The Relationship Between Customer Loyalty and Customer Satisfaction

There exist numerous marketing hypotheses and frameworks that aim to better understand why customer relationships, retention and satisfaction are so important. For example, marketers try to segregate the different types of customer loyalty, framing them under factors of ‘repeat patronage’ and ‘relative attitude’. Also, customer loyalty levels are ranked along a “loyalty ladder” that identifies the most profitable customers to whom the firm should target marketing strategies towards. Finally, customer satisfaction, a driver of loyalty, is summarised into a conceptual framework known as “customer response zones”. The firm has two major goals in mind when implementing this strategy. Freed (2014) states Qantas’s intentions to “…boost engagement with customers and revenue from its loyalty partners”. It aims to build a culture of engagement associated with positive and personalised experiences in dealing with the company.

From an organisations point of view, especially in the short term, it would seem more appropriate to concentrate on behavioural loyalty because this is reflected in sales behaviour. Such behaviour is easily measured compared to components of attitudinal loyalty and matches key managerial performance indicators. Attitudinal measures may also not reflect consumer’s actions when the consumer is confronted with real choice. However, from a longer term view and especially from a CRM viewpoint, it is also vitally important to measure attitudinal loyalty. Attitudinal loyalty is composed of commitment and trust in the brand and/or organisation which will have impacts on sales both in the short and longer term. This type of loyalty is more likely to be an indicator of the potential longer term relationships that will be possible with given customers. Attitudinal loyalty is also likely to have influence on word of mouth and customer advocacy which may lead to indirect impacts on longer term sales or on costs of servicing

This research proposal aims to address the several customer retention strategies implemented by the famous food chain restaurant, Mc Donald. Bearing in mind the increased significance of enhanced customer relationships, this topic is worthwhile to be examined for gaining an insight about the different tactics and strategies used by large organizations to sustain the dynamic environment characterized by fierce competition.

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.

According to Kim and KIm (2009), customer satisfaction is often used to predict the likelihood of customers returning to a restaurant. Some studies (Oh, 2000; Yuksel and Yuksel, 2002), have shown that customer satisfaction is important to food service managers through word-of-mouth leads to repeat patronage, brand loyalty and new customers through word-of-mouth promotion. Another opinion from Kotler and Clarke (1987) define satisfaction as a state felt by a person who has experience performance or an outcome that fulfill his or her expectation. Satisfaction is a function of relative level of experience and perceive performance. When using a dimensions Institutional DINESERV, the satisfaction will strengthen customer loyalty and also improve the dining facility’s status and produce greater

As indicated by previous studies on satisfaction and loyalty are partitioned into three classes. The principal classification is gotten from administration and study on the satisfaction and loyalty relationship is performed by and large and in hierarchical level. Fulfilment is the foundation of faithfulness that effects on authoritative gainfulness. The second classification has focused on individual level and has examined keeping up client in light of second time purchasing aim. These variables have a critical disappointment in view of the current distinction between one's longing and his/her conduct. The second class asserts that dedication is influenced by fulfilment regardless of the fact that their relationship is not coherent. The third

Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty, and profitability: an empirical study. International journal of service industry management, 7 (4), p. 27-42.

3. What factors affect tenant satisfaction, and to what extent do these factors lead to tenants’ loyalty?

Customers perceive service in terms of tone, but how satisfied they are with the overall experience, is what defines their satisfaction. Whether the client is satisfied after purchase depends on the offer’s performance or the customer service in this case, in relation to the customer expectations. Yet, according to Zeithaml et al (2006) although service quality and client satisfaction are used interchangeably, there is indeed a distinction.

It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do

Similarly, Molinari, Abratt, and Dion (2008) assert that there is a direct and strong link between customer satisfaction and customer loyalty behavior. If the customers enjoy the product or service, they will not be bothered to become loyal to the company. In other words, high levels of satisfaction commonly occur when the customer is delighted or happy with either the products or services provided by a business supplier. As Caceres and Paparoidamis (2005) state, customer satisfaction levels are determined and influenced by many elements. For example, it is commonly admitted that the customers will naturally repeatedly return to the company when things are done right, or in other words, business service companies successfully meet the customer’s expectation (Gil-Saura, et. al., 2009). Furthermore, increases in satisfaction could result to increase customer loyalty. A business enterprise, which could address the elements moderating the level of satisfaction of customers, probably would reach the higher level of loyalty. In other words, customer satisfaction is likely to improve customer loyalty in general.

The goal of this module is to explain the concept of customer loyalty, its significance, its benefits, and the factors that affect customer loyalty. Here it is explained why customer loyalty is beneficial for a business and how it helps in profitability. This module discusses the types of customer loyalties, which ones among them are profitable and which are not, as well as the methods to turn non-profitable loyalties into profitable loyalties. It also shows the reasons why a business should invest in customer loyalty programmes. Some statistics are shown which explain why some companies who invest in customer relationship programmes profit more than their rivals do. The factors that affect customer loyalty are described. It also points out the principles that a company needs to follow, to reap the benefits of customer loyalty.

Business is involved in human's everyday life and it is considered as a huge field, and in this field I am interested in marketing. Some people have defined marketing as the processes to deliver a product from the producer to the consumer, who are the main point of the existence of any company, therefore it is important to make sure that those customers are satisfied. The aim of this article is to investigate the relationship between the price and customer satisfaction, by studying the use of price fairness and price acceptance and how that led to satisfied customers, which supported my hypothesis that customer satisfaction is strongly affected by price. According to the article, price fairness, which is the balance between the price, the

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.

The behavior in which a consumer keeps buying a product time and again instead of buying products from other competitive companies is called Brand Loyalty. Brand loyalty can often be termed as Customer Loyalty, Brand Commitment, Product Loyalty etc. Brand Loyalty is seen among consumers when they realize that the product is better than the other products that are available in the market. This affinity of a consumer towards a particular product is considered to be brand loyalty. Although, this consumer behavior is not limited to a simple repetition of a purchase, there is also a psychological reasoning behind the consumers’ affinity towards behavior.