The Relationship Between Customer Loyalty and Customer Satisfaction

3723 Words Mar 2nd, 2011 15 Pages
The relationship between customer loyalty and customer satisfaction

John T. Bowen

University of Nevada, Las Vegas, Nevada, USA

Shiang-Lih Chen

University of Nevada, Las Vegas, Nevada, USA

Keywords

Customer loyalty,
Customer satisfaction,
Database marketing, Hotels

Abstract

Develops and implements a method for hotels to identify attributes that willincrease customerloyalty. Otherhotels can replicate the methodology used in this study. The study makes the uses of the hotel’s database to draw samples for both focus groups and a mail survey. Based on 564 completed surveys from hotelguests, the authors found the relationship between customer satisfaction and customer loyalty was non-linear.
The authors use the
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Loyalty

Customer loyalty is difficultto define.In general, there are threedistinctive approaches to measure loyalty:
1 behavioral measurements;
2 attitudinal measurement; and
3 composite measurements.

The behavioral measurements consider consistent,repetitiouspurchasebehavior as an indicator of loyalty. One problem with the behavioral approach is that repeat purchases are not always the result of a psychological commitment toward the brand(TePeci,1999).
For example, a traveler may stay at a hotel

[213] John T. Bowen and
Shiang-Lih Chen

The relationship between customer loyalty and customer satisfaction

International Journal of
Contemporary Hospitality
Management
13/5[2001] 213.217

becauseitisthe mostconvenient location.
Whena newhotelopens acrossthestreet, they switch because the new hotel offers better value. Thus, repeat purchase does not always mean commitment.

Attitudinal measurements use attitudinal data to reflect the emotional andpsychological attachment inherentinloyalty.Theattitudinal measurementsare concerned withthesenseof loyalty, engagement and allegiance. There are instances when a customer holds a favorable attitude toward a hotel, but he/she does not stayatthe hotel(Toh et al.,1993).Aguestcould hold a hotel in high regard, recommend the hotel to others, but feel the hotel was too expensive for him/her to use on a regular basis. The above approaches measure loyalty uni-dimensionally. The third