Customer Lifetime Value In The Pharmaceutical Industry

Most successful businesses today actively develop loyal customers who buy their brands again and again. After all, getting current customers to buy more is much easier than constantly seeking new customers. Think of three brands that you buy on a regular basis. Why do you stick to these products? How could another company dislodge you?

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Thus, companies seek to strengthen customer loyalty. Brand loyalty is considered to tilt the consumer to purchase the package / product specific brand (Jacoby and Chestnut, 1978). Later, Oliver (1997) defined loyalty as "a deeply held commitment to REBUY or repatronize preferred product / service consistently in the future, thereby causing repetitive same-brand or same brand set purchasing, despite situational influences and marketing activities, which would result in causing switching behavior "(p. 34). This conceptual definition covers two different aspects of loyalty: the behavioral. This is consistent with an integrated conceptual framework proposed by Dick and Basu (1994), that customer loyalty is regarded as a "power relationship between the relative position of the individual and repeat

“The idea of giving consumers choice was often a plot to keep them spending money on things that did not actually need to be replaced” (Cloer, 2013). This specific quote is an example of how people in modern day society tend to view things in an increasingly materialistic

This analysis includes two articles focusing of the paradox of choice, “More is More: Why the Paradox of Choice Might Be a Myth” by Derek Thompson and “The Paradox of Choice” by Barry Schwartz. "More Is More: Why the Paradox of Choice Might Be a Myth" started off with an example on jams. Researchers presented many types of jams to attract shoppers. In one experiment six different types of jams were presented for the shoppers, the other experiment presented twenty-four types of jams. There were much more sales for the twenty-four types of jams than the six types of jams. Derek Thompson, the author, went on to explain that having options make us more confident in the choices we make. Another research was conducted, where participants were asked if they would buy the only TV that was at a Best Buy store, even if it was what they were looking for. Only nine percent of the participant said they would buy it, because they want to compare that television to other televisions to see if they are getting a good deal.

Do to The companies cozy and intimate space, Trader Joe’s sells twice as much per square foot than its competing supermarkets. By carrying only four thousand products instead of its competitor’s size of twenty five thousand to forty five thousand, the company has limited the customer’s choices by choosing quality products and believing that “less is more”. According to Swarthmore professor Barry Schwartz, author of The Paradox of Choice, giving people too much choices can result in paralysis. Research shows that the more options that you offer the less likely people are to choose any.

A. Marketing merely reflects the needs and wants of customers. B. Marketing shapes consumer needs and wants.

So in order to maintain the consumer loyalty with the brand it is necessary to make a good relationship with the consumer as it is the first key of building good image of brand in the mind of the

According to the article, “The Irrational Consumer: Why Economics Is Dead Wrong About How We Make Choices,”

Healthcare organizations want to leave a positive influence with their patients. Leaving a positive influence on the patients will make them want to return to your health care facility in the future and utilize your services. A healthcare organization needs to build loyalty within their patients. “Reflecting a broader trend in business metrics, healthcare organizations are increasingly building customer loyalty (in their case, patient loyalty measures) into their existing satisfaction surveys (Blizzard, 2002).” A customers’/patients’ loyalty is very essential when it comes down to describing a health care organization’s outcomes for their financial means. Actually, health care organizations that are not observant to loyalty could possibly endanger

Schwartz (University of Maryland, University College (UMUC), 2006), in his presentations argues and suggest that with the abundant increase in today’s choices and the pursuit to

Giving a variety of different choices it increases a person’s freedom. In his Ted Talk Schwartz gave an example of this when he said if there was only one pair of jeans they were of bad quality then it is the world’s fault. If there are a variety of jeans to choose from and you bought one of poor quality then it is your own fault. His

Experts Keith and Gubellini argue that consumers are fickle, and that they rarely know what they want in the market environment whereas experts Bovée and Thill counter that argument stating consumers are experts in the market environment. In order to be an “expert” in the market sense, one must have rationality. Rational customers are those who know what he wants and seeks to make the most of available opportunities and resources given the scarcity constraints he faces. The term, “rational” in the traditional economic sense means the customer already knows everything there is to know about his needs and desires, the products in the market, etc.; however, that definition is nonsense. For the truly rational customer, there is a trade-off between the value of additional information and the cost required to obtain it. However for those irrational or fickle in the market setting, the result is that all decisions are based on satisfaction rather than optimizing. Furthermore, there is that “rationality” not in the sense of how one determines what to buy in the market, but in terms of what one wants. This is not to say that having rationality when purchasing goods and services is bad. The truth of the matter is that most people do not actually go in a market with this mindset, and thus consumers are fickle because they base their decisions on their desires and tastes.

a. What process elements do you believe are critical to ensure your organization understands the target market and its needs today and remains knowledgeable and informed about trends as your business grows and technology and market forces change the market? Are there specific tools (e.g. CRM, big data tools) that should be part of your firm’s toolkit? If so, explain what value they bring, how they fit into your process, and way they are worth the investment of time, money, and mind share during the critical startup phase.

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.