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Customer retention and satisfaction research proposal
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The cut throat competitive era has put every company on its guard. They are well aware of the fact that customers tend to be very disloyal. The focus on the customer retention and loyalty has been increased because companies are realizing the dire importance of customer loyalty and they are focusing more in retaining the customers (Hill & Alexander, 1996).
According to Kumar and Shah (2004) the brand loyalty is one of the most widely studied marketing concepts by the researchers and it is also the most implemented marketing initiative by practitioners. The two authors relied upon the past studies to review important findings related to customer behavior and attitude in the context of customer loyalty and drew their conclusion on their findings. They highlighted the relationship between the customer loyalties to the financial growth of the company and brought forward a conceptual framework for building, developing and sustaining loyalty and consequently ensuring financial growth as well.
Taylor, Celuch and Goodwin (2004) found out through their research on the customer loyalty of industrial heavy equipment that brand equity and trust are consistently the driving force behind both behavioral and attitudinal forms of customer loyalty. They put forth the suggestion of integrated marketing strategies to build brand equity and trust in their customer base which will eventually lead to customer loyalty. This research however has limitation of being conducted on the sample of industrial customer which might not work so well with the general customers.
Brand loyalty can be roughly defined as an attitude and feeling of attachment and affection towards the brand which can ultimately benefit both the customer and the company. The brand ...
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...obile Service Customers”Journal of Product and Brand Management, 14/1, PP. 65-75
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In light of an evolving market, faced with new competitors, and after a careful analysis of their current customers, the Vanguard Group (hereinafter referred to as “Vanguard”) realizes it must rethink its entire marketing strategy. However, in order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their customers continuously demonstrate toward their organization, they must now target the most profitable segment for them, and develop the best way to serve and delight these customers.
Introduction. Customer loyalty is basically defined as a deep held commitment to re-buy or re-patronize a chosen product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior (Oliver, 1997). It is a main driver for customer retention, which, in its turn, represents a basic force that accumulates a customer base for the company. As the experience suggests, the presence of the customer base is a valuable asset, because a lot of statistical data and marketing researches have proved that it is harder and much more expensive to acquire a new customer rather than retain an existing one. In this aspect, any business without a focus on customer retention is left on market’s mercy: any market movements will affect the sales in a more intense manner. There is also a risk that your competitor may eventually satisfy the existing customer’s needs and take away a part of your market niche. Moreover, customer loyalty gives a sort of discretion to the company’s R&D policy and marketing strategy: you can try to introduce different features to your products, experiment with different types of ads, and no matter what the results would be, — the customers will stay stick to your production line. Of course, an organization does not have an absolute control over the loyalty of its customers, bec...
Ninety percent of Canadians are enrolled in at least one loyalty program. Market research has shown that loyalty programs are growing to be very popular in today’s market. A loyalty program is a program offered by a company to customers, who make frequent purchases. Loyalty programs are of benefit to both the consumers and the business. The consumers benefit by receiving coupons, special access to sales and new products whereas the company benefits by gaining an abundance of knowledge about the consumers, through their purchasing habits. Loyalty programs have proven to be very successful for several companies such as Target, Starbucks, and Shoppers Drug Mart. The senior management in sales and marketing believe that initiating a loyalty program
...of brand equity in an organizational-buying context. Journal of Product & Brand Management, Vol. 6(6), pp. 428-437.
The research focuses on the use of different branding strategies, particularly brand equity, in order to retain brand loyalty. China is the fastest growing consumer market in the world, the study of Chinese consumer’s perception, attitude and purchasing behavior will assist in realizing the value of branding and it is important to implement the knowledge when striving to understand any particular subject. When the subject is put to practical use it is better to comprehend and find a logical conclusion. Every research has its own impacts and thus, it can be used as an increment of facts and ideas. Brand equity and loyalty highly contributes in obtaining a major edge in increasingly competitive markets therefore, it is essential to understand the importance of branding and how firms market themselves to build brand equity and attain brand loyalty. The primary purpose of this research will be to investigate the relationship between brand equity and brand loyalty and their significance as it is a crucial part of a firm’s marketing activities and how the research will be conducted using pertinent methodology and appropriate research paradigm along with its proposition.
Companies use a collection of brand equities to represent their products in the market (Voolnes, 2012). Brand equity refers to the commercial value that is derived from the perception of consumers on any given brand name of particular products in the market as opposed to the product itself. Ataman (2003) notes that the effect to the consumer is in the brand name and not the product itself. Companies use logos, trademarks and a collection of other symbols to present this information to the customers. The use of these symbols is meant to try and capture the customer mindset so that they can be thinking about the company products at all times through the items they possess at home (Estes, Gibbert, Guest, & Mazursk, 2012). This can well be explained by use of the customer-based brand equity model that brings together the requirements for a publicly renowned brand in the market.
Brand equity is crucial as it implies that the brand itself is an important (financial) asset and can be calculated in financial terms (Barwise, 1993). This is particularly important in the luxury sector as from a behavioural viewpoint, brand equity can differentiate a company or product from other competitors, adding to their competitive advantages based on non-profit competition (Aaker, 2004). The model created by Aaker (1992) states that there are four categories of brand equity; Loyalty, Awareness, Perceived Quality and Associations. Luxury branding relies on a high level of perceived quality, loyalty and associations, although potentially less so for awareness, as it is thought that consumers choose luxury brands based on their exclusivity and as such the more the awareness that surrounds the brand, there is potential for it to become less valuable (Phau and Prendergast,
3] Keller, K.L. (1993) Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing 57, 1–22.
Simon, C.J., & Sullivan, M. W. (1993). “The measurement and determinants of brand equity: A financial approach”. Marketing Science, 12(1), 28-52.
The brand equity is intangible, but represents the perception of a brand from customers, sales can represent the effect of a certain marketing strategy over a short period, but the brand equity is not about short-term revenue (Ha, 2011). Companies seek to maintain at all time a high level of brand equity when expending, marketers in the sportswear industry monitor the level off the factors to understand where their brand stands and where they should focus according to the results for a long term performing brand (Sriram, Balachander, & Kalwani, 2007). These metrics have created new data for the marketers such as the Customer Lifetime Value (CLV) which is the current value of future cash flows of a customer during his relationship with the company (Stahl, Heitmann, Lehmann, & Neslin, 2012). The CLV is highly related with the customer loyalty, when expanding their marketing strategies, brands need to retain their base of customer, the physical evidence of it are the loyalty programs (Steinhoff & Palmatier, 2016). Customers are more likely to be loyal to a brand if they own a loyalty card, particularly in the retailing industry, it develops a sense of belonging from customers (Beck, Chapman, & Palmatier,
In the following of this essay, the importance of branding and brand loyalty would be discussed in theory firstly, and further analysis would be made on them separately, supporting by examples of Virgin Atlantic airway. Finally, a conclusion will be given out.
• Etzel, Michael J., Walker, Bruce J., & Stanton. William J., Marketing, 11th ed., Irwin/McGraw-Hill, 1997, p.242.
Loyalty customers gain the more cost advantage and benefit, this resist competitors very hard to match. Promoted cost bind to loyal customers to sustainable growing.
Overall impact of brand on consumer behavior is moderate Brand name, brand loyalty, after purchase service, verification of the product; symbolic mean...
Lawfer, M., R. (2004). Why customer come back: how to create lasting customer loyalty. United State of America: Career Press.