Brand Switching

Brand Switching

Brand Switching Jonathan Poland

Brand switching refers to the act of a customer switching from a brand that they were previously loyal to, to a different brand. This is distinct from a customer who doesn’t have a strong preference for any particular brand in a given category, such as someone who regularly purchases different brands of bottled water. When a customer engages in brand switching, it indicates that they have changed their mind about the brand they previously preferred and are now considering alternative options. It’s important for brands to be aware of brand switching, as it can indicate a loss of customer loyalty and potentially signal a need to re-evaluate their product or marketing strategies. The following are common types of brand switching.

Availability
A customer finds their favorite brand difficult to find and switches to a brand that is available where they shop.

Customer Experience
A customer prefers a brand until they have a bad experience with it. For example, a customer who prefers a hotel chain until experiencing poor customer service.

Change
A product or service changes or adds new features that don’t appeal to the customer. It is common to prefer a brand for its predictability, stability and usability.

Curiosity
A customer becomes bored with a brand or its products and feels like exploring new options.

Needs
A customer’s needs change. For example, a fashion brand known for outlandish fashions that appeals to women in their early 20s may expect many customers to switch when they begin a career and require a more conservative look.

Perceptions
A customer who previously identified with a brand based on factors such as brand image, brand culture, company values or product style changes their mind based on new information. For example, a snowboarder who likes a brand for its backcountry image may change her mind after seeing that inexperienced snowboarders on the slopes commonly wear the same brand.

Reputation
The social status of a brand declines due to factors such as the poor behavior of its leadership, declining customer service or sustainability practices.

Competition
A competitor begins to replace a brand’s position in the market with a more compelling offer. For example, a brand of organic food that is able to wrap products in stories about how food is produced may be able to replace brands that simply slap an organic certification mark on products.

Pricing
Customers who replace a brand they prefer with a cheaper brand because its products are similar enough. This can work the other way as customers may switch brands when they can afford more expensive products.

Learn More
A/B Testing Jonathan Poland

A/B Testing

A/B testing, also known as split testing or experimentation, is a statistical method used to compare two versions of a…

Fixed Assets Jonathan Poland

Fixed Assets

Fixed assets are long-term physical resources that are used in a business to produce goods or services. They are also…

Risk Capacity Jonathan Poland

Risk Capacity

Risk capacity is the maximum level of risk that an organization or individual is able to withstand in order to…

Environmental Challenges Jonathan Poland

Environmental Challenges

Environmental issues are detrimental changes to the Earth’s natural surroundings that negatively impact the current quality of life for individuals…

Taxation Risk Jonathan Poland

Taxation Risk

Taxation risks refer to the potential for a business to face financial or reputational harm due to issues related to…

Labor Productivity Jonathan Poland

Labor Productivity

Labor productivity is a measure of the efficiency with which labor is used to produce goods and services. It is…

Media Vehicles Jonathan Poland

Media Vehicles

A media vehicle refers to a specific media outlet or platform that is used to deliver advertising messages to a…

Innovation Metrics Jonathan Poland

Innovation Metrics

Innovation metrics are tools used to assess the innovation efforts of a company. It can be challenging to accurately measure…

Inverted Yield Curve Jonathan Poland

Inverted Yield Curve

The inverted yield curve is a financial phenomenon that has garnered significant attention because of its historical association with upcoming…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Administrative Burden Jonathan Poland

Administrative Burden

Administrative burden refers to the workload and effort required to comply with laws and regulations that do not directly contribute…

Economic Change Jonathan Poland

Economic Change

Economic change refers to shifts in economic conditions, such as changes in GDP, employment rates, and prices. These shifts can…

Ingredient Branding Jonathan Poland

Ingredient Branding

Ingredient branding, also known as component branding or parts branding, is a marketing strategy that focuses on promoting the individual…

Organizational Capital Jonathan Poland

Organizational Capital

Organizational capital refers to the intangible assets and resources within an organization that support its operations and enable it to…

Income Statement Jonathan Poland

Income Statement

An income statement is a financial statement that shows a company’s revenues, expenses, and profits over a specific period of…

Data Science Jonathan Poland

Data Science

Data science is the use of mathematical and statistical methods, machine learning algorithms, and other techniques to extract meaning and…

Automation Jonathan Poland

Automation

Automation refers to the use of technology to perform tasks that were previously done manually. In recent years, automation has…

Everyday Low Price Jonathan Poland

Everyday Low Price

Everyday low price, commonly abbreviated as EDLP, is a pricing strategy in which a retailer offers its products at a…

Internal Branding Jonathan Poland

Internal Branding

Internal branding involves creating a strong brand identity within the company itself, rather than just focusing on marketing to customers.…