Antecedents and consequences of brand loyalty: An empirical study
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SPIROS GOUNARIS has a PhD from Athens University of Economics and Business, and is an assistant professor of marketing at the Department of Marketing and Communication at Athens University of Economics and Business. His research interests pivot around consumer behaviour, satisfaction and loyalty, service quality, tourist marketing, business-to-business marketing and market orientation development. His work has been published in many journals.
VLASIS STATHAKOPOULOS has a PhD from the University of Arizona, and is an associate professor of marketing at the Department of Marketing and Communication at Athens University of Economics and Business. His work has been published in a number of journals and been included in various research proceedings. His research interests include marketing management and strategy, sales management, services marketing, and consumer satisfaction and loyalty.
Abstract The authors consider the relationships among characteristics associated with the consumer (risk aversion and variety seeking), the brand (brand reputation and availability of substitute products), the social environment (social group influences and peers’ recommendations), four types of loyalty (premium loyalty, inertia loyalty, covetous loyalty and no loyalty), and four consumer-related behaviour types (word-of-mouth communication, buy alternative brand, go to different store and buy nothing). To test the hypothesised relationships a survey of Greek consumers was conducted. The findings provide general support for the postulated linkages among the above variables. Implications for marketing practice and directions for future research are discussed.
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Spiros Gounaris Assistant Professor of Marketing, Department of Marketing and Communications, Athens University of Economics and Business, Patission 76, Athens 10434, Greece Tel: ⫹32 10 8203 445 Fax: ⫹32 10 8211 269 E-mail: [email protected]
There is no doubt, among academics and practitioners alike, that the concept of brand loyalty is of strategic importance for companies in order to obtain a sustainable competitive advantage. This is due to a number of reasons. First, brand-loyal consumers are less expensive, since they reduce the marketing costs of doing business.1–3 Secondly, brand extensions are less risky for brands that exhibit high loyalty.4 Thirdly, brand loyalty has been shown to be associated with higher rates of return on investment through increases in market share.5 Fourthly, brand-loyal consumers have fewer reasons to engage in an extended information search among alternatives,
thus reducing the probability of switching brands.6 Finally, brand loyalty has been identified as a major determinant of brand equity.7 The concept of brand loyalty has not, however, been uniquely defined and operationalised in the marketing literature. For example, brand loyalty has been defined as a repeat purchase,8 preference9 and commitment,10 and as retention and allegiance.11 These diverse definitions of brand loyalty are in part due to the fact that loyalty is a very
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