Categories Of Loyalty Research Articles

Effects of commitment on intentional loyalty at the person-to-person and person-to-firm levels

This study explores how customers’ affective commitment and calculative commitment to the personal adviser and bank, respectively, affect their intentional loyalty to the personal adviser and bank. Data were collected using a web survey of mass affluent customers of a major Swedish bank. Responses were measured and analysed using factor, correlation, and regression analyses. The results reveal that the person-to-person and person-to-firm loyalty categories are influenced by affective and calculative commitment to the personal advisor and by affective commitment to the bank, but not by calculative commitment to the bank. Moreover, there is a strong relationship between customer loyalty to the personal adviser and to the bank. It can be concluded that affective commitment has a stronger overall impact on customer loyalty than does calculative commitment, indicating the importance of creating affective ties with customers, and that personal advisers are central to bank – customer relationships. The importance of financial issues to mass affluent customers implies that both affective commitment and calculative commitment to the personal adviser are important in building customer loyalty to a bank or brand.

An Examination of the Relationship Between a Firm's Offerings and Different Customer Loyalty Segments

Purpose: Loyalty reflects the highest state in the buyer–seller relationship and occurs when repeat patronage and commitment are both high. One generally accepted model of segmenting the customers by degree of loyalty includes 4 categories of loyalty: no loyalty, latent loyalty, spurious loyalty, and loyalty. This study examines the relationship between these 4 customer segments and their evaluation of the firm's offerings. Methodology/approach: This study uses self-reported purchase behaviors and attitude toward the seller for segmentation. Buyers report the importance of and satisfaction with 15 different offerings or processes. The mean scores for the 4 different groups are compared and tested for statistical significance. Findings: The loyalty segments differed in the importance placed on customized products. The loyalty and spurious loyalty groups placed a higher importance on receiving customized products from the seller. The loyalty segments also differed in their levels of satisfaction, but these differences did not fully explain repeat patronage behavior. The latent loyalty group, despite their higher levels of satisfaction with standardized offerings, purchased less than the spurious loyalty group. Originality/value/contribution: The implication for managers is that, if properly identified and managed, understanding these differences could lead to a sustainable competitive advantage. Managers can build loyalty by applying specific tactics tailored to the customer segment.

Consumer loyalty on the grocery product market: an empirical application of Dick and Basu's framework

PurposeThis study aims to assess the usefulness of Dick and Basu's framework of customer loyalty to examine consumer loyalty on the grocery product market.Design/methodology/approachAfter a short presentation of Dick and Basu's framework, the article discusses a number of anticipated antecedents and consequences to consumer loyalty on the grocery product market. Next, the four loyalty categories and the hypothesized relationships with antecedents and consequences are tested on empirical data from a large survey investigating brand loyalty across five grocery product categories.FindingsThe results support the presence of Dick and Basu's four loyalty typologies within all the investigated product categories and further provide evidence for the expected differences between product categories with regard to the proportion of loyalty categories within each product category. The results also support relationships between relative attitude and corresponding antecedents and consequences as suggested by Dick and Basu. And, finally, men are found to be less loyal consumers when compared with women.Practical implicationsThe study shows that, at least within some categories of grocery products, it is still possible for marketers to create loyal consumers. The importance of building true loyalty is highlighted by the evidence of true loyals being significantly more likely to postpone their purchases if the store is out of their favourite brand, the least likely to switch to another brand if on sale and less keen on variety seeking.Originality/valueSurvey data from 348 households were used to test the hypothesised relationships.

Analysis of a customer satisfaction survey using Rough Sets theory

PurposeThis paper seeks to present the use of Rough Sets (RS) theory as a processing method to improve the results in customer satisfaction survey applications.Design/methodology/approachThe research methodology is to apply an innovative tool to discover knowledge on customer behavior patterns instead of using conventional statistical methods. The RS theory was applied to discover the voice of customers in market research. The collected data contained 422 records. Each record included 20 condition attributes as well as two decision attributes. The important attributes that ensured high quality of classification were generated first. Then decision rules for classifying high and low overall satisfaction and loyalty categories were derived.FindingsThree important facts were found: the important product and service attributes that lead to overall satisfaction and loyalty; the percentage of latently dissatisfied customers; and customer decision rules.Research limitations/implicationsThe study is limited by the case company and its experience. These rules were presented to the company's sales and marketing managers who believed that they provided them with valuable information for creating strategies to increase customer satisfaction and retention.Originality/valueRS theory provides a mathematical tool to discover patterns hidden in survey data. The paper describes a new attempt of applying a RS‐based method to analyze overall customer satisfaction and loyalty behavior through regular satisfaction questionnaire surveys.

Involvement and Trust in a Brand as Predictors of Loyalty Categories

Customer loyalty is the most valuable asset for the firm. Several researchs find that customer loyalty is positively related with profitability. The purpose of this research is to investigate the power of involvement and trust in a brand (as cognitive and conative antece-dent of loyalty) to predict loyalty categories. Dick and Basu (1994) conceptualization of loyaly is used as the main reference in this research. The object of this research is facial whitening product, and the subjects are women. Data is collected in two central locations in Yogyakarta. The finding of this research indi-cates that involvement and trust in a brand has a contribution to predict loyalty categories, such as loyal, latent loyalty, spurious loyal, and no loyalty. The results also support that trust in a brand has more important contribution to predict loyalty categories. Keywords: involvement, trust in a brand, relative attitude, repeat patronage

The four Cs of customer loyalty

PurposeTo propose a categorisation of customer loyalty types to further increase our understanding of the nature of loyalty.Design/methodology/approachBy segmenting customers who are both loyal in attitude and behaviour to a brand, a model is proposed that differentiates between customers whose loyalty is inertial, and those whose loyalty is positive.FindingsFour categories of loyal customer are proposed: captive, convenience‐seekers, contented and committed. The behaviours and attitudes that can be expected of customers in these different categories are discussed. It is also suggested that customers in different categories will respond in different ways to triggers to switching. Further research that investigates customers' reasons for loyalty behaviour in relation to a portfolio of brands is recommended to validate the model and to enhance understanding and predictability of customer loyalty propensities.Originality/valueThere is agreement that loyals are important for the future of the business, and that this category is deserving of special attention. Since loyalty is key in customer development and profitability, it is important to understand the loyalty condition in more detail, and to use this understanding to develop further the relationship with customers in the loyal category. The model proposed here subdivides loyals in Dick and Basu's categorisation based on behaviour and attitudes. Four categories of loyalty are proposed: captive, contented, convenience‐seeker and committed. Each is described and discussed, and their management implications and research agendas identified. It is noted that any one individual is likely to exhibit the characteristics of each of these categories in relation to different products, services, outlets, and their associated brands. This is a speculative model at this stage of development, which is intended to provoke further thought about the nature of loyalty.

Can loyalty schemes really build loyalty?

Customer loyalty schemes have blossomed in the era of customer retention, and have been willingly embraced by both retailers and consumers alike. Today’s loyalty schemes are modelled on the AAdvantage Programme; a frequent flier programme initiated by American Airlines in 1981, and lessons from the air‐line industry are briefly introduced. The primary purpose of this paper is to evaluate the extent to which loyalty schemes really can build loyalty. In order to do this, four categories of loyalty as identified in the literature are considered. Given existing criticisms of loyalty schemes it is concluded that such schemes have an important role to play in situations where no loyalty or spurious loyalty is evident. However, where sustainable loyalty is the ultimate goal, customer loyalty schemes are of importance only as part of a coherent value proposition.

A Preliminary Examination of Patient Loyalty

The present article applies the customer loyalty classification framework developed by Dick and Basu (1994) to the health care industry. Based on a two factor classification, consisting of repeat patronage and relative attitude, four categories of patient loyalty are proposed and examined, including true loyalty, latent loyalty, spurious loyalty, and no loyalty. Data is collected and the four patient loyalty categories are profiled and compared on the basis of perceived risk, product class importance, provider decision importance, provider awareness, provider consideration, number of providers visited, and self-reported loyalty.

Categories of Customer Loyalty

The present article applies the customer loyalty classification framework developed by Dick and Basu (1994) to the fast food hamburger market. Based on a two factor classification, consisting of repeat patronage and relative attitude, four categories of customer loyalty are examined and profiled on the basis of perceived risk, product class importance, brand decision importance, self-reported brand loyalty, number of brands purchased in the past six months, brand awareness, and brand consideration. A x2 statistical test did not four loyalty categories in the fast food hamburger market, suggesting that all four loyalty categories are present in the fast food industry. The analysis finds that the four groups are distinct in their characteristics and suggests that marketers design separate marketing programs for each group.