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Chapter 3
Relationships (Relationship Loyalty (Definition (Behavioural…
Chapter 3
Relationships
Relationship forming
Characteristscs
- the relationship is mutually perceived to exists & is acknowledged as such by both parties
- relationship goes beyond occasional contact & is recognised as having some special status
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Relationship Loyalty
- loyalty is a state of mind
- frequent assumption that loyalty translates into an unspecified number of repeat purchases from same supplier over a specified period
- loyalty has some special magical powers that marketers can invoke which are '' different '' / '' in addition'' to their normal marketing activities has been growing
Definition
- there appear to be two main strands of thought on the essence of commercial loyalty
Behavioural terms
- usually based on the number of purchases & measured by monitoring the frequency of such purchases & any brand switching
Attitudinal terms
- incorporating consumer preferences & disposition towards brand to determine levels of loyalty
Antecedents to loyalty
Hard dimensions
- such as value for money, convenience, reliability, safety & functionality & these are the prime drivers for product / service choice
Softer
- more intangible factors such as emotion & satisfaction are seen to affect attitude in a decisive way
Loyalty-type behavior
- where purchasing is seen as an 'either / decison -either the customer stays with you ( loyalty ) or turns against you (switching )
- where customer are seen as making a 'stream of purchases' but still within the context of an either/ decision-either the customer is always with you ( loyalty ) / flits among an array of alternatives
- customer makes a stream of purchases but their loyalty is divided among a number of product
- may be more / less loyal to your brand than any other
loyalty schemes
- growth of store loyalty cards in particular as evidence of the uptake of relationship marketing in retail sector
- goal of such programme is to establish a higher level of customer retention in profitable segments by providing increased satisfaction & value