Consumer values are key to brand loyalty

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By: Wise Marketer Staff |

Posted on March 13, 2009

Consumer values are key to brand loyalty

Brand loyalty is highly sought after by marketers because of the relationship between brand loyalty and repetitive buying behaviour that translates into larger market share, according to brand measurement firm TGI, which found that South African consumers are highly brand loyal while Egyptians tend to be less so.

Data from TGI's own brand measurement research shows each country's average "propensity for brand stickiness" (the consumer's willingness to stick to a brand) according to various values-based segments.

For example, it is clear that 'motivated individuals' are less likely to be brand loyal, as only 51.5% said they would stick to a brand they liked. This is because motivated individuals tend to put themselves first, and are more open to the idea of change than other consumers. They tend to be highly ambitious, and are willing to take risks to get to the top. They are very concerned with image and appearance, and are avid consumers.

Consumers from the segment called 'experiencers' are also more likely to switch than the rest of the population because they have lower than average loyalty levels (54%), they have a strong desire for adventure and novelty, as well as tending to focus more on their own interests. They tend to be thrill-seekers, self-expressive and image-conscious.

A third group, 'materialists', are also more likely to switch brands (57.3%) and tend to focus on themselves, but they are also somewhat conservative. They very much want to project the right image, but the image they seek is one that society both values and endorses (e.g. wealth or success), rather than projecting individuality. They therefore like to use brands and labels (especially premium brands) to express their identity, and - along with the motivated segment - are the most positive about marketing in general.

On the opposite side of the spectrum the company has observed a very loyal 'virtuous' segment (69.8%) who tend to be more altruistic and somewhat conservative. Doing their duty is an important consideration, and they are willing to donate time to good causes. They act responsibly and tend to reject hedonistic or immature behaviour.

Finally, a group nicknamed 'utopians' (69.8%) tend to be more philanthropic and spiritual, but also welcome change and risk. They tend to be idealistic and have strong convictions, and so they support liberal causes such as environmental groups and conservation initiatives. They tend to reject materialism, and expect people and organisations to behave ethically.

According to TGI, customer loyalty marketers must continue to be aware of the fact that consumers have a general propensity to be loyal toward products and brands, but that this can differ greatly according to product category, country, cultural group, and personal values.

More Info: 

http://www.tgi.co.za