Example Of Customer Loyalty

According to Lee, Lee & Feick, (2001), customer loyalty has been measured as the long-term choice probability for a brand or as a minimum differential needed for switching. Several earlier studies identified customer loyalty in several ways such as attitudinal approaches focused mainly on brand recommendations, resistance to superior products Narayandas (1996), (as in Parvez, 2005). repurchase intention Cronin & Taylor, (1992) and willingness to pay a price premium Bitner & Zeithaml,( 2003), define service loyalty as a specific attitude to continue in an exchange relationship based on past experiences. Their definition implies that levels of service loyalty can be assessed by attitudinal measures such as the ones based on intentions to re-patronize

People in the field have used both attitudinal and behavioral measures to define and assess customer loyalty (Zeithaml, 2000). Loyalty, from an attitudinal stand point, implies a specific desire to continue a relationship with supplier and provider (Reza and Rehman, 2012). This means that a customer is loyal to a brand or firm if they have a positive and preferential attitude towards it. Whereas behavioral loyalty is when a customer repeatedly buys from the same company, (Reza and Rehman, 2012) thus the customer is faithful to the company. Oliver (1997) defined customer loyalty as “a deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior. According to Ahmed and Moosavi (2013) “brand loyalty is the customer’s willingness to stay with a brand when competitors come knocking with offers that would be considered equally attractive had not the consumer and brand shared a history.”Rahman, et al., (2010) and Deng, Lu, Wei, Zhang (2010), expressed that same notion. Furthermore, Reza and Rehman (2012) note that customer loyalty represents the repeat purchase and referring the company to other customers. They also stated that customer loyalty is a figure that may be measured directly by measuring the actual repeated sales to customers. Additionally, due to intense competition in the market place, businesses have increased efforts to implement the customer retention strategy in order to maximize the lifetime value of customers (Boshoff and du Plessis, 2009).It is important to note that Cheng et al. (2011) proposed that it is cost-effective to maintain existing customers than obtaining new ones. To this the authors proceeded to state that the cost of