Attitudinal loyalty: the sense of loyalty, engagement and allegiance.
Behavioural loyalty: repeat purchasing, giving recommendations or referrals.
Loyalty antecedents: product or service quality, customer satisfaction, trust.
Brand loyalty: influenced by perceived level of product or service quality, the perception of value for money and customer satisfaction with the purchase.
Customer engagement outside of product or service use has an influence, eg non-transactional activities such as word of mouth, recommendations, customer-to-customer interactions, blogging, and writing reviews.
Four ‘dimensions’: true loyalty; latent loyalty; spurious loyalty; and low loyalty. Customers who provide repeat business and also hold a positive attitude toward the brand are true loyal customers.
Behaviorally loyal customers with low attitudinal loyalty may be more likely to exploit their relative importance.
Do customers who co-create value in a product or service have enhanced loyalty to it?
Marketing mix: a combination of factors that can be controlled by a company to influence consumers to purchase its products.
The 4Ps: product, price, place, and promotion.
The 7 Ps: the above plus people, process and physical evidence.
The 4 Cs: cost, consumer wants & needs, communication, and convenience.
Reference: Ansari, A. and Riasi, A., 2016. Modelling and evaluating customer loyalty using neural networks: Evidence from startup insurance companies. Future Business Journal, 2(1), pp.15-30.
Modelling with artificial neural networks shows that customer satisfaction and perceived value are significant predictors of customer loyalty. Additionally, it was found that trust, perceived quality, and empathy have a significant impact on both customer satisfaction and perceived value. The results also showed that customer commitment to service provider is positively associated with customer satisfaction and loyalty.
Reference: Foroudi, P., Jin, Z., Gupta, S., Melewar, T.C. and Foroudi, M.M., 2016. Influence of innovation capability and customer experience on reputation and loyalty. Journal of Business Research, 69(11), pp.4882-4889.
This study aims to …. [untangle] the associations among customer demographics, customer experience, innovation capability, reputation, and loyalty. Drawing from complexity theory, [it] proposes three propositions.
First, in retail environments, not the individual customer factor but complex demographics configurations influence the prediction of customer loyalty and reputation. The findings support such a proposition and provide a number of recipes with different combinations of age, education, occupation, and gender that predict high scores on customer loyalty and reputation.
Second, this study suggests that both technical innovation capability and non-technical innovation capability modifies the effect of complex demographics on loyalty and reputation. The evident role of innovation capability is of particular interest, as the results illustrate in nine solutions to predict high scores in customer loyalty and reputation.
The third interesting result of this study is that both affective customer experience and intellectual customer experience in a retail setting modifies the effect of complex demographics on loyalty (13 solutions) and reputation (11 solutions). The results confirm the significance of affective and intellectual customer experience in the shopping setting, which the literature has previously identified.
Reference: Hudson, S., Roth, M.S., Madden, T.J. and Hudson, R., 2015. The effects of social media on emotions, brand relationship quality, and word of mouth: An empirical study of music festival attendees. Tourism Management, 47, pp.68-76.
The intent was to examine how consumers’ social media interactions with brands affect perceptual and behavioral marketing outcomes. In general, the study found compelling evidence that social media use makes a difference. Consumers that engage with their favorite brands using social media have stronger relationships with those brands compared with consumers who do not interact with their favorite brands using social media.
Reference: Steinhoff, L. and Palmatier, R.W., 2016. Understanding loyalty program effectiveness: managing target and bystander effects. Journal of the Academy of Marketing Science, 44(1), pp.88-107.
…. a greater understanding of loyalty program performance demands an expanded theoretical framework. Specifically, researchers and managers must account for loyalty programs’ effects on both target and bystander customers in the firm’s portfolio, the simultaneous effects of three performance-relevant mediating mechanisms (gratitude, status, unfairness), and the contingent effects of program delivery (rule clarity, reward exclusivity, reward visibility) on specific mediating linkages.