BRAND LOYALTY

Russell-Bennett, R., and Parkinson J., (2014) Brand Loyalty in Encyclopedia of Management and Marketing
Volume 9, eds, N.Lee and A. Farrell, Wiley and Sons; pp1-11

Abstract
Loyalty is a desired marketing outcome for products ranging from fast-moving consumer

goods, services, durables and ideas products such as political parties and social behaviours.

Evidence has shown that a base of loyal customers is advantageous for an organisation as it

reduces the marketing cost of doing business and improves profitability. The approaches to

loyalty have varied over the decades with various schools of thoughts towards definitions,

conceptualisations and measurement. The need for understanding the nature of the product

and consumer’s behaviour to determine the appropriate approach to loyalty is emphasised in

this article. In this article, we outline the historical development of brand loyalty, the major

approaches to the construct (attitudinal and behavioural) and new approaches that deconstruct

attitudinal loyalty into its sub-component parts.

Introduction

Each year brands generate billions of dollars around the world in corporate revenue (Lyons
1998). A great deal of corporate effort is placed on developing new brands and building or
protecting existing brands to achieve “the most important of all consumer responses – brand
loyalty” (Czerniawski and Maloney 1999, pxiii). The inclusion of brands in a purchaser’s
evoked set is stated to be a risk-reduction strategy driven by the perceived guarantee of
quality and consistency that brands represent (Peter and Ryan 1976). Brands help purchasers
in their decision-making by communicating values that transcend the core benefit of the
product. Therefore a key goal of marketers is generating customer loyalty towards these
brands.

Loyalty is an important concept in strategic marketing. Loyalty provides fewer reasons for
consumers to engage in extended information search among alternatives (Uncles, Dowling
and Hammond, 2003). Solomon (2006) also indicates that purchase decisions based on
loyalty may become simplified and even habitual in nature, and this may be a result of
satisfaction with the current brand(s). A base of loyal customers is advantageous for an
organisation as it reduces the marketing cost of doing business (Bandyopadhyay & Martell,
2007; Fournier, 1998; Gremler & Brown, 1999; Javalgi and Moberg 1997; Knox, 2004;
McAlexander, Schouten & Koenig, 2002; Reichheld, and Markey, 2000). In addition,
strategies such as brand extension and market penetration can capitalise on loyalty (Dekimpe,
Steenkamp, Mellens and Abeele 1997). Finally, a large number of loyal customers is an asset
for a brand and has been identified as major antecedent of brand equity (Brady, Cronin, Fox,
and Roehm, 2008; Dekimpe, Steenkamp, Mellens and Abeele 1997).

Over the past forty years brand loyalty has been debated by academics with the core issue
being the dimensionality and measurement of the construct. Brand loyalty appears to be a
complex multidimensional construct (Dick and Basu 1994; Ha 1998; Javalgi and Moberg
1997; Jones and Taylor, 2007; Mellens, Dekimpe and Steenkamp 1996). Yet during this
period, views on brand loyalty have oscillated between unidimensional and two-dimensional
views. More recent approaches have further divided attitudinal loyalty into emotional,
cognitive and conative components (see Oliver 1999; Harris and Goode 2004; Hartel and
Russell-Bennett 2010)

Definitions of brand loyalty

The concept of brand loyalty was developed empirically in the 1940s and 1950s as a
unidimensional construct and defined in attitudinal terms such as ‘brand preference’ (Guest
1944) or behavioural terms such as ‘share of the market’ (Cunningham 1956). However,
Day (1969) disputed the singular nature of the construct and was the original proponent of the
two-dimensional concept of brand loyalty to include attitude and behaviour. Jacoby (1971)
built on this foundation and developed a definition of brand loyalty that appears to be the
basis of most brand loyalty research today.

Jacoby (1973) and Day (1969) made the assertion that both behaviour and attitudes need to
be considered when looking at brand loyalty, however, this is not always undertaken.
Possible reasons for this are the differing background of researchers in the area (Mellens,
Dekimpe and Steenkamp 1996) or logistical problems with the data collection of both
behavioural and attitudinal data including ease of collection and cost (Dekimpe, Steenkamp ,
Mellens and Abeele 1997). While Dick and Basu (1994) support Jacoby’s definition,
particularly the involvement of a psychological process (cognition), they criticise the
omission of factors impacting on repeat purchase such as situational constraints, different
usage situations, lack of brand preference or variety- seeking behaviour. However,
essentially there appears to be common support amongst researchers at a broad level for
Jacoby’s definition.

Brand loyalty is the biased (non-random) behavioral response (purchase) expressed over
time by some decision-making unit with respect to one or more alternative brands out of a set
of brands and is a function of psychological processes (Jacoby 1971, p25) and emotional
response.

Attitudinal brand loyalty is the consumer’s predisposition towards a brand as a function of

psychological processes. This includes attitudinal preference, commitment towards the
brand and intention to purchase the brand (Mellens, Dekimpe and Steenkamp 1996, p510).

Behavioural brand loyalty is the consumer’s tendency to repurchase a brand revealed

through behaviour which can be measured and which impacts directly on brand sales
(Hammond, East and Ehrenberg 1996).

Emotional brand loyalty is the psychological preference for buying a brand which consists of
positive feelings about and affective attachment to continually purchasing a brand and
cognitive loyalty as the psychological preference for buying a brand which consists of
positive beliefs and thoughts about continually purchasing a brand. (Hartel and Russell-
Bennett, 2010, p. 2).

Cognitive brand loyalty is the component of attitudinal loyalty which refers to the beliefs and
opinions about a particular object (Ajzen, 2002) where the preference for the brand comes
from decision-making and evaluation (Bloemer and Kaspar, 1995). Gremler and Brown
(1998) and Oliver (1999) identify cognitive loyalty as one of four components of loyalty (the
others being affective loyalty, behavioural loyalty and behavioural intention) (Hartel and
Russell-Bennett, 2010, p. 2).

Conative brand loyalty (behavioural intention) is the next phase of loyalty development, as
influenced by repeated episodes of positive affect toward the brand. Conation, by definition,
implies a brand-specific commitment to repurchase. Conative loyalty, then, is a loyalty state
that contains what, at first, appears to be the deeply held commitment to buy noted in the
loyalty definition (Oliver, 1999, p. 35).

Attitudinal and behavioural brand loyalty

Brand loyalty as a concept has its origins in the 1920s. Copeland's (1923) conceptual
research explored the benefits of branding for convenience goods, a marketing activity that
was relatively new at the time. It introduced the notion of brand identification as a pre-
purchase attitude with three levels, brand recognition, preference, and insistence (Copeland
1923). However this research did not propose any measurement of this attitude or identify
the concept as brand loyalty.

An early view on brand loyalty defined it in attitudinal terms (Guest 1955), and measured
stated brand preferences by school children in 1941 and their later preferences as adults in
1953. In the mid-50s it was defined as a behavioural construct and was measured by the
share of market (Cunningham 1956). This singular approach was criticised in the late 60s by
the proposition that brand loyalty was a two-dimensional construct containing both
behavioural and attitudinal components (Day 1969; Jacoby 1971). This view combined both
dimensions in a single measure labelled brand loyalty (Day 1969) while later research
separated the two dimensions again. However, when these dimensions were separated, the
attitudinal dimension was reduced to being an antecedent rather than a dimension of loyalty.
Attitudes were described as an independent variable influencing loyalty, rather than giving
these the label of attitudinal loyalty (Bonfield 1974; Harrell and Bennett 1974; Howard and
Sheth 1969; Jacoby and Kyner 1973).

Over time researchers have generally pursued either the behavioural (see Bass 1974;
Ehrenberg 1988) or attitudinal dimension (see Ajzen and Fishbein 1980; Ganesh, Arnold and
Reynolds 2000; Traylor 1981), reverting back to a unidimensional construct. In recent years
there has been a call again to combine both dimensions into brand loyalty research (Baldinger
and Rubinson 1996; Dick and Basu 1994). However brand loyalty has been considered as a
global concept with two distinct dimensions; attitudinal brand loyalty and behavioural brand
loyalty ) (Baldinger and Rubinson 1996; Mellens Dekimpe and Steenkamp 1996) rather than
a two-dimensional construct as proposed by Day (1969).

Attitudinal loyalty
The attitudinal approach takes a deterministic view of purchase behaviour and seeks to
explain it in terms of attitudes, values and beliefs. Essentially, it is concerned with the
underlying attitudinal process and evaluation criteria of a given purchase (Mellens, Dekimpe
and Steenkamp 1996). Deterministic theory consists of logical relationships between
variables (Hunt 1991), thus attitudinal researchers posit an ordering relationship between
attitude and behaviour and these researchers are concerned with identifying the variables that
influence purchase behaviour, including attitudes.

The attitudinal approach to brand loyalty stresses the importance of understanding the
antecedents of the purchase and incorporates measures of attitude towards the brand such as
brand preference or a liking for a brand (Pellemans 1974; Ajzen and Fishbein 1980; Mellens,
Dekimpe and Steenkamp 1996), commitment to the brand (Traylor 1981; Foxall 1987;
Martin and Goodell 1991; Mellens, Dekimpe and Steenkamp 1996), and intention to purchase
the brand (Ajzen and Fishbein 1980; Oliver 1980; Shimp and Dyer 1981; Westbrook and
Oliver 1981; Patterson, Johnson and Spreng 1997; Gremler and Brown 1998). It appears to
be commonly accepted amongst attitudinal researchers that attitude precedes behaviour in the
context of repurchasing a product and is important because brand attitudes determine brand
choice (Day 1969; Foxall 1987; Gremler and Brown 1998; Jacoby 1971; Keller 1993; Martin
and Goodell 1991; Traylor 1981).

Behavioural Loyalty
The behavioural approach, building on Cunningham’s (1956) work, does not deny the
presence of internal processes; it merely states that because they cannot be directly measured
they have no place in research (Bass 1974). Additionally, while attitudinal researchers place
great emphasis on the role of attitudes there are other possible antecedents of loyalty such as
market share, promotional activity and distribution (East 1997).
Behavioural loyalty has been defined by other researchers as “the tending of a customer to
stick with a supplier (not switch) and can be thought of as the degree to which a customer
prefers a supplier over the competition” (Ringham, Johnson and Morton 1994, p44). There
are two elements incorporated in behavioural brand loyalty; brand preference and brand
allegiance (East 1997). Brand preference is the brand on which the purchaser spends a high
proportion of their category expenditure and brand allegiance is the propensity to purchase
that same brand over time (East 1997). Where the attitudinal approach defines purchasing as
an outcome of internal processes (Jacoby 1971), the behavioural approach focuses on
external factors that influence behaviour (Cunningham 1956). Within the behavioural
approach there are two views on how behaviour is influenced: reinforcement and stochastic

Subcomponent approach to attitudinal loyalty

The division of attitudinal loyalty into its component parts has provided more fine-grained
insight into how attitudinal loyalty might be changed. In a seminal text, Oliver (1999)
develops a conception of loyalty comprising sequential phases of cognitive, affective,
conative (behavioural intentions), and action loyalty. Harris and Goode (2004) successfully
operationalize a four-dimension measure of loyalty that reflects the original perspective of
Oliver (1999). While Oliver’s four-dimensional view of loyalty has been supported by other
researchers no previous attempt had been made to operationalize the dimensions in a
conventional context let alone in an online environment. Thus, a contribution of Harris and
Goode’s (2004) work is the further development and successful testing of measures of
cognitive, affective, conative, and action loyalty.

A second approach to decompartmentalising attitudinal loyalty has been done by Hartel and
Russell-Bennett (2010) who conceptualise loyalty as three dimensional rather than Oliver’s
(1999) four dimensions. They argue that the contemporary view of attitude researchers (c.f.
Azjen 2001) supports two not three components of attitudes then attitudinal loyalty should be
consistent. Thus conative loyalty (intentions) is separated out from attitudinal loyalty to be
an outcome variable (consistent with attitude theories such as Model of Goal-directed
behaviour, Theory of Planned Behaviour and Theory of Reasoned Action).

In a branding context, attitudinal loyalty is defined as an attitudinal predisposition consisting

of commitment to a brand and intention to repurchase the brand (Mascarenhas, Kesavan &
Bernacchi, 2006; Mellens, Dekimpe & Steenkamp, 1996; Rundle-Thiele and Bennett, 2001).
Attitudinal loyalty draws on attitude theory for its conceptualisation and as attitudes are
composed of two parts, cognition and emotion (Katz, 1960), so too is attitudinal loyalty. The
cognitive/affective approach to constructs encompasses information processing elements such
as thoughts and attitudes, and experiential factors such as emotions (Ajzen, 2001; Jacoby,
1971).

Cognition, in a loyalty context, is the beliefs and knowledge that a consumer holds about
buying a certain brand or product (Hartel and Russell-Bennett, 2010; Oliver, 1999; Solomon,
2006). The concept of brand affect, which refers to the emotions that are aroused towards the
brand, has been used interchangeably with affective loyalty (Bansal et al., 2004; Chaudhuri
and Holbrook, 2001). The term affective loyalty is defined as the degree of liking the
consumer has towards the brand (Oliver, 1999). Although Oliver (1999) posed that cognitive
loyalty is the first stage of loyalty development (following a standard learning hierarchy of
effects model), Hartel and Russell-Bennett, (2010) contend that cognitive and emotional
loyalty are not stages that occur in a temporal order as Oliver suggests but components of
loyalty which can co-occur. They base this contention on the work of Ajzen (2001) who
demonstrated an interplay between these two components of attitudes. Specifically, he
demonstrated that the affective component of attitudes is more accessible in memory than the
cognitive component and that the dominance of each component varies according to the
circumstances. Therefore, the attitudinal approach to loyalty involves a consumer’s thoughts,
knowledge and feelings about rebuying the product, this is in contrast to attitude to the brand
which is not concerned with the act of repurchase. Attitudinal loyalty is typically used in
situations where there is high involvement (Rundle-Thiele and Bennett, 2001). Furthermore,
it is possible for a customer to be attitudinally loyal but not behaviourally loyal (e.g., want a
brand but be unable to buy it because of financial circumstances or unavailability) or
behaviourally loyal but not attitudinally loyal (e.g., buy something repeatedly because it is the
only viable option).
The lack of agreement has seen many promote a single approach over competing approaches
(see for instance Baldinger and Rubinson 1996; Baldinger and Rubinson 1997; Ehrenberg
1997b; Ehrenberg 1997a; Farr and Hollis 1997). This debate is not recent, surfacing initially
in the 1970s (see Jacoby 1975; Jacoby and Kyner 1973; Tarpey 1974; Tarpey 1975). The
breadth of research into brand loyalty is summarised in Table 1 with each article classified in
terms of the approach used; attitudinal, behavioural , sub-components or combined. The
articles selected are a cross-section of the research available over time. This table
demonstrates the level of interest in brand loyalty research and the diversity of approaches
that have been taken in conducting this research.

As can be seen, the attitudinal approach includes fast moving consumer goods, durables and
services, compared to the behavioural approach which focuses predominantly on fast moving
goods. The combined approach contains a balance between fast-moving-consumer-goods
and services. The following table illustrates the history of brand loyalty research.

Table -1 Approaches used in previous brand loyalty research

Author Product Attitudinal Behavioural Sub Combined approach

approach approach dimensions
approach
Ajzen and Fishbein (1980) Various – stores,  
automobiles
Auh, Bell, McLeod and Shih Financial services 
(2007)
Baldinger and Rubinson (1996) Variety of packaged and 
non-packaged consumer
goods
Bandyopadhyay and Martell Toothpaste 
(2007).

Bass (1974) Soft drink 

Bawa and Shoemaker (1987) Not stated 

Bonfield (1974) Soft drink 

Bucklin and Gupta (1992) Liquid laundry detergent 

Caldow (1998) Services  

Cunningham (1956) Various consumer goods 

Dall'Olmo Riley, Ehrenberg, Laundry detergent 

Castleberry, Barwise, and
Barnard (1997)
Day (1969) Convenience food products 

Dekimpe, Steenkamp, Mellens Condensed milk, dry cat 

and Abeele (1997) food and beer
Donthu (1994) Television programs 

East and Hammond (1996) Coffee, detergent and 

toothpaste and crackers
Author Product Attitudinal Behavioural Sub Combined approach
approach approach dimensions
approach
East, Hammond Harris and Supermarkets 
Lomax (2000)
Ehrenberg and Goodhardt (1970) Dog food, dentrifice, 
detergents, gas, coffee,
margarine, cereals, toilet
soap
Ehrenberg and Uncles (1997) Various fast moving 
consumer goods
Ehrenberg, Goodhardt and Instant coffee, TV series, 
Barwise (1990) aviation fuel
Ehrenberg, Hammond and 25 grocery products 
Goodhardt (1994)
Ehrenberg and Goodhardt (2000) Antidepressants, cereal 
bars, chocolate biscuits,
coffee, detergents, fruit
Evanschitzky, Iyer, Plassmann, Car service providers  
Neissing and Meffert (2006)
Fader and Schmittlein (1993) Various grocery products 

Farr and Hollis (1997) Various fast moving 

consumer goods
Fournier and Yao (1997) Coffee 

Garland and Gendall (2004) Retail banks 

Gremler and Brown (1999) Retail banks and Dental 

Services
Guest (1944) Consumer goods 

Gwinner, Gremler, and Bitner Services 

(1998)
Harrell and Bennett (1974) Medical prescriptions 

Harris and Goode (2004) Books and Online flights 

Hoyer (1984) Laundry detergent 

Jacoby (1971) Cake mix 

Jacoby and Kyner (1973) Candy bars 

Jensen and Hansen (2006) Shampoo, toilet paper, 

coffee, chocolate,
toothpaste and washing
powder
Johnson (1973) 20 fast moving consumer 
goods
Keng, Uncles, Ehrenberg and Coffee, Margarine, 
Barnard (1998) Cooking oil, detergents and
toothpaste
Kim, Lim and Bhargava (1998) Pizza 

Leahy (2008) Various- including coffee, 

tea
Lichtenstein, Netemeyer and Toothpaste, laundry 
Burton (1990) detergent, deodorant,
shampoo
Massey and Frank (1991) Various – types not stated 

Meyer-Waarden and Benavent Retail Stores 

(2006)
McConnell (1968) Beer 
Author Product Attitudinal Behavioural Sub Combined approach
approach approach dimensions
approach
McMullan (2005) Passenger Ferries 

Neslin, Henderson and Quelch Bathroom tissue and coffee 

(1985)
Papatla and Krishnamurthi Liquid and powder laundry 
(1996) detergent
Patterson, Johnson and Spreng Consultancy (service) 
(1997)
Peter and Ryan (1976) Motor vehicles 

Pritchard, Havitz and Howard Airline travel 

(1999)
Quelch and Ash (1981) Professional services 

Raj (1985) Various – 900 types 

Ringham, Johnson and Morton Service 

1994)
Rundle-Thiele, Dawes and Sharp Telecommunications 
(1998)
Sharp and Sharp (1997) Fly Buys 

Sheth (1968) Various – soft drinks, 

toothpaste, food, detergents
Sheth and Venkatesan (1968) Hair spray 

Shimp and Dyer (1981) Services (accounting) 

Smith and Swinyard (1983) Snack food items 

Sproles and Kendall (1986) Retail – various 

Tucker (1964) Bread 

Westbrook and Oliver (1981) Products and services 

Wood (2004) Coffee, toothpaste, 

breakfast cereal, trainers,
soap and jeans
Wright, Sharp and Sharp (1998) Retail fuel, supermarket 
and department store
purchases
Wright, Sharp and Sharp (2002) Retail Stores 

Loyalty has been extensively researched in consumer markets, particularly in fast moving
consumer goods (Dupre & Gruen, 2004; Leahy, 2008; Wood, 2004), services (De Ruyter,
Wetzels & Bloemer, 1998; Gremler & Brown, 1999) and more recently in business to
business markets. Loyalty has been shown as relevant for consumer goods (Jensen & Hansen,
2006; Wood, 2004), consumer services (Auh, Bell, McLeod & Shih, 2007; McMullan, 2005)
and business purchases (Russell-Bennett, McColl-Kennedy & Coote, 2007). Evidence of
loyalty research done on ideas products such as social marketing to date is limited to the
issues of breastfeeding (Parkinson, Russell-Bennett and Previte, 2012) blood donation
(Masser et al., 2009), organ donation (Trotter, 2008), sun protection (Lynch & Jones, 2007)
and HIV (Campbell & Brennan, 2009). Loyalty in a social marketing context can be defined
as maintenance of a behaviour, once the behaviour has been adopted in response to a social
marketing program (Evans, Blitstein & Hersey, 2008). Loyalty is important as it not only
ensures a positive attitude towards the behaviour, it also ensures continued participation in a
behaviour, benefiting both the individual and society. Thus, loyalty can be useful to social
marketing and is considered part of a product strategy.

Ordering of attitudinal an d behavioural loyalty

Whilst there is general consensus that a relationship exists between attitudes and behaviour
(Bandyopadhyay and Martell, 2007; Rundle-Thiele, 2005; Rundle-Thiele and Bennett, 2001),
there is less agreement regarding the ordering of these constructs. Behavioural researchers
acknowledge that there is a relationship between attitude and behaviour (East 1997;
Ehrenberg 1988); however, they question the position that attitude is a predictor of behaviour.
Ehrenberg (1988) asserts that attitudes follow behaviour that is, consumers try a brand then
they decide if they like it and subsequently repurchase. The attitudinal approach, which
proposes that attitudes precede behaviour, seems to be better supported by non-fast-moving-
consumer-goods area such as durables and services (East 1997; Rundle-Thiele and Bennett
2001). The reason is that it is more difficult for customers in these areas to try the
product/service before purchase. Therefore the opportunity to first experience and then
develop attitudes is minimal.

A key explanation behind the attitude-behaviour debate appears to be the notion of

involvement. Essentially, behavioural researchers assert that there is little decision-making
undertaken by consumers in repeat purchasing, that is, there is low involvement (East 1997).
Consequently repeat purchases are the result of habit rather than a conscious decision or
attitudinal predisposition towards a brand. Conversely, attitudinal researchers assert that
repeat purchasing is the result of a conscious decision to purchase a particular brand towards
which the purchaser is committed and intends to purchase (Mellens, Dekimpe and Steenkamp
1996). Involvement has been suggested as a key influence on the relationship between
attitude and behaviour (East 1997; Ray 1973).
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