There are three types of customer loyalty, the first is the completely loyal customer, the second is the somewhat loyal customer and the third is. Customer loyalty is the measure of success of the supplier in retaining a long term relationship with the customer. Anderson and mittal, 2000, with conclusion that a satisfied customer is loyal and contributes to profitability. Any reproduction must not be for commercial use or profit. Factors influencing customer loyalty toward online shopping. This paper examined the impact of customer satisfaction on customer retention.
Customer loyalty has long been a topic of high interest in both academia and practice, and a loyal customer base has been found to be beneficial to the firm. Satisfied customers spend more money, refer more customers and patronize businesses longer than unsatisfied customers. Maintaining customer relations through relationship marketing. In order to increase the number of the customers, development of customers satisfaction is very important. Likewise, the claim that customer satisfaction leads to loyalty appears less convincing to many researchers rahim, ignateous, and adeoti, 2012. Thus customer loyalty is when a supplier receives the ultimate reward of his efforts in interacting with its customer. Customer retention can be reflecting customer loyalty hallowell, 1996.
According to various authors, customer satisfaction can be measured by looking at different dimensions such as service quality, customer loyalty, repurchases behaviour and trust, among others anderson and fornell, 2001. Brand loyalty can be referred to as the consumer decision. Ideas for marketing dissertation topics 2020 topicsmill. An empirical research on customer satisfaction study. Introduction loyalty can be analyzed both from the perspective of a company and a consumer. The impact of corporate social responsibility on customer loyalty. The importance of customer satisfaction and loyalty research why is customer satisfaction and loyalty research so important. This thesis research aims to discover the relationship between customer satisfaction and customer loyalty.
Approved by the head of the department of marketing. Brand loyalty and involvement in different customer levels. The determinants and implications of customer satisfaction and loyalty in webbased commerce. In terms of achieving business goals, these two terms are very important. At the same time to create the comfort environment between the customer and the company is vital. Ultimately, customers may become even more demanding and, as. The determinants and implications of customer satisfaction. Customer service quality, product quality, customer satisfaction and loyalty can be measured at different stages, for example, at the beginning of the purchase, and one or two years after purchase.
Asadur rehman, ms scholar, department of business administration, institute of southern punjabpakistan. Marketers use strategies like instore and olocation impulse triggers, notably pointof purchase displays. It was also found that there is a lack of research in the areas of evaluation of. Impact of customers satisfaction and customers retention. If you are capable of retaining as much as 5% of your old customer base, then your business can grow up to 75%.
Finally, investing in a customer satisfaction and loyalty research program lets customers know that the organization is proactively concerned about satisfying their needs and expectations, and is genuinely committed to improving the delivery of its products. It may also refer to the intention to buy or use a particular product for a long duration of time. Cat possession influences auto brandnew quantity of the destination selection models. According to rust and zahorik 1993 there is a significant relationship between retention and loyalty. Servqual, customer satisfaction, trust, loyalty, ecommerce setting, malaysia au th o r s norizan m. Customer satisfaction is the most effective way to achieve customer loyalty. The impact of service quality, customer satisfaction and.
The impact of crm on customer retention supervisor. Customer loyalty is the main objective for strategic marketing planning since it. The purpose of the study is to do the research that under the ecommerce business model, the impact factors of customer loyalty in an online shopping environment, how to improve the customer loyalty and how to build a long lasting. The impact of customer loyalty programs on customer. In other words, the market could be divided into groups according to the classification of the customer loyalty. The combined effect objectives the purpose of this study is to expand understanding of the factors influencing customer satisfaction and efficiency in contact centers. Brand loyalty is achieved due to the right features, and the quality of the brand.
Customer loyalty tends the customer to voluntarily choose a particular product against another for his need. The studies examined utilized different study methods inorder to determine how customers emotions affect their level of satisfaction before, during, and after any. Analyzing the relationship between customer satisfaction. Brand loyalty helps maintain self image in reinforcing the customers self concept and confidence. Three essays on the customer satisfactioncustomer loyalty. Customer loyalty meaning and its important concepts.
Even if businesses make mistakes, loyal customers will not leave. For every successful promotional activity spending money and gaining a new customer there is a vast amount of wasted promotion. This positive experience will influence their overall level of satisfaction, generating customer loyalty and ultimately greater profits. The main objective of the study was to assess and analyze customer satisfaction and service loyalty in wegagen bank, mekelle branch. Paper presented at the multidisciplinary academic conference on economics, management and marketing in prague 56 december 2014 published in the proceedings of the multidisciplinary academic conference on economics, management and marketing isbn 9788090544284 assessing customer loyalty. Page 3 abstract the purpose of this thesis is study of customer relationship management process in customer retention. Lastly, customer performance that relates to marketings effect on customer loyalty, which create longterm customer relationships and influence the longterm effect of customers value in the company. Is customer satisfaction an indicator of customer loyalty. In addition, even as improvement occurs, customer needs may continue to change, andor new needs and expectations may begin to surface. It is discovered from literature and previous research on relevant theories for this research. Impact of customer satisfaction on customer retention. The path to customer satisfaction and loyalty improvement. In addition, factors influencing customer satisfaction and loyalty, measuring customer satisfaction, importance and approaches are explored. Similarly, in chapter four methods of managing customer relationships are described.
The impact of corporate social responsibility on customer. This all leads to more revenue for businesses that can keep their customers satisfied. The relationship between service quality, customer satisfaction and customer loyalty. Purchase a college report master thesis pdf flight dynamics phd resume resume resume cover letter sample brand loyalty and. The research concluded that service quality, customer satisfaction and. An approach to increase customer retention and loyalty in. Most companies strive for customer loyalty as the competition in most sectors grows tighter, both the importance of, and the challenge in, keeping customer loyalty increases. Another importance of customer loyalty is that it can be used to segment any market. Consequently, regarding customer loyalty, customer satisfaction is more important than image for both satisfied and dissatisfied customers. The company must pay attention to price, promotion, service and products in order to gain the customer.
This article examined the impact of customer relationship management strategy on customers brand commitment and brand loyalty in the nigeria financial sector. Customer relationship management and direct marketing research center on strategies and activities that a company must initiate in order to retain its customers portfolio. Analyzing the relationship between customer satisfaction and. Customer loyalty can be defined as the adherence of customers to a company. Customer service quality, product quality, customer satisfaction and loyalty can be measured at different stages, for example, at the beginning of the purchase, and one or.
Similarly, bolton, kannan and bramlett 2000 studied that customer loyalty has significant effect on retention. Customer loyalty plays a major role in making your business successful. Customer value is the customers perception of the ratio of benefits to what he or she gives to obtain those benefits. The factors that influence customer satisfaction and customer loyalty are explored. The rationale for customer loyalty programs businesses grow by either customer acquisition or by getting more business from their existing customers. Customer relationship management is a term for the methodologies, technologies and e. We describe the objectives of customer relationship. Some theoretical and managerial implications and suggestions for future research are also provided.
The study investigates the impact of independent variable. A case study of a reputable bank in oyo, oyo state. The relationship between service quality, customer. An approach to increase customer retention and loyalty in b2c. An empirical analysis i, samuel otim, hereby grant permission to the wallace library of the rochester institute of technology to reproduce my thesis in whole or in part. Abdul ghafoor awan, dean, faculty of management and social sciences institute of southern punjabpakistan. An investigation in vietnamese retail banking sector ngo vu minh, nguyen huan huu abstract this study develops and empirically tests the interrelationships between service quality, customer satisfaction, and customer loyalty in a retail banking context. The goal of this study is to obtain a deep understanding of the impact of customer loyalty programs on customer retention.
A questionnaire was designed and survey was conducted to collect the data from 331 customers having bank accounts in different banks of pakistan. Customer satisfaction was significantly related to the customer loyalty of both satisfied and dissatisfied customers, and satisfied customers were affected more by customer satisfaction. Customer brand loyalty satisfaction brand quality brand brand image customer product involvement brand switching cost. A selfadministered questionnaire was used to collect the primary data. More specifically, the focus is on examining the grouped impact of the factors.
A study of the factors influencing customer satisfaction and. Brand loyalty dissertation pdf writer i help to study. This association, if sustained, will lead to firms productmarketplace performance and financial performance, thus creating shareholder wealth see the conceptual framework of the augmented value chain in figure g1 for these logical linkages. For that reason many companies use defensive marketing strategies to increase their market share and profitability by. This association, if sustained, will lead to firms productmarketplace performance and financial performance, thus creating shareholder wealth see the conceptual framework of. This paper examined the impact of customer satisfaction on customer loyalty. The impact of sales promotion on consumer behavior reveals mixed results. Besides customer loyalty the selling volume and the selling frequency may also increase oliver, 1999.
Customer loyalty is defined as the willingness of any given customer to purchase the company s goods or services over competitive ones available in the marketplace. The postpurchase phase actually serves as input for the next prepurchase phase. The impact of customer loyalty programs on customer retention. Brand loyalty and involvement in different customer levels of. This chapter gives a background to the thesis topic where concepts such as customer relationship, professional service, and customer retention, henceforth referred to as cr, will be introduced and explained. Impact of customer satisfaction on customer loyalty. Kassim and nor asiah abdullah introduction loyal customers are indeed crucial to business survival reichheld and schefter 2000, semejin et al. A study of the factors influencing customer satisfaction. Mokhtar and wanismail 2012 supports schrammklein and morschett 2007 three dimension as objective, as it adheres. Another great thing about your old customers who rely on you is that they will tell their friends, family and acquaintances about your products and services. When people feel loyal to a certain brand or business, they are less likely to be. Customer satisfaction and consumer loyalty 1 a research proposal. Masters thesis customer relationship management jens berfenfeldt lulea university of technology msc programmes in engineering industrial business administration department of business administration and social sciences division of industrial marketing and ecommerce 2010. Moreover, in the absence of the customer, a business organization would not exist.
Customer loyalty of amazon how to build a long lasting relationship. Masters thesis customer relationship management jens berfenfeldt. Abili arezu ghavami alireza olyaei social science and business administration programs. With the high rate of competition in every market, it is.
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