Brand Loyalty A Two Dimensional Approach Marketing Essay

Brand Loyalty A Two Dimensional Approach Marketing Essay The ultimate goal of the research is to understand if brand loyalty may arise from participating in online brand communities. This section more specifically intends to provide an answer to the following sub-question: â€Å"Does commitment to online brand communities lead to members’ loyalty toward the brand?† Brand Loyalty: a Two-Dimensional Approach Nowadays, brand loyalty is considered as one of the most valuable asset of any company. Due to the higher cost of attracting new customers, companies have realized the interest of retaining existing ones by carefully developing and managing relationships with them. As explained Rosenberg and Czepiel (1983) (cited in Mellens, Dekimpe, indeed, if properly managed brand loyalty has the ability to provide companies with a sustainable competitive advantage. Companies selling brands with strong customer loyalty can enjoy valuable benefits including: â€Å"ability to maintain premium pricing, greater bargaining power with chann els of distribution, reduced selling costs, a strong barrier to potential new entries into the product or service category, and synergistic advantages of brand extensions† (Reichheld, 1996; cited in Gommans, Krismnan Mellens et al., 1996). Two main approaches in explaining the concept of brand loyalty have emerged in the landscape of the marketing literature, namely: the behavioral and attitudinal approaches. The former defines brand loyalty in terms of repeat purchases of a specific brand over time (Keller et al., 2008; Lichtlà © Sheth, 1968; Tuominen, 1999). The latter – often referred to brand commitment (Jacoby and Chestnut, 1978) – suggests brand loyalty is formed when customers demonstrate favorable attitudes, positive feelings toward a brand (Lichtlà © Fullerton, 1993; Jacoby Keller et al., 2008; Tuominen, 1999). Those partisans of the third approach argue that behavioral loyalty is a necessary condition but not sufficient to develop brand loyalty. I ndeed, customer may repeatedly buy a branded product/service out of convenience, or because she/he cannot afford to purchase another with her/his budget, or due to other reasons such as stock limitations. Such behaviors are referred to as purchase inertia (Bloemer & Kasper, 1995) or spurious loyalty (Dick & Basu, 1994) (Cited in Lichtlà © & Plichon, 2008). This implies that if, for example, the price increases or if an alternative product is available, the customer may turn to another brand. It is the reason why those authors speak of brand loyalty only when repeat purchase behavior over time is the result of positive feelings and attitudes to the brand (Lichtlà © & Plichon, 2008). Aaker (1991) and Keller et al. (2008) go a step further by explaining customers should not simply have positive feelings about the brand but they should feel a deep attitudinal attachment to the brand, leading to repurchase behaviors in the future. By viewing brand loyalty as a two-dimensional construct , limitations faced by the behavioral approach in explaining customer’s loyalty to a brand can be overcome.

Human Resource Economics Term Paper Example | Topics and Well Written Essays - 5000 words

Human Resource Economics - Term Paper Example The competition is of two kind; internal and external.   In the internal competition employees compete against each others to get promoted or rewarded. This factor was studied and explained by Lazear and Rosen (1981) in their Tournament Theory. As in any tournament here, an employee wins the reward or gets promoted because his performance is better than others in their current level. Tournament theory is one of the approaches to the payments made toe, executives. There are several factors of which impacts the payments to the employees.   These are the supply of the skilled or required workforce in the market, the demand of the workforce, average industry pay package, industrial growth, monetary policies, business cycle, organization growth, and many other micros and macroeconomic factors. In any given scenario, two executives struggle and work for better compensation and rewards for their works. This difference in distribution, according to Feinberg, is based on the five factors of equality, need, merit and achievement, contribution or â€Å"due return†, and effort.   As in a tournament marginal difference, of efforts changes the rewards one gets in the business environment people at same rank often face a similar situation. Even if a company pays same to the employees to justify the raise or promotion one has to work hard for that. In the tournament model performance and payment are directly promotional to each other. It explains the motivation and productivity of workers along with the payment or growth perspective. As in the case of any sport or race where the marginal difference in the performance of an athlete can turn the silver to gold or bronze to no medal at all. The same thing is applicable in the case of people working in any organisation. The promotions or raise in the salaries are linked with the performance. In a broad framework tournament model it does not include certain important points like performance of new employee, performance of people at the optimum level of the organisation.   Ã‚  Ã‚  

Global Business Strategy 2 Essay Example | Topics and Well Written Essays - 3000 words

Global Business Strategy 2 - Essay Example As such, this provided Dr Reddy Labs with an obvious cost advantage with the development and innovation of new drugs as well as setting up the infrastructure that would be able to compete on a global scale and provide pharmaceutical markets around the world with high qualities and high quantities of generic drugs. As a means of analyzing the overall strength, strategic position, fundamental tools at the disposal of the firm, strategy, outlook, history, and outlook for the firm in question, this analysis will seek to provide a commentary on each of these points. By means of beginning its industrial start as a primary supplier of Indian and Russian pharmaceutical industry, Dr Reddy Labs was able to save a massive amount of money that would otherwise be required to make the labs qualify under FDA regulations. In this way, the firm was able to begin generating a steady stream of revenue while seeking to focus supplying existing markets and consumers while minimizing the needs to jump directly into the more nuanced US and/or European markets. For this reason, few firms readily enter the pharmaceutical market due to the obscenely high cost of entry associated with all of the standards that such firms seek to meet within the beginning phases of company operation (Hopper 2003). Once a solid footing was established within Indian and international markets for both generic drugs, Dr. Reddy Labs shifted to seeking to penetrate the market for over the counter drugs in both Europe and the United States. This would serve as the first foray into the US ma rket; a market which according to the study that has been utilized to inform this piece accounts for over 50% of the entire world pharmaceutical market. This gradual approach to entry into the US market meant that the firm was able to continue to generate a high number of sales from the key markets that contributed mainly to their