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Factors influencing customer loyalty
Factors influencing customer loyalty
Factors influencing customer loyalty
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Introduction
ShopKo is a purchasing agency that acts on behalf of buyers and sellers to distribute particular commercial production such as baby formula, health care products, luxury etc. local and international. Since the difference of sales price national, and the limitation of some specified products in some districts, ShopKo is gaining more costumers’ favor. Owing a mass of buyers and enjoying consumer loyalty in different countries is the strength of ShopKo. However, some potential crises are forcing ShopKo to seek and adopt new channels to improve efficiency under the microenvironment and massive potential crises.
ShopKo’s potential crises were mainly caused by the ineffective and inefficient communication with its customers and staffs. Because of geographical differences, management in ShopKo is difficult to bring into effect. Additionally, the non-contractual relationship with customers makes ShopKo’s operation difficult.
This report is of enormous importance to the senior managers in the ShopKo as well as the competitors alike in the purchasing industry. The purpose of this report is to examine ShopKo’s current situation, outline potential crises, and recommend a series of possible course of actions to improve such potential crises. The argument presented in this report is how an efficient communication can be used to improve ShopKo and what types of efficient communication is beneficial to improve the status quo.
Overview of Problems
The U.S President Abraham Lincoln stated, “Public sentiment is everything, without it one is nothing and with it one is everything.” Staying aware of the things that consumers’ want, ShopKo improved its public reputation and translated it into benefits. However, ShopKo without realizi...
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...University, Manhattan, USA & Accenture, Global Business Solutions.
Jay G, Stan S, Steve M, & VP Sun Microsystems Oracle Corporation (2006). Systems Manufacturers: Challenges to Enterprise Systems Manufacturers. Redwood Shores. U.S.A.
Macaulay, S. (1996). Non-contractual relations in business: A preliminary study. Buckley, Peter/Michie, Jonathan: Firms, Organizations and Contracts. Oxford, 339-358.
Picot, A., Ripperger, T., & Wolff, B. (1996). The fading boundaries of the firm: the role of information and communication technology. Journal of Institutional and Theoretical Economics (JITE)/Zeitschrift für die gesamte Staatswissenschaft, 65-79.
Randhawa, G. (2007). Human resource management. New Delhi: Atlantic Publishers & Distributors.
Wells, V., & Foxall, G. R. (2012). Handbook of developments in consumer behavior. London: International Thomson Business.
According to Irmak, C., Block, L. G., & Fitzsimons, G. J Journal of Marketing Research, published in (2005), XLII (November)
IKEA is one of the huge successful retailers in the world whereby has 280 stores in 26 countries by the year 2010 and had been visited by 580 million shoppers. IKEA has elegant designed products with low priced. IKEA’s sale has increased from 4.4 billion in 1994 to 23.5 billion in 2010. The author has attached the sales report in appendix 1 and 2. The founder was Ingvar Kamprad whereby he is still a dynamic advice-giver of IKEA despite his age reached 80. IKEA had influence worldwide market widely with a good strategic marketing tool. IKEA products are cheaper 30%-40% compare to other retailers. Besides that, Asian market convinced with their economical western product that has complete household products. In this chapter, the author had explained on the overall IKEA’s history. In the next chapter, had explained on four important macro elements followed by the macro elements effect towards the organization, and also given suggestions to manage the organization according to the macro elements.
In the third chapter, “Attack by Stratagem,” businesses learned that the source of strength is not the size of the business, but unity, along with the five fundamental factors. In American busine...
Solomon, M.R. (2004). Consumer Behavior: Buying, having, and being. (6th Edition). New Jersey: Prentice-Hall Inc.
The sources of IKEA’s successful entry into the furniture retail business were IKEA’s low prices and resilience. First, Ingvar Kamprad, the founder of IKEA, began selling furniture in his mail order company. Then he was faced with a social problem and turned it into a business opportunity. Since 1935, furniture prices rose faster than any other retail good at 41%. Kamprad responded by creating a line of furniture priced so that all could afford it. The present furniture cartel attempted to stifle Kamprad’s growth and success. The cartel banned Kamprad from selling directly to the consumer at shows, then managed to persuade the manufacturing cartel to stop supplying Kamprad with furniture. Kamprad responded by supplying elsewhere and now could charge even lower prices. IKEA’s success was due largely to low prices and Kamprad’s ability to capitalize on bad situations.
HILLIARD, J. And O’SULLIVAN, J. (2012) The Law of Contract [Online] 5th Ed. Oxford: Oxford University Press. Available from - http://books.google.co.uk/ [Accessed: 2nd January 2014]
The Swedish company, IKEA, is currently the largest furniture retailer globally. Due to this, IKEA is prone to many problems and backlash from competitors and consumers. Also, IKEA has reached a point in its lifecycle where it can either continue to grow into maturity, or begin the slow transition of decline. In order for IKEA to prevent this from happening, the company needs to address a few problems. While IKEA’s model works in Europe, their model does not work in the U.S. Also, IKEA needs to utilize its low cost structure to its fullest potential. The final problem which IKEA is facing is their lack of online presence. In order to compete in the 21st century, every company needs to have the ability for consumers to purchase products online and have the item shipped to them.
McDaniel, C., & Gates, R. (2007). Marketing research essentials (6th ed.). Noboken, NJ: John Wiley & Sons.
As mentioned above, this article deals with the common pitfalls supply chain management deals with in terms of information and operational problems. The first problems we see are based on communication between sites. The pitfalls that communication creates are not having a metrics for the supply chain, insufficient knowledge about the meaning of customer service, incorrect information about the delivery method, and not enough information regarding the databases used among companies.
Mooij, M.de. (2004). Consumer Behavior and Culture, Sage Publications, Page 102, Page 119, Page 274, Page 275
Shiffman, L.G. & Kanuk, L.L. 2010. Consumer behaviour. 10th ed. Upper Saddle River. NJ: Pearson Prentice Hall.
Purchasing process is the process of buying the right material, at the right quantity, at the right moment, at the right price and from the right supplier ( Heinritz et al, 1986). It can also be defined as the way an organisation behaves towards it suppliers, as suppliers are the pillar of strength for all organisations at large. According to We...
Grover, R & Vriens, M 2006, The handbook of marketing research: Uses, misuses, and future
The concept of grocery stores and supermarkets industry is an idea that has been created in order to make easier human`s life. According to the study “The Evolution of the Supermarket Industry From A&P to Wal-Mart” by Ellickson, who explains that a century ago people had to jump from one store to another store in order to get different products such as milk, meat, bread and other products. In addition, in the article “Understanding Groceries Industry” by The Reinvestment Fund, they state that back in a day the concept of grocery stores was created based on the owner`s store needs. Later on, as the development of the society and the standards of customer needs increased, the owners of the grocery stores started to be more focused on their customer needs. Also, the study of “Understanding Groceries Industry” shows that the supermarket and grocery stores industry is in their mature stage as they have developed an extensive and solid customer service.
Schiffman, Leon G; Kanuk, Leslie Lazar; Hansen, Håvard (2008): “Consumer Behaviour A european outlook” Pearson Education limited