Understanding Customer Loyalty of Retail in Term of Consumers

Understanding Customer Loyalty of Retail in Term of Consumers

The purpose of this paper is to develop 15 questions regarding the literature review gathered by way of various secondary sources. The questionnaire will be used for the purpose of collecting primary information regarding the research study. The literature review for the topic is provided here onwards, while the questionnaire is attached at the end of the paper.

Literature review

Literature review is research that has been researched and published in various places such as books, journals and online media etc. in order for the research to be a literature review area the research needs to cover various areas that the theory needs to fit in. however the researcher takes a look at the literature in order to build their own knowledge and erudition on the topic, to conclude what is clear and not clear, researcher will try and fill in any missing theories with their research projects (Hewson, 1996). After researching customer loyalty I have decided to talk about identifying the factors that helps business make customers loyal to them.

Customer loyalty

During doing my research I found out that the customer loyalty is a key goal for any company and it is easier to achieve growth within the market by ensuring as many customers as possible will be repeat customers which each repeat customers represents a consistent, renewable source of income for a company (Murray, 1998). Repeat customers are also likely to recommend other new customers, which in turn may also become repeat customers, which this is far easier than trying to attract new customers from traditional methods such as advertising as friend/family recommendation are likely to be more trusted by potential new customers, rather than trusting what a possibly new/known to the customer company tell them and if the customer loyalty of business are really strong with their customers the customer will be loyal to them even if the business do mistakes.

From a creating customer loyalty books they defined customer as “the only real asset that a business has” (1993:Page110, no publisher name) which suggest that the company must think of their customers as an asset inside the business because without customers there will be no business and the business will fall in the market. And Reichheld highlighted “Loyalty can be earned only when leaders put the welfare of their customers and their partners ahead of their own self-serving interest” which it means that all the leaders of business should put their customers in business first rather than thinking of themselves first. (1992:Page3)

(FT, 2008) article described that the customer loyalty occurs when companies and/or individuals provide a product or service that meet or exceed customer expectations to such an extent that the customer wishes to return to the company or individual for future purchases. According to doing research of customer loyalty from the books, articles, internet and other resource information has helped me to make out the right title for my research ...