Customer Loyality

In: Business and Management

Submitted By baliah
Words 4026
Pages 17


Prepared by Meguellati Achour Pn. Nor Pujawati Md. Said Dr. Ali Boerhannueddin


Service quality, switching barriers, and brand image are the major antecedents of customer loyalty, and loyal customers may buy more, accept higher prices and have a positive word-of-mouth effect. Also we know that the cost of selling to new customers is much higher than the cost of selling to existing customers, also the cost of attract new customers is much higher than the cost protect existing customers ten times. Although this fact is apparent to everyone, many companies are still losing customers at a formidable rate. In this context the main aim of this research is to examine the relationships between these factors and customer loyalty in the Universiti Utara Malaysia sector. Based on the theoretical model, a comprehensive set of hypotheses were formulated and a methodology for testing them was outlined. These hypotheses were tested empirically by questionnaires to demonstrate the applicability of the theoretical model. The results indicate that service quality, switching barriers, and brand image are separate constructs that combine to determine the loyalty, with service quality and switching barriers exerting a stronger influence than brand image. Finally hypotheses H1, H2 were supported, while hypothesis H3 was rejected.

Keywords: Customer Loyalty, Brand Image, Switching Barriers, Service Quality, Mobile Telecommunication


Attract customers and satisfy them has become a hot issue and expresses present of organizations and the reason of its existing. Customer loyalty has become more important as rapid technology changes in telecommunications. Your…...

Similar Documents

Customer Profiling and Customer Persona

...CUSTOMER PROFILING AND CUSTOMER PERSONA By Renish Adesra Submitted To: Boulevard9 Resort & Spa, Nadiad July, 2012 CENTRE FOR MANAGEMENT STUDIES DHARMSINH DESAI UNIVESITY NADIAD ACKNOWLEDGEMENT I express my sincere thanks and gratitude to Mr. Ajit Singh, General Manager, Boulevard9 Resort & Spa, Nadiad, for giving us an opportunity to work in their organization. I am speechless when I have to express my sincere thanks to Mr. Harsh Bhatt, Front Office Manager, who has been a great inspiration and motivating factor throughout the duration of our internship. He has been the mentor for all of us and gave us a plenty of opportunities to explore and learn. I also convey my sincere sense of obligation and thanks to the Head of Department of Centre for Management Studies, DDU Nadiad Dr. Naresh Patel for giving me an opportunity to work on this project. I owe my deep sense of gratitude to respectful organization guide Mr. Rejoice Thomas (Human Resource Manager) I am also thankful to Prof. Mansi Rathod, the coordinator of summer internship project. Words are boundless to express my cordial thanks to faculty guide Prof. Frince Thomas Sir for the encouragement and valuable guidance during the course of my project work. I would also like to give my special thanks to Mr. Sanjay Patel (Sales Executive) of the organization for his support & encouragement. I am thankful to entire staff of Boulevard9 Resort & Spa, Nadiad for their helpful guidance and......

Words: 4001 - Pages: 17


...been directed towards attracting new consumers. In oppositions to such companies, service companies are first of all preoccupied with preserving their current customers. A frequent example, as an average, is that the cost incurred for attracting new consumers is five to six times higher that the one incurred for maintaining current ones1. Moreover, the loss of a consumer reduces the profit by approximately 118 USD, while its preservation costs only 20 USD2. Building customer relationships involve activities leading to a long term development of the relationship between the company and the customer, for both parties’ benefit. Key words: banking services, SERVQUAL Model and banking customer satisfaction, relationship marketing. Within the domain of banking services, the service process involves a multitude of relationships between the performer and the consumer. Especially, the product is the main “instrument” for creating and offering a quality service and, implicitly, for the company to prove its care for and interest in the customer’s problems. The concept of “care for and interest in the customer’s problems” is tightly related to that of providing satisfaction to the customer. In order to establish and develop a long term marketing relationship with customers, banking establishments elaborate services, so that customers benefit from effective and very accessible services, complying at the same time with the quality standards, as well. This process involves the combination......

Words: 2695 - Pages: 11

Customer Service

... 2013 Customer Service Introduction Do organizations need a Customer Service Representative in their daily actives within the organization? This is the question that a lot organizations and firms would like to know. Some organizations and firm are still in the dark about customer satisfaction and dissatisfaction. Without customer service representatives in place to give business owners the feedback from customer that they need to receive to improve the customer’s experience. There are many things that are related to customer service like, making appointments and informing clients of changes to policies, products, goods and services. Years of hearing the customer is always right maybe just be a myth, be here are some views that will be studied in depth to show that the customer service are changing and customers have to be prepared to change also. Technology is one change to the customer communicate with organizations. I will show how having an excellent/poor customer service representative staff have influence on customer loyalty. Do organizations need a Customer Service Representative in their daily actives in the workplace? For year’s organizations have tried to implement full-scale strategic customer service to simply improve particular characteristics of its service. Either way, the organization is making improvements in customer service, and, although there are some low-cost and even no-cost ways of doing that (such as trusting known customers, 98......

Words: 943 - Pages: 4

Customer Service

...National Institute of Technology A Research Report on Customer Service of SBI vis-à-vis other Banks Internship Report submitted in completion of the requirement of Summer Internship at State Bank of India SME Branch, Civil Township, Rourkela Submitted by:- Under the guidance of:- Rasmita Sahu Mr. Prabir Chandra Sahu MBA Student Chief Manager Roll No- 312SM1017 State Bank of india School of Management SME Branch, Civil Township NIT, Roukela Rourkela May_2013 to July_2013 Certificate This is to certify that the project entitled “Customer Service of SBI vis-à-vis other Banks” which is being submitted by Rasmita Sahu, MBA Student, Roll No. 312SM1017, School of Management, National Institute of Technology, Rourkela - 769 008 (India), for the award of Degree of MBA by the School of Management, National Institute of Technology, is a record of bonafide research work done by her under my supervision. The results embodied in the project are new and have not been submitted to any other University or Institution for the award of any Degree or Diploma. To the best of my knowledge......

Words: 10132 - Pages: 41

Customer Retention

...Make Customers Come Back - Winning Customer Retention Strategies Customer Retention marketing is a tactically-driven strategy to keep relationships with customers going and increase customer interest. This strategy relies on the study of customer behavior. Here are the basic tenets of a marketer that seeks to increase customer retention: 1. Past and Current customer behavior This is the best predictor of how customers will behave in the future. They are the characteristics marketers should most often look at. Analyzing customer tendencies and trends allows the marketer to anticipate, if not predict, the customers reaction to different situations. The marketer must take note that behavior is action oriented, not a description. For example, being a 35-yearold woman is not a behavior; it’s a demographic characteristic. For example if you know from history that customer A is likely to make a purchase if presented with a discount promotion, then you might want to change your marketing tactics to include promotional selling when approaching this customer. A great deal of observation is needed if you desire to predict your customers’ behavior. This involves a great deal of notetaking as well as watching what reaction the customer has to different situations. 2. Active customers are happy customers Happy customers are retained customers. If your keep your customers involved, they develop a sense of contentment from the fact that they are in control. Marketers will take advantage of......

Words: 1584 - Pages: 7

Brand Loyality

...perceives relevant, unique added values, which match their needs most closely. Furthermore, its success results from being able to sustain these added values in the face of competition. Brand awareness is the ability to identify the brand under different conditions and it consists of brand recognition and brand recall. It is important as it can increase the likelihood of the brand being part of, and selected from, a consideration set and ultimately strengthens brand associations and the resultant brand image. A wide variety of programs have been developed and implemented to increase customer loyalty. The majority of these programs target customers' functional and economic benefits (e.g. price-discounts, coupons, mileage programs, etc.). However, these types of loyalty programs are necessary but not a sufficient condition to simultaneously increase multifaceted customer loyalty. Increasing customer loyalty entirely requires a customized marketing strategy that varies by each different type of loyalty. By using a type of grass roots consumer marketing as opposed to mass media marketing a longer lasting brand loyalty can be built with youth consumers. Background of the Problem The existing literature regarding grass roots marketing in regards to brand loyalty is relatively minimal. It mainly focuses on the benefits of branding through the use of mass media marketing. The literature is also lacking in the area of targeting youth consumers with grass roots marketing efforts......

Words: 5327 - Pages: 22

Customer Relationship Management

...Customer Relationship Management A Framework for Customer Relationship Management 3 main topics of the article 1. Old and new marketing approach differences – what are the reason for the shift in the marketing approach Old | New | Transaction based | Reaction based | Mass advertisement | One to one marketing | Price oriented product | Customized | Acquisition | Retention | Indirect communication | Direct communication | | | Transaction Marketing (old approach) Just one exchange between company and customer and this is the product from company to customer and money from customer and company. Main objective is to maximize the profit out of this single transaction therefore there is a strong need to acquire more and more customers. Relationship Marketing (new approach) Main difference between TM and RM: multiple transactions between company and customer. Objective: to maximize Profit out of multiple transactions with a single customer. The profit out of multiple transactions with one single customer is called: Customer Lifetime Value Reasons for the shift 80/20 rule (80% of the profit is generated by 20% of the customers) Globalization | competition Acquisition is more expensive Cross and upselling Acquisition vs retention is the main reason for the shift 2. Main objective of CRM * to simplify marketing and sales process * To make call centers more efficient * To provide better customer service * To......

Words: 739 - Pages: 3


...ISSN 2277-8616 Impact of Customers Satisfaction And Customers Retention on Customer Loyalty Inamullah khan Abstract-The purpose of this study is to examine the importance of future customer’s relationship using customer satisfaction, and customer retention on customer loyalty in telecom industry of Pakistan. Questionnaires were distributed through electronic mail and self administered for data collection and linear regression analysis was used. The results show that customer satisfaction has significant while customer retention has insignificant impact on customer loyalty. The implications of the study are that a company should better manage their relationships with the customers as a competitive policy in mobile telephone marketplace. The weak side of the study is that it is limited to a single industry of mobile telecom industry. Key words: Customer satisfaction, Customer retention, Customer loyalty Jel code: M30 ———————————————————— 1. Introduction Customer loyalty is the focus in the research and It turn into an important concern for management only due to concentrated competition especially in service industry (Bodet, 2008). In emerging business, competition customer loyalty plays very crucial role for achieving the competitive advantages (Lin & Wang, 2006). It is significant important to analyze it in the context of customer retention and customer satisfaction, these two variables are of immense important to analyze the customer loyalty. Firms can maximize......

Words: 3664 - Pages: 15

Brand Loyality

...IMPACT OF BRAND SWITCHING, BRAND CREDIBILITY, CUSTOMER SATISFACTION AND SERVICE QUALITY ON BRAND LOYALTY Idrees Akbar, waheed Naseer, Shoaib Ahmed Amin , Abdul Muqtadir , Hafsa Zia, Urooj Shafique Department of Management Sciences, the Islamia University of Bahawalpur Pakistan, Abstract: To be a leading company, it is a massive task to build brand loyalty. Brand is the only word that differentiates the goods and services from the other ones. Therefore the dominated companies spend a lot on the brand to make it unique in order to develop the brand loyalty. Brand loyalty can be created by the numerous ways and strategies but most convenient ones are how much you fulfill your promises in the light of brand credibility, and so on service quality is how much strong if the customer is satisfied then it will show its loyalty towards brand and if not then it shift the intention towards other brand in term of brand switching. This study measures brand loyalty of banking clients of Bahawalpur in Pakistan. A field survey was conducted in Islamia University of Bahawalpur. the study was conducted by 200 respondents, analysis werecoducted by mean of exploratory and confirmatory factor, for checking the data and common method variance. For checking the relationship regression analysis were done. The results were quit significant. Findings indicate that bank has performed satisfactorily in presenting a desired image of the target market. Hence future researchers in the area should......

Words: 5051 - Pages: 21

Customer Experience and Customer Engagement

...Customer experience and customer engagement Customer experience is replacing quality as the most important element in marketing. (Klaus & Maklan, 2013) Great customer experience will encourage customer engagement, which can be understood as a customer’s cognitive, emotional and behavioral interaction with a brand (Hollebeek, 2011). The high customer engagement is directly related to high customer satisfaction, strong customer loyalty and increased word-of-mouth behavior, which all in turn maintain companies’ sustainable competitive advantage and allow they charging higher prices and profit margins than competitors. As said Investment Weekly News (2012) quoted that consumers will pay for the extraordinary customer experience. This reflection focuses on making outstanding customer experience and its relation to customer engagement. In the electronics industry, retailers purposely determine and deliver extraordinary customer experiences that are profitable and hard to duplicate, prospering despite economic downturns and competitive threats. Apple is a master in making great customer experience. As Miller (2012) stated, the superior customer service that Apple deliver has enable the company to grow rapidly while commanding higher prices than its competitors and earning the best profit margins in the consumer-electronics industry. Liyakasa (2012) also pointed out that Apple is in the top of customer brand loyalty ranking. The key strategies that Apple sustains its high......

Words: 1017 - Pages: 5


...finding customers with mass advertising and email blasts, marketers must now focus on being found and learn to build continuous relationships with buyers. Lead generation is the process of making contacts which may lead to a sale or other favourable outcome. The leads may come from various sources or activities, for example, digitally via the Internet, through personal referrals, through telephone calls either by the company or telemarketers, through advertisements, events, and purchase of lists of potential customers. I-P: CUSTOMER LIFECYCLE Customer Lifecycle Management, or CLM is the measurement of multiple customer related metrics, which, when analysed for a period of time, indicate performance of a business. The overall scope of the CLM implementation process encompasses all domains or departments of an organization, which generally brings all sources of static and dynamic data, marketing processes, and value added services to a unified decision supporting platform through iterative phases of customer acquisition, retention, cross and up-selling and lapsed customer win-back. "The purpose of the customer life cycle is to define and communicate the stages through which a customer progresses when considering, purchasing and using products, and the associated business processes a company uses to move the customer through the customer life cycle. In customer relationship management (CRM), customer life cycle is a term used to describe the progression of steps a......

Words: 808 - Pages: 4

Customer Engagement

...Customer engagement Customer engagement (CE) is the engagement of customers with one another, with a company or a brand. The initiative for engagement can be either consumer- or company-led or the medium of engagement can be on or offline. CE aims at long-term engagement, encouraging customer loyalty and advocacy through word-of-mouth. Online customer engagement is qualitatively different from offline engagement as the nature of the customer’s interactions with a brand, company and other customers differ on the internet. Leveraging customer contributions is an important source of competitive advantage – whether through advertising, user generated product reviews, customer service FAQs, forums where consumers can socialise with one another or contribute to product development. Customer engagement is about encouraging your customers to interact and share in the experiences you create for them as a business and a brand. When executed well, a strong customer engagement strategy will foster brand growth and loyalty. NEED: CE-marketing is necessitated by a combination of social, technological and market developments: 1. Businesses are losing the power to dictate the communications agenda 2. Decreasing brand loyalty BUSINESS TO BUSINESS CONTEXT: Customer Engagement in a B2B (business to business) marketing context would typically include a collection of the following marketing programs: 1. Customer Advisory Board or Council 2. Customer Reference Program 3. Executive......

Words: 2943 - Pages: 12


... | |Customer Relationship Management | CRM_01 Nature of Customer Relationship Management LECTURE OBJECTIVES ■ Understand relationship marketing. ■ Understand the differences between relationship marketing and transaction marketing. ■ Understand customer relationship management ■ Identify the essential concepts on customer relations – customer satisfaction and customer loyalty 1. Understand Relationship Marketing 1. What is ‘Relationship Marketing’? Marketing consists of actions taken to build and maintain desirable exchange relationships with target audience. They want to build strong economic and social relationships by consistently delivering superior value. Successful firms work to build long-term relationships with their customers and initiate relationship marketing strategy. Relationship marketing is a strategy that maintains long-term partnerships with customers. It starts by understanding who your customers are what they value, what they want to buy. Companies then build relationships with customers by offering value that satisfied their customers. Relationship marketing is also known as one-to-one marketing, which is about marketing to customers, individually, one at a time. It is grounded in the idea of establishing a learning relationship with each customer, starting with the most......

Words: 1659 - Pages: 7

Loyality Card

...Aldi and Coles, the IGA supermarket chain in Australia has decided to introduce a Loyalty Card program that will reward customers for shopping at IGA with discounts and will target each customer with weekly specials emails based on their buying patterns. IGA has identified several software companies with appropriate Customer Relationship Management software systems that link data mining of the Point-of-Sale buying pattern data for customers using their loyalty cards to marketing push email functionality and Back-of-House product sales and discount campaigns planning and tracking functionality in IGA’s ERP and Accounting system. IGA has appointed the “IGA Rewards” project team to plan the whole program, from scoping the project through tender specifications for the major systems and the integration contractor to issuing and management of contracts, implementation, rollout and support of the implemented program. 1.2 Scope This project reflects the development and implementation of the Loyalty Card program of IGA. IGA reward program will be planned covering some terminology from PRINCE2 (Project In Controlled Environment): 1. Draft the requirements * Interview IGA management * Collect IGA management needs * Customer surveys * Collect customer suggestion * Write IGA project requirements * Approval for requirements 2. Identify and pre-......

Words: 2402 - Pages: 10

Customer Acquisition

...Customer Acquisition Customer acquisition is a broad term that is used to identify the processes and procedures used to locate, qualify and ultimately secure the business of new customers. There are many different strategies used as part of the acquisition process, with some methods being more effective with specific types of potential clients. In spite of the many and sometimes contradictory ideas that surround the central idea of how to earn a customer, there are a few essentials that are included in just about any type of customer acquisition plan. One of the basics of any customer acquisition effort is to identify and quality potential customers. This is sometimes accomplished with the use of telemarketing as a means of locating individuals and businesses who either express interest in or already use products similar to those produced by the business. From this initial list, these leads are then qualified a little further, using various research methods to determine if there is any solid chance of making a sale with a given lead. If there is a good chance, and the contact is interested in learning more about the products offered, his or her status is usually upgraded to that of prospect, and assigned to a salesperson for further interaction. Establishing rapport with the prospect is essential to any successful customer acquisition effort. Here, the salesperson finds ways to identify with the stated wants and needs of the prospect, and how the products offered can......

Words: 25485 - Pages: 102

Social groups | The Divergent Series: Insurgent | Sneaky Pete