One of the drawbacks to a firm that benefits from brand loyal customers is that it suffers from increased long-term marketing costs giving the brand sponsor less flexibility in marketing budgets because loyal customers expect certain marketing events to occur.

Question

Quizplus · Accepted Answer

Brand loyalty typically reduces long-term marketing costs as loyal customers require less persuasion to make repeat purchases, allowing for more flexible marketing budgets.

One of the Drawbacks to a Firm That Benefits from Brand