This website uses cookies to ensure you have the best experience. Learn more

Customer Loyalty Essay

4050 words - 17 pages

Research Project Applied Business Methods (BAB-08) 2007/2008

Customer Loyalty

Contents

Section 1: Introduction 1
Section 2: Background Customer Loyalty 2
Section 3: The research question 3
Section 4: Student tasks 3
Section 5: Description of the data 4
Section 6: Layout and content of the research report 6
Section 7: Procedural issues 8
Some references 10

Section 1: Introduction

This document describes the background, objectives and procedures of the research project of Applied Business Methods (BAB08), 2007/2008. The theme for this year is to investigate customer loyalty. Customer loyalty is viewed as the strength of the relationship between an ...view middle of the document...

They cost less to serve, they are usually willing to pay more than other customers, and they often act as word-of-mouth marketers for your company. Corporate expenditures on loyalty initiatives are booming. The top 16 retailers in Europe, for example, collectively spend more than 1$ billion in 2000. For the last decades, the gospel of customer loyalty has been repeated so often and so loudly that it seems almost crazy to challenge it.

Jacoby and Chestnut (1978) carried out a meta-analysis on loyalty. Based on their extensive study, they proposed to define brand loyalty as the biased (i.e. non random) behavioral response (i.e. purchase) expressed over time by some decision-making units with respect to one or more alternative brands out of a set of such brands and is a function of psychological (decision making, evaluative) processes. They stated very clearly that loyalty can only be attained by having both an attitudinal and a behavioral component. Oliver (1997) defined customer loyalty as a deeply held commitment to rebuy of repatronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same-brand set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior.

Satisfaction is essential for loyalty, but satisfaction alone is not enough to build loyalty. Even though a lot of attention has been paid to loyalty, both from a research perspective and from a managerial, practice perspective, there are still unsolved issues. What determines customers to be loyal? What category specific factors influence customer satisfaction? And so on.

Section 3: The research question

The goal of this research project is to investigate what the determinants are of customer loyalty within a specific service industry, namely customer loyalty towards an insurance company. The company wants you to find out what variables influence customer loyalty.

Following the background sketch, the research question for this project may be formulated as:

Section 4: Student tasks

Your task in this project is to analyze the research question by means of a thorough statistical analysis and to present your findings in a readable and well-documented report. This has several implications.
(1) You have to develop some understanding of the subject by yourself. Search the Internet or consult the library (EUR library databases; particularly, the ABI/Inform Global via Internet-link and Jstor may be useful) to find more information on this topic. Focus on marketing literature, what does prior research conclude about customer loyalty and its determinants. What does prior research conclude for the service industry in general and the insurance industry specifically? It is definitely not required to become a specialist in this area, a basic understanding will do. Please limit your time investment in this respect.
(2) You have to develop a causal relations...

Other Essays Like Customer Loyalty

Customer Service Essay

968 words - 4 pages . Technology is one change to the customer communicate with organizations. I will show how having an excellent/poor customer service representative staff have influence on customer loyalty. Do organizations need a Customer Service Representative in their daily actives in the workplace? For year’s organizations have tried to implement full-scale strategic customer service to simply improve particular characteristics of its service. Either way

Customer Relationship Management Essay

2666 words - 11 pages help its customers reduce their time in checking out from the store (Wadekar, 2007; www.Tesco.com), ‘‘Where if there is more than one customer queuing at a single checkout we open another’’ (www.Tesco.com). In 1994 Tesco plc tied up with Dunnhumby to introduce Club card Loyalty Scheme, for marketing purpose, by building up customer database collecting Name, Address, Date of Birth, Email address etc of the customers. In 1995 Tesco launched Club

General Motors

621 words - 3 pages , customer needs and improving the overall profitability. They built upon each of their expertise while making sure that key to success is to ensure tie-up between customer and supply chain sides, backed by latest technology . Their initiative was to set up the Digital Loyalty Network (DLN) comprising of technology enabling, focus on customer loyalty and leverage supply and distribution chain leads to serve the customers. Owing to the significance of

Carnival Cruise Analysis

1843 words - 8 pages Executive Summary Carnival Cruise Lines would attract more repeat customers through an updated information system based on real-time data that analyzes customer preferences and creates customer profiles. Based on the customer profiles, Carnival can offer short-term discounts and a long-term loyalty program. Tailored discounts will increase on board spending, particularly in high profit segments. A loyalty program will increase repeat

Customer Relationship Management and Key Account Management

1549 words - 7 pages Customer Relationship Management and Key Account Management [Name of writer] [Name of institution] Table of Contents Introduction 1 Customer Relationship Management 1 Customer Relationship Management in Business to Business 1 Customer Relationship Management in Business to Customer 2 Issues related to CRM in B2B and B2C 2 Customer Privacy 3 Technical Immaturity 4 Ownership and Accountability 4 Importance of Customer Loyalty 5

Cabo San Viejo Business Case Short Paper

954 words - 4 pages SWOT Analysis Strengths | * One of the most prestigious destinations in the world. * Staff is highly committed and trained to offer the very best in personal services * Loyal customer base * Very high customer satisfaction | Weaknesses | * No loyalty program to reward good customers * The company lacks a successful promotional strategy * Cabo San Viejo only caters to the wealthy population * The males only compose a small

Kuddle Foods

594 words - 3 pages developing a frequent shopper program to grant their customers loyalty points for gifts items, specialty foods, products and services. The objective of this program is to track customer purchases so that they may be rewarded for there loyalty to shop at Kudler Fine Foods. In order to accomplish this task Kudler Fine Foods must first develop a point scale they will use when a purchase is made by a customer. A payment card system using a barcode

Brand Loyalty- Insurance Sector

4493 words - 18 pages 2. Brand loyalty According to Aaker (1991) brand loyalty reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or product features. David Aaker also suggests that brand loyalty leads to brand equity, which leads to business profitability. Aaker divides brand equity into five major asset categories: brand name awareness, perceived quality, brand associations, brand loyalty

Management

516 words - 3 pages business it can be jobs, and the other side business sector can be increasing the economic in every region. And also in every season of globalization can be changed anytime, the comfortable sector be important services we can give to consumer.In which the role consumer will be loyalty customer, if they can feels comfort that kind of services they gave. In the every case of car wash business sector, the consumer will be loyal when they get good

Marketing

1996 words - 8 pages within the mission and vision of the company (Marketing Review, 2006). The goal of Classic Airlines is to increase customer loyalty, as well as gain an increase within the market share of customers. Classic Airline’s goal is to become the airline of choice for the existing customers, as well as create a new customer base. Creation of a successful customer loyalty and rewards program is also a goal within many of the organization. Creation of a

Brand Equity

3123 words - 13 pages The Impact of Brand Awareness on Consumer Purchase Intention: The Mediating Effect of Perceived Quality and Brand Loyalty Dr. Hsin Kuang Chi, Nanhua University, Taiwan Dr. Huery Ren Yeh, Shih Chien University, Kaohsiung, Taiwan Ya Ting Yang, Graduate Student, Nanhua University, Taiwan ABSTRACT The purposes of the study are to explore the effects among brand awareness, perceived quality, brand loyalty and customer purchase intention and

Related Papers

Customer Loyalty Essay

2524 words - 11 pages Nowadays, competition between companies is more vigorous and it is not easy for a company to keep a customer. In certain circumstances, customers are the key factors to any business. Many companies have used different methods to develop relationships with their customers. According to Rigby and Ledingham (2004), senior executives have become considerably more enthusiastic about Customer Loyalty. It has gained popularity in many industries and

Customer Loyalty Essay

811 words - 4 pages Section B Topic: * Study the relationship of the customer buying behavior and brand preference, which is important to influence the marketing strategy how to satisfy customer demand Question: (1) During the purchasing process, what kind of the element will influence customer choice? (2) For the company, how to increase customer loyalty and satisfaction to influences customer brand preference? Content -Introduction

Customer Loyalty Still Exists Essay

2623 words - 11 pages Customer Loyalty [pic] International Business Customer Relationship Management BBIBAI12A7 Harri Tuomola Mark Soutar | | | |Assessment |Date

Factors That Influence Customer Loyalty In Retail Businesses

1020 words - 5 pages FACTORS THAT INFLUENCE CUSTOMER LOYALTY IN RETAIL BUSINESSES IN KERICHO COUNTY (A Case Study of Mutai Wholesalers Limited) BY PHILIP KIPRONO KEMEI ADM.NO. 2574/11 A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF BUSINESS AND ECONOMICS IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF BACHELOR OF BUSINESS MANAGEMENT OF MOI UNIVERSITY. 8TH MARCH 2012 DECLARATION This Project