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iterature Review of Papers and Books regarding the development of a loyalty program.
Pages 20 (5020 words)
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.
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. ...
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