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Factors Behind Brand Switching in the Fast-Moving Consumer Goods Industry

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Factors Behind Brand Switching in the Fast-Moving Consumer Goods Industry

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Brand switching is often described as changing customer buying habits in which long-term

customers opt to switch to other appealing brands. Studies prove that companies and organizations

alike have 60-70% chances of selling a product to their client, whereas closing a deal with a

prospective customer makes about 5-20% of chances to sell their product. On the other hand, the

opposite of brand switching is brand loyalty. A thin line runs to separate the two entities even though

they are both inversely affected by similar factors. This is according to the well-compiled study, “What

Is Brand Switching: Definition, Tips - Definition,” (n.d.). This literature review develops a conceptual

framework that will explore some of the main factors affecting brand switching, such as price and

value, quality and performance, and finally brand reputation and trust.

First, price and value have a correlated relationship that affects brand switching. Research has

proven that about 80% of customers are concerned with three central views: best value, price seeking

and price aversion. This is according to Tellis & Gaeth (1990). This well-compiled research argues that

customers need the satisfaction of the best value at their best price at their most convenient priced

brand, which is referred to as price aversion in business. To add to this, a recent and correlated study

by Giningroem et al. ( 2023) suggests that a price increase factor that affects customer satisfaction, as

stated by Tellis & Gaeth (1990), is more of a dominant influence to pull off brand switching compared

to consumption behaviour. Hence, adherence to such could lead to decreased sales and detrimental

effects on the brand. In addition to this, research by Lam et al. (2004) supports this argument. The

comprehensive study mediates the relationship between product quality and price. It further expounds

that an increase in quality of service and product should accompany a price increase. It is conclusive

that, failure to adhere to these fragile balances could face almost certain brand switching.

Secondly, quality and performance have been a thin line. companies tread on to evade brand

switching. In efforts to clear pricing, Tellis and Gaeth (1990) investigate the correlation between price

and quality. In the highly argued topic, the study reveals the best quality of a product, seemingly

striking for the best performance mitigated price issues. Nonetheless, given quality, about a stiff 89.9%
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would correspond to the best quality products, giving a high standing of performance. However, such

products gathered less customer satisfaction, according to Keller (2014), who gathered that a standard

product in architectural design, quality material and a flexible pricing approach would attain both buyer

and seller satisfaction. The study further argued that it is virtually only possible to manage and

maximize the value and equity of a brand with a clear, compelling brand architecture strategy that

would compromise and satisfy brand transactions effectively.

Brand reputation and trust encompass the most significant weight towards brand switching.

Positive brand reputation and trust ,play a significant role in brand switching. Problematic incidents

such as product recalls, scandals or controversies can erode trust and prompt consumers to switch to

brands they perceive as more reliable. This is according to Budur (2018), who further emphasizes the

critical role social media marketing plays in relation to reputation and trust. Moreover, this is further

expounded by statistics gathered from Sanny et al. ( 2020). Its study moves to deduce that 56.1%

purchase instantly,53.6% gather information and data, and 65.4% compound the market trust through

the use of social media platforms like Instagram. From a strategic point of view, both types of research

exemplify using social media platforms to maintain high regard for reputation and trust. However,

compiled data also displayed a high number of cases related to fraud, scam and data piracy from

sources that appear to be legitimate sources. According to Breitenbach et al. (2018), this research

invests more in the food and beverage industry. Such cases are detrimental to brands, which further

amplify brand switching. As social media has had a heavy impact on building brand reputation nand

trust,it has also seen business empires fall. According to The 7 Biggest Social Media Fails of (2017)

business empire run into losses due to petty mistakes on social media which turned out bigger than

anticipated. The article outlines major business such as; United Airlines,Dove, and Pepsi. To divulge

from the intended idea would be an understatement in the case of Dove. The detrimental effects on this

company were as a result of it attempting to re brand as by reshaping its shampoo bottle,which was a

great idea as it seemed on paper (7 Biggest Social Media Fails of 2017) . However ,this caused a
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backlash from many women as this indirectly confirmed that there was a ‘best’ or ‘right’ body type. It

is conclusive to deduce that brand reputation and trust is a fragile cup that if willed incorrectly could

easily break.

In conclusion, the literature review has developed a conceptual framework that has explored

some of the main factors affecting brand switching, such as price and value, quality and performance,

brand reputation and trust, and finally, availability and convenience of the brand products. The sources

reviewed provide complementary perspectives on factors behind brand switching in the fast-moving

consumer goods industry contexts. The findings underscore the need for continued research, policy

development, and technological innovation to fully realize the benefits of these approaches in handling

brand switching.

References;

What is Brand Switching: Definition, Tips - Definition. (n.d.). SendPulse.

https://sendpulse.com/support/glossary/brand-switching

Tellis, G. J., & Gaeth, G. J. (1990). Best Value, Price-Seeking, and Price Aversion: The Impact of

Information and Learning on Consumer Choices. Journal of Marketing,54(2), 34–45.

https://doi.org/10.1177/002224299005400203
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Giningroem, D. S. W. P., Setyawati, N. W., & Hadita. (2023). Trend of Consumer Brand Switching

Health Supplement Products during the Covid-19 Pandemic: Triggered by Price Increase and

Consumption Value. East Asian Journal of Multidisciplinary Research, 2(1), 195–204.

https://doi.org/10.55927/eajmr.v2i1.2675

Lam, S. Y., Shankar, V., Erramilli, M. K., & Murthy, B. (2004). Customer Value, Satisfaction, Loyalty,

and Switching Costs: An Illustration From a Business-to-Business Service Context. Journal of

the Academy of Marketing Science, 32(3), 293–311. https://doi.org/10.1177/0092070304263330

‌Keiningham, T., Aksoy, L., Bruce, H. L., Cadet, F., Clennell, N., Hodgkinson, I. R., & Kearney, T.

(2020). Customer experience-driven business model innovation. Journal of Business Research,

116(C), pp. 431–440. https://ideas.repec.org/a/eee/jbrese/v116y2020icp431-440.html

Keller, K. L. (2014). Designing and implementing brand architecture strategies. Journal of Brand

Management,21(9), 702–715. https://doi.org/10.1057/bm.2014.38

Budur, T. (2018). Analytic Hierarchy Process to Evaluate Corporate Image, Trust, and Switching Cost

of GSM Operators: A Case of Kurdistan Region of Iraq. International Journal of Social

Sciences & Educational Studies, 5(2), 241–250. http://eprints.tiu.edu.iq/54/

Sanny, L., Arina, A., Maulidya, R., & Pertiwi, R. (2020). Purchase intention on Indonesian male skin

care by social media marketing effect towards brand image and brand trust. Management

Science Letters, 10(10), 2139–2146. http://growingscience.com/beta/msl/3779-purchase-

intention-on-indonesia-males-skin-care-by-social-media-marketing-effect-towards-brand-

image-and-brand-trust.html

Breitenbach, R., Rodrigues, H., & Brandão, J. B. (2018). Whose fault is it? Fraud scandal in the milk

industry and its impact on product image and consumption – The case of Brazil. Food Research

International, 108, 475–481. https://doi.org/10.1016/j.foodres.2018.03.065

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‌The 7 Biggest Social Media Fails of 2017. (2017, May 30). Entrepreneur.

https://www.entrepreneur.com/science-technology/the-7-biggest-social-media-fails-of-

2017/294925