Evaluation of buyer‘s loyalty process in retail companies in Latvia under the conditions of globalization

Iveta Linina,Rosita Zvirgzdina,T Kliestik

doi:10.1051/shsconf/20207404013

Abstract

Retail sector has always played an important role in the Latvian economy. The success of a profitable retail business depends on meeting the needs of buyers and, in the long run, building relationships with the buyer. Process of attracting new buyers always involves spending more money, time and energy. In order for a company to retain existing buyers, it is necessary to develop a set of marketing activities that promote and ensure customer loyalty. The globalization of the market is also having a greater impact on retail companies, which makes them to look for solutions for competitiveness and development. In order to identify factors for competitiveness, the authors of the study have set out to investigate the customer loyalty-formation activities in Latvian retail companies. To reach a goal the authors of the paper will study theoretical basis of loyalty formation employing the monographic or descriptive method, the next step will be analysis of the retail development tendencies in Latvia and loyalty-creation activity level of the Latvian retail companies. This study will give retailers an understanding of the importance of loyalty and the need to build it for the competitiveness of retail businesses. The authors have summarized these theoretical aspects and have defined a common approach to loyalty building and provisions for it. After completing the research, the authors conclude that by understanding the essence and formation of loyalty, the company can manage this process and maybe loyalty can be one of the tools for ensuring competitiveness.

Highlights

Within context of market globalization, ensuring companies' competitiveness is a key factor
In order to determine the consumer loyalty trends in Latvia and to make proposals for companies to improve their consumer loyalty formation processes, the experts were interviewed and the following limitations were set: the problem is mainly investigated from a methodological point of view; Research period: June 1, 2019 to July 1, 2019
During this phase the following tasks were solved: the problem to be investigated was formulated and the purpose of expertise was specified to evaluate the processes of loyalty forming in the telecommunications sector in Latvia; based on the purpose of the expertise as well as the specificity of its object, a specific expert method was selected - a survey with structured questions; a questionnaire was developed

Summary

Introduction

Within context of market globalization, ensuring companies' competitiveness is a key factor. Different companies use different customer management systems, but the unifying aspect of all of them is a satisfied, loyal customer who would ensure company competitiveness in the long run The aim of this investigation is to find out the main factors behind the development of consumer loyalty in retail trade and to define the specifics of this process, that would allow retailers to improve their performance and ensure their competitiveness. In order to determine the consumer loyalty trends in Latvia and to make proposals for companies to improve their consumer loyalty formation processes, the experts were interviewed and the following limitations were set: the problem is mainly investigated from a methodological point of view; Research period: June 1, 2019 to July 1, 2019. The methodological basis of this research consists of the the works and publications of various authors (R.Oliver, C.Homburg, I.Linina, etc.), which provide insight into the factors influencing and forming the consumer loyalty

Theoretical aspects of consumer loyalty

Results of the study

Conclusions