Customer Loyalty Essay

This literature review explores the relationship between customer satisfaction and customer loyalty and how do these theories affect businesses in hospitality industry. Hence, there are many researchers that have studied about these two concepts that will help people to better understand about the two theories.

7. Consumer loyalty needs to be increased: - The main recommendation is to increase the good relationship with the consumer at all. The reason is that if there is a good relationship between the organisation and the consumer then the benefit will be to the organisation as good relationship sometimes helps to reduce expense on the other factors like huge expense that is done on the advertising of the brand of the organisation. In Asian markets, areas such as relationship building and a ‘benefit-the-country’ attitude are sometimes more important than investing enormous amounts on advertising (LaForet and Chen, 2012).

Loyal Customer can mean a consistent source of revenue over a period of many years. However, this loyalty cannot be taken for granted. It will continue only as long as the customer feels they are receiving better value than they would obtain from another supplier. There are many approaches companies can usefully adopt to measure loyalty and many companies keen to help with various tools and techniques. A large number of retailers have become so focused on customer basket analysis, profitability and driving down operating costs that they have forgotten to listen to the real voice of the customer. Indeed in a Bain Company survey in 2005, 80% of companies believed they were delivering a superior customer experience; only 8% of their customers agreed.

Customer loyalty is the key objective of customer relationship. Loyalty only occurs when there is a positive attitude to a brand perceived to be different. The individual market segments should be targeted in terms of developing customer loyalty. Loyalty is not just repeat buying but also involves the attitudes of customers to a brand. When a customer feels that the product or service was highly satisfying they develop loyalty. If they do not feel as if the product and service was not satisfying there might negative effects.

4. Brand Loyalty: Aaker (1996) defined brand loyalty as the attachment of a customer to a brand. According to the attitudinal perspective, brand loyalty is defined as a deeply held commitment to re-buy a preferred product or service consistently in the future despite situational influences and marketing efforts having potential to cause switching behavior (Oliver, 1997).From the behavioral perspective Odin, Odin and Valette-Florence (2001) suggested that the customer who buys the brand systematically is considered loyal to this brand. Authors may differ in defining the brand loyalty but they all agree on the importance of focusing on loyal customers and trying to increase their number and their loyalty. Managers know that loyal customers do buy more with willingness to spend more, are easier to reach and act as an advocate for the brands’ firms (Chaudhuri and Holbrook, 2001; Odin, et al., 2001; Oliver, 1997).

Different authors have given many ideas, perceptions about those factors according to their experiences. Henceforth, an explanation about each factor and the relationship of each factor with the brand loyalty based on prior studies can be shown as

The goal of this module is to explain the concept of customer loyalty, its significance, its benefits, and the factors that affect customer loyalty. Here it is explained why customer loyalty is beneficial for a business and how it helps in profitability. This module discusses the types of customer loyalties, which ones among them are profitable and which are not, as well as the methods to turn non-profitable loyalties into profitable loyalties. It also shows the reasons why a business should invest in customer loyalty programmes. Some statistics are shown which explain why some companies who invest in customer relationship programmes profit more than their rivals do. The factors that affect customer loyalty are described. It also points out the principles that a company needs to follow, to reap the benefits of customer loyalty.

In the end, loyal customers drive the company to better work conditions, better working environment that can lead to better internal relationships among employees and values sharing. Loyal customers can change the mind-set of a corporate culture and they could also change the culture

A service Organization must know the concepts of customer loyalty.Understanding customers need in buying a product and the right approach and proper communication in dealing with customer is important to become them loyal.Customer loyalty have different types and degrees of loyalty that must recognize by any service firms.One type of customer loyalty is Monogamous loyalty and the second type is Polygamous loyalty. There is also behavioural and attidunal aspects.According to Keiningham et al.(2005)on his book loyalty myths.The earth we live in is Polygamous loyalty and not monogamous loyalty.Monogamous loyalty is where customers shops in different retailers such as Coles,Woolworths,Safeway and

Customer loyalty can be difficult to define, but it is imperative to running a successful business (Yahalom, 2010). Consequently, a challenge that every business faces when trying to resolve customer conflict is the often disconnect between the policies and practices of the business and that of what customers perceive to be important (Saddoris, 2015). In today 's highly digital world, with the click of a button and help from tools such as Twitter, Facebook and Yelp, a dissatisfied customer that feels a business is not providing quality products or services could wreak havoc on that business or its sales (Yahalom, 2010).

In the current competitive environment, customers have been provided with a wide range of choices to satisfy their needs and demands at the global level. It means that customers’ bargaining power has increased dramatically in the present business environment. It not only adds pressure on enterprises to develop new customers, but also increases the difficulty for enterprises to retain existing customers. Therefore, the development of customer loyalty is often the challenges for enterprises although its importance has been generally accepted. This research attempts to add implications for enterprises to develop and maintain customer loyalty.

With more and more suppliers in the market place, customers have more diversified options regarding products, prices and shopping places. Therefore, marketing departments gradually come up with ideas on retaining current customers which brings in the concept of customer loyalty. Customer loyalty is the ongoing process of customers buying products or services from a specific company (Gustavsson, 2005). For most companies, retaining customers costs less than attracting new ones and also reduces expenses on promoting products. In order to reach this aim, the organization constantly increases customer loyalty by carrying out loyalty programs to reward the remaining customers for repeated transactions (Donnelly, 2009).

Brand loyalty occurs in every service brand or product and creates a desirability around the brand in the consumer’s eyes to invite them to want to make repeat purchases. Always turning to that brand to satisfy a need trying to be fulfilled. Whether it’s a product or service that is used or a product that is consumed brand loyalty exists, Brand loyalty is built on the basis of every interaction a customer has with your service. The key to brand loyalty is to always meet or surpass expectations with every customer encounter.

Using customer profiles to manage device displays, content and other features such as videos, images, etc.

In this Literature Review, the author will focus specifically on the definition of brand loyalty, how brand loyalty has developed and finally, how to manage and measure the loyalty