Consumer Loyalty: market research reports

Consumer loyalty is the practice of a consumer to commitment to purchasing goods from certain companies, rather than search elsewhere. Consumer loyalty can be evidenced in the consumer’s consistent purchases from these companies throughout time, and/or the positive reviews and word-of-mouth praise from a consumer that may generate more favorable business. Many companies are engaged in the use of consumer loyalty programs to help promote loyalty among their patrons.

These consumer loyalty programs often offer perks to the consumer if the accrue enough points, or meet a certain percentage over time.

There are typically four levels of consumer loyalty: “hard-core” loyal consumers, split loyal consumers, shifting loyal consumers, and “switchers”. Those in the “hard-core” category consistently buy from the same company or brand name every single time. Split consumers may be loyal to a few products distributed by a specific company, but not every product the business manufactures. Shifting loyalty consumers are typically loyal to a company for at least one product or service, but it may not be the same product/service every time they make a purchase. “Switchers” do not actually have loyalty to a specific company or brand; they are most often searching for the biggest money-saving opportunity, as such will purchase what meets their needs, regardless of the manufacturer.

Consumer loyalty is dependent upon a number of different factors: the consumer’s belief in the value of the product, their repetitive purchasing of the product/service, customer satisfaction, and consumer trust in the company are all highly influential to the level of their commitment.