Nowadays, almost all markets are characterized by a high level of competition and difficult to predict the dynamics of development. At the same time, consumers are demanding on products, well informed about its properties and availability of similar offers from other companies and have many ways to choose the best product or service. Being one brand buyers, they can easily switch to competitor's products if they offer more favorable conditions. Because of the rapidly changing environment and the unpredictability of its behavior, it is difficult for companies to expand into new markets and attract new customers. In this regard, the most important aspect of each business is long-term relationships with all counterparties. Some of them are consumers. …show more content…
Loyalty has its special significance in marketing. Loyalty can not be bought, it can only be earned. So, Reichheld (2005) considered customer loyalty as an indicator of the company's performance. His research shows that the increase in loyal consumers by 5% leads to an increase in profit by 25-100%. At the same time, a low loyalty rate reduces the efficiency of the company's economic activity by 25-50%. Moreover, he proved that retaining customers costs organizations several times cheaper than attracting new ones [11].
One of the key factors affecting customer loyalty is the degree of their satisfaction from previous calls to the company. Customer satisfaction is the best indicator for determining the likelihood of the consumer making a second purchase. Moreover, a satisfied customer will most likely recommend the company's products to their friends, relatives and friends, which is a powerful marketing advantage.
A clear understanding of the mechanisms for creating and maintaining customer loyalty to the brand will tell managers the right way to organize the work of the staff and the company as a whole, since the committed customer not only prefers the company's products to competitors' alternatives, he also tends to spend 50% more on the company's products than the random one [
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3) Identify and describe the factors that affect loyalty.
4) Propose a model that reflects the influence of factors on loyalty.
5) Conduct a survey of visitors to the Radisson hotel network on the Chinese market.
6) Assess the consistency of the developed model.
7) Develop a set of recommendations to increase customer loyalty to the Radisson hotel network.
To improve the structuring of the material, this work will be divided into three main chapters. The first chapter will deal with the theoretical aspects of loyalty. It will describe the main types of customer loyalty, loyalty programs, as well as factors that affect loyalty. It should immediately be stipulated that the work will consider factors related to the company, and not to a specific consumer or client group, such as age, gender, marital status and so on. In conclusion of the first chapter, a model for creating and maintaining customer loyalty to the brand, based on the influence of factors, that will be presented. The second chapter will be devoted to the analytical part of the study. In this section, the specifics of the hotel industry, the features of branding in the hotel market, the brief description of the Radisson network, and the state of the Chinese market of hotel services will be determined. The third chapter will describe the study. It will contain a description of the Radisson hotel, the research methodology, the
My group previously visited the Sheraton Hotel for our first interview with the front desk manager and it went very well. We decided to keep with the same hotel for our next interview, but due to a last-minute cancellation from the housekeeping manager we were not able to complete the interview. Due to this situation, I will be talking about a whole different hotel - G6 Hospitality. The name G6 Hospitality refers to the hotel brands – Motel 6 and Studio 6. I chose to G6 Hospitality because it is a well-known company that I wanted to know about more in-depth. From all my research, I have gained a lot of insight on what G6 Hospitality is all about.
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...
This argument is supported by Solomon (1992) with him discovering that purchase decision that is based on loyalty might become a habit which leads to brand equity. On the other hand, Aaker (1991) described brand loyalty as consumer’s mentality toward a brand that drives them to consistently purchase the same brand. As per Yoo (2000), brand loyalty has the ability to affect consumer choice to buy a same product or brand and cease to switch to other brands. Subsequently, Yoo (2000) reasoned out that brand loyalty is the root for brand’s value. Aaker (1991) additionally contended that brand loyalty is a fundamental component used to assess brand’s value due to the fact that brand loyalty can increase profitability. The consumers who are loyal to a brand will not assess the brand, instead they simply purchase it unquestionably based on their experiences with the brand (Sidek, Yee, and yahyah, 2008). The loyal customers bring advantages to a firm by cutting down costs, encouraging easier strategies implementation, providing time for responding to competitions, creating a barrier to entry, increasing sales volume, protecting firm against detrimental pricing and to retain rather than seek for customers (Aaker 1991; Rundle and Bennet, 2001). Loyal customers are also less incline to change to another brand simply because of pricing factor and they purchase more frequently compared to their non-loyal counterparts (Bowen and Shoemaker,
The company has established good relationships with most of its customers which has assisted it to create high level of brand and customer loyalty
Close to the Customer: Customer satisfaction is very important throughout all the roles that the business plays. Many companies forget about their customers, whereas successful companies have an obsession with their customers. Excellent product quality and reliability will make a satisfied customer. Great service will keep the customer coming back.
Who is the hotel’s target market and what services do they use to attract and satisfy this market?
Both from the customer and the company point of view, each customer interaction is part of an iterative learning process (Ballantyne, 2004). Further, Yau et al. (2000) advocated that the relationships between business firms and its customers have been constantly encouraged as successful business practices worldwide. The strategy of relationship marketing is of high relevance particularly in the service industries because of the intangible nature of service and their high level of customer interaction (Al-Hersh, Aburoub, & Saaty, 2014). Relationship marketing is defined as the process of engaging in proactively creating, developing and maintaining committed, interactive and profitable exchanges with targeted customers (Haker, 1999). Furthermore, Gronroos (1990) asserted that relationship marketing is to establish, maintain, enhance and commercialise customer relationship so that the objectives of the parties involved are met which can be done by a mutual exchange and fulfillment of promises. Moreover, the implementation of the relationship marketing concept at the operational level refers to relationship marketing orientation (Hau & Ngo, 2012). Relationship marketing orientation indicates the firms’ philosophy of doing business concerning relationship building by propagating developing trust, empathy, bonding, and reciprocity between a firm and its customers (Sin et al., 2005a, b; Tse et al., 2004). Trust is an important element for a successful relationship between the firm and its customers (Berry, 1995). First, trust is an essential component for a successful relationship between the firm and its customers (Berry, 1995). Trust It refers to a willingness to rely on an exchange partner in whom one has confidence (Morgan & Hunt, 1994). Empathy, as a dimension of business relationship, enables the two parties to see the situation from
Strive to earn customers’ long-term loyalty by working to deliver more than promised, being honest and fair to provide exceptional personalized service that creates a pleasing business experience.
As mentioned by Fournier and Mick (1999), and Keiningham, Goddard, Vavra and Iaci (1999), customer retention, customer satisfaction and customer delight are considered as the amount of concentration given to the target customers at the every step of value chain which is called Customer Value Chain Involvement (CVCI). Thus, by achieveing customer loyalty, satisfaction and retention and customer delight businesses can get bigger profit margins and market share (Prahalad and Ramaswamy, 2003).
Nowadays, the era of loyalty includes customer loyalty, employee loyalty, management loyalty, community loyalty, and principles. Many studies have shown that satisfaction is not the ultimate key to success and profit. In fact, market concepts that have emphasized this issue have not recognized it anymore, but today, only customers who feel a sense of belonging to the organizations are regarded as profitable and long-term capital (Haghighi Kafash et al, 2010). Loyalty is a moderating variable between service quality and customer satisfaction and economic performance. Loyalty is the extent to which customers want to retain their relationship with a supplier, and it is usually the case that to what extent
A further definition tackled the customer loyalty by Jones and Sasser, (1995) cited by Angelos (2008) as: "a feeling of attachment to or heart for a company’s folks, products & services". Additionally, Baker – Prewitt (2000), customer loyalty is "is the ultimate objective of customer satisfaction ". Accordingly, mobile service providers are trying to gain competitive advantage in order to strength the customer loyalty which become a key issue to them. Nowadays , companies tries by all means to increase the customer satisfaction due to the fierce competition in the marketplace and raise the perceived service quality in a way to gain customer loyalty in
As the marketing consultant for a hospitality management company, it is often my responsibility to define target markets for various restaurants and hotels. In fact, I have been tasked with creating a fictional hospitality operation, to utilize as an illustration to define a marketing strategy and target market. In addition, I must identify and analyze the product life cycle of an organization that has been in business for a minimum of twenty-five years.
Marketing and branding, two of the most common used words in the contemporary world, is closely linked to each other without doubts, but the importance of branding to successful marketing is enquired to measure in term of the question. In fact, various people have different ideas on marketing and branding. For most of people, or customers, the two are normally combined in their minds or even equal to each other. For example, people could raise Apple as the answer for both questions of "what is good branding" and "what is successful marketing". In fact, they are two separate topics on academic, and branding is just one of the numerous marketing activities apparently. However, the perception of consumers might be a good guide to answer the question.
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.
From the study it is clear that people often purchase branded products since they are aware of the brand performance or perhaps they have a good past experience about the brands. This makes customer’s become loyal with the specific brand.