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
Positive Risk Jonathan Poland

Positive Risk

Positive risk refers to the potential for achieving an outcome that is too good. While risk is often associated with…

Operating Agreement Jonathan Poland

Operating Agreement

An LLC operating agreement is a legal document that outlines the rules and procedures for a limited liability company, including…

Substitution Pricing Jonathan Poland

Substitution Pricing

A substitution price is the price at which a customer will choose to switch to a different product or service…

Early Adopters Jonathan Poland

Early Adopters

Early adopters are individuals who quickly adopt an innovation. Marketing and selling innovative products can be challenging as it may…

Organic Growth Jonathan Poland

Organic Growth

Organic growth refers to an increase in revenue that is generated through a company’s own efforts, such as marketing, innovation,…

Decoy Effect Jonathan Poland

Decoy Effect

The decoy effect is a cognitive bias that occurs when people make choices based on the relative attractiveness of options.…

Augmented Product Jonathan Poland

Augmented Product

An augmented product is a product that includes intangible benefits beyond the physical product itself. These intangible benefits may include…

What is Marketability? Jonathan Poland

What is Marketability?

The marketability of a brand, product, or service refers to its competitiveness within a market. It is the likelihood that…

Corporate Culture Jonathan Poland

Corporate Culture

Corporate culture refers to the values, beliefs, and behaviors that shape an organization and the way it operates. It is…

Content Database

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

Market Value Jonathan Poland

Market Value

The value of an asset or good in a competitive market, where buyers and sellers can freely participate, is known…

Product Differentiation Jonathan Poland

Product Differentiation

Product differentiation is the unique value that a product offers on the market. This value can come from a variety…

Fair Competition Jonathan Poland

Fair Competition

Fair competition refers to competition between businesses that is open and equitable, allowing all participants to compete on an equal…

Positive Feedback Loop Jonathan Poland

Positive Feedback Loop

A positive feedback loop is a situation where an initial change or input (A) leads to a further change or…

Life Skills Jonathan Poland

Life Skills

Life skills are essential abilities that enable individuals to navigate the complexities of daily life and achieve their goals. These…

Autonomous System Jonathan Poland

Autonomous System

An autonomous system is a system that is capable of functioning independently, without the need for human intervention. Autonomous systems…

The Importance of Lobbying 150 150 Jonathan Poland

The Importance of Lobbying

Lobbying is the act of influencing or attempting to influence the decisions of government officials, legislators, or regulators on behalf…

Knowledge Work Jonathan Poland

Knowledge Work

Knowledge work refers to work that involves the creation, use, or application of knowledge and expertise. It is characterized by…

Salesforce Automation Jonathan Poland

Salesforce Automation

Sales force automation is a type of management tool that helps businesses automate and streamline their core sales processes, such…