Research Proposal. Affecting Customers Loyalty.

5045 Words Nov 4th, 2008 21 Pages
ACADEMIC YEAR 2007 – 2008

Grade: ………………

Course No. & Title: Marketing Research
Programme of Study: Postgraduate
Semester: Spring
Instructor’s Name:
Assignment due date:
Title of the Assignment: Research Proposal. Affecting Customers Loyalty.

Student’s Name :

Chapter 1.
Affecting Customers Loyalty. Background and Justification for Selection of the Topic.
In today’s competitive markets services and service companies within the same industry are becoming increasingly similar. Differentiation through the delivery channel (i.e. delivery of services against payment) is difficult. A growing number of service companies have embarked on a journey of positioning through the communication channel (i.e. advertising and
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1970). Exit implies that the customers stop buying the company's services while voice is customer complaints expressing the consumers dissatisfaction directly to the company. Customers' exit or change of patronage will have an impact on the long-term revenue of the company. Customers may be loyal due to high switching barriers or lack of real alternatives. Customers may also be loyal because they are satisfied and thus want to continue the relationship. History has proven that most barriers to exit are limited with regard to durability; companies tend to consider customer satisfaction the only viable strategy in order to keep existing customers. Several authors have found a positive correlation between customer satisfaction and loyalty (Bearden and Teel 1980;Bolton and Drew 1991; Fornell 1992; Anderson and Sullivan 1993). Based on the future discussion, the following two hypotheses are proposed:
Hypothesis 1: Factors such as satisfaction, trustworthiness, importance of relationship and image have a positive influence on loyalty.
Objective 1: To indicate any relationship between loyalty and such pshycological factors as satisfaction, importance of relationship and others.
Hypothesis 2: The relevance of factors affecting loyalty depends on the levels of loyalty of customers.
Objective 2: Define and dwell upon the levels of loyalty of customers, examin them.
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