Brand loyalty
Brand loyalty concerns a customer’s continuing preference for, commitment to or repeat purchase of a brand. Behavioural repeat purchase and genuine preference are not identical: contracts, convenience or switching barriers may retain customers who are dissatisfied. Measures should define the customer population, period and behaviour, and can be combined with feedback and retention economics. It differs from brand awareness, which concerns recognition or recall rather than preference.
Worked example
A customer renews automatically because switching is difficult but reports dissatisfaction. Renewal alone may overstate genuine loyalty and future retention.
Common mistake
Do not use awareness, satisfaction and loyalty as interchangeable labels or assume every long-standing customer is profitable.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | APM | Direct | September 2026–June 2027 |