Loyalty is a favourable outcome not a market imperfection. It is a sensible buyer strategy developed by consumers in order to balance risk and reward a brand based on positive experiences.
The fact that consumers have a limited bouquet of TV channels in a category is notable. When there are no switching costs and where generic content is the same across , why would people restrict their repertoire and show loyalty?
Similarly in the case of automobiles , even at the most expensive end of the spectrum , there are very high levels of repeat purchases. Considering that there are typically 30+ brands to choose from and given that purchases are spaced apart by a number of years where several platform and model changes have occurred , it is again surprising that despite changing buyers life circumstances and needs the odds that someone chooses the same brand again is high.
Clearly there is a behavioural preference and loyalty at play. Buyers restrict their purchases to a small repertoire of brands. People pick from a small sample set and that’s why favourites reign supreme again and again.
It is ironical that even for buyers considering only a single brand, the process is termed a high involvement purchase ! #brand #marketing