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The Consumer’s Loyalty Theory
The Consumer’s Loyalty Theory
Theories on customer loyalty
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Recommended: The Consumer’s Loyalty Theory
2.3. Conative loyalty/ Behavioral Intentions
According to Lovelock (2011), customer loyalty was defined as consumer's “willingness to continue patronizing a business over a long term, purchasing and using its goods and services on a repeated and preferably exclusive basis, and voluntarily recommending the firm's products to friends and associates” (Lee et al., 2011, pp. 3- 4). In other words, it represents irrational behavior as a result of “a deeply held commitment to repatronize a preferred product/ service consistently (Oliver, 1997, p. 392).
Behavioral loyalty measures in tourism contexts are the determination of an appropriate time frame during which customers may or may not return to a destination (Lee et al., 2011, p. 4). According to
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Attitudinal indicators provide insight on why people patronize a product or service. They focus on understanding consumers’ preference, liking, and positive attitudes that are relatively stable over time. Attitudinal loyalty has also been used synonymously with psychological commitment (Lee et al., 2011, p. 4). Some have also proposed that an understanding of the strength of consumers' commitment provides insight on the distinction between truly loyal customers and those whose brand or place choice is more strongly influenced by situational factors such as the scarcity of alternatives, availability of other options, and involuntary choice (e.g., Pritchard et al., 1999). Accordingly, commitment involves some degree of affective attachment and is viewed as “a process through which individual's interests become attached to carrying out of socially organized patterns of behavior which express the needs of the individuals” (Lee et al., 2011, p. 4). It can also play a mediating role in the relationship between satisfaction and loyalty (e.g., Pritchard et al., 1999; Bloemer and Odekerken- Schröder, 2002). That is, positive evaluations of products and services foster commitment to a brand (i.e., resistance to change), which ultimately leads to consumer patronage (e.g., Pritchard et al.,
Mise, J. K., Nair, C., Odera, O., & Ogutu, M. (2013). Determinants of Brand Loyalty and Product Quality of Soft Drink Consumers. Asian Journal of Business and Management , 1 (1), 8-13.
Customer loyalty comes from the personal relationship that is developed between the customer and the business. One method used to understand the customer relationship is called customer relationship intensity and Life-cycle segmentation (UOP, 2007). This process includes classifying all the customer relationships into one of five groups.
In the play King Lear, Shakespeare presents the reader with many negative views of society, and of human nature. One of the few bright spots in the play is Kent, a very loyal and honest man. Through Kent and his actions, Shakespeare shows the reader the nature of true loyalty.
One of the differentiation strategies used by BMW is the creation of auto products that consumers can emotionally relate to. In building the BMW brand, the company has succeeded in positioning its products as prestigious or luxurious. Therefore, most consumers want to own a BMW car solely for the prestige it gives them. BMW products are not only purchased due to their usability or functionality but for the status they give the owner. Subsequently, when a person buys a BMW product, they are emotionally attached not just to the car but to the brand as a whole. This has created increased brand loyalty in BMW growing its customer base as more people search for the status associated with the company’s products.
Apple customers relate to the brand very intimately. Repeat purchases are very common. They feel a very strong attachment towards the brand because it portrays a very different image. It helps make them feel that they are flowing with the changing trends because they own an Apple product. Many Apple consumers sometimes consider their Apple product their favourite possession or say that they love the brand because they get very attached to it. Apple has portrayed itself to be a brand that the customer can have a happy and lifelong relation with. The Apple experience has created deeper attitudinal attachment in the minds of the customer.
A customer’s response falls in two categories, judgment and feelings. Consumers are constantly making judgments about a brand. These judgments fall into four categories: quality, credibility, consideration, and superiority (Keller, 2001). Customers judge a brand based on its actual and perceived quality, and customers judge credibility using the perception of the company’s expertise, trustworthiness, and likability. To what extent is the brand seen as “competent, innovative, and a market leader,” “dependable and sensitive to the interest of customers,” and “fun, interesting, and worth spending time with” (Keller,
Consumers with brand loyalty are indifferent with too many choices in shopping as they tend to ignore other brands and chooses product from their preferred brand.
“Traditionally, customer loyalty has been defined as a behavioural measure. These measures include proportion of purchase (Cunningham, 1966), probability of purchase (Farley, 1964; Massey, Montgomery, & Morrison, 1970), probability of product repurchase (Lipstein, 1959; Kuehn, 1962), purchase frequency (Brody & Cunningham, 1968), repeat purchase behavior (Brown, 1952), purchase sequence (Kahn, Kalwani, & Morrison, 1986), and multiple aspects of purchase behavior (Ehrenberg, 1988; DuWors & Haines, 1990)” (Kumara et al., 2004) While Khan (2013) defines customer loyalty as “the intention of repurchasing goods, stating that this is the goal of industry and loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future, thereby causing repetitive same-brand or same-brand set purchasing” (Khan, M, 2013). This suggests Khan (2013) proposes customer loyalty can be defined as a commitment to a brand or retailer where a consumer continuously repurchases from that specific brand. This can be based on numerous qualities and experiences which influence repetitive buying behaviour. There are many reasons why customer loyalty is important, including effective forecasting for the retailer when based on regular customers. Figure 1 shows the positive economic effects of customer loyalty online produced by Schrodter (2003) (Heinemann et al., 2010).
“Organizations should aim to effectively strengthen their marketing position through a loyalty program without compromising on their customer’s perception of fairness.” (3) These programs should be favorable to customers by equitably administering and thoroughly communicating all underlying context relating to how firms use loyalty programs. Keeping all customers aware at a persistent level of und...
Repeat purchasing, however, may only indicate consumers' temporary acceptance of a brand. Therefore, the concept of brand loyalty was extended to encompass both attitudinal and behavioral loyalty (Jacoby and Kyner, 1973). Behavioral loyalty means
Lawfer, M., R. (2004). Why customer come back: how to create lasting customer loyalty. United State of America: Career Press.
Garland, R., & Gendall, P. (2004). Testing dick and basu's customer loyalty model. Australasian Marketing Journal, 81-87.
Customer loyalty is very important to any company. Consumer devotion is what keeps small businesses a float. For small mom and pop shops, customer loyalty keeps their customers from going to major superstores, which have a bigger supply often for less. The growing popularity of internet shopping has made customer loyalty more important now than ever. Internet giants such as Amazon and Walmart are making it harder for customers to pass up shopping online.
The survey shows that those customers who had been given the opportunity to customize a product online engaged more actively with the company. They visited the company’s website more often, stayed longer on the page and exhibited more loyalty to the brand (see Figure 1). In footwear, the research indicates that customers who designed their own shoes gave companies a 50% higher Net Promoter Score, which is a standard way of measuring customer loyalty, than customers who purchased regular products. Higher NPS refers to higher sales, referrals and lifetime customer
Consumer behavior incorporates certain activities, decisions or experiences, which satisfy the needs of the consumers. It concerns all the activities that incorporate consuming, obtaining and product disposing of that precedes and carry out these actions (Darling, 2015). The Consumer behavior remains one of the important areas for research in the tourism and marketing fields in terms of travel behavior or the behavior of tourist (Rid, Ezeuduji & Pröbstl-Haider 2014). There are a few comprehensive literature reviews on the behavior of consumer typically described his injurious area with the help of the existing models or concepts of Consumer Behavior. There are exceptions in the insights of the authors who give the review about