Cultivating Customer Loyalty Research Articles

Technology and service quality: achieving insurance industry customer satisfaction and loyalty under crisis conditions

PurposeThis research addresses the critical challenge of fostering customer loyalty within the highly competitive landscape of the insurance industry. The study investigates the interplay between customer satisfaction, loyalty, and the influence of technology and service quality in the context of insurance services and in periods of crisis.Design/methodology/approachA quantitative research approach was employed, utilizing a structured questionnaire distributed among diverse insurance customers in Lebanon during crisis conditions. The data were analyzed using SPSS-Amos, incorporating descriptive statistics, correlation analysis, and structural equation modeling (SEM).FindingsThis research emphasizes the crucial role of customer satisfaction in fostering loyalty in the insurance sector, especially during crises. High satisfaction levels, influenced by user-friendly online platforms, positively correlate with increased customer loyalty. Technology plays a vital role in maintaining and improving satisfaction, making it a key driver during challenging times. Positive interactions between service quality and satisfaction further highlight the multifaceted impact of technology on shaping customer loyalty.Practical implicationsThe research findings provide valuable insights with practical implications for insurers aiming to boost customer loyalty. The study recommends strategic investments in critical areas like claims processing, customer service, communication strategies, digitalization initiatives, and employee training. The study provides insights applicable particularly to insurance companies navigating crisis conditions.Originality/valueThis research contributes both to academic understanding and practical applications by shedding light on the distinctive challenges and opportunities faced by insurers in cultivating customer loyalty within the insurance industry during crisis. The elucidations provided serve as a foundation for developing targeted strategies to address these challenges and to leverage opportunities for enhanced customer loyalty.

The Effect of Product Quality, Brand Image, and Customer Satisfaction On Customer Loyalty (As Study On Ultra Milk Consumers In Jakarta)

In today's increasingly competitive business environment, building and maintaining customer loyalty has become a key determining factor in an organization's success and profitability. Customer loyalty generates recurring revenue through repeat purchases and serves as a brand advocate, driving organic growth by attracting new customers. However, cultivating customer loyalty requires a strategic and holistic approach, which includes product quality, brand image, and customer satisfaction. This research empirically explores the impact of product quality characteristics, brand image, and customer satisfaction on Ultra Milk customer loyalty in the Jakarta area. This study uses a quantitative approach to determine the causal relationship between these factors. The data was collected by distributing questionnaires to 100 active Ultra Milk consumers in Jakarta. SPSS 29 software is used for data analysis, specifically multiple linear regression. The findings of this study aim to contribute to a theoretical understanding of the factors that affect consumer loyalty in the dairy industry. Practically, the findings of this study are expected to be the foundation for Ultra Milk companies to develop more effective marketing strategies to increase and maintain customer loyalty. The recommendations given will focus mainly on statistically significant variables in influencing customer loyalty.

Customer Service Management on Enhancing Customer Loyalty in Food and Beverage Industry: Case Study of Starbucks Malaysia

In the highly competitive coffee industry, the operation of a successful coffee shop involves more than just providing a simple cup of coffee. Organizations are now recognizing the need to focus on delivering high-quality service to gain a competitive advantage. Emphasizing service quality is crucial for building customer loyalty. This paper aims to demonstrate and investigate the service quality using the SERVQUAL model, specifically in the context of Malaysia's Starbucks outlets. To gather real-time data, this paper employs a questionnaire-based survey. A total of 221 questionnaires were distributed to the public. Following data collection, the obtained data is analyzed using SPSS software. Additionally, this paper offers insights into the current state of Starbucks in Malaysia and proposes practical actions to enhance service quality. The objective is to not only attract and retain customers but also cultivating customer loyalty within the competitive coffee chain industry. By focusing on the SERVQUAL model, this research seeks to identify the key dimensions of service quality that significantly impact customer loyalty. These insights are essential for Starbucks to make informed decisions and implement effective strategies to elevate its service quality.

Customer Loyalty Program: Enhanced Rewards and Insights for Lasting Engagement

Abstract: Customer loyalty programs are strategic initiatives designed to cultivate and maintain strong relationships between businesses and their customers. These programs offer incentives and rewards to encourage repeat purchases and foster brand allegiance. By leveraging various techniques such as points systems, tiered memberships, or exclusive perks, companies aim to enhance customer satisfaction and retention. Effective loyalty programs not only drive revenue but also provide valuable data insights into consumer behaviour and preferences. In today's competitive landscape, cultivating customer loyalty is paramount for sustained success, and loyalty programs serve as powerful tools in building enduring connections with clients.

Entrepreneurial Dynamics: Investigating the Success Factors in Start-Ups and Franchises in Egypt

Abstract This study embarks on a comprehensive comparative analysis of start-up ventures and franchise operations within Egypt’s burgeoning pharmacy industry, with a key focus on delineating the challenges and success determinants inherent in each business model. Adopting a mixed-method research design, the study utilizes surveys and questionnaires to extract empirical data on pivotal variables such as customer satisfaction, brand image, relationship quality, and trust, thereby evaluating their collective influence on the overarching success of the business entities under scrutiny. A critical facet of this research is the exploration of communication's role in fortifying open innovation performance during business negotiations, particularly within the start-up milieu. This insight is invaluable, underscoring the significance of strategic communication in cultivating customer loyalty and trust, which are paramount in the nascent stages of business development. In summation, the research offers profound insights into the disparate operational dynamics characterizing start-ups and franchises in Egypt. This study not only illuminates the pathways to business success in the competitive Egyptian pharmacy sector but also contributes significantly to the broader discourse on entrepreneurship and business strategy in emerging markets. JEL classification numbers: D25, M13, M31. Keywords: Franchisee entrepreneurs, Start-ups, Customer satisfaction, Pharmacy industry.

Influence of Customer Focus Strategy on Financial Performance of Deposit-Taking Saccos in Kenya

Purpose: The purpose of the study was to assess the influence of customer focus strategy on financial performance of deposit-taking SACCOs in Kenya.
 Materials and Methods: A descriptive research cross-sectional approach was applied. The target population of this study was 174 DT-SACCOs in Kenya. The sample size was 174 respondents. Structured questionnaires were used to collect primary data from the selected respondents. Data collection method was by use of questionnaires. Quantitative data was analyzed descriptively and inferentially. Data was coded and analyzed using the Statistical Package for Social Sciences (SPSS v23.0). Results were then presented in tables, diagrams and charts.
 Findings: The results showed that Customer focus strategy had a positive and significant relationship to financial performance (r=0.526, p=0.000; R2=0.277, β=0.913). The findings indicate that organizations that prioritize customer focus are more likely to achieve improved financial outcomes.
 Implications to Theory, Practice and Policy: The study recommended that organizations prioritize customer focus strategies to enhance their financial performance. By emphasizing customer focus, organizations can improve their financial performance by cultivating customer loyalty, driving revenue growth, and differentiating themselves in the marketplace. Additionally, this approach contributes to policy by guiding lawmakers to create customer-centric regulatory frameworks that promote sustainable business growth. Furthermore, scholars can benefit from this study by gaining insights into the relationship between customer-focused strategies and financial performance, thereby enriching theoretical understandings in the field of business management.

Basics of brand building in the banking industry

This article explores the fundamentals of brand building in the banking industry, emphasizing the increasing importance of brand management in a globalized and competitive market. The study delves into the theoretical and practical aspects of brand formation, drawing on insights from scholars such as K. Keller, D. Aaker, and others. It highlights the role of relationship marketing strategies in cultivating customer loyalty and underscores the significance of employees in brand building, particularly in the retail banking sector.
 The research reveals that service quality is a critical factor influencing customer satisfaction and loyalty, with a specific focus on electronic banking services. It discusses the challenges in building and promoting bank brands, including attracting consumer attention, promoting recall, and creating lasting relationships. The article also addresses the evolving landscape of the banking sector, emphasizing the impact of technology integration and heightened competition.
 Corporate image and reputation emerge as key elements in ensuring sustainable business growth, with a positive image contributing to customer retention and loyalty. The study underscores the importance of factors such as reliability, quality, customer orientation, social responsibility, and ethical business conduct in shaping a bank's corporate reputation. Additionally, the article explores the complex nature of service branding in the financial sector, particularly in retail banking, and the challenges associated with valuation and risk assessment.
 The quality of services, especially in electronic banking, plays a crucial role in customer satisfaction, loyalty, and retention. The article highlights the significance of meeting customer expectations and the role of emotional associations in shaping perceptions of service quality. It discusses the impact of trust on customer behavioral intentions, emphasizing the importance of security and risk considerations in electronic banking services.
 In conclusion, the article provides insights into the multifaceted dynamics of brand building in the banking industry, shedding light on the interconnectedness of service quality, customer satisfaction, and brand loyalty.

Exploring the effects of e-service quality and e-trust on consumers' e-satisfaction and e-loyalty: insights from online shoppers in Pakistan

PurposeThe purpose of this study is to investigate the impact of e-service quality and e-trust on customer e-satisfaction and, subsequently, on customer e-loyalty towards a website in the online shopping environment of Pakistan.Design/methodology/approachThe research employed a quantitative approach and utilised structural equation modelling to investigate the relationship between e-service quality and e-trust on consumers’ e-satisfaction and e-loyalty. The data were collected from 250 individuals who actively use online shopping websites to purchase products in Pakistan.FindingsThe findings revealed that e-service quality and e-trust offered on e-commerce websites significantly impacted customer e-loyalty. However, it was found that both e-service quality and e-trust do not have a significant impact on customer e-satisfaction. In addition, the findings showed that customer e-satisfaction positively impacts e-loyalty.Research limitations/implicationsOverall, these findings emphasise the importance of e-service quality, e-trust and customer e-satisfaction and their role in cultivating customer loyalty within the context of the online shopping environment in Pakistan.Originality/valueThis study contributes to the existing literature on online shopping in Pakistan by exploring the factors influencing consumer behaviour in this context. The findings add to the academic understanding of consumer behaviour and provide valuable insights for e-commerce businesses in Pakistan.

Importance of Relationship Marketing in Respect of Customer Loyalty: A Quantitative Investigation

The purpose of this abstract is to investigate the role of relationship marketing in fostering customer loyalty. Relationship marketing is a strategy for companies and their customers to build long-term, mutually beneficial relationships. To ensure long-term success in today's competitive market, businesses must prioritize customer retention. Relationship marketing comes into play here, emphasizing the importance of developing strong, personal relationships with customers. Customer loyalty is critical to the success of a business because loyal customers buy more frequently and spend more money than new customers. Relationship marketing has been demonstrated to increase customer loyalty by fostering trust and communication between businesses and their customers. Businesses can gain a better understanding of their customer’s needs and preferences through relationship marketing and tailor their products and services accordingly. This results in a more personalized experience for customers, which increases loyalty. Moreover, relationship marketing is a marketing strategy that emphasizes long-term customer relationships through a focus on their needs and preferences. According to the findings, relationship marketing strategies can increase customer loyalty by encouraging trust, communication, and mutual benefits. It also emphasizes the significance of customer satisfaction in relationship marketing and how it can result in positive word-of-mouth, repeat purchases, and increased profits. This abstract emphasizes the importance of relationship marketing as a powerful tool for cultivating customer loyalty and increasing business success.

ROLE OF SPORTS SPONSORSHIP IN REVENUE GENERATION

Sports sponsorship's contribution to income generation has been a hotly debated issue in the business world. In return for opportunities for advertising or promotion, businesses back teams or sporting events financially through sports sponsorship. This essay looks at the value of sports sponsorship in terms of generating income for both the sponsor and the organisation being sponsored. The paper examines how sports sponsorship can aid businesses in gaining brand recognition, boosting sales, and cultivating customer loyalty. It also examines how athletic organisations can generate money for their operations and investments through sports sponsorship. The paper concludes that, if done strategically and with a clear grasp of the goals and objectives of both the sponsor and the sponsored entertainment, sports sponsorship can be a potent tool for revenue generation

The effects of frequent flyer programs in the competition with high speed rail: A case study of air passenger preference in Japan

This study tried to evaluate the effects of Frequent Flyer Programs (FFPs) in competition with High Speed Rail (HSR) by conducting conjoint analysis, using data from our questionnaire surveys at Komatsu airport in Japan. The effects of FFPs, which were evaluated as passengers’ Marginal Willingness to Pay (MWTP) for flight mileage points, were compared with passengers that flew on the competing route with HSR, and those that flew on the non-competing route with HSR. We found that FFPs seem to be more effective at attracting not only FFP members on business, but also FFP members not on business, on the competitive route with HSR. However, the power of FFPs to increase customer loyalty would become weaker after the COVID-19 pandemic if we consider the negative impacts of COVID-19 on business travel demand. On the other hand, when we focus on the non-business passenger, after the pandemic, FFPs would still be effective at cultivating customer loyalty on the competitive route with HSR.

How CRM Components Impact Customer Loyalty: A Case from Bangladesh Banking Industry

The purpose of this study is to determine the impact of customer relationship management (CRM) components on customer loyalty of a firm. The three components of CRM in this study are customer knowledge, customer orientation, and technology capability. A structured questionnaire with a 5-point Likert scale was used to gather the data by conducting a survey. The sample size is 200 and chosen on a convenient basis. Indicators were generated based on the literature review. Data were analyzed by using PLS 3.0 software. The key finding is that customer loyalty is negatively impacted by the CRM component, customer knowledge. On the other hand, the impacts of customer orientation and technology capability on customer loyalty have been found to be significant and profound. This study adds to the existing pool of knowledge on CRM components and customer loyalty from the perspective of the Bangladesh banking sector. The findings may facilitate bank officials and can be used as a strategic instrument for cultivating customer loyalty in the Bangladesh context.

Do the different store formats of the same brand matter to Chinese customers? An International study on a Japanese fashion brand

ABSTRACTMany retailers have recently been building a greater variety of store formats and attempting to provide a superior shopping experience through their store environment in order to increase the possibility of customer revisitation and customer loyalty. However, less research pays attention to the issue of how, and to what extent, the different store formats have on impacting customer satisfaction and loyalty building. In order to improve the understanding of the satisfaction–loyalty link in the context of retail internationalization, we survey a Japanese fashion company – Nice Claup – that segmented the Chinese market by operating multiple retail stores and each retail store plays a discrete role of cultivating customer loyalty. Through 388-customer survey data, the results suggest that while attitudinal loyalty positively and directly influences behavioral loyalty, satisfaction indirectly drives behavioral loyalty through the mediating effects of attitudinal loyalty. The implication is that an application of implementing retail internationalization with adopting multiple store formats on different types of customers and customer behavioral loyalty can be transferred by offering multi-brands store more effectively than the single-brand store in the Chinese fashion market.

Effect of social media marketing on businesses

This paper's goal is to provide a thorough discussion of the advantages and disadvantages of marketing through social media such that businesses may decide whether to proceed or hold off on incorporating it into their overall advertising strategy. Social networking has shown to be an incredibly effective marketing instrument. The use of marketing through social media has given businesses new ways to interact with their intended audience. It is proving to be an affordable option for companies of all sizes. Despite all the advantages associated with social media marketing, there are several risks that, if ignored, might be fatal to a business. These risks include copyright theft, data theft, and many others. Businesses are utilizing social networking advertising techniques to develop relationships with customers and gain a deeper understanding of their needs. This way of thinking is also assisting them in cultivating customer loyalty among some of the intended markets.

Growth and Customer Loyalty: Evidence from the App Economy

The burgeoning app economy increasingly drives growth in today's service sector. We study a dataset encompassing apps' daily, weekly, and monthly usership time series and show how its nested-echelon structure allows researchers to reliably infer how and when an app's customers adopt, use, and leave its services. Thereby gaining novel visibility into these services' customer flows, we study how firms should prioritize the acquisition of customers and market share via viral effects against cultivating customer loyalty. Contrary to common wisdom in the app economy, our findings reinforce the central role and effects of customer loyalty, as theorized by the Service Profit Chain. While loyalty bolsters customers' retention and repeat business (i.e., usage), a natural experiment that suppressed viral customer acquisition across the Facebook platform demonstrates the power of a more subtle benefit: improved customer loyalty actually amplifies the rate of word-of-mouth acquisition. A potent experience curve that rewards firms' experience with loyal customers dismantles a classic trade-off between customer loyalty and market share in services.

Designing an emotional strategy: Strengthening digital channel engagements

The emergence of new technologies has revolutionized the way companies interact and build relationships with customers. The channel–customer relationship has traditionally been managed via a push approach in communication (“What can we sell customers?”) with the hope of cultivating customer loyalty. However, emotional understandings of customers and how they feel about a product, service, or business can drastically alter consumers’ engagement, behavior, and purchasing preferences. This rapidly evolving landscape has left managers at a loss, and what they are experiencing is likely the beginning of a tectonic shift in the way digital channels are designed, monitored, and managed. In this article, digital channel relationships are examined, and useful concepts for clarifying and refining the emotional meaning behind company strategy and their relationship to corresponding digital channels are detailed. Using three case study examples, we discuss the process and impact of such emotionally aware digital channel designs. Recommendations are made regarding how companies can select, design, and maintain digital engagements based on their strategy and industry needs.

Investigating the structural relationship between loyalty programme service quality, satisfaction and loyalty for retail loyalty programmes: evidence from Malaysia

PurposeRetaining and cultivating customer loyalty has become increasingly important for loyalty programme providers and retailers due to the highly competitive environment. The purpose of this paper is to develop and test a model investigating how loyalty programme service quality (LPSQual) enhances programme perceived value and programme satisfaction to win loyalty among cardholders.Design/methodology/approachQuota sampling technique, using a self‐administered questionnaire survey, was used with a total of 400 respondents who are card holders of loyalty programmes from departments and superstores in the capital of Malaysia.FindingsIt is found that all the loyalty programme service attributes (policy, reward, tangibility, information usefulness, courteousness/helpfulness and communication quality), with the exception of personalization, have a significant positive influence on perceived value. The positive relationship between perceived value‐programme loyalty and programme satisfaction‐programme loyalty was also significant. The result also suggests that programme satisfaction affects store loyalty only through programme loyalty.Practical implicationsThe results highlight the crucial role of loyalty programme service attributes in influencing value, satisfaction and loyalty among card holders of a loyalty programme.Originality/valueThis paper seems to be the first in investigating the impacts of LPSQual on value, satisfaction and loyalty in departments and superstores, particularly in the Malaysia context.

Understanding organizational citizenship behavior from a cultural perspective: An empirical study within the context of hotels in Mainland China

Scholarly concerns in organizational citizenship behaviors (OCBs) have increased dramatically over the past two decades. Nevertheless, there are significant issues yet to be addressed and resolved, one of which relates to the influences of cultural values on such voluntary behaviors. In view of the importance of OCB in meliorating hotel service and cultivating customer loyalty, the current study seeks to investigate a possible mechanism through which Chinese values (CVs) may function on employee citizenship behaviors within the hotels in Mainland China. The research questions focus on whether CVs have a direct impact on OCB and its verified antecedents, leader–member exchange (LMX) and employee organizational commitment (OC). Eventually, the research findings have verified the conceptual model and confirmed all the postulated linkages among the constructs under study.

A Comparative Study on the Measurement Scales of Organizational Citizenship Behavior Within China's Hotel Industry

Organizational citizenship behavior (OCB), a work behavior that contributes indirectly to the organization through the maintenance of the organization's social system, has increasingly aroused research interest. Notwithstanding the mounting scholarly concerns, the majority of OCB investigations have been undertaken within the Western context with very little available in China, let alone China's hospitality industry. Considering the importance of OCB in meliorating hotel service and cultivating customer loyalty, the authors of the current study aimed to fill in the research gaps and address OCB with the focus of validating the OCB instruments. Three OCB scales developed in the United States, Taiwan, and Mainland China were tested by surveying a total of 349 hotel employees in China. Results indicated that Taiwan OCB instruments not only demonstrate high consistency as well as accuracy in describing citizenship behaviors but also reflect the specific cultural traits of Mainland China and hence are highly suitable for use within the context of China's hotel industry.

The effect of relational benefits on perceived value in relation to customer loyalty: An empirical study in the Australian coffee outlets industry

Retaining and cultivating customer loyalty has become increasingly important for coffee outlet marketers and operators due to the highly competitive environment. This study aims to develop and test a model investigating how relational benefits enhance perceived value to win customer loyalty. Using a self-administered questionnaire survey, 949 respondents from coffee outlets were used for this study. The findings show that relational benefits have direct effect on perceived value and customer loyalty. In addition, relational benefits also have indirect effect on loyalty via perceived value. Finally, perceived value positively influenced customer loyalty. The findings suggest that coffee outlet operators with a better understanding of their customers’ perceptions, and help them in developing competitive strategies that differentiate themselves from competitors and win customer loyalty in an aggressive market.