BLAME THE BUSINESS, NOT THE CUSTOMERS – 3 OBSERVATIONS There is so much talk these days about the demise of brand loyalty. There are those who seem to think that brand loyalty is a nothing but a distant memory – often blaming this phenomenon on increased price consciousness. The fact that brand loyalty has diminished […]

BLAME THE BUSINESS, NOT THE CUSTOMERS – 3 OBSERVATIONS There is so much talk these days about the demise of brand loyalty. There are those who seem to think that brand loyalty is a nothing but a distant memory – often blaming this phenomenon on increased price consciousness. The fact that brand loyalty has diminished is well established. While a large proportion of markets remain brand loyal, at least in selected product categories, research has shown a decline in brand loyalty over recent years. At the same time, businesses have reported increased price sensitivity. While a correlation seems to exist here, I would caution against the jumping to the conclusion that causation has been established. I would argue that businesses are far more responsible for the decline in brand loyalty than consumers. I would also argue that they are more responsible for increases in price sensitivity than the economy is.…