Sample Essay

Customer loyalty stays in big connection with relationship marketing, which is one of the tools in reaching main goals of all firms.  According to Hennig-Thurau and Hansen (2000), customer loyalty is a result of so called customer bonding process, and can be specified through the characteristics and types of the transactions between the customer and company. In addition, more often under customer loyalty term we understand the ability to buy often from the same provider with strong recommendation any possible time with positive attitude (Kandampully and Suhartanto 2000 pg. 346).

In Service Loyalty, there are several dimensions that create customer loyalty, those are – behavioral loyalty, which explains behavior toward the brand; attitudinal loyalty, including customer favors; and cognitive loyalty, which from the psychological point of view comes on mind as a “first choice” (Gremler and Brown 1996).

Customer satisfaction in most ways affects customer loyalty as it is the constituent of a qualitative service (Zineldin 2006). As Uncles, Dowling and Hammond (2003) point there are three definitions of customer loyalty – loyalty in connection with purchases that were made before; loyalty in relation with a brand and situations when loyalty is created by special characteristics of the process including circumstances and customer’s particularities.  Moreover, customer satisfaction is usually connected with the judgment and sense of ideal performance of a service (Kim, Park and Jeong 2004).  Satisfaction itself is based on the quality of performance and service delivery.

Other factors affecting loyalty are switching costs and interpersonal relationships of the customers with the organization (Gremler and Brown 1996). Switching costs mean change of one service supplier to another, including resources, time, quality of the service and personal factor. In order to increase customer loyalty the company can make it difficult to the customer to find another service provider. Interpersonal relationships make service unique and are connected to the employee-customer relations which in some cases can be more important than product itself.

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