Page 150 - Marketing Management

CREATING LONG-TERM LOYALTY RELATIONSHIPS | CHAPTER 5 127

DELIVERING HIGH CUSTOMER VALUE Consumers have varying degrees of loyalty to
specific brands, stores, and companies. Oliver defines loyalty as “a deeply held commitment to
rebuy or repatronize a preferred product or service in the future despite situational influences and
marketing efforts having the potential to cause switching behavior.” 13 Table 5.1 displays brands
with the greatest degree of customer loyalty according to one 2010 survey. 14
The value proposition consists of the whole cluster of benefits the company promises to deliver;
it is more than the core positioning of the offering. For example, Volvo’s core positioning has been
“safety,”but the buyer is promised more than just a safe car; other benefits include good performance,
design, and safety for the environment. The value proposition is thus a promise about the experi-
ence customers can expect from the company’s market offering and their relationship with the
supplier. Whether the promise is kept depends on the company’s ability to manage its value deliv-
15
ery system. The value delivery system includes all the experiences the customer will have on the
way to obtaining and using the offering. At the heart of a good value delivery system is a set of core
business processes that help deliver distinctive consumer value. 16

TABLE 5.1 Top 25 Brands in Customer Loyalty

Brand Category Rankings

2010 2009

Apple iPhone Wireless Handset 1 1
Clairol (hair color) Hair Color 2 NA
Samsung Wireless Handset 3 2
Mary Kay Cosmetics (Mass Merchandiser) 4 7
Grey Goose Vodka 5 6
Clinique (cosmetics: Luxury) Cosmetics (Luxury) 6 19
AVIS Car Rental 7 8
Walmart Retail Store (Discount) 8 5
Google Search Engine 9 3
Amazon.com Online Book/Music 10 10
Bing Search Engine 11 NA
J. Crew Retail Store (Apparel) 12 23
AT&T Wireless Wireless Phone 13 123
Discover Card Credit Card 14 121
Verizon Wireless Wireless Phone 15 21
Intercontinental Hotels Hotel (Luxury) 16 103
Cheerios Breakfast Cereal: Kids 17 71
Dunkin’ Donuts Coffee 18 54
Home Depot Retail Store (Home Improvement) 19 192
Domino’s Pizza Pizza 20 156
Barilla Pasta Sauce 21 NA
Canon MFP Copier 22 44
Nike Athletic Footwear 23 178
Coors Light Beer (Light) 24 63
Acer Computer (Netbook) 25 NA

Source: “2010 Brand Keys Customer Loyalty Leaders List,” www.brandkeys.com.