Sample Essay

There is also psychological aspect that makes customer loyalty – cognitive perception with positive and negative results. Combining these perceptions with other aspects and factors the overall satisfaction can be damaged or improved. In their research, Yoon and Kim (2000) argue that there is negative/positive disconfirmation construct, which also affects consumer loyalty as well as future behavior.  Through the research we can see that the effect of negative perceptions influence loyalty in greater way than positive impressions. Hence, one negative aspect can ruin positive efforts on loyalty that were created for months. They also describe several aspects that can change customer’s choice; among those are self-image, in connection with company’s brand; company’s credibility; reputation; and corporate image that is shown to the public through advertising (Yoon and Kim 2000).

For service providers there are many benefits that are created in order to reach the customer loyalty. Most important among those are “lower customer price sensitivity”, “reduced expenditure on attracting new customers” and “improved organizational profitability” (Rowley 2005, pg. 574). Categorization of loyalty is founded by Rowley (2005) as four Cs.  Four segments are named as – captive, category related to customers that stay with one company, without other choices; convenience-seeker, this type of customers usually purchase from one supplier with inactive behavior, here most important is convenience; contented, with positive attitude to the company and brand; and committed – these customers are positive and active in their attitude and behavior, they are steady to the competitors attempts (Rowley 2005).

Trustworthiness is another factor that affects loyalty establishment, also is a measuring aspect for the partner’s value (Kuusik 2007).  Talking about negative factors there is customer’s life situation, which cannot be changed or regulated by the company (Nordman 2004). Awareness is a factor where customer has some knowledge about the brand but connection is very small, it can be reinforced by some marketing tools, such as direct communications (Tepeci 1999).  Taking into consideration all above factors, company can choose right way to keep their customers and built strong loyalty.

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