now available — purchase data,
behavioral data, location data, etc. — to meet consumers’ needs, perhaps even
before they are aware of them.

6. •Social Media and Internet, may be weakening influence of brand
loyalty
•Despite importance of brand awareness, growth of search
engines can reduce the influence of branding.
•Consumers influenced by products that rank highest in search
engines, rather than by traditional brand awareness.
•Social networking having a similar effect.
•User generated product reviews, etc.

7. EVERYONE IS A CRITIC NOW

8. Damaging of Brand value via online
• While most successful brands are already acutely aware of consumer opinion around
their products, it is now more important than ever for brands to consult and consider
their consumers every step of the way, particularly when making changes.
• When a company changes a consumer’s product, it can even be seen as a personal
assault.
• When they feel slighted by a brand, these consumers take to the internet, armed with
Twitter, Facebook and blogs to voice their thoughts on any and every product. Such
comments have the potential to damage a brand, depending on how the company
reacts to the criticism.

9. EXAMPLE
• Domino’s Pizza recently announced it would post unfiltered customer
comments on a Times Square billboard in New York City, following a bout of
negative publicity that began with an unfortunate YouTube video, and resulted
in the company’s ad agency conducting focus groups that revealed a less-than-
rosy public opinion about the quality of Domino’s food. By making
changes to their menu and letting customers judge the results, Domino’s is
combining the social media comment with a traditional out-of-home ad
space, resulting in a relevant campaign that has the potential to give the
brand a much-needed boost.

11. The Role Of Mobile When It Comes To Brand Loyalty
• The number of consumers using their Smartphone's and tablets to make a
purchase, Surely by now you know ours is a mobile world where our
Smartphone's have become an extension of our lives.
• A survey conducted by Aisle Buyer revealed that nearly 75% of consumers
would switch brands if offered real-time discounts and promotions that
were delivered to their Smartphone's in real time while they were
shopping in a store.
• It’s becoming more true than ever before that the product or service that
offers the most value is most often bought. Certainly that is true for
people who don’t have much in the way of disposable.

12. Source:

14. WHAT IS THE BIGGEST THREAT TO LOYALTY TODAY ?
•The consumer's ability to easily access product and company information via
the internet makes brands both stronger and weaker.
•With new and easy access provided by the Internet, the consumer has given
himself/herself more choices.
• In the long run what will happen is that the weaker brands will not do well
and will be driven out of business as the better brands will gain market share,
thrive and strengthen.
•Businesses that provide a good service and a good product at a fair price have
nothing to fear from the Internet or the Internet user's hunger for product
information.

15. •Businesses that do not provide good service, good products or fair pricing
will be exposed for being sub-par.
•It has become so easy for consumers to post a positive or negative review on
all types of products and services that any business that thinks it can get away
with price-gouging and poor customer service is only diluting itself; time and
technology are clearly NOT on the side of businesses that operate that way.

16. •From my personal experience, I have come across a consumer
using gillette razors for decades and he always hated the feeling of
being taken advantage by their over-priced blades (but free
handle!).
•He recently discovered Harrys blades online. Not only do they
cost less, they look nicer, are delivered to the doorstep without
shipping cost or tax.
•This type of product and service could never have happened
before and in his opinion poses a treat to brand loyalty.