IJSRP, Volume 6, Issue 2, February 2016 Edition [ISSN 2250-3153]
Israel Kofi Nyarko, Matthew Opoku Agyeman-Duah, Vincent Asimah
This paper sought to discuss the concept of loyalty of customers to organizations and brands. Loyalty is defined as the extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands. The authors adopted an interpretive literature approach in discussing the three cardinal denominators for measuring loyalty: repetition, advocacy, and patronage. The study revealed that loyalty is important for several reasons. First, it reduces the cost of production because the sales volume is higher. Second, companies with brand-loyal customers don't have to spend as much money on marketing the product, which will permit the company to either retain more earnings or to invest resources elsewhere. Third, companies may use premium pricing that will increase profit margins. Finally, loyal customers tend to recommend products that they like. It is also important to observe that the study brought to the fore the fact that patronage, advocacy, and repetition are key to examining loyalty.