Section l: Literature Search.
Many companies today have come to the conclusion that customer loyalty is not effortlessly achieved since customers have so many options and alternative to choose from. Customers are the decision makers of where and when to shop. The research in this chapter will focus on what factors or elements impact customer’s loyalty. According to Harvey Thompson (2004), there are numerous factors that influence customer’s loyalty. One of these factors is the price of the products rather than the perception of value. Another factor is the attribute of the product and how well it caters to the customers wants and needs. Service is another element in which the customer measures their experience and evaluates whether they
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Customers continue to be loyal to grocers who deliver a relevant, fresh, and customized shopping experience.
Communication: Communication is an art in which retail industry have a great need to master it in order to maintain customer loyalty. According to Klie Leonard (2013), it is a necessitate to keep a continuous line of communication between the customer and the supplier. Customer engagement may lead to customer loyalty for engaging a customer during their visit to the store can make customers feel welcome and valued. As Leonard illustrates (2013) companies should instruct employees to actually listen and comprehend what the customer are saying and then decided what to do with that information. Similarly, Thompson (2004) mentions a distinctive competency that a company should possess is listening to customers and providing what they want. This allows for the customer loyalty to begin, cultivate and as long as it’s maintained, the customer will continue to return to experience the nurturing effect that has grown among them. Leonard (2013), makes it a point to express that a company should also keep all promises made to their customer this, in turn, will result in trust.
Price: According to Docters, Reopel, Sun, and Tanny (2003) personal experiences is an entity which customers will recall numerous times during their life span. Nevertheless, in the mind of the customer
Firstly, to start with it is important to understand what is Customer loyalty? Loyalty can be explained as an attitudinal or behavior. According to Mark, Grahame & Kathy (2003): “Loyalty is something that consumers may demonstrate their interest to brands, services, stores, product categories. Here, we use the term customer loyalty as opposed to brand loyalty; this is to emphasize that loyalty is a feature of people, rather than something inherent in brands (Mark, Grahame & Kathy, 2003).” To explain it further Customer loyalty is something where consumer or customer likes or prefer to buy
For the business technique of Woolworths grocery store, consumer loyalty takes a critical part to choose the accomplishment of Woolworths. Consequently, this report will investigate its history and piece of the pie in Australia. In any case, it additionally incorporates a consumer loyalty review to gather thoughts and proposals of clients. Likewise, this report will concentrate on breaking down the aftereffects of the consumer loyalty overview to expand the strength of improvement of Woolworths. The primary constraint of this review is that Woolworths ' clients are found wherever in Australia, however this overview is looked into in Manly, Sydney with just 30
Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.
Today’s retailer are looking for ways to compensate for increasing competition, price pressure, and operational cost. A customer satisfaction strategy is a top focus, when retailers can enhance their knowledge of the customers across the retail channels, they can strengthen customers’
Oliver (1990) as cited by Dickinson, states that customer loyalty as a totally commitment to rebuy or repatronize a desired product/service constantly in the future, in that way causing repetitive purchasing of same-brand or same brand set, in spite of situational influences and marketing efforts of having the potential to cause the changing of behaviour.”
Simply, long-lasting customer loyalty is acquired when a customer is willing to come back to the organization from times to times to enjoy the products or services offered despite the availability of other organizations who offer the same kind of products or services. This is hard to acquire with just mere marketing. In fact, marketing creates an image for an organization to grab consumers’ attention the first time consumers catch glimpse of the organization. However, keeping them coming back requires the involvement of more factors, mostly the quality of the products or services.
The satisfaction of customers would effect on a company 's success in their financial performance and customers ' loyalty. The satisfied customers mean people who are willing to purchase products, visiting the store or services repeatedly (Siu and Cheung, 2001; Raphel, 1999; Reichheld and Sasser, 1990; Srinivasan et al., 2002). Trying to understand how customers think and what make them behave in the way they do. For the convenience store industry to increase sales is how to make customer have more reason come to the store and extend their staying time. Therefore, increasing consumers’ loyalty to the store has been a directorial challenge to retailers. To gain the in-depth understanding and empirical estimation of customers loyalty behaviour
In the initial part of study, it has elaborate meaning of loyalty. Now, this section has presented literature on effectiveness of loyalty on customer retention. Loyalty program often considered as value sharing or enhancement instrument. Sabol, 2002) addressed that value enhancement function is important because of ability to provide superior value to customer relationship and retention. Loyalty program provide value to consumer in two stages. (Bolton, 2000), has explained stages in brief that in the first stage program points are issued to customer and the second stage when customer redeemed those points. Though these points value don’t have any practical value unless customer redeemed them. However, according to the study by (Machanda, 2004) showed that it has important psychological meaning to customer. Points accumulation can gives customer feelings of benefits and these benefits are able to give customer positive value perception. It is because customer can redeemed those values later for rewards. At redemption stage, customer receives both economic and psychological value. Thus it enhances appreciation and recognition of
The term “Brand Loyalty” also called as “Customer Loyalty” has been in the business industry since a very long time as a model to be used in conducting business. But it wasn’t until the mid to late 1900’s that the term was actually given its due importance by making it a vital part of advertising and marketing. The concept of marketing evolved substantially from being focused on sales of a product to having Customer satisfaction to be its focal point. Studies further revealed that there was a positive correlation between customer satisfaction and Brand Loyalty.
A similar research Loyalty in Retail: A strategic success or a management failure states that successful loyalty programs do not exist in vacuum. The loyalty cards provided by the retailers are compared to the hammer. Just as a hammer does not build a house, a loyalty card does not build customer loyalty. Customer loyalty has been used as a strategic approach in increasing customer value and thus providing a good customer experience but it doesn’t work alone. A brand value has to be created in which involvement of the staff, quality of the products, knowledge about the customers etc. are required.
Customer Loyalty is a customer who will repurchase from the same service provider whenever possible, and who continue to recommend or maintains a positive attitude towards the service provider. The loyal customers are less likely to switch because of price and they make more purchases than similar non-loyal customers (Reichheld and Sasser, 1990). Loyalty customers will also help to promote and share knowledge with their friends about the service provider. They will provide strong word-of-mouth, create business referrals, provide references and serve on advisory boards. The loyal customers are served as a "fantastic marketing force" by providing recommendations and spreading positive word-of-mouth, those partnership-like activities are the most available advertising that the company can get (Raman, 1999). Loyal customers increase sale volume by purchasing a wider variety of the products and by making more frequent purchases. The loyal customers had more purchasing services than non-loyal customers (Bowen and Shoemaker, 1998). And other researchers have theorized that service encounter satisfaction, customer loyalty and profitability are related (Zeithaml et al. 1996).
Research has indicated that brand attributes are viewed as important elements in a consumer 's decision-making. For example, Lau et al. (2006) in his article mentioned that there were seven factors that influenced consumers’ brand loyalty towards certain brands. The factors were brand name, product quality, price, Design, store environment, promotion and service quality. For the purpose of the study literature review will focus on the following identified factors of brand loyalty namely brand trust, store environment, service and quality.
Study the influence of Service Quality with product leads to customer loyalty in Telecom Sector (Ufone)
The relationship between customer satisfaction and brand loyalty has proven its role and importance in Management as well as in marketing. Throughout previous decades, Marketing researchers have acclaimed the advantages of satisfaction and loyalty, and have mentioned them as directories of an organizational competitive benefit. On the other hand, brand loyalty is one of the most important constructions in marketing, due to its final effect on customers’ repeated purchases, and in fact, those loyal customers who purchase repeatedly are
Regarding to her career choice, it is important for the author to know the factors that affecting customer satisfaction and loyalty in order to provide better service quality for the customers. Also, this is for substantial development in her future career path. These are the