Brand Loyalty Law and Legal Definition

Brand Loyalty is a situation when a consumer is reluctant to switch from consumption of a favored good. The consumer is "loyal" to the brand and repurchase or otherwise continue using the brand. Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due to situational constraints, a lack of viable alternatives, or out of convenience. Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm.