Theme / Topic :
Customer Loyalty as long-term business profitability.
Title :
Why do cutomers switch? The dynamics of satisfaction versus loyalty.
Author :
Banwari Mittal
Marketing
Faculty Member, Northern Kentucky University, Highland Heights,
Kentucky, USA
Walfried
M. Lassar
Assistant
Professor of Marketing, University of New Hampshire, New Hampshire,
USA
Year :
1998
Background and Problems : In the literature, the company must know the marketing
strategy that's right for his efforts so that customers can faithfully on
goods/services produced. Although companies are realizing
the value of keeping customers loyal, no one knows for sure how to do it.
Companies measure customer satisfaction, and hope that if the satisfaction
scores are good, the customers will stay with the firm. But even satisfied
customers leave for the lure of a competitor’s offer. Service industries
present a more difficult setting for understanding customer disloyalty as
opposed to manufactured goods industries. This is because, for service firms,
the basis of consumer choice and continued patronage are less obvious. Services
are intangible, and they cannot be completely standardized. At the minimum,
they vary according to the mood of the service provider and service customer at
the moment of service delivery. Thus, in service businesses, what is given and
received is relatively intangible. Consequently, customer evaluative criteria
are less well articulated, and the appraisal of the value received is much more
subjective Therefore, to understand customer disloyalty for service businesses.
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