Sample Thesis Paper
Business analysts agree upon the fact that considering the immense market share that a company can attain through increased customer loyalty, the generation and maintenance of both forms of loyalty are undeniably significant. This is because of the fact that when a consumer switches from one brand to another, the market share for the first brand drops, and it is necessary to highlight at this point that the nature of the brand plays an extremely significant role in this matter (McQuitty Finn and Wily 2000). Proof of this can be seen in the fact that while one consumer may be a daily source of revenue for a juice store, the same consumer may be a monthly or maybe even only stand as an annual source of revenue for a designer clothes outlet. Nonetheless, it is the repeated sales of a product to a consumer or a specific group of consumers that eventually comes out as the success of the product (Kuusik 2007). Once loyalty has been developed, the degree of price sensitivity comes down exponentially with respect to the degree of loyalty that the consumer holds towards the product.As mentioned earlier, most of the times this loyalty of the consumer derives from product experience and one of the most important contributing factors to product experience is the brand of the product. In the modern world of corporate competition, the cost of searching for alternate brands has come down precariously with the intervention of electronic means for consumers to gain the information they desire if they are to switch brands. Market transparency levels are increasing with relation to the competition levels in the market and the option of switching between brands is becoming one that is being used more commonly by consumers now than it was in previous years (McQuitty Finn and Wily 2000). The possibility of the migration of a consumer to competitors has become nothing less than a nightmare for companies and companies are striving harder and harder to increase brand loyalty amongst their consumers whether it has to be brought about by increasing overall satisfaction levels or creating lock-in situations where the consumer chooses to stay with the subject brand because of the high opportunity cost that he/she would have to pay otherwise.