Customer Loyalty Case Study

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In this section, theoretical background regarding the current issue will be given. In this case will be explained the customer metrics: customer satisfaction, customer retention and customer loyalty. All these metrics are very important terms of sales and profitability of the company. (J.Best, Market Based Managment, 2014)

CUSTOMER SATISFACTION

Customer satisfaction is a key customer performance metric for any customer-focused organization. The percentage of customers who are “very satisfied,” as opposed to simply “satisfied,” and the percentages who are dissatisfied have a significant impact on profits. (J.Best, Market Based Management )
Many marketing literatures have focused on the improvement in customer satisfaction. There are different …show more content…

Traditionally, customer loyalty is divided into two components; the first component is based on behavior and the other on attitudes (Time varying effects in the analysis of customer loyalty, 2011). It is considered as a crucial point for many business organizations (Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program, 2009). Customer oriented companies will attract and develop loyal customers (Chang & Chen, 2007), since it is a vital element for the existence of operating companies (Chen & Hu, 2010). The success of companies their revenues are guaranteed by customer loyalty, which can be influenced by the style in management (Customer retention, loyalty, and satisfaction in the telecommuncation market, 2001).
Customer loyalty is the consumer continues purchasing attitude toward the merchandise or services of a specific company (Advances in Consumer Research, 1977) (Lutz, R., 1986).
However, Bhote (Beyond Customer Satisfaction to Customer Loyalty: The Key to Greater Profitability, 1996) believed that if consumers are satisfied with a firm’s commodities or services, they would want to promote that firm positively through word-of-mouth. Consequently, competition in the service industry and marketing strategies must be designed to retain and not acquire customers (Dwyer, F.R. Schurr, 1987).
Parsuraman (Journal of Retailing, 1988) believed that consumer behavior, intent to repurchase, and recommendations through positive word-of-mouth should

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