Brand Loyalty- Insurance Sector

2. Brand loyalty
According to Aaker (1991) brand loyalty reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or product features. David Aaker also suggests that brand loyalty leads to brand equity, which leads to business profitability. Aaker divides brand equity into five major asset categories: brand name awareness, perceived quality, brand associations, brand loyalty and other proprietary brand assets. Figure 1 shows a general overview of how brand equity spawns value and provides the different ways in which the brand equity assets create value. Moreover, brand equity creates value not only for the customer but also for the firm. Finally, for assets or liabilities to inspire brand equity, they must be linked to the name and symbol of the brand, and if there is a change in name or symbol, this may cause some or all assets and liabilities to be affected. Customer-based brand equity is defined as the discrepancy effect of brand knowledge on consumer reaction to the marketing of the brand.
Brand Awareness
Perceived Quality
Brand Associations
Other Proprietary Brand Assets
Provides Value to Firm by Enhancing: Efficiency & effectiveness of Marketing Programs
Brand Loyalty
Prices/ Margins
Brand Extensions
Trade Leverage
Competitive Advantage
Anchor to which Other Associations Can be Attached Familiarity- Liking Signal of Substance/ Commitment Brand to be considered
Reduced Marketing Costs
Trade leverage
Attracting New Customers
Time to Respond to Competitive Threats
BRAND EQUITY
Provides Values to Customers by Enhancing Customers’: Interpretation/ Processing of information
Confidence in the purchase decision
Use Satisfaction
Competitive Advantage
Help Process/ Retrieve Information Reason-to-Buy Create Positive Attitude/ Feelings Extensions
Reason-to-Buy Differentiate/ Position Price Channel Member Interest Extensions
Brand Loyalty
Figure 1: How brand equity generates...