Customer Relationship Management: brand loyalty - Essay Example

Relationship Management 0 Background Core Literature Survey Brand loyalty or loyalty have two aims. One, to enhance the units sold, either in terms of quantity or in terms of increased range. Two, to retain the existing clientele and there by safeguard the brand profitability1. While one works towards the increase in profitability, the other is defensive in nature. Customer Brand Acceptance (CBA), Customer Brand Buying (CBB) and Customer Brand Commitment (CBC) have become more of notions than of strengthened research outputs.

Two dimensional concept of brand loyalty has been studied2 along with a number of other frameworks and methodologies3,4. Brand loyalty has to finally yield in increased profitability. Many empirical methods were evolved after much study to relate brand loyalty to brand profitability5. Customer profitability is expandable in three dimensions. Two temporal directions, retrospective and prospective approaches and the third is spatial6,7. Normally, this is viewed as a pool or bank of satisfied or delighted customers who form a free and very effective advertising media.

This is used in judging the profitability as well as to evaluate the asset worth of a brand8.2.0 Aims and ObjectivesThe work so far centers around the effect of brand building, brand loyalty and to enhance brand loyalty. Empirical relationship between brand loyalty to brand profitability, though presented by many, has not resulted in a clear scale for measuring the extent to which the existing brand loyalty could result in a brand profit. This would help the businesses to know and to augment brand loyalty as might be needed.

This would remain a strategy from the business perspective to improve profitability of the brand and to encash on brand equity9.3.0 MethodologyThe approach paper to the problem will be two pronged. One, to judge the brand loyalty and the other to judge the brand profitability. In order to reach dependable data for analysis, a survey using Dirichlet Benchmarks10 will be taken up. A format of questionnaire will be finalized and a target audience will be noted down to mark out the right kind of mixture of customers.

Data thus collected will be used to perform value analysis, using appropriate methodologies, to monitor and to judge the brand loyalty11 that might be relevant for our usage. Similarly, the brand profitability is worked out using the contribution directly done by the product and due to customers who have been repeat customers and have been at the receiving end of the loyalty programmes.This data is collected repeatedly over a period among similar target groups. The period would ideally be about 3 to 6 months.

Based on this large data base, we will be able to ascertain how the loyalty programs have retained existing clientele and / or improve upon the existing clientel.4.0 Significance / ConclusionThe survey for which the questionnaire is prepared will certainly through up a number of issues, including lack of service to the forefront of lacunas in the performance of the company. This research program will provide significant contribution in identifying the relationship between brand loyalty and brand profitability.

This being empirical, the survey results in identifying what increase in brand loyalty would realize up to what degree of gain in the brand profitability12,13. With most of the programs mostly looking for increased profitability, the brand loyalty is built to increase the sales so as to increase over all transfer fun. 5.0 Bibliography1. Brown, Stanley A. (2000), Customer Relationship Management. Toronto: John Wiley& Sons.2. Day, George S. (1969), "A Two-Dimensional Concept of Brand Loyalty", Journal ofAdvertising Research,9, 29-35.3. Dick, Alan S.

and Kunal Basu (1994), "Customer Loyalty: Toward and IntegratedConceptual Framework", Journal of the Academy of Marketing Science, 22, 2,99-113.4. Belk, Russell W. (1974), "An Exploratory Assessment of Situational Effects in BuyerBehavior", Journal of Marketing Research, 11, May, 156-163.5. Fred A. Jacobs, Wesley Johnston & Natalia Kotchetova, (2001), "Customer ProfitabilityProspective vs. Retrospective Approaches in a Business-to-Business Setting", Industrial Marketing Management, 30, 353-363.6. Foster, George, Gupta, Mahendra, and Sjoblom, Leif: "Customer Profitability Analysis: Challenges and New Directions", Cost Management Spring, 5-17 (1996).7. McMullen, Thomas B., Jr.: Introduction to the Theory of Constraints (TOC) Management System. The St. Lucie Press/APICS Series on Constraints Management, CRC Press LLC, 1998.8. Srivastava, Rajendra K.

, Shervani, Tasaddug A., and Fahey, Liam: "Market-Based Assets and Shareholder Value: A Framework for Analysis." Journal of Marketing 62, 2-18 (1998).9. Kaplan, Robert S., and Norton, David P.: "The Balanced Scorecard: Translating Strategy into Action". Harvard Business School Press, Boston, MA, 1996.10. Ehrenberg, Andrew S. C., Mark D. Uncles and Gerald Goodhardt (2003),"Understanding Brand Performance Measures: Using Dirichlet Benchmarks", Journal of Business Research11. Fournier, Susan and Julie L.

Yao (1997), "Reviving Brand Loyalty: A Reconceptualization within the Framework of Consumer-Brand Relationships", International Journal of Research in Marketing, 14, 5, 451-472.