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Consumer Loyalty
Strengths/Vulnerabilities
4 in Cycles

Getting and keeping loyalty is always a challenge. This is
exponentially harder in changing economic cycles as loyalty
also changes. It takes on different dynamics particularly
when consumers are under economic pressure.

First, though, let’s explore whether loyalty actually exists.
The answer is yes. Loyalty does exist but what is it?

Is this “loyalty”?

● You’re DuPont, and one of your customers is a chemical
engineer buying polymers from you under a master pur-
chasing agreement. He receives a volume-pricing dis-
count. This customer represents a lot of revenue and
repeat business for you, but is he loyal?

● Pfizer relies on physicians to prescribe its pharmaceuti-
cals. One doctor admits that, all other things being equal,
she specifies Pfizer drugs because she appreciates the
educational seminars the company provides each spring
in Florida. How loyal is she?

● A business traveler can buy coffee anywhere but seeks
out Starbucks in whichever city she finds herself because
she knows she can relax there. Can Starbucks assume it
has created a loyal customer?

● An office manager gives Staples high customer satisfac-
tion scores for breadth of merchandise, good pricing, and