Customer Loyalty

Customer Loyalty

Customer Loyalty

Introduction

The main purpose of this paper is to make an analysis on the impact of the loyalty points in the increase in customer's loyalty. When people go shopping and bring their own bags, retailer companies in UK give them loyalty points. The paper makes an analysis on the situation that does this lead to increase in the customer loyalty.

Background of the Study

Getting the loyalty points is the main mission of the customers. Loyalty points are earned by the customers after each consecutive month. Loyalty is the biggest disease of the customers. In order to increase the loyalty, retailers develop different strategies in order to increase the loyalty and check out the competition. One of the strategies is that the companies provide the rewards to the new customers in order to increase their retention rate. However, another factor is that the retailers give their bags to the customers whenever they go for the shopping (Adcock, 2001, p. 529). The paper is an analysis of the strategy of using the company's bags in order to increase the customer's loyalty.

Research Question

When people go shopping and bring their own bag, Retailer Company in the UK give them loyalty points, does this situation lead to increase customer loyalty?

Literature Review

Customer loyalty is the attitude of the customers towards the products and services of a company. The companies make several programs in order to increase the loyalty of the customers for their products and services. The two important dimensions which are used for the purpose of identifying the customer loyalty are the behaviours and attitudes (Nguyen, 2001, p. 227). The behaviour dimensions are the behaviour of the customers in order to repeatedly buy the products and services of a company. On the other hand, attitudinal dimensions refer to the customer's intention to repurchase the product or services in the near future. The behavioural and the intentional dimensions are the main factors towards increasing the customer's loyalty for a specific product and service (Barker, 2003, p. 432).

The main factors which are considered to be the prerequisite of the loyalty of the customers are the customer satisfaction and service quality. According to various researchers, high customer satisfaction and the increased service quality are the two main factors behind the increase in the customer's loyalty and willingness to recommend the service. The increased competition in the retail marketing has forced the retailers to change their strategy from increasing the customers to retaining the number of customers (Johnson, 2002, p. 217). While the definitions and measurement scales broadly vary in explaining loyalty, the phenomenon seems to manifest itself in two distinct ways: loyalty intentions and loyalty attitudes. What this means, then, is that loyalty encompasses both behavior and emotion. Loyalty as behavior has traditionally focused on a customer's repeat purchase behavior that is triggered by marketing activities (Jarvenpaa, 1996, p. 88). However, the reasoning behind emotional loyalty is that repeat purchases alone do not necessarily indicate true loyalty proposes that true, loyal relationships between firms and ...