Customer Loyalty For A Company - 1991 Words

With more and more suppliers in the market place, customers have more diversified options regarding products, prices and shopping places. Therefore, marketing departments gradually come up with ideas on retaining current customers which brings in the concept of customer loyalty. Customer loyalty is the ongoing process of customers buying products or services from a specific company (Gustavsson, 2005). For most companies, retaining customers costs less than attracting new ones and also reduces expenses on promoting products. In order to reach this aim, the organization constantly increases customer loyalty by carrying out loyalty programs to reward the remaining customers for repeated transactions (Donnelly, 2009). The effect of customer†¦show more content†¦The essay begins by reviewing the literature to focus on the definition and the different ways to achieve of customer loyalty. Engel and Blackwell (1982) regard brand loyalty as the customers’ rreaction to preference, attitude and behavior towards one or more brands in a same product category for a long-lasting time. Assael(1992) and Keller(1993) defined brand loyalty as a preferable response towards a brand which leads to the repetitive action of purchasing over a period of time. While Gremler(1995) includes both attitude and behaviour into the scale of measurement of loyalty. Blanchard and Galloway (1994) and Heskett et al (1990) believed that customers assess the value gained from a transaction or service, thus resulting in customer satisfaction.. It is also related to the value expected from the transactions with competitors (Zeithaml et al., 1990). The relationship between customer satisfaction and customer loyalty is the most significant one in the business market on account of the implications for companies’ marketing environment and financial situations (Gupta and Zeithaml, 2006). The current studies identify customer satisfaction as an attitude describing consumers’ perceptions towards their purchasing experiences (Anderson and Salisbury 2003) while customer loyalty, as a result of customer satisfaction, is identified as a potential behaviour to