Customers have varying degrees of loyalty towards a brand. On the one hand there is no loyalty to a brand, resulting in few repeat purchases. But on the other hand, end customers may have true loyalty in the sense that they have a high attitude towards the brand and continue to purchase from that brand (Dick & Basu, 1994). From the point of view of manufacturers, it is desirable to build customer loyalty, since it is much more expensive for a company to attract new customers than to retain them. Companies seek to improve customer loyalty by interacting with customers, developing loyalty programs, and creating institutional ties. (Kotler & Keller, 2012). However, loyalty programs also create switching costs for customers so that they stay with their current provider. (Lam, Shankar, Erramilli, & Murthy, 2004). In other words, one could argue that loyalty is just a means of making consumers more dependent on the supplier. For starters, lasting consumer loyalty occurs when the perceived value of a product consistently exceeds customer expectations. To continue to exceed customer expectations...
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