Got a tricky question? Receive an answer from students like you! Try us!

iterature of Papers and Books regarding the development of a loyalty program. - Literature review Example

Only on StudentShare
Author : christarice

Summary

Literature Review Customer Loyalty Customer loyalty is, according to Kincaid (2003), a vested interest that a customer has, because of positive experiences over time, in maintaining a close relationship with a store or a brand. It basically means that the customer chooses one store over another, or one brand over another, simply because the customer enjoys doing business with that store or brand…

Extract of sample
iterature of Papers and Books regarding the development of a loyalty program.

9). This is because it costs less to retain existing customers than it does to recruit new ones. Moreover, existing customers cost less to manage, as they are less likely to call the company during peak hours and are more likely to know about the product. Additionally, loyal customers are more likely than satisfied customers to buy additional products from the company, which increases profits still further (Szwarc, 2005). Rust et al. (2000) views the issue of customer loyalty in terms of transactions verses relationships. They state that the era between 1920 and 1960 was a product-focused era, in which the emphasis, in advertising and marketing, was on the product itself. This mind-set gradually changed, however, as companies began to realize that the relationship between the customer and the service provider was more important than the individual transaction. Thus, customer satisfaction came to be viewed as more important to these companies than product ads and single transactions. Current sales became less important to companies than the prospect for future sales (Rust et al. 2000). Levitt (1993) states that customer loyalty comes from effectively managing relationships. ...
Download paper

Related Essays

research papers
The research shall also identify the challenges as well as the weaknesses of this service as provided by SMS mobile company, basing on the result from customer responses. Mobile usage was initially common among very few individuals who could afford the services. These were the rich businessmen of very high esteem. Today, mobile services a widely used by the young people between fifteen and eighteen years of age. This research shall involve the various stages that assist in research. Field work will be done and preceded by armchair research that shall put down the report. The research…
14 pages (3514 words)
How to Sustain Customer Loyalty towards Brands
The researcher states that brand loyalty is the final objective a company sets for a branded merchandise. The importance of brand loyalty cannot be underestimated due to the fact that as brand loyalty increases, the vulnerability to the competitive actions is reduced which is very important in the cut-throat competitive era of today. The customer’s adherence to a particular brand increases the market value of the brand and helps the organization to have a competitive edge over the rivals. The brand loyalty also provides confidence among the organizations to launch a new product and to get…
71 pages (17821 words)
The importance of customer loyalty
The study presents that 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. Brand loyalty begins with the purchase of the product for trials, and if the products quality is satisfactory, they become consistent in purchasing the product. 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…
12 pages (3012 words)
Developing a loyalty program for the online grocery business
A primary study was conducted that refuted much of the psycho-social dimensions associated with loyalty studies. Findings indicated that the primary motivator for enrolment in loyalty programs was price, with no mention of psycho-social characteristics and implications. As such, recommendations founded on the research include rejection of tiered loyalty programs, targeting only relationship-centric promotions to the older consumer demographic, and using short-term pricing incentives. TABLE OF CONTENTS 1.0 Introduction. 1.1 Aim. 1.2 Scope. 2.0 Literature review. 2.1 The benefit of loyalty…
12 pages (3012 words)
Building Lasting Customer Loyalty.
The variable that drives customer loyalty the most is price. A company that has been able to build tremendous customer loyalty because they offer better price than the competition is Wal-Mart. A lot of customer supports private label brands because they offer greater value than national brands. The quality of the product is another important variable when a company is trying to build customer loyalty. Customers are willing to pay more for products of higher quality. Three additional variables that drive customer loyalty are location, selection, and service. Companies that are able to achieve…
5 pages (1255 words)
Loyalty Program - Apparel and Footwear Retailer
“Gap”, “Banana Republic” and “Old Navy” are the divisions whose focus is towards the clothing and apparel industry whilst “Piperlime” and “Athleta” divisions are a part of the footwear industry (. Loyalty programs are considered to be techniques used by the marketing team of any organization in order grab and retain new and old customers respectively. The basic phenomenon of a loyalty program is to reward a customer in such way that he gets encouraged and enhances his/her buying ability. Loyalty programs are designed in such a way that customers are issued a particular…
3 pages (753 words)
Papers' Analysis
Economies of scale are the cost advantage that comes from a product’s increased output. They arise due to an inverse relation between fixed costs per-unit and quantity produced. The more cars produced in this case, the lower the fixed cost per unit, as the cost is shared among a larger quantity of cars. They may also reduce unit variable costs due to synergies and operational efficiencies. Economies of scale are in two major types; external that arises from industry size and other extraneous factors and internal that arises from inside the firm (Motavalli 1). While benefits of this concept…
4 pages (1004 words)