Why Brand Switching Is Dangerous for Your Business

5 Mins

Nowadays, a lot of people including the millennials and the Generation Z are eager to run their own business rather than working at an office.

Young entrepreneurs are getting more creative to make new creation and innovation, hence the number of business competitors are increasing. If we’re looking from the customer’s point of view, this phenomenon is giving them more option to choose what kind of products and services to fulfill their wants and needs.

Related: 4 Keys to Make Your Brand Stand Out from Competitors

In other words, a brand could lose its customer loyalty because people might find a new fulfillment of satisfaction in different brands. This phenomenon is oftentimes called as brand switching.  There are many studies that formulate several factors that cause brand switching, a theory by Susan Keaveney (1995) is stating that those factors are:

  • Pricing

Price increases, unfair price, people being able to get the same quality of goods / services with lower cost in other brands,

  • Inconvenience

Unreliable and inconvenient location, long wait for appointment or service,

  • Core service failure

Service mistakes and billing errors,

  • Service encounter failure

Unfriendly, unresponsive, and unknowledgeable employees or representatives,

  • Response to service failure

Negative and reluctant response that cause uncomfortable customers,

  • Competition

Found better service and quality,

  • Ethical Problems

Conflict of interest, hard sell, etc.,

  • Involuntary switching

Customer moves, provider moves.

To prevent brand switching and the factors mentioned above from happening, a company should know how to ‘brand their brand’ by doing a survey to understand their customer insight and customer behavior.

By doing surveys, brands can figure out what their customers really want and need so that the brand can provide the satisfaction their customers are looking for by for example, improving the quality of the customers service, products, etc. in order to stop the customers from doing brand switching.

RelatedTips on Creating Awesome and Interesting Products without Losing Its Quality

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