Relationship Between Customer Satisfaction and Loyalty
Sharma, A., Gupta, J., Gera, L., Sati, M., & Sharma, S. (2020) Relationship between Customer Satisfaction and Loyalty. Social Science Research Network.
12 Pages Posted: 30 Aug 2021 Last revised: 16 Feb 2022
Delhi School of Business
Date Written: December 25, 2020
One of the most important aspects to ensure the attention of the customers is to provide the best and the most favourable products at this competing market. With customer satisfaction comes customer loyalty. The topic for this review article is to determine the relationship between customer satisfaction and loyalty and the factors influencing these concepts. Further we will get to know that how these concepts affect the relationship that customers have with the organization that helps the organization to be at a better place in the market or beat the competitors. A highly satisfied customer will spread positive WOM and a loyal customer leads to an increase in both sales and profitability. Customer satisfaction affects the trust and customer trust is an antecedent of loyalty. When customers connect with emotions through the product/ services of the brand then it creates a bond between the customer and the brand. The relationship between satisfaction and loyalty influences the profits. The more customer is satisfied, the more loyal towards the brand. A loyal customer leads to an increase in both sales and profitability. Customer satisfaction mediates the relationship between customer loyalty and service quality.
Keywords: Customer Satisfaction, Customer Loyalty, Trust, Service quality
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Customers Loyalty: Concept & Definition (A Review
Generally speaking, customer loyalty means the intention of repurchasing products and services, and this is the goal of industry or loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future, thereby causing repetitive same-brand or same-brand set purchasing. So c u s t o me r l o y a l t y i s s e e n a s o n e o f t h e k e y f a c t o r s o f a c o mp a n y ' s s u c c e s s. Several researchers have pointed out that it costs more than five to six times as much to obtain a new customer than to keep an existing one and an improvement of 5 percent in customer retention leads to an increase of 25 percent to 125 percent in profit. This study is focused on defining the customer loyalty and explaining its concept.
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All people are becoming busy and more professional than previous. The business world and general life is becoming more complex day by day. They need to share more information to each other because of globalization. Mobile phone has introduced a tremendous change in the Communication sector in all over the world. It has changed the communication structure also. People in various occupations and income levels are using mobile phone intensively for their occupational purpose and personal purpose as well. Mobile phone services contribute significantly to the growth and development of the country whether industrial or emerging economy where they operate. Customer loyalty is important for both the firm and the customer. As regards the firm, loyal customers are willing to make repeat purchases in the business that delivers value beyond their expectation. Loyal customers often will, over time bring substantial revenues and demand less attention from the firms they patronize. The determinants of customer loyalty such as service quality, perceived service value, customer satisfaction, customer trust and commitment. Several researchers suggest using a theoretical approach to develop a much deeper insight into key marketing constructs such as service quality, customer perceived value, customer satisfaction, perceived switching costs, corporate image, and customer loyalty is of vital to the mobile communications market. This paper aims to investigate the role of customer satisfaction in the mobile telephone network service providers (MTNSPs). To notify the meaningful factors for the calculative commitment and loyalty intention of the users in using mobile phones, this study focuses on the effect of service quality and perceived value in customer satisfaction and to identify the role of calculative commitment in forming customer loyalty. As many as 125 users of mobile phone users-working people were surveyed in Coimbatore city, TamilNadu, India. The data as analyzed by confirmatory factor analysis, AMOS and path analysis. This study shows that customer satisfaction, perceived value, service quality and calculative commitment has a positive and significant effect, calculative commitment has a positive effect on loyalty intention and loyalty intention has a positive effect on behavior loyalty and attitudinal loyalty. In terms of mobile telecommunication systems, it is found that the users may exhibit noticeable differences in using this service. This study provides important hints to strengthen the relationship between the network service providers and their customers.
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Building brand loyalty in a competitive market can play an efficient role in the modern marketing environment. It is now widely acknowledged by companies and business enterprises that strong brand loyalty will make a competitive advantage in the marketplace that will increase their overall knowledge with experiences and trustworthiness. Indeed, recent trends in modern marketing have changed tremendously, and study of brand loyalty is increasingly becoming essential to keep pace with this change. In this conceptual paper, we have summarized the literatures on currently prevailing concepts and approaches on brands that will allow us to identify the necessary components of brand loyalty, and therefore will help companies and business enterprises to improve their marketing efficiency. Based on a comprehensive review of several earlier works, here we propose a plausible framework for building brand loyalty in sequential order, namely, familiarity of the brand, satisfaction of customer of the brand, trust on the brand and attitudinal loyalty of the brand. In this review, we put forward the perception that brand loyalty-building challenge need to be connected with organizational processes which will support to bring the promises as well as commitments to the customers through organizational aggregate activities. We suggest that these aggregate activities could play an imperative role in building brand loyalty among customers. As a whole, based on the existing literatures, we have tried to provide a comprehensive view on the essential components of brand loyalty for building brand loyalty in a competitive market. In this conceptual paper, we attempted to discuss the conceptual framework of brand loyalty and its implication of the necessary components of brand loyalty namely, familiarity, satisfaction, trust and attitudinal loyalty (FSTA model) in the modern marketing environment. In light of the current literatures, we tried to summarize how loyalty may play role in marketing strategy in a competitive market.
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It is clear in fact that Customer Relationship Management (CRM) projects often end up in failure and it seems that companies lack guidance for appropriate implementation practice. The purpose of this paper is twofold: (i) to present an efficient CRM implementation scheme and (ii) to develop an integrated application framework for a fully customized software system that integrates various day-today operations and provides CRM capabilities. The framework is applied to a practical real-life case study of a company offering a wide range of cosmetic products, focusing on increasing customer loyalty, enhancing sales taskforce productivity, and reducing customer management costs. The importance of this study lies in that it provides a systematic, practical and efficient approach of designing and implementing a CRM system. This approach is also directly applicable to any company operating through a network of sales representatives who promote and sell products utilizing outbound telephone communication.
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The objective of the current study is to investigate the cause and effect relationship between the Customer Trust, Customer Loyalty, & repurchase intention where the role of Perceived CSR had to be checked. The data were collected from various demographic populations in India through self made and modified questionnaire. Two constructs were adapted from prior conducted studies which were modified according to making them fit for the current study. Collected data from various demographics were analyzed using Croanbach’s alpha reliability and Factor analysis test using IBM SPSS 21. Hierarchical regression was employed to know the moderation effect of perceived CSR among Customer trust, customer loyalty and repurchase intention. The results of Hirerihal regression reveal the significant relationship between Customer trust and Repurchase intention, but when perceived CSR is used as moderator between customer trust and customer loyalty so the relationship become stronger. The results of ...
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"Abstract Understanding what makes business-to-business (B2B) relationships lasting and stable is one of the main areas of academic interest in the study of organizational relations. To retain the organization’s current customers and to make them loyal is a critical component for a company to be successful. Customers should identify groups of suppliers based on develop strategies that are appropriate for further increasing loyalty under the conditions that exist for the product and service. In the current paper, the authors investigate the different factors, which influence commitment and customer loyalty on B2B context. The following paper explains the relationship between commitment and customer loyalty by investigating relevant theories and past studies. This paper uncovers that the literature proffer a affluent, yet fragmented, photograph of which variable or key success factor is, and how it can be increased and profitable to customer loyalty in automotive industry. The outcomes must lead management with the ability to map out a typology of loyalty using the available composite measures of loyalty, purchase intentions and attitudinal loyalty. The classification system can be useful to industrial customers as they try to increase their loyalty."
casestudies journal , Wageeh Nafei
Purpose: CS and CL is a well known and established concept in several areas like marketing, consumer research, economic psychology, welfare-economics, and economics. The purpose of this study is to examine the relationship between Customer Satisfaction (CS) and Customer Loyalty (CL). Research Design/Methodology: To assess positive CS, refer to (CS Questionnaire, Athanassopoulos, et al, 2001) and CL (CL Questionnaire, Parasuraman, 1996) are used. The data of the study was collected from 250 employees at the Telecommunications sector in Egypt. Out of the 290 questionnaires that were distributed to employees at the Telecommunications sector in Egypt, 250 usable questionnaires were returned, a response rate of 86%. Multiple Regression Analysis (MRA) was used to confirm the research hypotheses. Findings: The research has found that there is significant and positive relationship between CS and CL at the Telecommunications sector in Egypt. CS significantly influenced CL. The finding reveals that CS affects CL. The findings supported the contention that strong relationship exists between CS and CL. However, CS alone cannot achieve the objective of creating a CL base. CS and CL are not directly correlated, particularly in competitive business environments because there is a big difference between CS, which is a passive customer condition, and CL, which is an active or proactive relationship with the organization. The results suggest that improving CS and CL is necessary. The research results also indicate that high levels of CS can build CL. Practical implications: Learning the relationships between CS and CL, retailers can effectively allocate their resources. In addition, by the referring of CL, the Telecommunications sector can attract more customers. Managers are advised to satisfy and better manage their relationships through quality product and service offerings to their customers as a competitive policy in the marketplace. The Telecommunications sector in Egypt is required to offer products/services that meet or surpass consumers' expectation. The study also reveals interesting implications in CS and CL, useful to both academics and practitioners. Managers will find this research helpful in better understanding these variables and their roles on their companies' performance. Originality/value: This research dealt with CS in terms of its concept and dimensions, in addition to dealing with the significant role of CL at the Telecommunications sector in Egypt.
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