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1 – 10 of over 33000
Article
Publication date: 1 December 2006

Jason J. Turner and Karen Wilson

The aim of the research is to identify the impact of the Tesco Clubcard on customer loyalty. The secondary aim is to contrast customer perceptions of the Clubcard, staff…

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Abstract

Purpose

The aim of the research is to identify the impact of the Tesco Clubcard on customer loyalty. The secondary aim is to contrast customer perceptions of the Clubcard, staff and “feeling valued” to identify which factor has the greater impact on customer loyalty to store.

Design/methodology/approach

Quantitative analysis was used based on 60 questionnaires conducted with randomly selected customers in Tesco Metro Dundee in 2005. Tesco were not involved in the research other than to provide approval at a store level for the research to take place outside their premises.

Findings

A positive moderate relationship was found r=0.388, p=0.01 between the owning of a Clubcard and loyalty to store. It was also found that there was a positive moderate relationship between the Clubcard returns and customer loyalty, with r=0.334, p=0.01. The research, however, found no relationship between loyalty and customers feeling more valued by Tesco, nor did the research reveal a significant relationship between Tesco staff and customer loyalty.

Research limitations/implications

The research is restricted in so far as it only considers Tesco Clubcard in the grocery retail sector and as it is an exploratory study the research is limited in so far as the number of participants is only 60. A further limitation surrounds the issue of generalisability as only one Tesco retail outlet in Dundee was used. Further research needs to include other Tesco formats and contrast with grocery retailers who do not use loyalty cards.

Practical implications

It is suggested that Tesco consumers are influenced by having a loyalty card in so far as it contributes to making them loyal. However, other factors need to compliment such a card, with consumers seeing the Tesco “provision” as inter‐related.

Originality/value

The paper is useful to both practitioners and academics in the fields of relationship marketing and loyalty. The research provides some initial insight into consumer perspectives in the value of loyalty cards.

Details

British Food Journal, vol. 108 no. 11
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 1 October 2005

Jennifer Rowley

To propose a categorisation of customer loyalty types to further increase our understanding of the nature of loyalty.

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Abstract

Purpose

To propose a categorisation of customer loyalty types to further increase our understanding of the nature of loyalty.

Design/methodology/approach

By segmenting customers who are both loyal in attitude and behaviour to a brand, a model is proposed that differentiates between customers whose loyalty is inertial, and those whose loyalty is positive.

Findings

Four categories of loyal customer are proposed: captive, convenience‐seekers, contented and committed. The behaviours and attitudes that can be expected of customers in these different categories are discussed. It is also suggested that customers in different categories will respond in different ways to triggers to switching. Further research that investigates customers' reasons for loyalty behaviour in relation to a portfolio of brands is recommended to validate the model and to enhance understanding and predictability of customer loyalty propensities.

Originality/value

There is agreement that loyals are important for the future of the business, and that this category is deserving of special attention. Since loyalty is key in customer development and profitability, it is important to understand the loyalty condition in more detail, and to use this understanding to develop further the relationship with customers in the loyal category. The model proposed here subdivides loyals in Dick and Basu's categorisation based on behaviour and attitudes. Four categories of loyalty are proposed: captive, contented, convenience‐seeker and committed. Each is described and discussed, and their management implications and research agendas identified. It is noted that any one individual is likely to exhibit the characteristics of each of these categories in relation to different products, services, outlets, and their associated brands. This is a speculative model at this stage of development, which is intended to provoke further thought about the nature of loyalty.

Details

Marketing Intelligence & Planning, vol. 23 no. 6
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 4 July 2008

Janet L. Hoffman and Eric M. Lowitt

The US retail industry seems headed toward a zero‐sum game, a place where growth comes from taking customers away from competitors. This paper aims to present three steps

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Abstract

Purpose

The US retail industry seems headed toward a zero‐sum game, a place where growth comes from taking customers away from competitors. This paper aims to present three steps to reduce the risk of defection of customers.

Design/methodology/approach

Despite the widespread prevalence of loyalty programs in the retail industry, customer defection risk within the industry remains high. Research shows that 85 percent of the “loyal” customers are willing to shop elsewhere if properly enticed. In response, some retailers have adjusted their loyalty programs to align them better with what they believe matters most to their target customers.

Findings

The paper reveals that there are three key steps to achieving an effective loyalty program.

Research limitations/implications

In the summer of 2007, Accenture conducted ten independent but related surveys to assess behavioral loyalty of US retail customers in specific retail product categories (that is, retail segment markets). The ten surveys were conducted online simultaneously and were administered by a third‐party research vendor.

Practical implications

The paper offers this checklist for managers: align loyalty strategy with what matters most to target customers; recognize that price only buys volume but service earns continued loyalty; and use your loyalty strategy as both a defensive and an offensive weapon.

Originality/value

All loyalty programs are not equally effective. Retailers that ensure that their loyalty strategy is truly customer‐centric and use this strategy to both retain and acquire loyal customers will be the winners in retail's zero‐sum growth game.

Details

Strategy & Leadership, vol. 36 no. 4
Type: Research Article
ISSN: 1087-8572

Keywords

Article
Publication date: 1 September 2003

Dennis L. Duffy

The development of customer loyalty is a strategic objective for most companies. There are many different terms used in business today to describe the process of building…

34949

Abstract

The development of customer loyalty is a strategic objective for most companies. There are many different terms used in business today to describe the process of building customer loyalty. This article describes the benefits of building customer loyalty and explores the essential strategic considerations for companies contemplating the development of loyalty initiatives. It also establishes the relationship between how brands are built today and how customer relationships are cultivated in a manner that leads to loyalty.

Details

Journal of Consumer Marketing, vol. 20 no. 5
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 1 November 2000

Jay Kandampully and Dwi Suhartanto

Loyalty of a firm’s customer has been recognised as the dominant factor in a business organization’s success. This study helps us extend our understanding of the…

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Abstract

Loyalty of a firm’s customer has been recognised as the dominant factor in a business organization’s success. This study helps us extend our understanding of the relationship between customer loyalty, customer satisfaction, and image. This is of considerable interest to both practitioners and academics in the field of hospitality management. The objective of this research is to identify the factors of image and customer satisfaction that are positively related to customer loyalty in the hotel industry. Using data collected from chain hotels in New Zealand, the findings indicate that hotel image and customer satisfaction with the performance of housekeeping, reception, food and beverage, and price are positively correlated to customer loyalty.

Details

International Journal of Contemporary Hospitality Management, vol. 12 no. 6
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 26 August 2014

Muhammed S. Alnsour, Bandar Abu Tayeh and Mohammed Awwad Alzyadat

The purpose of this paper is to explore the application of the SERVQUAL approach to assess the quality of service of Jordanian telecommunication sector and how this can…

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Abstract

Purpose

The purpose of this paper is to explore the application of the SERVQUAL approach to assess the quality of service of Jordanian telecommunication sector and how this can ultimately affect customer loyalty. Service quality has a very high importance in a sector that is becoming highly competitive.

Design/methodology/approach

The paper uses a survey to asses the service quality from the viewpoint of customers using a stratified sample that consists of customers of each of Jordanian Telecommunication Company. The survey contrasts respondents’ expectations of a service with their perceptions of the service delivered by telecommunication companies.

Findings

The study showed that the telecommunications company needs to understand the Jordanian customer expectations in the light of the unique cultural traits of these customers. This affects that companies’ ability in meeting customer expectations, Loyalty is directly enhanced by achieving service quality and should be one of the main goals for telecom companies.

Research limitations/implications

Some of the findings cannot be generalized across industries or across countries.

Practical implications

The paper will be of interest to Jordanian telecommunication firms to academics investigating the reliability and value of service quality assessment tools.

Originality/value

This study showed that culture can have an impact on customers’ expectations of service quality. This is reflected by the findings about responsiveness and tangibility. Responsiveness was found to be the dimension that has the greatest impact on loyalty within the Jordanian culture, while tangibility has the lowest correlation with loyalty.

Details

International Journal of Commerce and Management, vol. 24 no. 3
Type: Research Article
ISSN: 1056-9219

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Article
Publication date: 1 December 1998

Chris Drake, Anne Gwynne and Nigel Waite

Outlines the development by Barclays Life of a tracking survey to collect information concerning customers’ feelings of satisfaction and loyalty. Describes research…

6186

Abstract

Outlines the development by Barclays Life of a tracking survey to collect information concerning customers’ feelings of satisfaction and loyalty. Describes research undertaken by Barclays Life into the determinants of satisfaction amongst customers and the importance of each of these elements in determining loyalty. Initial qualitative research was undertaken to allow the company to develop a frame of reference concerning the elements of service which customers considered important. These initial findings were used in later quantitative studies to establish the relative importance of the different elements, with a view to understanding what was determining customer loyalty. The research culminated in the development of a tracking survey instrument, now used by the company to monitor customer satisfaction and loyalty levels across time and customer groups. Discusses both the findings of the research undertaken, and the importance of such research for firms. Outlines the use to which the information gathered by the surveys is put, together with initiatives which have resulted from the research.

Details

International Journal of Bank Marketing, vol. 16 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 1 November 2000

Jennifer Rowley and Jillian Dawes

Seeks to revisit the theoretical basis for the concept of loyalty through a consideration of the state of “no loyalty”, which we term “disloyalty”. This category is…

4608

Abstract

Seeks to revisit the theoretical basis for the concept of loyalty through a consideration of the state of “no loyalty”, which we term “disloyalty”. This category is present in the model proposed by Dick and Basu, but is seen to be of less interest than other categories. Here we argue that a more analytical approach to this category might provide a unique insight into loyalty behaviours, but specifically might aid an understanding of the nature of the challenge associated with widening the loyal customer base. We propose the following categories of disloyals: disturbed, disenchanted, disengaged and disruptive. These four categories can be mapped onto a grid with attitudinal and behavioural dimensions. The characteristics of each of these groups are outlined. Segmentation on the basis of these different types of disloyalty could have implications for marketing strategies. The relationships between the different categories of disloyals and Dick and Basu’s categories of loyals may be important in mapping the development of customer relationships. Finally, proposals are made for further research.

Details

Journal of Consumer Marketing, vol. 17 no. 6
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 1 June 1997

Robin Clark

Claims that a supermarket’s most loyal customers are around 1,000 times more profitable than its least loyal. Takes the reader through all aspects of loyalty from getting…

4201

Abstract

Claims that a supermarket’s most loyal customers are around 1,000 times more profitable than its least loyal. Takes the reader through all aspects of loyalty from getting to know your best customers, through how to reward them, to the science of customer loyalty; how to measure a customer’s lifetime value and the effectiveness of your scheme. Analyses existing schemes around the world in retailing (including supermarkets and petrol retailing), travel, leisure, finance and motoring industries. Investigates customer loyalty techniques for business to business, independent retailers, brands, newspapers, utilities, dental supplies, computing and town loyalty.

Details

Managing Service Quality: An International Journal, vol. 7 no. 3
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 31 May 2022

Ismail Juma Ismail

This paper examined mediating effect of customer loyalty on the influence of customer orientation and technology orientation on the performance of small and medium-sized…

Abstract

Purpose

This paper examined mediating effect of customer loyalty on the influence of customer orientation and technology orientation on the performance of small and medium-sized enterprises (SMEs).

Design/methodology/approach

This study adopted and modified items from previous studies. Also, data were analyzed using structural equation modeling (SEM). Additionally, a PROCESS Macro mediation test was used.

Findings

The study's findings indicated that customer orientation and technology orientation positively and significantly affect customer loyalty. Moreover, the findings indicated that customer loyalty has a positive and significant effect on the performance of SMEs. Finally, customer loyalty was found to mediate the influence of customer orientation and technology orientation on the performance of SMEs.

Practical implications

The study recommends on business performance improvement through enhancing customer and technology orientations and customer loyalty. So, SMEs should make sure their internal environment is conducive to accommodate customer and technology orientations, which will help them come up with effective ways to get loyal customers and improve their business.

Originality/value

The study adds value to the existing literature by introducing customer loyalty as an intervening variable between the effect of customer orientation and technology orientation on business performance of SMEs.

Details

Technological Sustainability, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2754-1312

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