. Based upon these components Satisfaction, Commitment and Trust. loyalty as attitudinal
or exceeding clients' expectations of satisfaction trust and commintment in order to maintain their loyalty.Customer loyalty encourages and enchances customer retention and is therefore the end goal for many marketers and companies
Mark- we took this bit off the slide can you say it instead? this includes providing customer value and monitoring switching costs as prerequisite for relationship loyalty-from the first point. And this point too as it only relates to you and the graph- Palmatier et al (2008) grouped these three factors, calling them industrial relational norms which illustrate how an industries typical relational practice affects the receptivity toward relational building efforts. Sig-Many companies adopt strategies to improve customer satisfaction with the perceived objectives of strengthening bonds and achieving customer loyalty
Gundlach et al (1999, cited in Palmatier et al, 2013) advise commitment is the essential ingredient for successful long term relationships. 1)
2) We have discussed loyalty from principally an external perspective and now we will briefly analyse from a theoretical perspective how the outcomes have dictated the future course of our relationships with the brands.
MS6105: Relationship Marketing
Sigourney Quartey, Tom Broe, Laura Fuller, Shishir Limbu,
Juan Blas Gomez, Mark McCready
Identifying the differing facets of loyalty
Each member discusses personal experience to
identify an outcome that resulted in increasing or
decreasing their loyalty.
Mark - http://www.youtube.com/watch?v=vtUvxOYpJwY
Laura – http://www.youtube.com/watch?v=CoETREbZHuI&feature=youtu.be
Sigourney - http://www.youtube.com/watch?v=nUiFOZOeJLQ&feature=youtu.be
Shishir – http://www.youtube.com/watch?v=lETYx65ga2I
Juan – http://www.youtube.com/watch?v=daZjIF8z4oE&feature=youtu.be
Tom - http://www.youtube.com/watch?v=H3UaLjPxpFk&feature=youtu.be
“Loyalty is an attitudinal construct enhanced by these
components satisfaction, commitment and trust.” Vuuren et
Trust Commitment Customer
Lewis (1999) considers TRULY LOYAL customers as those who feel
so strongly that their company can best meet their needs so
competitors rarely need to be considered.
Lam et al (2004) stress the focus on customer
According to Buttle (1997) profitability is enhanced
when customer retention is high and retention in
competitive markets is a product of customer
Customer Satisfaction can result in ROI and market
value (Sheth & Sisodia 1999)
Indisputable Logic Theory Model
“Commitment Velocity” as a long term
“A strong commitment to a relationship
develops if the relationship is mutually
beneficial to both parties (consumer and
company)” (Gilbert et al 2002)
Commitment Velocity Model
Berry (1995, cited in Hardwood 2008:109)
advises trust is crucial in service relationships
due to intangible nature.
“Trust is not itself a behavior nor a choice but an
underlying condition that can result from the
satisfaction of promised duties and functions.”
(Rousseau et al 1998)
Loyalties Six Principals
Adapted from Reichheld (2001)
1)Preach what you practice.
It's not enough to have the right values. You must clarify them and
hammer them home to customers, employees, suppliers, and
shareholders through your words and deeds.
2)Play to win-win.
If you are to build loyalty, not only must your competitors lose. Your
partners must win.
At high loyalty companies, membership is a privilege. Clarify the
difference between loyalty and tenure.
4)Keep it simple.
In a complex world, people need small teams to simplify responsibility
and accountability. They also need simple rules to guide their decision
5)Reward the right results.
Save your best deals for your most loyal customers, and save your best
opportunities for your most loyal employees and partners.
6)Listen hard, talk straight.
Visit call centers, Internet chat rooms, and anywhere else customers
offer feedback. Make it safe for employees to offer candid criticism.