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| Brand Loyalty: Psychology of Preference
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By: Bill Nissim, 2005 ©
“Marketing battles take place in the mind of a consumer or prospect. That’s where you
win. That’s where you lose.”Jack Trout: Big Brands, Big Trouble
What drives brand loyalty? The psychology behind human behavior as it pertains to brand
selection is both rudimentary and complicated at the same time. We will explore this
conundrum by investigating noted authors’ insight into the realm of brand preference. By
unveiling current research and opinions of experts, a convergence of ideologies will
advocate techniques to deepen current and potential relationships. Methods will be
introduced which evoke the use of our five senses to evaluate, develop, and drive a deeply-
rooted brand preference. Let’s begin by understanding how we interact with our
surroundings.
Communications Model:
To better understand the process of preference, let’s first look at a basic communications
model. The five components of this model are sender, medium, filter, receiver, and
feedback. On a daily basis, we are exposed to messages (sender/medium) via our radio,
television, billboards, Internet, mail, and word-of-mouth. Although these messages are
pervasive, we continually screen out (perceptual screen) or ignore content that has little or
no relevance to us. All messages are coded patterns and sensations – colors, sounds, odors,
shapes, etc. Those messages deemed recognizable, or a basis for a relationship, are decoded
and stored in our memory (filter/screen). A successful convergence between sender and
receiver will result in some type of response to a brand’s compelling message (feedback).
Stored experiences in our long-term memory are connected through a series of nodes and
networks. An example could be all the associations you might have with the word Starbucks
TM – including coffee, rich aroma, relaxing, sofa, earth tones, etc. As presented by Shultz
and Barnes, “this node and connection process, called spreading activation, makes every
person different (Strategic Brand Communications Campaigns, 1999).” Since we all have
different experiences, connections, and relationships, this supports a theory that the
CONSUMER, not the organization, owns the brand.
Brand Loyalty Defined:
”You learn that creating customer loyalty is neither strategic nor tactic; rather, it is the
ultimate objective and meaning of brand equity. Brand loyalty is Brand Equity”
Daryl Travis, Emotional Branding
So, what constitutes brand loyalty? According to Bloemer and Kasper, brand loyalty implies
that consumers bind themselves to products or services as a result of a deep-seated
commitment. To exemplify this point, they rendered a distinction between repeat purchases
and actual brand loyalty. In their published research, they assert that a repeat purchase
behavior “is the actual re-buying of a brand” whereas loyalty includes “antecedents” or a
reason/fact occurring before the behavior.
Bloemer and Kasper further delineate brand loyalty into “spurious” and “true” loyalty.
Spurious Loyalty exhibits the following attributes:
• Biased
• Behavioral response
• Expressed over time
• By some decision-making unit, with respect to one or more alternate brands
• A function of inertia.
True brand loyalty includes the above, but replaces inertia with a psychological process
resulting in brand commitment (Ref: Journal of Economic Psychology, Volume 16, Issue 2,
July 1995.) Next, let’s turn to how this psychology plays out in the branding process.
Brand Positioning:
“A strong brand position means the brand has a unique, credible, sustainable, and valued
place in the customer’s mind. It revolves around a benefit that helps your product or
service stand apart from the competition”
Scott Davis, Brand Asset Management
Organizations seek to develop and project brand perceptions based on internally driven
needs and goals. In Jack Trout’s book “Differentiate or Die,” he presents evidence that
supports his theories on consumer behavior and interpretation. Although these concepts
seem self-evident on the surface, organizations tend to ignore these immutable laws in their
daily branding activities.
Minds Can’t Cope
Due to the shear volume of messages we encounter on a daily basis, the human mind can’t
begin to cope with interpreting them all. Trout notes some statistics:
• Humans tolerate constant daily electronic bombardment
• Printed knowledge DOUBLES every 4 – 5 years
• 4,000 books published around world every day
• WWW grows by 1,000,000 pages each day!
• You’ve watched 140,000 TV commercial by the age 18
Minds are Limited
• Perceptions are selective
• Memory is highly selective
• Physiological limitation to process stimuli
• Dramatic difference needed in crowded category
• How much of your message gets through the clutter
Minds are Insecure
• Mind’s are both emotional and rational
• Purchasing decisions are really not known
• Recall – mind’s remember things that no longer exist
What conclusions can we draw from these theories? During a recent speaking engagement, I
asked the audience if they knew the current tag line for United Airlines. They resoundingly
responded “Fly the Friendly Skies!” When I pointed out that United changed its tag in 1997
to “Rising” and again in 2004 to “Its Time to Fly,” they were astonished. Despite the
millions of dollars United spent on this ad campaign (Minds can’t cope & limited), the
audience only recalled something that didn’t exist (minds are insecure). When drafting your
brand positioning strategy, you may want to consider your previous message layering
activities and determine if your new value proposition enhances or conflicts in the minds of
your intended audience. Now let’s turn to a technique to analyze brand perceptions.
Brand Molecule:
“The functional, emotional, and social dimensions of the jobs that customers need to get
done constitute the circumstances in which they buy.”
Dr. Clayton Christensen, The Innovator’s Solution
A brand molecule, according to Hill and Lederer, is the process of identifying all
associations connected to your brand. In addition to understanding the type of connections,
you need to evaluate the importance of each association and how much weight it carries
independently.
By unfolding a brand molecule, the organization is able to view all possible connections,
either positive or negative, in its current state. By virtue of this analysis, you can achieve
greater clarity and insight into your positioning or re-branding process.
The McDonaldsTM brand molecule,
as portrayed in this pictorial, illuminates the
basic constructs of this process. Key elements
of this model include: linking all brand
associations (emanating from the center), the
importance of each (size), and how they relate
to each other. Once accomplished, you can
begin the process of removing those
associations that no longer “fit” and adding
new identifiers in their place. This process
provides the manager an opportunity to view
the entire brand and affect change in a strategic manner.
A real-world example of this process was the
recent transformation of Cadillac. In the late
80’s and early 90’s, sales for this brand were
declining due to European and Japanese
penetration into the luxury car market. To
reverse this erosion, the Cadillac group invested
in the brand molecule analysis to reinvent both
the design and market preference. This brand
was meticulously assessed, disassembled,
reassembled, and re-positioned in the late
1990’s from something grandpa drove into a
fast, sexy, and desirable product. Today, you know when a Caddy commercial is playing
when you hear Led Zeppelin’s “been a long time” blaring through the speakers.
Sensory Approach:
“Almost our entire understanding of the world is experienced through our senses”
Martin Lindstrom, Brand Sense
The most innovative brand research I’ve encountered recently was derived from Martin
Lindstrom and his “Brand Sense” concept. A precursor to his theory lies in three
components, when combined, builds both loyalty and what he terms “smash ability”. The
constructs of his theory reside in the following:
• Sensory branding stimulates your relationship with the brand
• Allows emotional response to dominate our rationale thinking
• Different dimensions of a single brand
• Ultimate goal: Strong, positive, loyal bond between brand and consumer so the
consumer will turn to brand repeatedly
• Goal: Emotional engagement, match between perception/reality
The essence of his work lies in what Lindstrom terms the “Six Sensory Steps.” These include
(1) sensory audit, (2) Brand Staging, (3) Brand Drama, (4) Brand Signature, (5)
Implementation, and (6) Evaluation. Through this discovery method, an organization can
unveil aspects of their current offering or new avenues to exploit. This process, according to
the author, will enhance brand loyalty and deepen existing relationships.
This article can’t possibly delve into all six steps and therefore will only provide a cursory
view of a few elements of this process. Lindstrom’s approach to brand loyalty stems from
the use of our five senses. In order to understand any brand, a sensory audit must be
conducted to assess the brand’s leveraging of sensory touch points. This is comprised of
examining a brand’s stimuli, enhancement, and bonding capabilities. Lindstrom’s point is
simply the more sensory components, the stronger the foundation of your brand.
Another area discussed is the synergy across sensory touch points. Lindstrom suggests we
use many senses when evaluating our surroundings, including brands. Returning to the
Starbucks example, one could view an encounter with this retailer in this manner.
Visual Unique logo on building, cups, and bags
Visual/Auditory Uniform and customer approach
Visual/Auditory/Touch Interior aesthetics (sofa, colors, wall paper, music)
Smell/Taste Distinct aroma released of freshly ground coffee
When analyzing your brand, how strong are the links between each of your sensory touch
points? How interdependent are they? In the beginning of this article we mentioned
Lindstrom’s term “smashability.” This simple means how independent each sensory aspect
is and can it stand on its own? If you removed the Starbucks logo from the building, would
you still know the brand?
Conclusion:
In order to understand the psychology of brand preference, we undertook this journey by
examining a basic communications model and the process of receiving/filtering messages.
Next we reviewed research that suggested a distinction between spurious and true brand
loyalty. Several truisms concerning how a brand is positioned in the marketplace revealed
the challenges with marketing to the human mind. Finally, we surveyed research that
submits the essence of brands is connected through our five senses. The culmination of
information may help any organization facing brand loyalty issues with their constituents
and provide resources to uncover core issues.
Bill Nissim consults with organizations on strategic branding
imperatives. His website www.ibranz.com contains reference materials, links, and helpful
articles on the many facets of branding. In addition, Nissim released his first book
“The Brand Advocate” to provide a tool-kit for the marketing practitioner.
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