Brand Loyalty LITERATURE REVIEW

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E. Brand Loyalty

1. Definition of Brand Loyalty According Durianto. 2004: 126, brand loyalty is a measure of the customer relationship to a brand. Brand loyalty is a measure of customer loyalty to a brand, Rangkuti 2002: 60. Fadli and Inneke 2008: 54 said, brand loyalty is a consumer attachment to a brand that includes a sense of loyalty and customer satisfaction with the preferred brand compared to other brands. This measure is able to give an idea of whether or not a customer may switch to another brand, especially if the brand proficiency level was found to changes, both related to price or other attributes. Brand loyalty is one of the core indicators of brand equity, which is clearly associated with sales opportunities, which also means loyal customers in general will continue to purchase these brands even though faced with many alternative brands of competitors products that offer superior product characteristics is viewed from different angles attributes Durianto, 2004: 126. 2. Functions of Brand Loyalty brand loyalty With proper management and utilization, brand loyalty can be a strategic asset for the company. According Durianto. 2004: 127, brand loyalty can provide value to the company in the form of: 32 a. Reduce marketing costs reduced marketing costs. Marketing costs to retain customers will be cheaper than the cost of marketing to get new customers. Thus, marketing costs will be smaller if the increased brand loyalty. b. Increasing trade trade leverage. Strong loyalty to a brand will result in increased trade and strengthen the confidence of marketing intermediaries. It is concluded that these buyers in buying a brand based on their habits over the years. c. Attract new customers attracting new customers. A feeling of satisfaction and love to a brand will lead to potential consumers feeling confident to consume the brand and will usually recommend promote a brand that he used it to others, so it is likely to attract new customers. d. Giving time to respond to the threat of competition provide time to respond to competitive threats. If competitors develop superior products, loyal customers will give time for the company to respond to a competitor by updating its products. 3. Depth of Brand Loyalty brand loyalty In relation to a product brand loyalty, found the existence of some degree of brand loyalty. Each level shows the marketing challenges that must be faced at 33 once the asset can be utilized. The level of brand loyalty in Durianto according to Aaker et al. 2004: 128-129, are as follows: a. Sedentary switcher. Is the most basic level of loyalty. Consumer purchases more often move from one brand to another brand which indicates that they are not loyal, all the brands are considered adequate. In this case the brand holds a small role in the purchase decision. The most noticeable characteristic of this type of customer is that they buy a product because its cheap and a lot of other consumers who buy the brand. b. Buyers who are habits habitual buyer. It is the buyer who did not experience dissatisfaction in consuming a product brand. There is no good reason for him to buy another brand of product or brand switching, especially if the transition takes effort, expense, or other sacrifice. So, buyers in the purchase of a brand for reasons of habit. c. Buyer is satisfied with the cost of transition satisfied buyer. Is a category of buyers who are satisfied with the brand is consumed. However, the buyer can just move the brand to bear the costs of transition switching cost, such as time, cost, or risk incurred as a result of the actions of the brand transition. To attract buyers in this category, competitors need to address the transition 34 costs to be borne by the buyer by offering a variety of benefits as compensation. d. Buyers who like the brand likes the brand. Is a category of buyers who truly love the brand. Sense of association relating to symbols, the circuit using the mark prior experience, or the perception of high quality. And they think of brands as a friend. e. Comitted buyer Is the category of loyal buyers. These buyers have a pride in using a brand. The brand is very important even in terms of both function and as an expression of who the users. Characteristics that appear in this category is the act of a buyer to recommend promote the brand he uses it to others. 4. Measuring Brand Loyalty According to Aaker 1997: 63-68, to understand the brand loyalty and its management more clearly, use considerations in measurement approaches. A consideration of some of the measurements that remain will provide additional insight into the scope and nuance, in other words: to provide a practical tool in using the concept and relate it to profitability. One approach used to consider the actual behavior. Meanwhile, another approach based on loyalty building consisting of: 35 a. The costs of transition Is an analysis of the cost of the transition can give their views on the extent to which the costs of switching provides a platform for brand loyalty. If a very expensive or risky for a company or customer to change the supply, the rate of depreciation of the customer group will be lower. b. Measuring satisfaction. Diagnose paramount to every level of brand loyalty is a measure of satisfaction and dissatisfaction. The most important of loyalty is the absence of discontentment. If anything, the taste is not satisfied it low enough so as not enough reason to rush to switch brands. c. Liking to the brand. Is a positive influence that could result in barriers for competitors. It would be much more difficult to compete against a sense of love than to compete with a product with specific characteristics. d. Commitment. Brands of the most powerful, ie which have very high equity, will have a large number of loyal customers. If there is a huge level of commitment, it would be relatively easy to detect because the commitment is usually manifested in various forms. One key indicator is the amount of interaction and communication that is involved with the product. 36

F. Purchase Decision