Relationship between consumer acquisition efforts and consumer loyalty

Jagwinder Singh,Shivani Saini

doi:10.4038/kjm.v5i1.7503

Abstract

Consumer Relationship Management is an integrated approach to manage long-term consumer relationships by implementing the practices of right acquisition and retention efforts. The purpose of study is to examine the key role of consumer acquisition efforts in driving consumer loyalty through direct and indirect approaches. The empirical study has been conducted by taking a sample of 600 consumers from three diverse service categories, i.e. Health, Retail, and Wellness. In order to observe the service category as moderator, the present research aims to implement the multiple-group analysis in CFA and SEM through AMOS17.0. Results suggest that in health and wellness sectors, consumer acquisition efforts are positive enough to create behavioral loyalty only. No direct effect of consumer acquisition efforts on consumer loyalty has been reported across three service sectors. This paper empirically provides a detailed assessment of acquisition drivers that help a firm to build a loyal consumer base.

Highlights

Every service firm is striving hard to search for sustainable competitive advantage
All the items have been significant except items labeled; advertisement reliability (CA7) and continuance commitment (C2)
All items have been reported significant except advertisement reliability (CA7), contact by awareness camps (CA11), and contact by automated/ manual calls (CA15)

Summary

Introduction

New market place is guiding the marketers to shift their focus from quality, cost, and technology-based competitive advantage to consumer-based advantage (Reichheld, 2003). The development, sustenance, and enhancement of consumer loyalty seem vital to service marketers. Marketers have shifted their emphasis from mass marketing to one-to-one marketing in order to manage long-term relationships with their consumers. The acquisition, retention, and development of consumers are three strategic activities of a CRM programme (Berry, 1995). CRM enables the firms to deploy strategies of acquisition, retention, and development for managing relationships with the support of computer databases (McKim & Hughes, 2001). Given that CRM plays an important role in managing long-term relationships with consumers, firms are still facing varied results in the execution of CRM systems (Smith & Chang, 2010)

Objectives

Methods

Results

Discussion

Conclusion