According to Oliver (2010);
Customer loyalty defined as- “A deeply held commitment to rebuy or re-patronize a preferred 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”.
This definition has clearly depicted that customer loyalty is directly related to rebuild or re-patronizes a service due to having a better experience in the preceding consumption. Here, the effects of promotion and marketing of others may turn into ineffective on the loyal customers (Uncles et al., 2003). Loyal customers usually prefer brands and once the loyalty has been established, based on the brand value
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Building loyalty with key customers has become a core-marketing objective shared by key players in all industries catering to business customers” (Bansal and Gupta, 2001). Thus, it is directly evident that, for longevity of the success of business customer loyalty is now indispensable. Customer loyalty would increase the positive image of the business and in turn the profitability (Al-Rousn, 2010; Singh, 2006).
Marketing cost is a major expenditure for the firms. In order to attract new customers the firms need extensive marketing strategies and tool, such as; cost of advertising, the cost of a promotional campaign, the cost of personnel selling to entertain new prospects, and cost of inefficient dealings during the customers’ learning process and so forth (Graham, 1995). In contrast, for loyal and older customers efficiency and effectiveness achieved due to less marketing issues. The loyal clients usually do not much care about the product or service promotion rather they focus on the caliber. Thus, through maintaining quality and satisfaction the firms can retain the loyal customers for long time and thus, the loyal customers ensure the sustainability of the
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Some major types of loyalty are known as; multi-brand loyalty, behavioral loyalty, attitudinal loyalty and true loyalty (Al Rosen, 2010; Chi, 2005). Among these types, multi-brand loyalty is less focused on one particular brand or services; rather these types of customers prefer verities, they mostly switch between several brands. This type of customers are not loyal for one particular brand, thus they do not bring larger revenue for the business (Al Rosen, 2010). In other words these types can be described as “Un-loyal” customers or having low loyalty for particular business or firm (Griffin and Herres, 2002; Chi,
Purchase behavioural helps companies to develop an effective strategy for their products. Figure 4 categorises the purchase behavioural with profitability. Furthermore, attitudinal loyalty is a significant factor for the future profits of companies. They want to know exactly which customers have high relative attitude and other crucial facts. The customers’ attitude analysis is presented on figure 5. Companies are using CLV (customer lifetime value) as it is a method, which can combine all elements and data of customers’ loyalty, behaviour, attitude and help them to increase their profitability (Kumar and Shah, 2004). Gregg is a model o business which loyal and returning customers is vital part of its stability and future development. However, Greggs is a hospitality brand, which has specific characteristics as far as sales and customers’ range are concerned. It has more than 1600 brunches on high street and urban areas. The majority of the brunches are aiming to serve local and tourist customers. Thus, they want returning customers for the local scale operations and for the tourist they are interested more for big and success brand advertisement for
Loyalty, it comes in different shapes and is generally seen as a highly regarded human trait. It is defined as a commitment to consistently purchase preferred products or services over and over again (Oliver’s, 1999 p.34). A Loyalty Program (LP) is a marketing exercise designed to reward returning buyers (using discount cards; points cards; club cards / discounts; gifts and exclusive services). Some argue that LPs are only made to make consumers dependent on specific brands. This essay provides evidence that LPs mean to deliver benefits to consumers covering a multitude of their needs beyond mere financial advantage. Further, the paper argues that the choice to join or leave LP ultimately rests with the end users. Frequently multiple brands within one category of products are supported simultaneously.
This shift in focus repositions the lens squarely back onto the consumer as a strategy to build more valuable, deeper brand relationships. With this paradigm shift, comes the necessity of a sharper focus upon loyalty: What it consists of and how it can be shaped.
The phrase Brand loyalty refers to consumers sticking with a brand out of feeling of commitment for that brand. "Consumers attachments to certain brands are so powerful that this loyalty is often considered as a product attribute in and of its self”(Solomon). Solomon’s quote, is showing the attachment that people feel when they purchase a product for a long time, and are still very happy with it, is a huge plus in its self. People enjoy the luxury of not having to scavenge around the supermarket in search of a new product. Brand loyalty is also very attractive to the companies since they enjoy their work being easier, and less costly. It is less expensive and less time consuming to keep old customers, rather than spend money and time advertising towards new ones. "Furthermore, companies with faithful customers tend to be less susceptible to economic down turns or new competitors"(Harrell).
Brand Loyalty: By keeping long term vision in mind to regain customer loyalty and overall brand image by retaining current customer...
True customer loyalty is not only about getting a customer to consistently choose your brand over another. It's for that same customer to always believe (and then go tell the world) that your company's brand has no equal!
Consumers with brand loyalty are indifferent with too many choices in shopping as they tend to ignore other brands and chooses product from their preferred brand.
In order for a brand to fall under the category behavioral loyalty customers must not only be brand loyal, but also feel that it is the only brand out there that has the product they need (pg.96). For example, if the product
In 2012, Boonying Kongarchapatara & Randall Shannon in their paper, ‘Investigating the Effectiveness of a Loyalty Program Through the Relationships of Program Design, Implementation, and Customer Loyalty’ emphasize on the factors which affect the customer loyalty programmes through their design and implementation phases.
4. Bloemer, JoséM M., and Hans DP Kasper. "The complex relationship between consumer satisfaction and brand loyalty." Journal of economic psychology 16.2 (1995): 311-329.
Sionade Robinson and Lyn Etherington (2006), defined customer loyalty as an emotional and attitude-based preference resulting in the behaviour of spontaneous personal recommendation or purchase. Duffy’s law (2011), stated that what matters is not how satisfied you keep your customers, it’s how many satisfied customers you keep.
To ensure that the Product or Service developed by the Company will ensure Satisfaction among the customers, the company needs to understand and implement the needs of its customers while developing products or services, allowing them to have a loyal customer database. Any company can only be successful in a business environment if they have loyal customer base that will continue to purchase from a particular brand as compared to purchasing products or services from competitors as long as it satisfies their requirements and
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
There are many description and theory of customer loyalty. We should research and compare which theory is suitable for our business.
Lawfer, M., R. (2004). Why customer come back: how to create lasting customer loyalty. United State of America: Career Press.