Loyalty/Relationship

SEMINAR 3Relationship/Loyalty.

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Erik Abelsson Ann-Katrin Bartel

Lars Ohlson Thomas Vareilhes

TODAY’SAGENDA.

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-- 1. Recap

2. Articles

Fournier 1998Consumers and Their Brands:

Developing Relationship Theory in

Consumer Research.

Richard 1999Whence Consumer Loyalty?

3. Comparison(and summary)

4. Break(hand in your questions!)

5. Discussion

RECAP

(seminar 2)

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BRANDING.

brand equity

Brandscape(starbucks case)

Costumer based

Brand Personality

LOYALTYRELATIONSHIP.

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ARTICLES


Developing Relationship Theory

in Consumer Research.

Oliver 1999Whence Consumer

Loyalty?

TODAY’S

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Developing Relationship Theory in Consumer Research.

The concept of Relationship & it’s legitimation

Brand as a relationship-partner

Relationships add and structure meanings

Relationships are:

Polymorph

Dynamic

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Empirical Study: 3 women, 12-15 hours interview, $100 tailor gifts

Jean

• 59 years old

• Married mother

• Barmaid

• Italian origins

Karen

• 39 years old

• Recently divorced

• Working mother

Vicki

• 23 years old

• Master student

• Living away from

home

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BuzzQUESTION

The development of ICT and in particular the

internet has enabled new types of relationships:

« virtual relationsips ».

Having in mind the Brand Relationship theory of

Fournier (1998), how should those new types of

relationships be interepreted/included in this

model?

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ARTICLES

Oliver 1999Whence Consumer

Loyalty?

TODAY’S

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Oliver 1999Whence Consumer Loyalty?

Loyalty ≠ satisfaction; but the concepts are

strongly linked

Satisfaction: pleasurable fulfillment

Loyalty: A deeply held commitment to rebuy a

preferred product or brand consistently in the

future.

Ultimate loyalty as an enhanced form of loyalty

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Loyalty Phases and Obstacles to Loyalty

Cognitive loyalty

Affective loyalty

Conative loyalty

Action loyalty

• Create dissatisfaction on different levels of vulnerability

• Switching incentives:Price reductions, coupons, discounts, induced unavailability

• Variety-seeking consumers

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The four loyalty strategies

• Product superiority as the weakest form of loyalty

• Determined self-isolation: The consumer s desire to rebuy a brand can be

based on determined self-isolation; comparable to the concept of love.

• Village envelopment: The consumer is a passive acceptor of the brand

environment within a social alliance that shelters from outside influences.

• Immersed self-identity: This form represents a form of ultimate loyalty as

the consumer found a “natural match” with the brand and its environment.

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BuzzQUESTION

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Considering Oliver s theory that some firms will

struggle achieving true loyalty among consumers

and should thus focus on achieving satisfaction

only, what indicators do you think determine if a

firm/brand should create a loyalty program?

COMPARE


Developing Relationship

Theory in Consumer Research.


LET’S

Fournier 1998Consumers and Their Brands…


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-Relationship

Loyalty and it’s nuances have been

lost in traditional brand loyalty

research.

Loyalty/Satisfaction

A shift from satisfaction to loyalty.

Purpose

Main points

Create a Framework

To better understand the

relationships between consumers

and brands

Interaction

Investigates the interaction

between consumer satisfaction

and loyalty.



Stress Obstacles

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=

Relationship Loyalty

Relationship types Growth of loyaltyEx. Casual Friends, buddies,

marriage etc.

-Congnitive

-Affective

-Conative

-Action

-Enviromental Stress

-Partner-Oriented Stress

-Dyadic/relational Stress

-Consumer idiosyncrasies

-Switching incentives

Fournier 1998 Oliver 1999Szmigin 2003

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Loyalty + SatisfactionInnovationRelationship



The villageLived experience

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≠Active, practical

Brands as partner

Indicators of

relationships

More passive

Interaction consumers

Ultimate loyalty

REFLECTIONSOWN

E-commerce?

Innovation = Loyalty and satisfaction + relationship?

Broader picture

What are the costs of relationships- and loyalty programs?

Fourier (1998) and Oliver (1999) in black and white?

FINDINGSEMPIRIC

Group A2

QUESTION

Some consumers are multiloyal to several brands

and some enjoy seeking diffrent alternatives.

How should companies that aim to have a high

level of costumer loyalty deal with this?

(Think about the articles!)

Group A4

QUESTION

Fournier (1998) states that « Consumers do not

choose brands, they choose lives », this indicates

that brands define people and the self-identity

they pursue. Do you believe this is applicable to

all types of products and services?

In which cases is this not applicable?

Group A3

QUESTION

Have loyalty programs become a hygien factor as

Oliver (1999) was touching upon, and if this is the

case:

How should companies diffrentiate themselves

through loyalty/relations?

THANKS.AND GOOD WORK

Marketing

Loyalty/Relationship