Literature Review On Customer Loyalty

Over the decades there were tremendous amount of challenges for every business. Customers have more knowledge, they have more options, and they have higher expectations. Customers are more informed with the humungous development in technology. Having more options in front of them, expectations has surpassed in retail industry. Loyalty is a customer having faith that your organization’s product or services offered is the best for them. It is the process of tapping the buying pattern of customers in a store based on their preferences. Customer loyalty is significant because it is economical to retain the old customers rather than acquiring new customers. So, organizations employ loyalty programs which reward customers for their repeat business.

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.

Hospitality Management is a difficult and competitive market, and any lack in customer service can result in defecting customers or the termination of a relationship between a customer and a service provider. In this paper we will look at Hilton a company that has continually ranked amongst the top ranking hotels and continues to improve. Hilton’s customer service ranks as one of the top hospitality providers in the United States. We will look at the history of how Hilton came to be the name brand it is today and some of their process the used to narrow the customer service gaps such as Hilton Honors, the Hiltons Reservation Customer Care, and RESMAX. We will look at how they look at how Hilton manages the customer expectations through the use of employee training and their decreased the customer service gap through employee retention. We will also look as how Hilton co-partnered with Citibank in order to offer its Hilton Honors member additional benefits in order to keep in line with the customer service that the customers have come to expect.

Allowing to Jarvis & Mayo (1986) the hospitality business must pursue market-share gains, rather than market-growth gains. Capturing new customers is expensive because of advertising, promotion and sales costs, and start-up operating expenses. (Reichheld, 1996). Once customers have made a decision about a brand or an organization and they are satisfied, they can become loyal customers (Assael, 1991). This means that they will make purchases again in the future and recommend a brand or organization to friends (Dick & Basu, 1994). Loyal customers are not so susceptible to negative information about a brand or organization as non-loyal customers (Ahluwalia, Unnava, & Burnkrant, 1999) and they choose the products over others, even those with better features or lower prices (Assael,

Loyal customers are excessively important to any business, and businesses spend great amount of their time, energy and money analyzing and captivate those customers. However, the usual definition of a loyal customer that we consider is a high spending customer, and that definition is imperfect. Marketing to customers — based on true loyalty — requires more: complicated measurement, better spend data, and considering that a regular customer is not the same as a loyal customer.

There are no studies which touched on the topic of “loyalty” to hotel brand in Riyadh City in the Kingdom of Saudi Arabia but there are some studies which had discussed the “loyalty” to a brand in other production sectors. For example, the study of (Salh, 2010 ) as it aimed to study the psychological and social factors and its effect on loyalty of mobiles’ buyers to the brand as the study concluded that there is relation between the psychological and social factors of user and mobile brand. The study of (Hasen, 2017) aimed to know the factors which lead to prefer a specific brand and concluded that there are several factors of preference of a specific brand such as quality, price, specifications and mental image of the brand. The study of (Al-Zabi, 2013 ) strived to examine the effect of concepts relevant to the nature of purchasing decisions, mechanism to make these decisions, methods of its evaluation, explain the types reference groups which affect purchasing decision of consumer of automotive goods and identify the types of effect (informative and standard) and degree of their effect on purchasing decision of consumer of automotive goods. The study of (Al-Khusroom, 2011 ) aimed to know the effect of perceived difference and perceived quality of on consumer’s loyalty to a brand. The study concluded that there is big effect of perceived difference which is created by brand in consumer’s mind in his loyalty towards this brand. Also, the perception of

Customer Satisfaction and Loyalty has become, throughout years, not only an important marketing tool but also an integrated part of a company structure. Competition has become fierce and competitors in a market are trying constantly to prove that their products and services are better than others. Therefore, being able to satisfy and retain customers will definitely create a competitive edge over competitors but will also reduce cost while creating long term relationship with customers.

• Membership open to all customers • Clerk will swipe discount card if member forgets or does not have card • Each member receives the same discount regardless of purchase history • Firm has no information base on customer name, demographics, or purchase history • There is no targeted communications directed at members

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

Increasing number of companies put the strategy of customer loyalty into focus. Marketers from different countries come to an agreement that combining customer development with customer retention can bring long-term impact on brand performance (Kotler, 2003). In specific, price premium, brand awareness and market share closely associated with brand profitability count on customer loyalty. For instance, loyal customers are inclined to pay more for a certain brand because of its inimitable value for them; there is no doubt that no alternative can instead. Similarly, as repeated purchase of loyal customers, market share will be optimistic for the

Customer loyalty is an important element for the companies for being successful in the competitive world. Therefore, companies always try to increase the number of loyal customers and the degree of their customers’ loyalty. For obtaining this, the elements, which cause a decrease in customer loyalty, must be learned carefully. The reasons for the decrease in customer loyalty are: (Coroglu, 2002)

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

The purpose of this essay is to discuss how established models and theories can be implemented by management in the travel and tourism industry to develop a successful customer service strategies which in turn influence loyalty behaviour. The creation of loyal customers is the key to the growth of any business and the way to satisfy customers. It also explains the best practice for resolving potential conflict situations to maintain quality customer relationship and effective selling. Quality customer service is an asset to the growth of a company. Quality customer service is more than offering a smile, a handshake, and “have a nice day.” It is an interaction between customer and provider in which the performance of the provider meets or exceeds the customer’s expectations. The provider’s attitude and performance shape customers’ perceptions” (Spicuzza, 1992, p. 50). This essay will talk about the customer satisfaction and standards such as product knowledge and professionalism and the skills vital to a tourism workplace.

among customers and reap more profits in return. Like (Shoemaker, 2003), Noone, Kimes and Renaghan (2003) agree that revenue management from the customers affects customer relations and loyalty. Scanty evidence is available to demonstrate that hotel companies incorporate considerations about management of revenue in the process of customer relations management. As for Noone, Kimes and Renaghan (2003), prior to adopting and implementing the CRM and revenue management integration, the hotel companies should first identify the areas of customer relation that qualify for investment. It is essential for such hotels to quantify the value of their loyal clients before investment in them is made (Storbacka, 1994). The CRM greatly strategy determines the proper revenue management strategy to be adopted by the hotel. The authors conclude that further research work is required in the area of revenue management’s future development, particularly in establishing the financial implications of the integration program of CRM and

How to obtain customer loyalty through customer retention strategies in Small and Medium sized hotels? (A case study on