Chapter 9 on individual marketing decisions
discusses brand loyalty and inertia. Brand loyalty exists when there is
repeat-purchasing decisions made to continue buying the same brand. Moreover,
the concept of inertia occurs when a brand is bought out of habit. The
purchasing decision of consumers differs for these two theories for different
products.
Thus, an example of brand loyalty occurs when
someone purchases a Lexus as a vehicle. A company such as Lexus uses customer
service as a competitive advantage over their competition. Therefore, customers
may be more likely to purchase another Lexus because they can expect to receive
the same service as before.
Furthermore, an example of inertia is buying the
same peanut butter every time it runs out at home. A company such as craft
makes peanut butter that is enclosed with a green label. Therefore, customers
may develop a habit of just looking for the green color on the shelf.
Thank you,
Tarah Whissell
Picture References:
http://www.forbes.com/companies/lexus/
