Abstract
This study sheds light on customer loyalty based on three groups of factors (customer, service provider, and environment). Noting the diversity of the effects of customer loyalty factors, this research investigates the impact of every factor upon customer loyalty. This paper provides an innovative insight into how a variety of customer loyalty factors might be combined into a single measure of customer loyalty. Finally, this study examines phases of customer loyalty and identifies the factors that prevent a peak of customer loyalty. The factors determining customer loyalty explain why customers move across different loyalty phases over time. The results of the empirical testing confirmed the practical applicability of the suggested approach for evaluating customer loyalty based on these factors. An innovative approach to the evaluation of customer loyalty is essential for marketers because it will help them to evaluate loyalty in cases where data about customer behavior are not collected. The findings of the research contribute to a better understanding of which factors are a viable basis for increasing customer loyalty, specifically in the catering and beauty markets, and offer guidance to marketing managers on how to shift customers to more desirable loyalty phases.
Highlights
Companies are experiencing difficulties in attracting and maintaining customers as a result of service markets becoming increasingly competitive
Based on theoretical assumptions and identified scales, impact intervals, and the course of impact on loyalty (Table 4), numeric values of loyalty were attributed to the remaining factors that belong to the customer, service provider, or environmental groups
Factors that belong to the service provider group had the strongest effect on loyalty (0.64) (Figure 3); in terms of these factors, customer loyalty to the catering company is at the conditional stage
Summary
Companies are experiencing difficulties in attracting and maintaining customers as a result of service markets becoming increasingly competitive. The need to motivate customer loyalty is getting stronger. In this environment, loyalty becomes an important marketing tool that is to be aimed at the customer, but is a significant indicator of the success of a business [1,2]. The majority of managers understand the importance of the loyalty of their customers and pay attention to increasing the loyalty of existing customers, attracting new loyal customers, and choosing a strategy of customer loyalty management. This is extremely important in mature markets, where expansion to new loyal customers is not possible
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