Brand Switching

Reasons for Brand Switching amongst FMCG Brands

[Name of the Institute]

Abstract

This research examines the brand switching behaviour of customers of FMCG products who are encountered with discrepancy of the value that they get from these products and the value they were promised in the advertisements. The results divulge that generally people tend to switch, which is mostly to a never tried brand but in-depth studies of the two major demographics elaborate that generalized view might be different from the clustered view, which might turn out to be the most powerful prospects of the brand and hence help the brands in more rational way to take their strategic decisions.

Wrong Advertisement Claims: An activity, which leads to Brand Disloyalty which induces Brand Switching amongst FMCG brands

Introduction

In today's dynamic marketing environment, brands and their products are so susceptible that they have to think twice before making any decision about advertising their products and services. Even the corporate giants and their strategic business units are slammed with declining brand equity to a level, where they literally encountered bankruptcy and even shutdowns or takeovers. These recent corporate breakdowns have popped up a dilemma that whether prominently, the marketing myopia, is leading such brands to a shorter lifecycle or is it because of the discrepancy that is found between the value that is promised to the customer and the one that customers actually encounter. Converging to the FMCG products, which are also the highest portion of the consumer market, it becomes vital for them than any other segment, to synchronize their communication of promised value with the delivered value towards the end consumer. The essence of this research is to examine the most crucial factor which induces brand disloyalty and hence brand switching amongst the FMCG brands.

Literature Review

Evolution of a theoretical structure for brand loyalty: (Aaker & Keller, 1990, p. 27) explains that brand loyalty contributes a significantly priceless role to competitive advantage. Elevated brand loyalty is a plus point that leads itself to addition, inclining market split, more ROI and eventually elevated brand share. The disagreement for marketing professional is how to sway allegiance. Marketing gurus have been hasty to formulate alleged loyalty proposal, yet never considered the vital constituent of why consumers stay loyal to a specific product. Brand loyalty is most contentious as well as most misinterpreted marketing conception of recent era; hence, evidently opportunity of reverting towards the notion of brand loyalty. Consumers tend to be loyal because of many motives and not essentially be satisfied with the brand. Originating from the plan of a new entity to the expansion of an established product, successful and long-run tactics rely on a systematic indulgent of knowledge, and pronouncement procedure, which manipulate the purchase of the consumer (Leone & Schultz, 1980, p.15).

In elaborated theoretical paradigm of brand equity, (Leone & Schultz, 1980; Hubbard & Armstrong, 1991) they elaborated that assessment is extremely entrenched with satisfaction that is an aspect to alter a switching consumer transformed into a loyal customer and is way ...