The relationship between service quality, customer. This paper presents an analysis of quality, customer satisfaction and business performance in food industry. The statements below are key points of the book as determined by james altfeld and have been made available at no charge to the user. Factors influencing customer loyalty toward online shopping. Loyalty is the users desire for a long time to continue their relationship with a particular company, because loyal customers are those who purchase goods. Study the effects of customer service and product quality on. Relationship marketing and customer loyalty the basic philosophies of relationship marketing are based on the assumption that company customer interactions and strategies can earn and keep the loyalty of customers berry, 1995. Customer loyalty is a topic of great interest for marketing scholars due to its importance in. Kassim and nor asiah abdullah introduction loyal customers are indeed crucial to business survival reichheld and schefter 2000, semejin et al. Factors influencing customer satisfaction and eloyalty. Loyalty is best defined as a state of mind, a set of attitudes and desires of the. The current research study attempts to find the impact of customer satisfaction on customer loyalty and intentions to switch.
Online shopping environment among the young adults according to internet world stats 2012 about 60. Volume 3 issue 1 employee loyalty once defined as a lifetime relationship with a particular employer appropriate in the current marketplace of layoffs, mergers and talent wars. Feb 16, 2014 impact of customer relationship management on customers loyalty. Some researchers state that a positive relationship exists between loyalty of customers and performance of companies. Service quality, relationship quality and customer loyalty. Identifying the approaches of customer loyalty dimensions in. Loyalty is a physical and emotional commitment given by customers in exchange for meeting their expectations. Emotion represents the feelings, positive or negative, brought to mind by an object or idea. While one stream of loyaltysatisfaction research indicates that loyalty has a strong association with different aspects of consumer satisfaction ashley and varki. To the authors 17 customer loyalty depends on committed teams, employees and suppliers and owners. Therefore, our study intends to make two main contributions. Special issue june 2011 253 study the effects of customer service and product quality on customer satisfaction and loyalty asghar afshar jahanshahi corresponding author phd scholar in business administration.
Customer loyalty is an important objective for strategic marketing planning and represents an important basis for developing a sustainable competitive advantage. An empirical study article pdf available in european journal of marketing 42910. Gummesson 1999 defines relationship marketing as a continuation of the mutual relationship. Asserts that building customer loyalty is a business strategy, not just a marketing program and that all businesses should seek to boost loyalty and maximize share of customer. Oradea journal of business and economics, volume ii issue 1 published on march 2017 7 customer satisfaction and loyalty. In recent years there has been a growing interest among institutions regarding. Previous studies identified trust as a predictor of customer loyalty gul, 2014. International journal of business and social science vol.
Customer loyalty to the brand is essentially a relational phenomenon 16. It is reasonable to conclude, on this evidence, that customer loyalty can be created, reinforced and retained by marketing plans aimed at building trust, demonstrating commitment to service, communicating with customers in a timely, reliable and proactive. Satisfied customers spend more money, refer more customers and patronize businesses longer than unsatisfied customers. Introduction loyalty is a complex phenomenon, which includes a set of behaviors and attitudes. Effect of customer relationship management on customer. The relationship between customer satisfaction and loyalty. Arokiasamy1 activities due to increased competition for. International journal of academic research in business and social sciences 2017, vol.
Global journal of management and business research. The effects of trust, commitment and satisfaction on. Customer satisfaction, product quality and performance of. Customer satisfaction on reliability and responsiveness of. The relationship between service quality and customer. The data were collected from 120 customers visiting the banks counters and had an account with banks serving in pakistan. The main objective of the research is to determine the. The purpose of the study is to do the research that under the ecommerce business model, the impact factors of customer loyalty in an online shopping environment, how to improve the customer loyalty and how to build a.
This paper examined the impact of customer satisfaction on customer loyalty. Customer loyalty manifests itself in behavioral consequences, including repurchase. The results indicated that there was a certain relationship between service quality and customer satisfaction based on different cultural background. Impact of customers satisfaction and customers retention on customer loyalty inamullah khan. Explores the various approaches to structuring customer loyalty strategies. The importance of customer satisfaction in relation to. The importance of customer satisfaction and loyalty research why is customer satisfaction and loyalty research so important. Understanding the effect of customer relationship management efforts on customer retention and customer share development, the journal of marketing, vol.
The effectofcustomer trust on customerloyalty andcustomer. Takes a look at the worldwide trend toward loyalty marketing and highlights the reasons for this emphasis on loyalty. Customer satisfaction, customer loyalty, switching cost, loyalty programme, consumption experience, wordofmouth, customer value 1. Do customer satisfaction and customer trust really serve as intervening variables. A holistic approach of the greek banking sector elissavet keisidou lazaros sarigiannidis dimitrios i. In addition, factors influencing customer satisfaction and loyalty, measuring customer satisfaction, importance and approaches are explored. Customer service quality, product quality, customer satisfaction and loyalty can be measured at different stages, for example, at the. This all leads to more revenue for businesses that can keep their customers satisfied. The following is a highlighted summary of the book, customer loyalty, published by josseybass. Customer satisfaction and loyalty are the most important factors that affect the automotive industry.
International journal of academic research in accounting, finance and management sciences vol. Impact of customer relationship management on customers. First, supplyside firmcontrollable customer loyalty antecedents are those. International journal of humanities and social science vol. In this study, first, a research model about the interrelationships between service quality, customer satisfaction, and customer loyalty is suggested. Research on loyalty programs suggests that customers differentiate between loyalty to a company and loyalty to a loyalty program, yet little is known about the consequences of these two types of loyalty. The relationship between customer satisfaction and. The objective of this study is to analyze a conceptual framework empirically that considers the interrelationships of customers perceived service quality, trust, and customer satisfaction and customer loyalty in. International journal of managerial studies and research ijmsr volume 3, issue 2, february 2015, pp 4253. On the other hand, customer service can be considered as an innate element of industrial products. Australian journal of basic and applied australian journal of basic and applied. International journal of scientific and research publications, volume 6, issue 2, february 2016 375 issn 2250 3153. Study the effects of customer service and product quality. Most companies strive for customer loyalty as the competition in most sectors grows tighter, both the importance of, and the challenge in, keeping customer loyalty increases.
Is customer satisfaction an indicator of customer loyalty. Revised and resubmitted to journal of consumer marketing august 2002. Relationship marketing and customer loyalty the basic philosophies of relationship marketing are based on the assumption that companycustomer interactions and strategies can earn and keep the loyalty of customers berry, 1995. Customer satisfaction, product quality and performance of companies1 petr suchanek, jiri richter, maria kralova2 abstract. Similarly, in chapter four methods of managing customer relationships are described. The effect of customer trust on customer loyalty and customer retention. Evidence from banking sector of pakistan faizan mohsan hailey college of commerce, university of the punjab, pakistan email. Designing web sites for customer loyalty across business domains. Then a survey is conducted with retail banking customers about these constructs, which results in 261 valid respondents. Introduction customer loyalty has long been a topic of high interest in both academia and practice, and a loyal. International journal of research in it, management and engineering issn 22491619, impact factor. A case study of a reputable bank in oyo, oyo state. The impact of customer loyalty programs on customer retention. Impact of customer satisfaction on customer retention.
It is proposed that the antecedents of customer loyalty are be partitioned into three categories. In addition to the above reasoning, we believe that the following arguments can be directed against the present concept of the customer loyalty. The goal of this study is to obtain a deep understanding of the impact of customer loyalty programs on customer retention. Loyalty is the primary goal of relationship marketing and sometimes equates to the concept of relationship 15 marketing. Measuring customer loyalty using retention, advocacy and. Identifying the approaches of customer loyalty dimensions in academic literature. Impact of customers satisfaction and customers retention. For that reason many companies use defensive marketing strategies to increase their market share and profitability by. International journal of research in marketing vol. Gonca telli yamamoto maltepe university, faculty of economics and administrative sciences, business department deputy head of the department sahilyolu orhantepe mah. Research in business and economics journal customer loyalty, page 2 introduction the proposed model is theoretically grounded in the multiattribute attitude literature. Customer loyalty academic and business research institute. International journal of bank marketing customer satisfaction, loyalty and financial performance.
Relations between service quality and customer loyalty. Iosr journal of business and management iosrjbm eissn. In short, it is time to begin the determined study of loyalty with the same fervor that researchers have devoted to a better understanding of customer satisfaction. A systematic mapping study on customer loyalty and brand. Maintaining customer loyalty has been recognized as one of the essential factor for business survival and growth. A loyalty program may give a customer advanced access. Quality, and value, journal of consumer research, january, 375384. It is our view that one critical variable has been excluded from consideration that impact on customer loyalty, i. A multilevel analysis journal of management information systems vol. Martin, the authors of customer loyalty is overrated, is rooted in serious misperceptions about the nature of competitive advantagenamely, that. It is reasonable to conclude, on this evidence, that customer loyalty can be created, reinforced and retained by marketing plans aimed at building trust, demonstrating commitment to service, communicating with customers in a timely, reliable and proactive fashion, and handling conflict efficiently. Article pdf available in australian journal of basic and applied sciences 127. Impact of customer satisfaction on customer loyalty and.
This paper examined the impact of customer satisfaction on customer retention. Customer loyalty of amazon how to build a long lasting relationship. International journal of trade, economics and finance, vol. Consequences of customer loyalty to the loyalty program and. Impact of customer relationship management on customers loyalty. The effect of automated service quality on australian banks financial performance and the mediating role of customer satisfaction. The effects of trust, commitment and satisfaction on customer. Introduction in current market the concept of customer loyalty is a key factor.
Customer satisfaction, customer loyalty, marketing, relationship, service quality, value. A study of interrelationships and effects in nigerian domestic airline industry rahim a. September 2011 263 impact of customer satisfaction on customer loyalty and intentions to switch. Any of the satisfaction and loyalty variables are significantly related to the bank performance at 90 percent. It can be stated, that the limitation of service quality studies is the inconsistency in determining the link between service quality and customer loyalty. Jul 26, 2011 gaining customer loyalty is an important goal of marketing, and loyalty programs are intended to help in reaching it. Measuring customer loyalty using retention, advocacy and patronage as key denominators israel kofi nyarko, matthew opoku agyemanduah, vincent asimah department of marketing, ho polytechnic ghana. An investigation in vietnamese retail banking sector ngo vu minh, nguyen huan huu abstract this study develops and empirically tests the interrelationships between service quality, customer satisfaction, and customer loyalty in a retail banking context. The purpose of the study is to do the research that under the ecommerce business model, the impact factors of customer loyalty in an online shopping environment, how to improve the customer loyalty and how to build a long lasting.
The rewards programs are offered by a company to customers who frequently make purchases. Customer loyalty, customer satisfaction, customer retention. Customer experience management has gained in importance in recent years. The study investigates the impact of independent variable. Journal of consumer satisfaction, dissatisfaction and complaining behavior. Journal of global business and economics, 11, pp 7998. Dowling 2002 suggests that loyalty programs do not necessarily generate loyalty and are not cost effective and that the proliferation of loyalty programs is hype or a metoo scheme. Customer loyalty, repurchase and satisfaction scholarly commons. International journal of academic research in business and social sciences. While making consumer loyal toward a company product is not an easy job. Impact of customer satisfaction on customer loyalty.
Today loyalty programs are in vogue in different types of businesses such as retail stores, hotels, airlines and host of other services. Journal of applied business and finance researches volume 1, issue 1. In other words, a longer tenured employee does not necessarily and sufficiently indicates. The relationship between service quality, customer satisfaction and customer loyalty. Customer loyalty has long been a topic of high interest in both academia and practice, and a loyal customer base has been found to be beneficial to the firm. Customer loyalty and customer loyalty programs article pdf available in journal of consumer marketing 204. Consequences of customer loyalty to the loyalty program. Loyalty, relationship marketing, emarketing, customer. The impact of customer loyalty programs on customer. Impact of customers satisfaction and customers retention on.
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