A Different Approach to Building Brand Loyalty The factors that contribute to and the strategies of building brand loyalty

have been a popular area of study as businesses try to learn more about how to attract consumers. According to published research, brand loyalty has a direct positive impact on market share (Malar 2012). As the number of loyal consumers increases, sales increases and so does market share. In addition, other business scholars have noted that brand loyalty leads to marketing advantages such as reduced marketing costs, more new customers, and greater trade leverage. Many studies about building brand loyalty have found brand attachment to be the biggest factor. While there is ample existing knowledge on what can induce brand loyalty, the study of the methods that managers can implement to increase brand loyalty has not been nearly as extensive. The methods are often limited to traditional forms of marketing, either focusing on improving the products, staff behaviours, or advertising. This paper discusses a non-intuitive method of building brand loyalty and its effectiveness. While the advertisement of products is important, the advertisement of the attributes of the CEO is very effective in gaining loyal consumers. The CEO is the core member of any business and his/her personal attributes are ultimately reflected in the companys decisions. By publicising the CEOs biography, a company can effectively address many factors that contribute to brand loyalty, including credibility of communication, competitive differentiation, self-concept accordance, and brand attachment. Firstly, an explanation of the success factors of building brand loyalty is crucial to the discussion in this paper. According to research published in International Business Review, brand attachment is the biggest contributor to brand loyalty (Tsai 2011). Brand attachment describes the interpersonal connection between a consumer and the brand. This attachment can be psychological and emotional. A consumer feels attached to the brand because the brand

personality or image fits with the consumers self-image so that the purchases are an enforcement of self and social identities (Tsai 2011). Other antecedents of brand attachment include lifestyle-congruence, staff behaviour, and brand identification. In order to achieve brand attachment to build brand loyalty, a companys image needs to be a positive one of trustworthiness, high satisfaction and one that fits with the consumers self-perception and lifestyle. Scholars have found the key factors for a company to successfully implement their ideal image. According to research in the Journal of the Academy of Marketing Science, the credibility of brand-related communication, competitive differentiation of brand are factors that will positively impact the fit between intended and realised brand personality, which leads to higher brand loyalty (Malar 2012). In other words, these factors are key when devising a plan to create brand attachment and thereby brand loyalty. From the research, scholars have suggested that companies improve direct usage experiences of products, marketing communications in the form of advertisements of products and word-of-mouth advertisement. 1 I propose that in addition to these traditional methods of marketing, brand loyalty can also be created through publicising the CEOs stories. The CEO of Starbucks, Howard Schultz, for example, has publicised his life story. Schultz came from a humble background. His experience has been widely marketed in the four books he has written and the numerous books that have been written about Starbucks. In his book How Starbucks Built a Company One Cup at a Time, Schultz recounts his childhood experience in a family that had limited and unstable sources of income (Schultz 1997). As a kid from the Projects, Schultz was not privileged but worked hard and became very successful. His disadvantages translated into his positive will to leave no one behind when building up Starbucks. He states in his book
1

Where a brand is advertised through consumers spreading the word about the company to their social circles.

that even the lowest-level workers are treated with respect and given health insurance and other fringe benefits at Starbucks. Since Schultz is the decision-maker of Starbucks, people who read his books will associate Starbucks with the qualities of Schultz, which are perseverance, honesty and commitment to ethical practices. This, in turn, helps develop brand loyalty by improving Starbucks Corporate Social Responsibility image and increasing consumer trust. Publicising the CEOs story is an effective strategy that is able to increase the number of loyal consumers by using the success factor of competitive differentiation. Most of the time, it is the companys products that are advertised and not the people of the company. However, by advertising the people of the company, namely the CEO, one brand can differentiate itself from another. While many products can have very similar features, such as the products of different coffee brands, every person has a different life story. Consider the situation where every brand has an empty basket of brand associations or brand image, the brand that publicises a story about the people that founded the company will gain a competitive advantage over those brands that did not publicise a story. According to research done by Janghyeon Nam from Kyungnam University in South Korea, a consumer makes brand associations based on the communicated brand personality attributes that [a consumer] connects to the brand node in memory (Nam 2011). Since stories are easy to relate to, they form stronger connections in a consumers memory. When they think of this brand, they will associate it with the CEOs story, which entails the various experiences and the personal attributes of the CEO. Consumers will remember some details about the unique experiences of the CEO, differentiating that company with its competitors. Hence, competitive differentiation can be achieved, which in turn leads to brand loyalty as research shows (Malar 2012).

In addition, marketing a brand using a biography is more effective than traditional product advertisements because of the former method has a higher credibility. According to one study published in Journal of the Academy of Marketing Science, credibility of communication increases the success of building brand loyalty (Malar 2012). While advertisements of product features are vulnerable to consumers suspicion, non-fictional stories are intuitively more credible. A story about a persons life and development is filled with details about a persons background and circumstances as well as dialogues and recollections, which are generally perceived as being more genuine than a product advertisement because of how personal they are. In addition, the CEOs story, whether presented in the form of books or speeches, allows the consumers or audience to see the personal emotions of the CEO. Thus compared to traditional methods of advertising, the advertising of the CEOs story has better credibility of communication. In turn, this method has a higher rate of success of in building brand loyalty (Malar 2012). Apple is arguably the most famous example of how the customers knowledge on the CEO impacts their view of the company. Former Apple CEO, Steve Jobs personal background of being an adopted child, his story of starting Apple in his parents garage and his account of being once being fired from Apple are widely known. His autobiographies have become bestselling books, and the Commencement Speech he gave at Stanford University talking about his life stories has been watched over 25 million times on YouTube alone. His story details the great hardships he endured, the unorthodox and courageous choice of dropping out of college, and his perseverance in developing Apple products. It is a real story, so sharing it achieves high credibility of communication. Through sharing his story, many people became a fan of Steve Jobs. His role in the publicity of Apple became crucial after his story was shared. If it were not

for Steve Jobs, Apple would not have gained as much brand loyalty and brand recognition. This was proven when Steve Jobs passed away on October 5th, 2011. After his death, fans from all over America and the world lit candles outside local Apple stores. Fans travelled to the Apple headquarters in Silicon Valley, initiated an Iphone Vigil in San Francisco. Apple consumers have built a strong connection with Steve Jobs by reading his story. Many consumers, resellers, employees, and APP developers were more inspired by Steve Jobs than they were by the Apple products, which have been nonetheless innovative. Steve Jobs inspirational story differentiates Apple from other electronics brands, thus achieving competitive differentiation. In addition, in Steve Jobs and Apples example, a crucial reason that brand loyalty is built through publicising Steve Jobs personal story is that the CEOs story makes Apple a brand that satisfies consumers needs of self-expressiveness. According to studies published in International Business Review Journal, consumers feel higher brand attachment if the brands image or personality is congruent with the self-identity that they aspire to become (Tsai 2011). Steve Jobs shows his personal attributes of perseverance, intelligence, creativity and humility through his books and speeches about his life journey. It is significant that his attributes are those that many people aspire to have. Potential consumers see Steve Jobs values being in accordance to what they desire. Hence, more people are willing to purchase from Apple, increasing brand loyalty. Many people who were loyal to Apple were loyal to Steve Jobs. Their support for Apple thus decreases without Steve Jobs. According to Bloomberg, the Apple stocks fell by 7% following the news of Steve Jobs resignation from Apple as CEO. The dramatic impact Steve Jobs has on Apple was built by Steve Jobs inspirational life story, which shows that the sharing of the story behind a company is an effective strategy for developing brand loyalty.

The congruence of the attributes of the brand and the desired self-identity of consumers is a factor that influences brand loyalty. In the example of Columbia Sportswear, the positive effect of advertising the CEOs attributes on brand loyalty is also statistically evident. Columbias former-CEO, Gert Boyle starred in Columbias marketing campaign where she was presented as a tough mother. Her attributes of being tough, genuine and overprotective, which are associated with a mothers image is consistent with those of Columbias products. The toughness of the CEO reinforced the perception of Columbias products as having endurance and being great for harsh outdoor climates. Consumers also related the CEOs identity of being a mother to her commitment to providing quality products at low prices, a concern shared by many mothers. The image of Boyle translates into a positive brand image that supports the values for which Columbia stands. The image of Boyle is more intimate than the image of Columbia if Columbia did not publicise the CEO. By demystifying the CEO, the central member behind a company, Columbia is able to achieve a higher credibility of communication. With the image of Boyle in mind, consumers connection with Columbia becomes more intimate. The consumers have a unique memory, or brand association, of Columbia that is different from their memory of other outdoor brands, leading to stronger competitive differentiation. It has been supported by research that competitive differentiation can make a brand image more successful in creating brand loyalty (Malar 2012). Indeed, according to the book Accidental Branding, Columbia Sportswear increased sales by 44 percent per year in the five years after the launch of the campaign (Vinjamuri 2008). Other than establishing competitive differentiation and higher credibility of communication, the core reason that sharing the CEOs personal story is so effective in increasing brand loyalty is in the significant influence that a CEO has on a company. The CEO

oversees all of a companys operations. His or her values guide the companys decisions. An understanding of the CEO helps the consumers understand or make informed assumptions about all of a companys actions. In the example of Starbucks, the CEO came from an underprivileged background, which results in the CEO wanting to increase the morale of lower-level workers. Knowing Schultzs story, consumers understand where Starbucks values originated and trust that Starbucks is truly committed to ethical practices. In the example of Columbia, the CEOs image was portrayed in a way consistent to how Columbias products should be viewed. The image of the CEO allowed consumers to understand Columbias products. It can also be said that the image of the CEO provided evidence for the consumers to believe in the quality of the Columbia brand. One study that surveyed a random sample of 258 people found that brand trust is positively correlated with brand loyalty (Zehir 2011). By building a more intimate connection between the company and the consumers through the sharing of the CEOs story, a company gains trust from consumers and increases brand loyalty. The managerial implication of the proposition for publicising the CEOs story is that firms that have not yet shared their brand biography should consider doing so to increase brand loyalty. Take the example of the company Motorola. In two years, Motorola has dropped in market share from 17 percent in 2011 to 10.4% in January 2013. Motorola can regain some of its market share if it publicised its start-up stage story to the mass public like Apple did by writing books and giving speeches. Motorola was started in 1928 when Paul V. and Joseph Galvin purchased a bankrupt battery company. The two co-founders started with a modest 565 dollars in working capital. They invented the B battery eliminator the same year but after the Great Depression hit in 1929, the company was close to failing in 1930. However, Galvin did not give up and saw an opportunity in the radio market to invent an inexpensive car radio. Under Galvins

leadership, Motorolas innovation spanned from aeronautics designs to the first commercial handheld cellular phone. The great story and the wonderful achievements of Motorola should be better publicised than merely written in the About Motorola section of its website that consumers do not normally browse. Although Galvin is no longer the CEO of Motorola, Motorola can follow the successful examples of Apple and write books about the story of Motorola first started and how it developed, highlighting the intelligence and perseverance of the companys leaders. If Motorola publicises its story, its target consumers are more likely to respect Motorola based on its past achievements and have trust in the company for its future, increasing brand loyalty. Knowing all the innovations of Motorola, target consumers will also trust the quality of all Motorola products. This, too, will increase brand loyalty. Also, as Motorola publicises its humble beginnings and how it has grown since then, more people will remember Motorola, increasing their emotional attachment to the brand and thereby increasing brand loyalty. Storytelling is an important tool through which companies can build an intimate and emotional connection with the consumers. Consumers, knowing the human aspect of the company, become more emotionally involved with the company. As consumers understand and respect the CEO of the company, they have more faith in the products and the prospects of the company. As can be seen in the case of Apple, consumers even become fans of the CEO as they see the CEO as a role model who possesses admirable attributes, dramatically increasing brand loyalty. Knowing the story behind the company, consumers are able to put a face on a company that is otherwise no more than a logo or a product that all other companies also have. Thus, the strategy of sharing company story distinguishes or separates a company from the other companies in its market. Competitive differentiation, credibility of communication, self-concept

accordance and brand attachment can all be achieved with this strategy. Thus, the sharing of the CEOs story is an effective strategy that more companies should implement.

Works Cited Behar, Howard, and Janet Goldstein. It's Not about the Coffee: Leadership Principles from a Life at Starbucks. New York, N.Y.: Portfolio, 2007. Print. Kuittinen, Tero. "Motorola's Road to Oblivion." BGR. N.p., 04 Jan. 2013. Web. 01 Apr. 2013. Malar, Lucia. "Implementing an Intended Brand Personality: A Dyadic Perspective." Journal of the Academy of Marketing Science 40.5 (2012): 728-44. Print. Nam, Janghyeon. "Brand Equity, Brand Loyalty and Consumer Satisfaction." Annals of Tourism Research 38.3 (2011): 1009-30. Print. Satariano, Adam. "Apple Shares Drop After Steve Jobs Resigns." Bloomberg. N.p., 25 Aug. 2011. Web. 14 Apr. 2013. Schultz, Howard, and Dori Jones Yang. Pour Your Heart into it: How Starbucks Built a Company One Cup at a Time. New York, NY: Hyperion, 1997. Print. Tsai, Shu-pei. "Fostering International Brand Loyalty through Committed and Attached Relationships." International business review 20.5 (2011): 521-34. Print. Vinjamuri, David. Accidental Branding how Ordinary People Build Extraordinary Brands. Hoboken, NJ: John Wiley & Sons, Inc, 2008. Print. Zehir, Cemal. "The Effects of Brand Communication and Service Quality in Building Brand Loyalty through Brand Trust the Empirical Research on Global Brands." Procedia: social behavioral sciences 24 (2011): 1218-31. Web.