Brand Loyalties in Alcoholic Beverage

Brand Loyalties in Alcoholic Beverage Markets

Brand Loyalty Analysis

The perception of alcoholic beverages depends, to a great degree, on the personal experiences with alcohol consumption. Had the observer witnessed a family tragedy created around alcohol consumption, then his perception would be a strongly negative one. If on the other hand, the individual consumer has not had a negative experience with liquors, then he might consume the beverages as a means of recreation. But there is also the third category -- the alcohol addicts, whose numbers are increasing at a global level and who lose their lives, and those of the others, for a drink or because of a drink.

In a context of the recognized disastrous impacts of excessive alcohol consumption over the life of the individual, but also the general well-being of the community, several state regulators have militated for the development and implementation of stricter controls. Their efforts are generally recognized as the temperance movement, and the final materialization was the implementation of state monopolies and controls in 18 of the American states.

As numerous studies and surveys have revealed, the highest level of alcohol consumption was observed among college-age individuals. This category is responsible for the highest numbers in any category of alcohol consumption. The highest number of binge drinkers can be attributed to this age group.

But there are consumption differences regarding the customer segment represented by college students. It has been observed that males drink more than females. Also, there are differences in relationship with race. It seems that the most numerous heavy drinkers are White. Sport plays a very important role in determining the alcohol consumption. This is because colleges and universities with sports profiles have reported higher alcohol consumption levels where their students are concerned.

However, it is important to also study the causes that lead to excessive alcohol consumption among college students. Most of them drink because of social issues. They think it is easier to adapt and to integrate within a group in college if alcohol in involved.

Many college students also drink because they think it helps them cope with their problems. This is why first year college students develop an increased risk of excessive drinking. Alcohol abuse is also higher in the case of colleges and universities where there are fraternities and sororities, which encourage this type of behavior.

2. Alcohol consumption and marketing

The consumption of alcohol can be traced back to the first evidence of human settings in history, having been present in most of the countries of antiquity. Alcoholic beverages were initially proliferated through religious rituals, but the populations soon found pleasure in consuming the liquors outside religious ceremonies. The ancient gardeners are the ones who, through their curiosity and access to plants, opened to door to alcohol making (Jurkiewicz and Painter, 2008).

An interesting historic fact about alcohol is that it was given by colonists to aboriginals in order to better subdue them. In his The Last of the Mohicans, James Fenimore Cooper describes how the firewater was brought by the Dutch and how it caused the Indian tribes to lose their territories. "The Dutch landed, and gave my people the fire- water; they drank until the heavens and the earth seemed to meet, and they foolishly thought they had found the Great Spirit. Then they parted with their land. Foot by foot, they were driven back from the shores, until I, that am a chief and a Sagamore, have never seen the sun shine but through the trees, and have never visited the graves of my fathers" (Cooper, 1992).

At an international level, the consumption of alcohol has manifested differently and has as such had different impacts on the populations. While the Muslim religion is the sole one to clearly forbid alcohol consumption, aside for the adjacent regions, most populations consume liquors. It is however true that the tool taken on each state was different. While there were states in which the consumption of alcohol was minimal, and as such so were the effects, there are also global regions in which the levels of alcohol use are high. In Europe for instance, the high levels of alcohol consumption are associated with the declining health of the population. In the United States however, they are blamed for the incremental levels of crimes of violence (Jurkiewicz and Painter).

On the American continent, alcohol consumption is different based on location. In Southern America for instance, the culture of alcohol is pegged to the region's history. Many drinks are prepared according to Inca recipes or Spanish and Portuguese recipes (former colonists), and they are treasured as cultural components. In Northern America however, drinking has taken a more commercial and modern stand, and is predominantly based on the more relaxed European style of consuming alcohol. Still, what should be remembered is that alcohol is not considered as a family friendly product; it is not part of every meal -- like it generally is in France -- and there is a high limit of 21 years to drinking alcohol (Alcohol Issues, 2010).

As with most other things that are enjoyed by the populations, there were several individuals who got more involved in the production and distribution processes. The outcome was the creation of a strong, multi-billion dollar, liquor industry. This industry attracts its consumers through catchy advertisements and other marketing strategies.

Alcohol advertising is one of the most disputed matters within the modern day marketing practices, and is one of the most regulated fields.

3. State regulations

Regulations of alcohol consumption are almost as old as the actual act of drinking alcohol and can be traced back to antiquity. Within the United States, the commencement of alcohol regulations occurred during the Prohibition of 1920-1933 and represented the result of the pressures from the temperance movement. The promoters of the movement believed that the United States had been taken by assault by modernization and urbanization, and that alcohol consumption played a major negative part in the mental and physical health of the population. The movement, established at the end of the eighteenth century, was initially formed from farmers, but its ideologies were eventually adopted by religious and political parties.

The Prohibition forbade anybody from manufacturing, transporting or consuming alcohol. The period offered organized crime groups the ability to build financial empires through bootlegging operations. The birth of the black market created devastating effects upon the already unstable economy, and President Roosevelt eventually repealed the eighteenth amendment and instated the 21st amendment (Heath). According to the new legislation, each American state was able to develop and instate whichever regulations it considered most suitable in respect to alcohol consumption, production and distribution. Since then, a series of laws have been developed. Today, 18 states are state control, while the rest of 33 are more permissive.

Alcohol consumption by state

Alcohol consumption is determined and influenced by a series of factors. Such factors include financial, geographic, psychological factors, and others. The alcohol consumption is directly influenced by the financial aspect. Consumers that drink more than average but dispose of lower financial possibilities will have the tendency not to reduce the amount of alcohol they use, but to orient towards cheaper beverages, of lower quality.

Also, there are countries where drinking certain alcoholic beverages is part of the country's tradition, for some it has even become a trademark. Although these countries report large consumption values, as seen from an average consumption's point-of-view, it does not seem to become a concern issue for these countries.

Such a situation can be observed in Russia, country that is famous for large amounts of vodka drank by its citizens. A similar situation can be observed in formers USSR countries. Also, Germany and the U.K. are famous for their production and consumption of beer. So are countries related to Germany.

In other areas of the world there is no alcohol consumption, like in Muslim regions. This is because of their religion, which forbids the consumption of alcoholic beverages.

In this U.S., the alcohol consumption varies from one state to another. In 2006, the alcohol consumption reached a total of 2.27 gallons of ethanol per capita (NIAAA, 2006).

The states that reported a 1.99 gallons alcohol consumption or below are: Alabama, Arkansas, Kansas, Kentucky, New York, North Carolina, Oklahoma, Tennessee, Utah, West Virginia.

The states that reported an alcohol consumption between 2-2.24 gallons are: Georgia, Indiana, Iowa, Maryland, Michigan, Ohio, Pennsylvania, Texas, Virginia, Washington.

The states that reported an alcohol consumption between 2.25-2.49 gallons are: Arizona, California, Connecticut, Illinois, Maine, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New Mexico, South Carolina, South Dakota.

The states that reported a consumption of alcohol of 2.50 gallons or over are: Alaska, Colorado, Delaware, District of Columbia, Florida, Hawaii, Idaho, Louisiana, Massachusetts, Montana, Nevada, New Hampshire, North Dakota, Oregon, Rhode Island, Vermont, Wisconsin Wyoming.

In addition to this, the percentage of binge drinkers by state is the following: Wisconsin -- 21.8%, North Dakota -- 20.4%, Minnesota -- 19.8%, Iowa -- 18.9%, Rhode Island -- 18.2%, Nevada -- 18%, Pennsylvania -- 17.6%, Nebraska -- 17.6%, Illinois -- 17.5%, Delaware -- 17.4%, Colorado -- 17.2%, Montana -- 17%, South Dakota -- 16.9%, Ohio -- 16.9%, Massachusetts -- 16.9%, District of Columbia -- 16.6%, Alaska -- 16.3%, Missouri -- 16.2%, Michigan -- 16.1%, Wyoming -- 16.1%, Vermont -- 16.1%, New Hampshire -- 16%, Texas -- 15.6%, Arizona -- 15.5%, New York -- 15.2%, Maine -- 14.9%, Connecticut -- 14.8%, California -- 14.7%, New Jersey -- 14.4%, Indiana -- 14.4%, Louisiana -- 14.2%, Washington -- 14.2%, Virginia -- 13.7%, Us Virgin Islands -- 13.6%, South Carolina -- 13.5%, Oregon -- 13.1%, New Mexico -- 13%, Oklahoma -- 13%, Maryland -- 12.8%, Kansas -- 12.8%, Alabama -- 12.7%, Idaho -- 12.6%, Florida -- 12.4%, Puerto Rico -- 12.2%, Georgia -- 12.1%, Arkansas -- 11.2%, Mississippi -- 10.4%, West Virginia -- 9.7%, Kentucky -- 9.6%, North Carolina -- 9.5%, Utah -- 9.2%, Tennessee -- 8.2%. The weighted average reached 14.8% (StateMaster, 2004).

The consumption for beer, wine, and spirits is different from one state to another.

Beer consumption

The beer consumption in gallons by state for each person, and their rank is the following: Washington -- 20, rank 33, Oregon -- 23, rank 19, California -- 19, rank 40, Idaho -- 21, rank 36, Nevada -- 31, rank 2, Utah -- 12, rank 51, Arizona -- 24, rank 16, Montana -- 30, rank 4, Wyoming -- 26, rank 10, Colorado -- 23, rank 21, New Mexico -- 26, rank 13, South Dakota -- 27, rank 9, Nebraska -- 25, rank 17, Kansas -- 21, rank 41, Oklahoma -- 20, rank 43, Texas -- 25, rank 24, Minnesota -- 21, rank 29, Iowa -- 25, rank 23, Missouri -- 24, rank 25, Arkansas -- 20, rank 48, Louisiana -- 28, rank 8, Illinois -- 22, rank 27, Michigan -- 20, rank 38, Wisconsin -- 28, rank 7, Indiana -- 20, rank 45, Kentucky -- 19, rank 50, Tennessee -- 21, rank 39, Mississippi -- 25, rank 22, Alabama -- 22, rank 32, Ohio -- 23, rank 26, West Virginia -- 23, rank 31, Georgia -- 20, rank 42, Florida -- 24, rank 12, Maine, 23, rank 20, New Hampshire -- 32, rank 1, Vermont -- 23, rank 14, Massachusetts -- 20, rank 28, New York -- 17, rank 49, Pennsylvania -- 22, rank 37, Maryland -- 19, rank 46, Virginia -- 21, rank 34, North Carolina -- 22, rank 35, South Carolina -- 27, rank 11, Hawaii -- 24, rank 15, Alaska -- 23, rank 18 (Time Magazine, 2008).

Wine consumption

The wine consumption in gallons by state for each person, and their rank is the following: Washington -- 3, rank 14, Oregon -- 3, rank 12, California -- 3, rank 9, Idaho -- 2, rank 24, Nevada -- 4, rank 3, Utah -- 1, rank 49, Arizona -- 2, rank 21, Montana -- 2, rank 20, Wyoming -- 2, rank 34, Colorado -- 3, rank 18, New Mexico -- 2, rank 32, South Dakota -- 1, rank 43, Nebraska -- 1, rank 39, Kansas -- 1, rank 48, Oklahoma -- 1, rank 44, Texas -- 1, rank 38, Minnesota -- 2, rank 26, Iowa -- 1, rank 45, Missouri -- 2, rank 27, Arkansas -- 1, rank 46, Louisiana -- 2, rank 30, Illinois -- 2, rank 22, Michigan -- 2, rank 29, Wisconsin -- 2, rank 25, Indiana -- 2, rank 37, Kentucky -- 1, rank 47, Tennessee -- 1, rank 42, Mississippi -- 1, rank 50, Alabama -- 1, rank 40, Ohio -- 2, rank 35, West Virginia -- 1, rank 51, Georgia -- 2, rank 33, Florida -- 3, rank 13, Maine - 3, rank 17, New Hampshire -- 5, rank 2, Vermont -- 4, rank 6, Massachusetts -- 4, rank 4, New York -- 3, rank 15, Pennsylvania -- 2, rank 36, Maryland -- 2, rank 23, Virginia -- 2, rank 19, North Carolina -- 2, rank 28, South Carolina -- 2, rank 31, Hawaii -- 3, rank 11, Alaska -- 3, rank 16.

Spirits consumption

The spirits consumption in gallons by state for each person, and their rank is the following: Washington -- 1, rank 27, Oregon -- 2, rank 19, California -- 1, rank 30, Idaho -- 1, rank 37, Nevada -- 3, rank 3, Utah -- 1, rank 51, Arizona -- 2, rank 22, Montana -- 2, rank 15, Wyoming -- 2, rank 6, Colorado -- 2, rank 10, New Mexico -- 1, rank 34, South Dakota -- 2, rank 20, Nebraska -- 1, rank 29, Kansas -- 1, rank 41, Oklahoma -- 1, rank 49, Texas -- 1, rank 48, Minnesota -- 2, rank 9, Iowa -- 1, rank 36, Missouri -- 2, rank 24, Arkansas -- 1, rank 38, Louisiana -- 1, rank 31, Illinois -- 1, rank 26, Michigan -- 2, rank 21, Wisconsin -- 2, rank 5, Indiana -- 1, rank 33, Kentucky -- 1, rank 40, Tennessee -- 1, rank 44, Mississippi -- 1, rank 35, Alabama -- 1, rank 47, Ohio -- 1, rank 45, West Virginia -- 1, rank 50, Georgia -- 1, rank 39, Florida -- 2, rank 11, Maine - 2, rank 17, New Hampshire -- 4, rank 1, Vermont -- 1, rank 28, Massachusetts -- 2, rank 12, New York -- 1, rank 32, Pennsylvania -- 1, rank 42, Maryland -- 2, rank 18, Virginia -- 1, rank 43, North Carolina -- 1, rank 46, South Carolina -- 2, rank 23, Hawaii -- 1, rank 25, Alaska -- 2, rank 7.

4. Alcohol consumption among college-age individuals

Alcohol consumption levels were reported as being the following:

Abstainer -- 47.3%

Light consumption -- 26.2%

Moderate consumption -- 19.5%

Heavier consumption -- 7%

Alcohol consumption levels by age were reported as being the following:

For the 18-39 age group:

Abstainer -- 29.9%

Light consumption -- 27.1%

Moderate consumption -- 29.6%

Heavier consumption -- 13.3%

For the 40-59 age group:

Abstainer -- 37.2%

Light consumption -- 26.1%

Moderate consumption -- 24.9%

Heavier consumption -- 11.8%

For the 60 + age group:

Abstainer -- 51.8%

Light consumption -- 21.4%

Moderate consumption -- 18.8%

Heavier consumption -- 8%

The alcohol consumption levels in relation to education are the following:

For high school undergraduates:

Abstainer -- 66.7%

Light consumption -- 15.6%

Moderate consumption -- 12.3%

Heavier consumption -- 5.5%

For high school graduates:

Abstainer -- 49.8%

Light consumption -- 25.3%

Moderate consumption -- 17.5%

Heavier consumption -- 7.4%

Abstainer -- 38.1%

Light consumption -- 30.8%

Moderate consumption -- 22.8%

Heavier consumption -- 8.3%

Abstainer -- 32.6%

Light consumption -- 33.8%

Moderate consumption -- 27%

Heavier consumption -- 6.6%

The data as collected by the National Institute of Alcohol Abuse and Alcoholism (NIAAA, 1999).

In 2002, the alcohol consumption situation for each age group was the following:

12-17 years -- 34.6%

18-25 years -- 77.9%

26-34 years -- 77.7%

35 + years -- 66.1%

Total -- 66.1%

As one may observe from the data presented above, the age group represented by college individuals has reported the highest levels of alcohol consumption, for all types of consumption, in comparison with all the other age groups. Also, the alcohol consumption attributed to college-age individuals is higher than the total average.

The reasons behind this situation rely on the causes that determine college students to drink so much. The categories of students that are responsible for the highest levels of alcohol consumption are represented by: males, whites, members of fraternities and sororities, athletes, and some of the first-year students.

In opposition, students who do not share the same increased appetite for alcohol are represented by individuals who attend: 2-year institutions, religious schools, commuter schools, historically black colleges and universities. Also, alcohol consumption seems to be inhibited by a competitive school environment. Categories of students that reported lower alcohol consumption levels also include a large percentage of students aged 24 or older, and a larger percentage of students whose parents have a college education.

Alcohol consumption seems to be related with living arrangements also, where college age individuals are concerned. For example, students who live in fraternity and sorority houses have reported the highest drinking rates. The majority of these students can be categorized as binge drinkers. Similar drinking rates have been reported in the case of students who live in on-campus housing.

In comparison, students who live off-site drink less. Even more, commuting students who live with their families drink the least.

However, an interesting fact has occurred in the past few years with the drinking behavior of students. The alcohol consumption among off-site students has increased, while the alcohol consumption of on-site students has decreased. This is a reverse drinking behavior of the regular one, described above.

This is probably because drinking has been restricted in some campuses in order to reduce the problems related to alcohol abuse. As a result, students who lived in campuses and used to drink large amounts of alcohol moved outside the campuses, therefore increasing alcohol consumption off-site.

The areas in which alcohol consumption is rather high among students share a series of similarities. For example, such a drinking behavior has been reported mainly in colleges and universities situated in the Northeast.

Also, excessive drinking seems to be more common in learning institutions where sports teams play a very important role. High alcohol consumption also tends to be a custom in colleges and universities dominated by Greek systems, like fraternities and sororities.

In addition to this, alcohol consumption among college students shows other trends also. For example, the most exposed category of students to excessive alcohol consumption is represented by first year college students. This is because students who tend to orient towards this direction consider alcohol consumption as useful for their social life. Also, they say it helps them cope with the difficulties of college.

There are some differences among students that consume alcohol in relation with gender. Males drink more than females. Also, females are more predisposed to health issues as a consequence of alcohol consumption. Women tend to develop alcoholism faster than men do.

There are differences in alcohol consumption also in relation with race. In the case of college students, surveys have revealed that the highest level of binge drinking was reported among White students, accounting for 42%. Native American students accounted for 41%, Hispanic students accounted for 31%, Asian students accounted for 23%, and African-Americans accounted for 23%.

Another study has revealed some interesting findings. For example, alcohol consumption rates in the case of African-American students were lower than those of White students, and higher than those reported in the case of non-college African-Americans aged 18-25.

Alcohol consumption among college students has also been linked with the Attention Deficit Hyperactivity Disorder (ADHD). Students diagnosed with ADHD have experienced more frequent drinking, more drink per occasion, and more problems derived from alcohol consumption.

Alcohol consumption among college students also seems to be favored by family history with alcoholism, and by conduct problem history.

The main reasons for which college students drink are represented by the social factor and by their difficulties in coping with college. The social factor of influence is very important in determining the drinking behavior of college students. They drink because their friends and peers drink, because they want to feel accepted with certain groups, because they consider that drinking favor the social activity.

Also, the beginning of college seems overwhelming for some. They experience a series of difficulties in adapting to the college life, in integrating within certain groups, and with coping with the requirements of college. As a consequence, they start drinking. Since alcohol consumption does not solve their problems, they tend to drink more, increasing the frequency of heavy drinking.

The problems related to alcohol consumption among college-age individuals do not stop in college. They continue after college also, affecting the life of the individuals in case. Problems regarding the health of the individual are likely to deteriorate after college. Also, excessive drinking during college is likely to perpetuate after college, influencing drinkers to engage in illegal actions.

5. Brand loyalty

Definition and determinants

Brand loyalty is represented by a buyer's commitment to repurchase or to continue using the brand in case. Brand loyalty manifests by repeated buying of the product or service it refers to, as mentioned above. In addition to this, brand loyalty can also take the form of other positive behaviors, such as word of mouth advertising for a certain product or service.

Although things seem very clear in theory, practice shows otherwise. There are very few cases of real, strong, sustainable brand loyalty. This is because brand loyalty depends on a series of factors, and must meet a series of requirements. Even if these conditions are met, there is no telling whether consumers will maintain brand loyalty on medium term and on long-term. Therefore, it is quite difficult for companies to achieve brand loyalty in any market.

Brand loyalty is probably less difficult to achieve in the case of few producers for the product or service in case. In the case of large brands, consumers tend to remain loyal to one of them, thinking that they represent a system, not just a product. They associate other things with the brand they are loyal to, besides the attributes of the product. In other words, they are loyal to the images, values, characteristics that represent the brand, which makes it less likely for them to switch the brand in case with another similar brand.

Also, the more producers there are on the market, the less chances there are for a company to achieve brand loyalty. This is because consumers have many options to choose from, and companies offer similar products.

Multidimensional brand loyalty

Theorists like Sheth and Park from the University of Illinois consider brand loyalty as a multidimensional factor (Sheth & Park, 1974). In their opinion, there are three main dimensions that can be attributed to brand loyalty: the emotive tendency, the evaluative tendency, and the behavioral tendency.

The emotive tendency towards the brand is represented by emotions like affective, fear, respect, or compliance, emotions that are translated into tendencies that determine the consumer to manifest more in the favor of a certain brand on the market than in the favor of other brands.

The emotive brand loyalty is composed of value-expressive or ego-defensive attitudes. It is thought that these emotive tendencies expressed by the consumer are the result of previous encounters with the brand in case, or of non-experiential or informational services. Such emotive tendencies can by represented by emotional stereotypes, brand imageries, and others. Such tendencies are common among consumers and they have a great power of influence on the buying behavior.

The evaluative tendency towards the brand is represented by the positively biased evaluation made by a consumer on a certain brand. This evaluation is made based on a set of criteria, unique for each buyer, criteria that are relevant in determining the brand's utility to the consumer in case.

The evaluative tendency is composed of instrumental and utilitarian attributes, like durability, performance, prestige, and others. This dimension of brand loyalty is also the result of consumers' previous encounters with the brand or of non-experiential or informational services.

The behavioral tendency towards the brand is represented by positively biased response from the consumer towards the brand in case. It includes activities like procurement, purchase, and consumption. Other physical activities associated with the behavioral tendency of brand loyalty include shopping, search, picking the product from the shelf, paying for it, and using it.

The behavioral tendency of brand loyalty is the result of previous experiences with the brand in case, or from the generalization of similar tendencies towards other brands that provide similar products or services.

Types of brand loyalty

There are two main types of brand loyalty: spurious brand loyalty and true brand loyalty.

Spurious brand loyalty occurs when the customer repurchases the brand not because this is what he wants, but because he has to. This happens when the buyer does not have any alternatives that he finds satisfactory, or because it is simply more convenient for him to repurchase the brand in case rather than to orient towards another brand.

In order for brand loyalty to be considered spurious, it must meet a series of conditions. For example, spurious loyalty is biased, it involves a behavioral response, it is expressed over time, it functions by some decision-making unit, taking into consideration one or more similar brands, and it also involves a function of inertia (Nissim, 2010).

True loyalty occurs when the following conditions are met: there is a biased, behavioral response to the brand, it is expressed over time, by some decision making unit, it refers to one or several similar brands, and is a function of brand commitment.

As one may observe, the main difference between the two types of brand loyalty is represented by the commitment to the brand. In other words, the buyer has made a positive evaluation of the brand, commits to the brand on his own will, and expresses his loyalty by repurchasing the brand in case.

The multidimensional theory of brand loyalty describes several types of brand loyalty, derived from the three dimensions addressed by the theory. These types of brand loyalty include behavioral, behavioral-evaluative, behavioral-emotive, behavioral-evaluative-emotive, evaluative, evaluative-emotive, and emotive brand loyalty.

Behavioral brand loyalty can also be identified with spurious brand loyalty, although the behavioral one has no evaluative and emotive dimensions. This type of loyalty basically consists in the simple repetition of the purchase or the consumption of the product or service in case. This pattern can only be attributed to the frequency of purchase.

The behavioral-evaluative brand loyalty is consisted of a repetitive biased response from the buyer, combined with a cognitive dimension. Consumers characterized by this type of brand loyalty are considered by specialists in the field as rational consumers.

The behavioral-emotive brand loyalty represents the repetitive biased response from the consumer, combined with the emotive tendencies that the consumer has in the favor of the brand in case. This type of brand loyalty is mainly characteristic to children, who are more likely to produce affective, compliance, or fear responses. This type of brand loyalty can also be observed in the case of adults, even if they do not necessarily buy the product or service in case.

The behavioral-evaluative-emotive brand loyalty is obviously the most complex type of brand loyalty, comprising all three dimensions. It is also referred to as intentional brand loyalty.

The evaluative brand loyalty refers to the consumer's positively piased opinion of the product. The opinion, and the response of the buyer, is based on the perceived utility of the brand in case. This type of brand loyalty can be observed even in cases when the individual does not buy or use the product, but has an opinion on the product and brand in case.

The evaluative-emotive brand loyalty is quite a common type of brand loyalty. It is mostly observed in situations when the product is difficult to be reached by the consumer, who aspires to achieving them.

The emotive brand loyalty does not assume any experience or evaluation from the consumer. It is basically the representation of stereotypes among individuals that do not actually use the product or service in case.

Evolution of brand loyalty

Brand loyalty has evolved in time, suffering a series of changes, leading to the expression of the phenomenon we now observe. Specialists agree upon five eras of brand loyalty. These eras are:

The birth of brand loyalty occurred between 1870 and 1914. During this time, the quality of the products on the market was very different from one product to another. Products were differentiated, and brands helped identify products.

The golden era of brand loyalty took place between 1915 and 1929. It is during this period that customers started to benefit from significantly improved quality of products. Existing brands at that time accounted for large sales increases. However, product recall was reaching a very high level, determining customers to remain loyal to a brand that they were satisfied with. This is the time when brand loyalty significantly increased. But the situation changed when advertising started to play a more important role. Consumers considered advertising as deceitful, and responsible for increasing product prices.

The latent brand loyalty era took place between 1930 and 1945. During this period, the market only offered few branded products. Due to the circumstances, brand preference significantly developed during this era. Although consumers were experiencing increased brand preference, they were also unable to buy the brand they preferred.

The multi-brand loyalty era is located between 1946 and 1970. In comparison with the previous era, during the multi-brand loyalty era brand availability increased, numerous new products and retailers entered the market. This led to increased competition on the market. Private brands were also introduced. All these conditions encouraged the development of variety-seeking behavior where customers are concerned. Another characteristic of this era is represented by the fact that consumers were buying several brands. Specialists in the field considered that brand loyalty was associated with some of the categories of products, rather than being a personal attribute of the buyer.

The declining brand loyalty era started in 1971 and continues today. During this era, the level of differentiation started to decrease, leading to more substitutable and more consistent brands, due to increased quality of the products on the market.

As a consequence, buyers became more price-sensitive, and less loyal to brands. Only a small number of brands benefit from loyalty from their customers. As a result, these brands have developed brand communities consisted of consumers that are interested and loyal to the brand in case.

Determinants of brand loyalty

As mentioned above, true, sustainable brand loyalty is very difficult to achieve, and only few brands are able to benefit from such an image in consumers' minds. However, there are certain factors that, if used properly, are intended to influence brand loyalty, at least in theory.

Given the fact that brand loyalty represents more than just the simple repurchase or repeated consumption of a product or service, it is difficult to agree upon a set of determinants that can be used by any company in the attempt of developing strategies intended to create brand loyalty.

In addition to this, one must take into consideration the fact that consumers are different, they manifest different types of brand loyalty, and they express brand loyalty towards different types of products and services.

Some theorists state that in order to identify the determinants of brand loyalty, it is important to study consumers from the different roles they play on the market. Consumers can be purchasing agents, choice makers, users, or a combination of these roles.

Regarding product attributes, the most significant variables used at analyzing brand loyalty are represented by frequency of repetitive purchase, or the purchase cycle, and the differentiation of the product in case in relationship with other brands or types of products.

Brand loyalty in free states

The states where there is no alcohol consumption control by the state are: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Dakota, Oklahoma, Rhode Island, South Dakota, Tennessee, Texas, Wisconsin, District of Columbia, Puerto Rico.

Regarding alcohol consumption, the highest levels are reported for beer. This situation applies generally, but also in the case of college-age individuals. College students' favorite drink is represented by beer.

The reasons for their preference of beer rely on a series of factors. Mainly, beer is the most available and accessible alcoholic beverage. Also, the price of beer is significantly lower than the price of wine or distilled spirits.

In addition to this, there are numerous types of beer, many producers, and the market provides a wide variety of beer, ranging from cheap to more expensive beer, from lower concentrations of alcohol to higher ones. Also, there are several types of beer with different tastes and flavors.

Also, the consumption culture orients the consumer towards purchasing beer rather than wine or distilled spirits. For example, in movies, the most common beverage is represented by beer. The product is also associated with sports. This allows marketers and advertisers to take advantage of this situation and to try to increase beer consumption.

Wine is preferred by a different category of consumers. Individuals who prefer wine instead of other alcoholic beverages are usually aged over 35 years, with medium to high income, with medium to high education. Wine is preferred in urban areas. College students are not particularly interested in the wine consumption.

Distilled spirits are another category of alcoholic beverages that appeals to students, but not as much as beer does. Also, distilled spirits are significantly costlier than beer or wine. They are also less available and more difficult to purchase.

Regarding brand loyalty in the alcoholic beverage market, some practitioners agree upon the fact that there is brand loyalty where beer and spirits are concerned, but not in the case of wine (O'Neil, 2006).

This is probably because each type of beer or spirits tastes the same, while in the case of wine, each vintage is different. Consumers who usually prefer wine are more open to try new types of wine. For the, the experience of wine drinking does not resume to simply socializing or enjoying the effects of alcohol. Basically, they drink wine for the pleasure of drinking wine and for the surprises that each bottle has to offer. Also, wine drinkers are somewhat determined to try new wines frequently because the stores or the restaurants they go to are not always able to stock the clients' preferred types of wine.

Since college students are not particularly prone to exercising the art of wine drinking and are more interested in the social dimension of alcohol consumption and on its effects, they concentrate more on consuming beer and sometimes, distilled spirits.

The brand loyalty in the case of beer among college students depends on a series of factors. For example, they are loyal to one or several brands of beer because they know what to expect, they know what they are getting when they purchase that product. They do not drink beer in order to experiment or to try new things. Therefore, it is better for them to drink something they are used to Also, some of them are loyal to some brands because their name is shorter and easier to pronounce. This is particularly helpful in crowded bars, with very loud music, when it is easier to order a common brand of beer, with a short name that the bartender can easily understand.

The availability of the brand in case is also a factor of great influence in the case of college students. They orient towards brands of beer that can be found anywhere. They focus on brands of beer that are more common to most consumers. This is because vendors stock great amounts of such brands, instead of other brands that may be of higher quality, but consumers do not favor these brands.

Another aspect that must be taken into consideration when trying to determine the brand loyalty level of college students on the alcoholic beverages market is represented by the fact that college students are a category of buyers that are very price-sensitive. Their incomes are quite low, and they have significant expenses, with school, accommodation, and others.

As a consequence, most of them will focus on cheaper brands of alcohol. Furthermore, even if they are loyal to some brand for a while, there is a very good chance that they would switch to another brand if offered a lower price or more attractive promotional strategies.

In the case of college students, brand loyalty can mainly be related with price and availability. At this age and in these circumstances, it is quite unlikely that college students as consumers will become loyal to a specific brand of beer because of what the brand stands for, or for other values expressed by the company in case.

They tend to be more loyal to a small number of brands of alcoholic beverages that have an accessible price for them are easy to buy, and the buyers know what to expect from these brands.

As a consequence, one cannot speak of true brand loyalty in this case, but of a contextual one.

As mentioned above, there are several types of brand loyalty. Also, there are several types of consumer among college students, which behave differently in relationship with different types of alcoholic beverages and in accordance with other factors that refer to the purchase cycle.

The fact that the alcoholic beverages market is a free one in certain states has a significant impact on the industry in comparison with the rest of the states. Given the fact that there are many producers on the market, with several types of produces, there is high differentiation on the market.

High differentiation of the products is one of the determinants of brand loyalty. The high differentiation of products in combination with the high frequency or the low frequency of the purchase, and in accordance with the type of consumer that makes the actual purchase leads to different types of brand loyalty that will be presented in the following sections.

High differentiation associated with high frequency

This is one of the most common situations regarding alcohol consumption in free states among college students. Given the market circumstances, there are numerous types of alcoholic beverages on this market, and they can be easily accessed. Also, as mentioned in previous sections, a great percentage of college students are binge drinkers. This is further translated into high frequency of purchase.

In this case, if the individual in case plays the role of the purchasing agent, it means that behavioral-emotive brand loyalty is produced. As the primarily consumer of the brand, the college student in case will orient towards a brand that he feels affection or compliance towards.

In other words, he will repeatedly purchase the brand that his friends and peers usually like. In this situation, a very important role is played by image attributes, rather than by utility ones. This is particularly useful for marketers and advertisers, because the situation allows for them to focus on these aspects in their attempt to attract customers and to develop loyalty among them.

If the individual in case plays the role of the choice maker, the brand loyalty will be an evaluative-emotive one. This type of brand loyalty is not very common for products like alcoholic beverages, especially in the case of beer. However, it can be developed in the case of more expensive distilled spirits brands. The consumer in case, a college student with limited financial means, is very attracted by a particular brand of whiskey for example, a brand with tradition on the market.

That particular brand suggests that consumers that choose this brand have a certain status in the society, or at least in the group in which the consumer in case is part of, or would like to be a part of. But the college student, although he would like to buy that brand, cannot afford it, therefore aspires to it and to the status that the consumption of such a brand would offer.

If the individual in case plays the role of the user, the brand loyalty in case will be a behavioral-evaluative-emotive one. This is the most complex types of brand loyalty, and also the most common one, towards which marketers aspire. In the case of college students and the consumption of alcoholic beverages, this type of brand loyalty translates in the fact that the consumer repeatedly purchases the brand that best satisfies utility needs, combined with behavioral and emotive ones.

In other words, the consumer is satisfied with the brand in case, he considers that the price is affordable enough, and also the price is in accordance with the quality of the product, and other utility attributes of the product satisfy the consumer. Also, the brand provides a satisfactory social status for the consumer and his peers.

In the case when the consumer plays all the three roles, the brand loyalty will also be a behavioral-evaluative-emotive one.

High differentiation associated with low frequency

The situations above are applied in the case of heavy drinkers, college students that often abuse alcohol. But in the case of college students that consume alcoholic beverages within what are considered to be normal limits, their purchasing behavior is different, leading to different types of brand loyalty.

If the individual in case plays the role of the purchasing agent, one will observe an emotive type of brand loyalty. This means that the consumer in case will only take into consideration his emotional tendencies, and no evaluation will be performed. Experience is also left aside from this purchasing decision.

For example, such a brand loyalty can be expressed by nondrinkers towards a particular brand of beer because they like some imagery associated with the brand. Or, drinkers may like a certain type of beer because someone in their family or in their group of friends or peers likes it. This is where stereotypes play a very important role. This information is useful to marketers and advertisers, because they can use such stereotypes and direct them towards a customer segment that does not usually represents a main target for the product in case.

If the individual in case plays the role of the choice maker, one will observe an evaluative brand loyalty. This type of brand loyalty does not involve any behavioral or emotive tendencies. The consumer in case will develop brand loyalty only to brands that satisfy his utility needs, as evaluated by the consumer. This type of brand loyalty can be developed by persons that are not consumers or buyers, but express their evaluation towards a brand used by someone they know.

If the individual in case plays the role of the user, the brand loyalty that he will express will be an evaluative-emotive one. As mentioned above, this type of brand loyalty characterizes consumers that aspire towards a brand that they cannot currently afford. But this does not stop them from being loyal to the brand in case.

This category of customers can be exploited by marketers on medium term and on long-term. Given their adhesion to the brand in case, such consumers will make extra efforts for achieving the brand they aspire to. This means there is great potential for such consumers to influence others into following the same purchase behavior.

In cases when the individual in case plays all three roles, the brand loyalty expressed by the consumer will be an evaluative-emotive one.

Brand loyalty in state monopolies

The states in which the government exerts its control on alcohol consumption are: Alabama for distilled spirits, Idaho for distilled spirits, Iowa for distilled spirits, Maine for distilled spirits, in Maryland the situation varies from one region to another, Michigan for distilled spirits, Mississippi for distilled spirits, Montana for distilled spirits, New Hampshire for wine and distilled spirits, North Carolina for distilled spirits, Ohio for distilled spirits, Oregon for distilled spirits, Pennsylvania for wine and distilled spirits, South Carolina for distilled spirits, Utah for beer, wine, and distilled spirits, Vermont for distilled spirits, Virginia for distilled spirits, Washington for distilled spirits, West Virginia for distilled spirits, Wyoming for wine and distilled spirits.

The fact that alcohol consumption in these states is controlled by the state has a significant influence on the consumption and buying behavior, and especially on brand loyalty in these states. This applies to all customer segments, and college students make no exception.