It seems that Hershey is competitive in many areas and one in particular is \"cu

Question

It seems that Hershey is competitive in many areas and one in particular is "customer loyalty." Indeed, next to Hershey, Nestle stands out, a bit surprising--and I am wondering if you think the fact that both Nestle and Hershey have been around so long and their brand is solidified into America's culture, customer loyalty wavers? That being said, leaders at Hershey cannot grow complacent--as competitors are always trying to gain advantage, and with a new generation coming into power, this "loyalty" that you and I might feel could be overlooked--simply because a product is more appealing, better marketed, or cheaper. Thoughts?

Explanation / Answer

The type of products which both hershey and nestle sells are low involvement products. In low involvement products, brand loyalty is low. Customers try new products in these categories very easily as there is nothing much to loose. They need to invest less amount to purchase a product in this industry. If it's a bad experience with a new product, they can easily shift to their previous brand in next purchase. Also, these products don't last longer. Therefore, the bad experience is also very short lived. Therefore, customers are ready to take the risk with new products. If the experience is good, they can purchase the new product again.

For example, A company ABC has launched a chocolate syrup. A person, say Maria has been using Hershey Syrup since last 3 years. On her visit to a local store, she found syrup of ABC and found it attractive. She might decide to try it once. The syrup would last for a month and even it is low cost investment.

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