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Publication date: 13 November 2017

Robert Kozielski, Michał Dziekoński, Jacek Pogorzelski and Grzegorz Urbanek

The term ‘strategy’ is one of the most frequently used terms in business, and its application in marketing is particularly common. Company strategy, market strategy…

Abstract

The term ‘strategy’ is one of the most frequently used terms in business, and its application in marketing is particularly common. Company strategy, market strategy, marketing strategy, sales strategy, promotion strategy, distribution strategy, low pricing strategy – it would take a long time to list all of them. Although this term is so commonly in use, its definition is not as straightforward and it can be interpreted in different ways. In comparison with tactical decisions, strategy is much more significant for an organisation as it brings long-lasting consequences. It is implemented by higher level managers on a regular basis, and it is based on external, often subjective information, so decisions – especially at the time they are made – are difficult to evaluate.

Taking into consideration the fact that strategy refers to a long-term rather than a short-term period, strategic decisions serve as the basis for undertaking operational activities. However, marketing refers to the market and the competition. It is possible to claim that marketing strategy is trying to find an answer to the question to which path an organisation should follow in order to achieve its goals and objectives. If, for example, a company has a goal to generate a profit of PLN 1 million by selling 100,000 pieces of a product, the market strategy should answer at least the following two questions:

  1. Who will be our target group, for example, who will purchase the 100,000 pieces of the product?

  2. Why is it us from whom a potential buyer should purchase the product?

Who will be our target group, for example, who will purchase the 100,000 pieces of the product?

Why is it us from whom a potential buyer should purchase the product?

The target market will be defined if a reply to the first question is provided. The second question identifies the foundations of competitive advantage. These two issues, that is, target market and competitive advantage are the strategic marketing issues. You cannot change your target group unexpectedly while competitive advantage is the basis for changing decisions regarding prices, promotions and sales.

This chapter describes the measures of marketing activities which refer to strategic aspects and testify a company’s market position – the measures of the performance of target groups and competitive advantage. Readers’ attention should be also focused on the indices that are less popular in Poland and, therefore, may be underestimated. It seems that some of them, for example, the index of marketing resources allocation and the marketing risk index, provide a lot of valuable information and, at the same time, make it possible to show the value of marketing investments. Their wider use in the near future is only a matter of time.

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Article
Publication date: 9 May 2016

Jonas Colliander, Magnus Söderlund and Stefan Szugalski

The purpose of the paper is to examine how members at different levels in a multi-level loyalty program react when they are allowed the opportunity to compare the rewards…

Abstract

Purpose

The purpose of the paper is to examine how members at different levels in a multi-level loyalty program react when they are allowed the opportunity to compare the rewards they receive with the rewards received by other members. The authors believe this is crucial, as previous research often ignores the social setting in which exchanges concerning loyalty rewards take place. The authors believe such interactions in social settings are likely to induce justice perceptions, which in turn will affect customer satisfaction and repatronizing intentions.

Design/methodology/approach

The research question was addressed through a between-subjects experiment in an airline setting.

Findings

The results show that belonging to the top-tier level of a multi-level loyalty program seems to boost perceived justice. Participants assigned to this level in the experiment perceived the program as more just than did participants assigned to the lower level. Importantly though, members assigned the second-tier who compared themselves to the top-tier did not perceive to program as more unjust than did second-tier members comparing themselves to other second-tier members. The levels of customer satisfaction and repatronizing intentions followed the same pattern. In social settings, multi-level loyalty programs thus seem to be able to increase justice perceptions, customer satisfaction and repatronizing intentions of top-tier members, while at the same time avoiding the potential drawback of alienating second-tier members.

Originality/value

The study bridges the gap between research on perceived justice, loyalty programs and the effects of social settings on consumer interactions. In doing so, it brings valuable insights to both researchers and practitioners.

Details

Journal of Consumer Marketing, vol. 33 no. 3
Type: Research Article
ISSN: 0736-3761

Keywords

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Article
Publication date: 1 September 2003

Amy Wong and Amrik Sohal

This study attempts to examine the impact of service quality dimensions on customer loyalty, on two levels of retail relationships: person‐to‐person (salesperson level

Abstract

This study attempts to examine the impact of service quality dimensions on customer loyalty, on two levels of retail relationships: person‐to‐person (salesperson level) and person‐to‐firm (store level). A total of 1,261 surveys were administered to shoppers who were leaving a large chain departmental store in Victoria, Australia. The results showed that service quality is positively associated with customer loyalty, and that the relationship between the two is stronger at the company level, rather than at the interpersonal level. Specifically, among the dimensions of service quality, the most significant predictor of customer loyalty at a company level is tangibles, while the most significant predictor of customer loyalty at an interpersonal level is empathy. Further discussion and managerial implications can be drawn from these findings.

Details

Journal of Services Marketing, vol. 17 no. 5
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 19 September 2008

Rosalind McMullan and Audrey Gilmore

The purpose of this paper is to focus on establishing individuals' levels of loyalty and what sustains and develops their customer loyalty. This paper recognises the…

Abstract

Purpose

The purpose of this paper is to focus on establishing individuals' levels of loyalty and what sustains and develops their customer loyalty. This paper recognises the importance customer loyalty has for many competitive organisations and industries. However there has been less focus on what value customer's attach to customer loyalty in this context.

Design/methodology/approach

A two‐stage study is presented, establishing individual levels of loyalty and then identifying the role of mediating effects in loyalty development. The first stage involved a postal survey, including a 28‐item scale, designed to measure customer loyalty, and its sustainers and vulnerabilities (mediating effects). The second stage, and the main focus of this paper, uses scores from the loyalty scale (high, medium and low levels of loyalty) to examine what sustains and develops loyalty amongst differing levels of development.

Findings

The findings highlight the importance of identifying, understanding and managing mediating effects, in the context of loyalty development. The research emphasises the importance of a differentiated approach to developing and managing customer loyalty by appropriately rewarding customers at different levels. The findings highlight the need to acknowledge the importance of reciprocity in terms of which aspects of service customers value.

Originality/value

The main contribution of this paper is that it uniquely identifies an approach to understanding the sustaining and vulnerability effects mediating customer loyalty development going beyond previous categorisation attempts. Understanding this approach should lead to effective customer loyalty management and greater awareness of managing recognition, reciprocity and rewards.

Details

European Journal of Marketing, vol. 42 no. 9/10
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 19 March 2018

Anupama Sukhu and Robert Scharff

The purpose of this research was to identify the drivers of customer loyalty in the context of green marketing. In particular, the extended theory of reasoned action model…

Abstract

Purpose

The purpose of this research was to identify the drivers of customer loyalty in the context of green marketing. In particular, the extended theory of reasoned action model specified here added crucial constructs in consumer behavior, namely, consumers’ trust and beliefs about corporate social responsibility, to increase the predictability of the model. Additionally, the moderating role of level of education in predicting customer loyalty to hotels was also examined.

Design/methodology/approach

A mixed methodology was used for the study. A structural mixed methodology was used for the study. A structural model was developed to understand the theoretical relationships between identified constructs. Additionally, multiple regression analyses were used to identify the moderating role of level of education in predicting consumer loyalty. Data collected through an online survey from 446 hotel guests were used for the analyses.

Findings

The results indicated that in addition to attitude and subjective norms, consumers’ trust in hotels’ intentions to be green influence their loyalty to green hotel enterprises. Further investigation also showed significant moderating influence of levels of education in their choice to be loyal to green hotels.

Research limitations/implications

Even though the majority of the study’s sample has extensive travel experience, the data were collected from university employees, which might have limited the findings of this study.

Practical implications

Consumers need to trust ethical claims in adopting green practices to become loyal customers. Hence, it is imperative for marketers to convey that their business believe in proenvironmental activities. Additionally, marketers should not neglect their level of education because it influences their loyalty to green hotels. Green marketing should target not only an individual customer but also his/her ties to significant others, because subjective norms influence customer loyalty to green hotels.

Originality/value

This research developed a comprehensive model to understand customer loyalty to green hotels, thus providing insights to marketers and academics about a timely subject, namely, green behavior. In doing so, this research added crucial constructs to extend the traditional model of theory of reasoned action as well as examined the moderating role of level of education in the identified model.

Details

Journal of Consumer Marketing, vol. 35 no. 2
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 9 December 2019

Ιoannis Tzavlopoulos, Katerina Gotzamani, Andreas Andronikidis and Chris Vassiliadis

The quality assessment of e-commerce services is of particular research interest, as it has been widely found that quality is directly linked to customer satisfaction and…

Abstract

Purpose

The quality assessment of e-commerce services is of particular research interest, as it has been widely found that quality is directly linked to customer satisfaction and loyalty, which in turn leads to improved sales results, the creation of reputation and enhanced competitiveness for active companies in the industry. The purpose of this paper is to investigate the quality in e-commerce and to examine the relationships developed among its individual dimensions and satisfaction, perceived value, perceived risk and customer loyalty.

Design/methodology/approach

Initially, exploratory factor analysis with the equamax rotation method was applied to identify the perceptions of consumers regarding quality, value, satisfaction, risk and loyalty. The effect of the factors that make up perceived quality of e-services on customer value, satisfaction, risk and loyalty was examined by using OLS regression analysis. Likewise, path analysis was applied to confirm the impact of perceived quality on total consumer satisfaction, perceived value and loyalty, utilizing perceived risk as a moderating variable.

Findings

The authors found that quality overall has a positive and statistically significant relationship with perceived value, satisfaction and loyalty and negative with perceived risk. From the individual dimensions of quality, it has been found that ease of use of websites, design, responsiveness and security lead to increased levels of perceived value, while ease of use, responsiveness and personalization lead to an increase in the overall satisfaction of consumers. Overall, it has been documented that high levels of quality lead to higher satisfaction and perceived value, mitigating perceived risk and positively impacting the adoption of desirable consumer behaviors as reflected in customer loyalty.

Research limitations/implications

In this respect, future research in the field of e-commerce can examine the quality of the respective electronic services taking into account different product and business categories. In addition, the future research can focus on the impact of high satisfaction, perceived value and customer loyalty on various sizes of business performance, including sales, market share, competitiveness, financial efficiency and sustainability.

Practical implications

Given the clear relationship between quality, perceived value and satisfaction, e-commerce businesses have the potential to benefit significantly from improvements in the quality of their services, as this leads to increased levels of perceived value, high level of satisfaction and hence enhanced customer loyalty, which is in turn reflected in increased sales, positive word-of-mouth, improved reputation and brand loyalty. In this way, e-businesses will be able to improve their financial position, achieve higher market shares, maintain their competitive advantage, attract new development resources and become sustainable on a long-term basis.

Social implications

Businesses need to understand the factors that determine the quality in e-commerce to be able to achieve customer satisfaction and reduce perceived risk through improved quality. These factors, which consumers perceive as important for quality, are critical.

Originality/value

The concepts of quality, perceived value, risk, satisfaction and loyalty are considered to be interlinked in both traditional consumer research and e-commerce, as high levels of perceived quality are believed to lead to positive assessments of the cost-benefit and, hence, the perceived value (Cronin et al., 2000; Sweeney and Soutar, 2001; Korda and Snoj, 2010) and loyalty. In this context, this study attempted to study the relationship of these five variables, through both regression and path analysis, resulting in similar results. According to the findings of the study, perceived quality of website services has a positive and statistically significant impact on perceived value, satisfaction and an opposite effect on perceived risk, while the last is mitigating variable for and loyalty.

Details

International Journal of Quality and Service Sciences, vol. 11 no. 4
Type: Research Article
ISSN: 1756-669X

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Article
Publication date: 11 November 2013

John Dawes

There is increasing managerial and academic interest in understanding behavioural loyalty to private label (PL) brands. A widely used behavioural loyalty measure is share…

Abstract

Purpose

There is increasing managerial and academic interest in understanding behavioural loyalty to private label (PL) brands. A widely used behavioural loyalty measure is share of category requirements, or “SCR”. This study aims to examine why some PLs enjoy higher levels of SCR compared to others.

Design/methodology/approach

The study models consumer purchase data using the well-accepted NBD-Dirichlet model to identify the circumstances in which PL brands exhibit higher (“excess”) or lower SCR than expected.

Findings

The study finds four factors linked to excess SCR for PLs. They are: higher share of overall category sales accounted for by the PL within the retailer's stores, higher penetration of the category by the retailer, low relative price of the PL, and lastly, lower average purchase frequency for the category overall.

Research limitations/implications

While the study uses 13 product categories, its geographic scope is limited to the UK. Further research could examine how the findings generalize to other markets.

Originality/value

The study is original in that it identifies factors that are linked to behavioural loyalty toward specific PL brands. The findings will help marketers in brand management and retailing to understand and contextualize brand performance metrics for PL brands.

Details

European Journal of Marketing, vol. 47 no. 11/12
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 10 September 2018

Zachary Anesbury, Yolanda Nguyen and Svetlana Bogomolova

Increasing and maintaining the population’s consumption of healthful food may hinder the global obesity pandemic. The purpose of this paper is to empirically test whether…

Abstract

Purpose

Increasing and maintaining the population’s consumption of healthful food may hinder the global obesity pandemic. The purpose of this paper is to empirically test whether it is possible for healthful sub-brands to achieve higher consumer behavioural loyalty than their less healthful counterparts.

Design/methodology/approach

The study analysed three years of consumer panel data detailing all purchases from five consumer goods categories for 15,000 UK households. The analysis uses best-practice techniques for measuring behavioural loyalty: double jeopardy, polarisation index, duplication of purchase and user profile comparisons. Each sub-brand’s healthfulness was objectively coded.

Findings

Despite the level of healthfulness, all sub-brands have predictable repeat purchase patterns, share customers as expected and have similar user profiles as each other. The size of the customer base, not nutrition content, is, by far, the biggest determinant of loyalty levels.

Research limitations/implications

Consumers do not show higher levels of loyalty to healthful sub-brands, or groups of healthful sub-brands. Nor do they buy less healthful sub-brands less often (as a “treat”). There are also no sub-groups of (health conscious) consumers who would only purchase healthful options.

Practical implications

Sub-brands do not have extraordinarily loyal or disloyal customers because of their healthfulness. Marketers need to focus on growing sub-brands by increasing their customer base, which will then naturally grow consumer loyalty towards them.

Originality/value

This research brings novel evidence-based knowledge to an emerging cross-disciplinary area of health marketing. This is the first study comparing behavioural loyalty and user profiles towards objectively defined healthful/less healthful sub-brands.

Details

European Journal of Marketing, vol. 52 no. 9/10
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 1 July 2002

Carolyn Folkman Curasi and Karen Norman Kennedy

Research in customer satisfaction over the past decade has lead to a much richer understanding of service quality and customer expectations. In trying to untangle the…

Abstract

Research in customer satisfaction over the past decade has lead to a much richer understanding of service quality and customer expectations. In trying to untangle the linkage between satisfied customers and long‐term success for the organization, however, attention has evolved from a focus on customer satisfaction to a realization that retaining customers and developing loyalty are essential for organizational success. This interpretive investigation focuses on customer retention and loyalty in an effort to understand better these variables in the context of service organizations. In so doing we review the rise of managerial concern for customer retention and loyalty and examine the definitions and relationships of these constructs. Then, to develop a richer understanding of repeat buyers, semi‐structured interviews were conducted with consumers identifying themselves as “loyal”. A typology of loyalty is offered consisting of five levels of repeat buyers, ranging from “prisoners” to “apostles”. Additionally, the managerial implications of this typology are discussed.

Details

Journal of Services Marketing, vol. 16 no. 4
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 9 January 2009

Andres Kuusik and Urmas Varblane

The purpose of this paper is to show that the major factors affecting loyalty are dependant on the level of loyalty of customers.

Abstract

Purpose

The purpose of this paper is to show that the major factors affecting loyalty are dependant on the level of loyalty of customers.

Design/methodology/approach

A model of relationship between factors of loyalty and loyalty levels of customers was constructed and tested on the empirical data about 1,000 private customers from the Customer Satisfaction Survey of Elion, the biggest telecommunication company in Estonia. Logit model was used in order to examine which factors influence the probability of the customers remaining on their loyalty level or to moving to another loyalty level.

Findings

The findings of the study revealed that it is not accurate to treat all customers equally in terms of methods of increasing their loyalty. The results reveal that four analysed factors affecting customer loyalty (satisfaction, trustworthiness, image and importance of relationship) are playing different roles in the different levels of customer loyalty. The overall satisfaction and importance of a relationship build the foundation of any kind of loyalty. The reliability of products or trustworthiness of the vendor is most critical for behavioural loyalists and the image creation is the main tool for getting committed customers.

Research limitations/implications

The method for collecting the source data set certain constraints on the adequacy of the model.

Practical implications

The results presented in this paper could be used by firms developing targeted approaches as part of the aim of increasing customer's loyalty.

Originality/value

This paper introduces an original approach combining factors affecting the customers' loyalty with the customers' different loyalty levels. Also, the ladder of customer loyalty levels could be used in other research areas.

Details

Baltic Journal of Management, vol. 4 no. 1
Type: Research Article
ISSN: 1746-5265

Keywords

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