Customer Loyalty Essay -- Business, Customer Relationship Management

The Customer loyalty has been a major and unanimously acknowledged as a valuable asset in competitive markets according to Srivastava, Shervani, & Fahey, 2000. As a result, it becomes more all-important(prenominal) to give power to in loyalty panel particularly when the consumers faces very low duty period or moving cost to other product or service, because they are not locked in by a contract (Shapiro & Vivian, 2000). It is also become important in competitive markets due to availability of more lucrative and easily available options. The concept of customer loyalty has been around and present throughout in all parts/activities of numerous industries in the past decade (Lewis, 1997). The development of loyalty includes building and supporting a relationship with a customer, which leads to the repetitive secure of products or services over a given period of time. A loyal customer base also permits companies to offer their expertise and skills to other melodic line matters (Gefen, 2002 Rowley & Dawes, 2000). In order to understand what drives customer loyalty or how your business defines customer loyalty we arouse look at the behavioral aspect of it. Customers can show their loyalty in a number of ways. They can prefer to stay with a firm, whether this persistence is distinct as a relationship or not, or they can increase the number of purchases, or they can do both (Reinartz & Kumar, 2003 Rowley & Dawes, 2000). The purpose of this research is to link loyalty to the up-and-coming theories of CRM (Macintosh & Lockshin, 1997) or as the key element, of effective CRM. Although some authors, such as Dick & Basu (1994), have different view of each element of it and make a distinction in the midst of brand loyalty, store loyalty, sales people loyalty, product and ser... ...ection of cognitive and affective elements was analyzed by Oliver (1999). Attitudinal loyalty can at times lead customers to will exceptional value to the company through positive word of mo uth researched by Dick & Basu, 1994 Hagel & Armstrong, 1997 Reichheld, 2003. Letdown to relation for attitudinal loyalty could lead to false loyalty (Dick & Basu, 1994). Thus, to make headway true loyalty, firms should in tandem focus on building both behavioral and attitudinal loyalty. So if we look at both the service management and the market literatures both suggest that there is a well-built theoretical foundation for an experiential examination of the linkages among customer satisfaction, customer loyalty, and profitability. Storbacka argues that there is comparatively little amount of data-based research performed on these relationships to date (Storbacka et al., 1994)