Comprehensive Approach to Customer Loyalty Management

Comprehensive Approach to Customer Loyalty Management

Anastasiia Panchuk, Nataliia Lialina, Galyna Matvienko-Bilyaeva, Ganna Chumak
Copyright: © 2022 |Pages: 16
DOI: 10.4018/IJITPM.311842
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Abstract

The article justifies actuality of transition of enterprise to the relationships marketing concept, which implies the establishment of long-term and mutually beneficial relationships between business and consumers. The article contains the results that confirmed the relevance of loyalty management, key factors of customer loyalty acquisition and loss. A comprehensive loyalty management system was formed and regarded as a dynamic aggregate of six interconnected stages of the managerial process. The formation of comprehensive loyalty management system was carried out on the example of the surveyed enterprises. Ukrainian retail enterprises were divided into three different clusters and were analyzed according to specified model
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Literature Overview On Loyalty Management

In marketing literature, the concept of “customer loyalty” is interpreted quite ambiguously. There is a clear distinction between the terms “customer loyalty”, “brand loyalty” and “purchase loyalty”. These terms have appeared at different times within different concepts.

The term “brand loyalty” originated within the concept of branding, and the term “consumer loyalty” began to develop a little later in connection with the expansion of the concept of relationship marketing.

Currently, brand loyalty is seen as a separate type of customer loyalty, mainly related to to emotional attachment (EMO) to the trade mark.

The loyalty is influenced by the attitude of the consumer to the brand (brand attitude) and the real opportunity of the consumer to regularly buy products of this brand. Loyalty as a behavioral characteristic depends on the quality of the Product, as well as on the quality and sustainability of all the mental relationships that are formed between buyers and brand owners.

Brand loyalty is a consumer's preference to buy a particular brand in a product category. It occurs, when consumers perceive that the brand offers the right product features, images or level of quality at the right price. This perception may translate into repeat purchase resulting in loyalty.

Loyalty is a biased response towards a brand or product expressed over a period of time and is defined by the purchase pattern of a decision making unit which may be an individual, a household or a firm (Mellens, M., Dekimpe, M. G., & Steenkamp, J. E. B. M., 1996, pp. 507-533).

David A. Aaker (1991) defines brand loyalty as the measure of attachment that a consumer has towards a brand. Brand loyalty according to him reflects how likely a consumer will be to switched brands when that brand makes a product change either in price or product features.

Purchase loyalty can be defined as the positive attitude of the buyer to a particular product, brand, store, service, etc., which, although a consequence of factors that are significant to the buyer, lies more in the emotional sphere. Jacobi, Jakob and Chestnut (1978) advocate a behavioral view of loyalty, saying that loyalty is a factor of behavioral loyalty approach, which is measured by the metrics of repeat purchases, duration of relationships with the supplier, profit. from a specific buyer (or buyer segment).

Byron Sharpe, Anna Sharp, and Malcolm Wright (2002) argue that it is the consumer behavior that determines the volume of sales and their profitability, and loyalty should be the main focus of research.

J. Rossiter and L. Percy (1987) define loyalty “as the regular purchase of a product of this brand, based on a long acquaintance with her and favorable to her attitude”.

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