Identify the four market segment groups based on brand loyalty status and list what a company can learn from analyzing the degrees of brand loyalty.brand loyalty

Brand loyalty is the degree to which consumers prefers to purchase product from the same brand from the same manufacturer repeatedly than from other suppliers. It enables the marketing during the crisis period enabling the business to run in long term.

The four market group segments based on brand loyalty status are:

Hardcore Loyal:These are those buyers who buy only one brand all the time. Customers show their strong desire and use the same brand always. Since they feel comfortable and sense pride by using the product, people become hardcore loyal towards the product. The more the customers are hardcore loyal, the more it represents the products strengths. For example, there are large numbers of customers who only prefer to wear and buy Nike shoes not the other brand shoes available in the market, which shows that these customers are hardcore loyal only towards the brand Nike.

Split Loyal:These are those customers who are loyal to two or three brands. After making the comparison from among two or three brands, the consumers decide to purchase the product. The company can pinpoint which brands are most competitive with its own. Company can not only identify their strengths and weaknesses but also about their competitors. For example, the consumer buy either buy Nike or Reebok shoes but not other brands which shows the split loyal for buying shoes.

Shifting Loyal:These are those customers who shift from one brand to other. The consumers shift their loyalty from one brand to another when they are not satisfied with their previous product or due to various other reasons. When consumers shift by looking at customers who are shifting away from its brands, the company can learn about its marketing weaknesses and attempt to correct them. For example, if the consumer in the past used Nike shoes but due to some reason if he starts using Reebok shoes, then this is the case of shifting loyal.

Switchers: They are those who show no loyalty to any brands. The consumer doesn't care about any of the brands, they just buy any products available in the market if found at a reasonable price. For example, if a consumer likes to buy shoes, he just buys any shoes available in the market, with no concerns for brand image.

Reference:

Keller, Philip Kotler and Kevin Lane. (2006). Marketing Management (12 ed.). New Jersey: Prentice Hall.