Brand Loyalty Measurement Made Easy: A Preference-Behavior Model
A new method for assessing and interpreting brand loyalty is proposed that should be well suited for small business managers because it is easy and inexpensive to implement, the results are easy to interpret, and it offers insights into competition that are superior to alternative approaches. The method is based on a modification of a brand switching model. Rather than two brand purchases, the measures of the new model are one brand purchase and brand preference. The resulting mixed model combines the conceptual advantages of behavioral and attitudinal approaches to brand loyalty. A matrix of the two measures can be analyzed in terms of each brand's gravity, or power to convert brand preference into sales, and focus, which relates lo its ability to attract sales from preferences for other brands. Implications are drawn for small business strategy.
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