A tri-dimensional approach for auditing brand loyalty

Over the past twenty years brand loyalty has been an important topic for both marketing practitioners and academics. While practitioners have produced proprietary brand loyalty audit models, there has been little academic research to make transparent the methodology that underpins these audits and to enable practitioners to understand, develop and conduct their own audits. In this paper, we propose a framework for a brand loyalty audit that uses a tri-dimensional approach to brand loyalty, which includes behavioural loyalty and the two components of attitudinal loyalty: emotional and cognitive loyalty. In allowing for different levels and intensity of brand loyalty, this tri-dimensional approach is important from a managerial perspective. It means that loyalty strategies that arise from a brand audit can be made more effective by targeting the market segments that demonstrate the most appropriate combination of brand loyalty components. We propose a matrix with three dimensions (emotional, cognitive and behavioural loyalty) and two levels (high and low loyalty) to facilitate a brand loyalty audit. To demonstrate this matrix, we use the example of financial services, in particular a rewards-based credit card

Hirschman meets Williamson: Relationship-specific investment and loyalty

In Albert Hirschman’s theory, loyalty plays a key role in the equilibrium between exit and voice. This article extends economic (rational choice) analysis to the emergence of loyalty, which Hirschman considers an exogenous factor. This is accomplished by linking Williamson’s theory of specific investment to Hirschman’s model. Three cases are distinguished: (1) loyalty is due to specific investment; (2) loyalty is due to (intermediate) factors influenced by specific investment; and, (3) loyalty is independent of specific investment. A simple model formalizes the first case. A paradoxical dynamic of loyalty is identified: a lower degree of specificity may lead to a weakening of loyalty in the short run but astrengthening of loyalty in the long run. An application to the process of European integration is sketched

PENGARUH KUALITAS PRODUK TERHADAP LOYALITAS PELANGGAN YANG DIMEDIASI OLEH KEPUASAN PELANGGAN (Studi Pada Pelanggan Kosmetik Make Over Malang)

This research aims to describe product quality, customer loyalty and customer satisfaction, product quality influences customer loyalty, product quality influences customer satisfaction, customer satisfaction influences customer loyalty and product quality influences loyalty through satisfaction as mediation. The population used in this research was Make Over Malang cosmetics customers with a sample size of 140 respondents. The analytical method used in this research is path analysis. Based on the results of the research and discussions that have been carried out, it can be concluded that customer loyalty is included in the loyal criteria, product quality is included in the very good criteria and customer satisfaction is included in the satisfied criteria. Product quality has a positive and significant effect on customer loyalty, product quality has a positive and significant effect on customer satisfaction, customer satisfaction has a positive and significant effect on customer loyalty and customer satisfaction is proven to be a mediating variable in the relationship between product quality and customer loyalty

Identifying successful sales and marketing strategies that affect customer loyalty in a coffee shop

.Most small businesses such as coffee shops are concerned with customer loyalty and satisfaction, and increasing profitability. Marketing strategy becomes important when customer loyalty is low. The aim of this research is to identify sales that affect customer loyalty in a small coffee shop and to investigate the relationship between effective marketing strategies and customer loyalty, using a survey of customers

The role of brand loyalty and social media in e-commerce interfaces: survey results and implications for user interfaces

This paper explores the role of brand loyalty and social media in e-commerce interfaces. A survey consisting of 118 respondents was contacted to address the questions relating to online shopping and brand loyalty. Link between the frequency of access and time spent on an e-commerce user interface, and brand loyalty, gender and age profile differences, and the role of social media to branding and on-line shopping was analyzed. It was found that online loyalty differs from offline loyalty and loyalty also differed across genders, showing men were more loyal than women when shopping online. Information shared about products on social media by friends and family played an important role in purchase decision making. Website interface and ease of navigation were also key aspects for online shopping. The research concluded with recommendations to create multimodal websites which are more interactive and targeted so customer experience is enhanced and loyalty is achieved through the use of interactivity and social media

Identifying the Key Issues Measuring Loyalty

In the past researchers have chosen to measure loyalty using purely behavioural or attitudinal measures or attitude-behaviour combinations. The authors recommend that both attitudinal and behavioural loyalty should be measured to gain an appreciation of the loyalty make-up of the firm's customer base. Knowing the proportion of each type of loyalty is important as customer reactions to marketing efforts will differ depending on the factors underlying consistent purchase behaviour

Comparing Loyalty Program Tiering Strategies: An investigation from the gaming industry

Loyalty programs are popular marketing strategies developed for the purpose of attracting, maintaining, and enhancing customer relationships. Due to the explosive worldwide growth of, and increased competition within, the casino industry has compelled contemporary casino marketers to rely more heavily on loyalty programs to increase guest allegiance and the frequency of repeat visits from their customers. Despite the widespread usage of loyalty programs across various gaming businesses in Las Vegas, its effectiveness has not quite been validated. The purpose of this study is to examine customers’ behavioral loyalty within the Las Vegas gaming industry and examine the effectiveness of a specific loyalty program using secondary data obtained from a Las Vegas casino hotel. Specifically, this study segmented loyalty program members to investigate the effectiveness of a casino loyalty program’s tiering strategy on members’ purchase behavior. Further, this study employed Recency-Frequency-Monetary (RFM) analysis to examine two different types of tiering strategies

E-loyalty networks in online auctions

Creating a loyal customer base is one of the most important, and at the same time, most difficult tasks a company faces. Creating loyalty online (e-loyalty) is especially difficult since customers can ``switch'' to a competitor with the click of a mouse. In this paper we investigate e-loyalty in online auctions. Using a unique data set of over 30,000 auctions from one of the main consumer-to-consumer online auction houses, we propose a novel measure of e-loyalty via the associated network of transactions between bidders and sellers. Using a bipartite network of bidder and seller nodes, two nodes are linked when a bidder purchases from a seller and the number of repeat-purchases determines the strength of that link. We employ ideas from functional principal component analysis to derive, from this network, the loyalty distribution which measures the perceived loyalty of every individual seller, and associated loyalty scores which summarize this distribution in a parsimonious way. We then investigate the effect of loyalty on the outcome of an auction. In doing so, we are confronted with several statistical challenges in that standard statistical models lead to a misrepresentation of the data and a violation of the model assumptions. The reason is that loyalty networks result in an extreme clustering of the data, with few high-volume sellers accounting for most of the individual transactions. We investigate several remedies to the clustering problem and conclude that loyalty networks consist of very distinct segments that can best be understood individually.Comment: Published in at http://dx.doi.org/10.1214/09-AOAS310 the Annals of Applied Statistics (http://www.imstat.org/aoas/) by the Institute of Mathematical Statistics (http://www.imstat.org

Brand personality and its influence on brand loyalty - Do sophisticated brands have more brand loyal customers?

Objectives. Creating loyal customers is one of the most important aims organisations have. However, most marketing departments try to create loyal customers through customer loyalty programmes only. This study aims at investigating the influence of the brand’s image (i.e., brand personality; Aaker, 1997) on brand loyalty. Method. Study 1 (N = 360) was used to derive a valid single-item measure from a multi-item scale for the three inter-culturally stable brand personality dimensions (sincerity, excitement, sophistication; Aaker, Benet-Martinez, & Garolera, 2001). Study 2, using an automobile customer sample (N = 1032), assessed the influence of brand personality on brand loyalty while controlling for previous purchases and customer personality. Results. Previous purchases and customers’ conscientiousness were significant determinants of brand loyalty. Additionally, all three brand personality dimensions explained incremental variance (ΔR² = .28) of customers’ loyalty. Conclusion. Practical implications for the application of brand personality in loyalty campaigns are derived