Sample Thesis Paper
The development of Brand Loyalty allows manufacturers to draw consumers away from competing brands and increase purchase trends for their own brands (Zeithaml, Rust and Lemon 2001). However, brand loyalty has two-fold effects since it is very likely that once a customer has developed loyalty towards a brand, the loyal customer will suggest the same brand to a prospective customer (Timm 2007).It is important to understand at this point in the paper that the encouragement and development brand loyalty amongst consumers allows the seller to experience an advantage in three different dimensions, all of which contribute to the eventual success of the seller. Firstly, it allows the seller to experience higher sales volume. It has been speculated that customer loss remains in inverse proportionality to the growth of the business. The more the customer loss, the lesser the growth of the business. Secondly, development of brand loyalty amongst consumers of a brand allows the seller of the brand to take advantage of premium pricing abilities. This fact will remain true because consumers who become loyal to a brand become highly inelastic in terms of the price of that brand and are therefore found to be willing to pay a higher price for the brand that they have developed a connection and an identity with. Thirdly and perhaps most importantly, it allows the seller of the brand to carry out customer retention tactics that are less costly with regard to time and resources as compared to customer acquisition tactics (Giddens and Hoffman 2002).