The effect of price reductions on the switching behaviour of brand loyal consumers: the case study of the apparel moderate category in Glasgow

Abstract

As market trends reflect the continuous growing popularity of value brands in the apparel industry in the city of Glasgow, so does the intense competition. This intense competition is directing businesses to make use of tools like discounts to influence the process of buying. Due to this perceived behaviour in the market, the aim of this research focuses on identifying if price reductions, as an influential factor, make loyal customers switch over to other brands, or does it have no effect at all. The study centres on the fact that different levels of loyalty exist and that depending of the loyalty grade the consumer has, it is easier or more challenging, to make them switch to other brands.