In which stage of brand loyalty is a customer purchasing an alternative brand when her favorite cereal is out of stock?

The correct answer is that the scenario describes brand preference. In this stage of brand loyalty, customers recognize and have a favorite brand but will choose alternatives when their preferred option is unavailable. This indicates that while they have a strong affinity for their favorite brand, they are still willing to consider other brands when necessary.

Brand recognition occurs earlier in the customer journey, where the customer is merely aware of the brand but doesn’t have a strong preference yet. Brand loyalty suggests a deeper commitment where customers consistently buy the same brand regardless of availability, reflecting a higher level of attachment than seen in the scenario. Brand equity pertains to the value of a brand based on the perception in the marketplace, which isn't the focus in this particular case of purchasing behavior. Thus, the situation described correctly aligns with the concept of brand preference.