Seminar 3 – Consumer Marketing – Spring 2014 Loyalty and Relationship

Team B3

Oscar Adissa Ding Minea

Agenda

1. Intro… 2. Fournier:

Relationship Theory

3. Oliver: Consumer Loyalty

4. Research: Loyalty Cards 5. Discussion

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Last week: Brand Personality

Aaker (1997): •  Sincere!

•  Exciting!

•  Competence!

•  Sophisticated!

•  Rugged!

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“Animals matter because they get to the human element. Cats are not about cats, they’re about

telling human stories.” – Jonah Peretti, CEO

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Relations with brands?

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OJBECTS WITH

FEELINGS?

SATISFAC-TION VS. LOYALTY

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Relation with…? Loyal to…?

IKEA vs.

LAMP

Relationship Theory

Consumers and Their Brands: Developing Relationship Theory in Consumer Resarch Journal of Consumer Research (1998)

Who? Susan Fournier, Assistant Professor at Harvard Graduate School. (Now: Boston University) Study? A deep case study on three different women and their relationships with brands.

Takeaway? A preliminary model on Brand Relationship Quality (BRQ).

Brands as relationship partners Interdependence Between Consumers and Their Brands •  Brands are: 1.  Humanized 2.  Animated 3.  Personalized •  Anthropomorphizing

Relationships with Inanimate Objects •  Relationships add meaning to peoples lives

Case Studies

Case Study #1: Jean, 59 year old

barmaid with Italian heritage

Case Study #2: Karen, 39 year old working mother of

two (runner aswell!)

Case Study #3: Vicki, 23 year old graduate student

doubting her career

Typology of Consumer-

Brand Relationship

Case Study #1 – Jean, 59 years

”Things made 20 years ago are better than the junk they sell you today!”

Committed partnership: •  Loyalty and Commitment •  Strong and Faithful Partnerships •  Need for belonging and Constancy

Dependencies relationship: •  Mary Kay, “I can’t live without it now” Best Friends: •  Reebok and Coke Classic are cornerstones in her – “new identity” Enmities: •  Brands that were Arranged marriages adopted from her ex-husband

Overall: •  Desire to change, but still likes stability •  Has a new sense of independence and a new identity •  Lowest emotional attachment to brands in general

Case Study #2 – Karen, 39 years

Compartmentalized friendships: •  Perfumes for different occasions Courtships: •  Trial-periods for new perfumes and products, Musk Flings: •  Trials of different shampoos

Overall: •  Generation X •  Cares a lot about what others think •  Brands are a way to create her identity – “Ivory girl”

Case Study #3 – Vicki, 23 years

Brand Relationship

Quality

“Consumers don’t choose brands, they choose lives” – Fournier (1998)

Highlight of the article

Consumer Loyalty

Whence Consumer Loyalty? Journal of Marketing (1999)

Who? Richard Oliver, Professor of Management Emeritus at Vanderbilt University.

Takeaway? Loyalty is attitude based but can be attained with loyalty programs.

Study? Even when you’re satisfied you “betray” the brand.

Starting of…

•  Oliver's (1997) Framework of Loyalty

•  New Issues in Loyalty

•  What Is the Relation Between

Satisfaction & Loyalty?

•  Conclusion

Four Loyalty Phases •  Cognitive: Loyalty to information (such as price, features)

•  Affective: Loyalty to a liking ( I buy it because I like it)

•  Conative: Loyalty to an intention (I'm committed to buying it)

•  Action: Loyalty to action inertia (Karen's habits-action of loyalties)

Obstacles:

Variety-seeking & switching Incentive

(Vicki’s volatile sense of self)

Four Strategies and Three New Perspectives on Loyalty

1. Self-Isolation as a Sustainer of Loyalty

2. The Social Organization: The Village

“Karen use the Hellman's because that was the brand her husband wanted” 3. Individual and Social Integration: Fully Bonded Loyalty

Relation between Satisfaction and Loyalty

Conclusion and Limitation

•  What is Loyalty?

Attitude-Based + Behavior States

•  How to Attain the Loyalty?

Institute loyalty programs

“Consumers can become near-zealots on the basis of adoration and devotion and can be placed in self-sustaining social environments that

reinforce their brand determination” – Richard (1999)

Highlight of the article

Naïve puppies?

Summary Insight: Loyalty and Satisfaction is separate.

Relating: Levy’s “Symbols” = Buying a product is not simply about being satisfied with the utilitarian aspects.

Criticism: Isn’t it possible to be loyal without being satisfied?

Insight: The context is important when forming relationships with brands.

Relating: Aaker’s Brand Personality = Relate to brand depending on our own context. What brands fit into our own life fantasy? = Holbrook & Hirschman’s on experiential aspects.

Criticism: Describe relationships, but how do they transform and change over time?

Relationship Theory

(Fournier, 1998)

Consumer Loyalty (Richard, 1999)

Research: Loyalty Cards

One of the fundament in loyalty/relationship building for fast-moving consumer goods (FMCG) companies is loyalty cards. Investigate the use of loyalty card among your friends. •  Do they perceive to be loyal to that specific firm if

they have their loyalty card?

•  Do they feel that they have a relationship with a specific firm if they have their card in their wallet?

•  On a more general level, can companies have relationships with their customers and in the end create loyal customers?

Research: Loyalty Cards

Women, 56 years old: Marriages of convenience (Satisfaction rather than loyalty!): “I use the Åhlen’s and NK cards because with my commitment to work, those are the only places that are open at the times when I need to shop… and they really have everything there.”

Women, 22 years old: Committed partnership: (Loyalty rather than satisfaction!): “Well, I buy all my clothing at H&M and all my food at ICA, and have both their cards. I am a student, and therefore don’t have that much money… but I feel smart when I use my member card at those places.”

Research: Loyalty Cards

Arranged marriage: (Satisfaction….or?) “”When I met my husband he introduced me to which toothpaste brand to use, which was of course Pepsodent, so I started using Pepsodent toothpaste and I have never gone back!”

Research: Loyalty Cards

Women, 30 years old: Dependencies: (Loyalty!) “I use this skincare brand all the time. Even if I can’t get the product over here I get it from overseas.”

Research: Loyalty Cards

Man, 46 years old: Enslavement: (Loyalty? Forced Loyalty?) “FUCK COMHEM!”

Women, 55 years old: Commiserate: (Remember the IKEA lamp?) “I am loyal to ICA but sometimes I shop at Coop because I feel sorry for them. When I think that nobody like’s a brand, I just have to buy it to support them.”

Relationship Theory (Fournier)

Question #1

Fournier describe relationships with brands, but how do they transform and change over time? What do you think? What did your interview persons say?

Consumer Loyalty (Richard)

Question #2

Is it possible to be loyal without being satisfied? When? How?

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Question #3

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Question #4

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Question #5

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Question #5

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Please love me…