What are your thoughts on this article?

It is no doubt that consumers will always be glad to buy a product at a lower price. Consumers who aren't brand conscious would most likely pick the brand with a lower price given the same product. However, customer loyalty isn't achieved only through low pricing and maximisers tend to have higher intentions to switch between different brands (Lai, 2011).

For example, IKEA's products are well-known for its stylish and affordable products however, lower priced products tend to have lower quality compared to higher priced products due to the raw materials costs. As such, if I were a consumer, I'd rather purchase a higher priced product knowing that it's quality will last me for a much longer time as compared to something of lower and cheaper quality. In the long run, I'm essentially spending lesser.

Customer loyalty can also be achieved through close interactions with customers, as well as through loyalty programs (Kotler & Keller, 2016). By interacting closely with consumers, the brand can better understand what consumers needs and wants are and what they are typically looking for. This can be done through personalized feedbacks which makes the customer feel engaged and heard by the brand. Loyalty programs in the form of frequency programs can help brands build long-term loyalty with customers who purchase their products frequently and in substantial amounts. Frequency programs also allow consumers to have a psychological boost by feeling special and valued.

Thus, low pricing is not the only key to winning customer loyalty.

Lai, L. (June 2011).Maximizing and customer loyalty: Are maximizers less loyal?

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