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The importance of customer loyalty - Literature review Example

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Masters
Literature review
Marketing
Pages 12 (3012 words)

Summary

The Importance of customer Royalty Instructor Institution Date Introduction Every consumer desires to purchase a product from a brand that she/he perceives to have the best product features, images and of the best quality. It is these perceptions that bring about the products consumer loyalty…

Extract of sample
The importance of customer loyalty

Consumers are said to purchase products which are heavily advertised, of popular brands and only shop at the selected shops or stalls. These individuals are said to have the perception that the price of a product is directly proportional to its quality, thus the higher the price the better quality. Hence, consumer loyalty is influenced by the brand name, its price and quality (Liu and Hung, 2009). Defining customer loyalty Brand loyalty is the consumers repeated intention or behavior to continually repurchase the commodity. Brand loyalty is defined as the strength of preference towards a brand than other available options (Chen et al, 2009). Brand loyalty is determined through repeat buying and the sensitivity of the price (Hoq and Amin, 2010). There are six conditions, which define brand loyalty. These conditions can be summarized as follows; the biased product purchase behavior expressed for a long duration, and the purchase has had influence in consumer’s decision making over other alternative product. True brand loyalty only exists when a customer have a high preference towards the brand and is only confirmed by the repetitive purchase of the product. This loyalty is said to be of considerable significance to the company. With brand loyalty, consumers are not affected by the increase of prices (Anvari and Amin, 2010). ...
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