literature review customer loyality

8/18/2019 Literature Review Customer Loyality

1/5

Literature review

1. Customer loyaltyCustomer loyalty is an essential component for to maintain the long term relationship between acustomer and a company. The need for customer loyalty has been recognized by the scholars.According to (Eshghi et al., 2007 !es"ett and #asser$ 20%0&$ that customer loyalty is highlydiscussed topic in the mar"eting and ser'ice literature. Customer loyalty can be defined as that itis firm commitment to pro'ide the good product and ser'ices and encourage the repeated

purchase of goods and ser'ices. Customer loyalty can be defined as that According to li'er ( li'er$ ). *. %++7& customer loyalty describe the customer retention and increase the repeated

purchasing beha'ior. ,t also helps a company to sol'e a so many problems in a competiti'emar"et. According to the past studies customer loyalty can be classified$ (a& attitudinal loyaltywhere the customers owing to their pre-determined perception of a certain brand$ (b& beha'ioral-loyalty to the brand where loyalty to a certain brand emerges as a conse uence of past purchasee/periences related to use of that brand or ser'ice$ and (c& co-determinants of buying brandwhere loyalty is hampered or enhanced by the present state of indi'iduals or the concurrentsituation .customer loyalty focus on the customer rephrase beha'ior to the specific product andser'ices in the future( ones et al., %++1&.According to ( eng et al.$ 200+&$ customer satisfaction

possess a positi'e effect on customer loyalty. According to (Andres$ 2007&$ he describe that thecustomer loyalty is the main factor for the companies to achie'e the long-term success. ,t isclosely related to the companies to achie'e the strong competiti'e edge in the mar"et. 3hiletal"ing about the telecom mar"et the loyalty is concerned with the duration of the customer stayon the certain networ".

2. Customer satisfactionCustomer satisfaction plays a 'ital role in the company success. According to (!enning$Thurau4!anse$2000& customer satisfaction can be defined as that it is a customer reaction andemotions towards the e/pectations and performance appraisals. According to the past studies itcan be measured through the customer loyalty and purchasing beha'ior. (5aiya"i et al. 20%%)izwan et al.$ 20%6&. escribe that customer satisfaction is the deli'ering re uired ser'ices tocustomers that generate positi'e response towards the brand which the customer uses. Accordingto ornell (%++2&$ customer satisfaction is customer response after using the particular product or ser'ices. ( ornell 4 *ehmann$ %++8&$ because of customer satisfaction the companies are able to

pro'ide lower cost transactions in future$ and due to customer loyalty which leads towards toincrease the reputation of the company. Customer satisfaction increase or buildup a customer repurchases beha'ior. ue to satisfaction of the customer it creates positi'e response towardstheir friends and colleagues which create good image of the company.


2/5

Service quality#er'ice uality has a huge impact on the customer loyalty. #er'ice uality can be defined as that

its goal is meet the re uirement which is set by the customers uality is the comparison betweenwhat the customer is e/pected and what he percei'ed from the product and ser'ices(9ang$ 200:&.According to (;itner et al., %++0&$ describe that the ser'ice uality is o'erall organizational

performance and organizational inferiority and superiority towards the product and ser'ices. ueto high le'el of ser'ice uality the companies are able to create the competiti'e ad'antages (


3/5

3. Trust

Trust can be defined as that according to the (Errol et al.$ 2001&$ trust leads towards the long termloyalty and it focus to maintain the strong long-term relationship between the customer and thecompany.(#ingh 4 #irdeshmu"h$ 2000&$ describe the trust that the le'el of someone s confidencein another party s capability and hisDher performance based on e/pected ethical principles isdefined as trust. According to the past studies )auyruen and 5iller (2007&$ describe that the trustis categories into two le'els. (%& Customers trust which leads to the specific sales representati'e

is at first le'el. (2& ,nstitution trust which leads towards the person is li"ely to purchasesomething. According to . 5. !awes$ E. 5. 9enneth$ and . E. #wan$ %+@+F$ trust is the trust ismade when the transaction between buyers and sellers is occurring and both parties are satisfiedat a certain points. Trust is the commitment in business relationships are fulfilled by the bothtrusted parties. Trust is determining through the ser'ice uality$ when the customers are fullysatisfied with ser'ice uality of the product and ser'ices (Anderson43eitz$ %+@+&. According to!erbig (%++8&$ trust has the highest importance in assessing the customer point of 'iew regardingthe uality of product and ser'ices. According to the (;erry$ %++1 ;owen

4 #hoema"er$ 2006 Chu$ 200+&$ trust has a huge effect between long term relationships and

customers. Trust is used to maintain the strong relationship between the parties which leadstowards the customer retention. 3hile tal"ing about the loyalty$ trust is an importantdeterminant to maintain the relationships as compared to other 'ariables. Trust has a strongimpact on customer loyalty. ue to trust the customers are confident towards the product andser'ices and they ha'e a firm belie'e that the company whate'er the product or ser'ices are

produsing is according to the e/pectations of the customers. Consumer trust which leads towardsto ma"e strong mar"et image in the mar"et and able to charge the premium price from thecustomers and it also help for the company to create a positi'e word of mouthad'ertisement (Chaudhuri and Holbrook, 2001 .According to the (e.g., Chaudhuri andHolbrook, 2001; Garbarino and Johnson, 1999),that trust is the major dri er o!

the "ustomer lo#alt#.

4. Perceived price=rice play a 'ital role in the telecommunication mar"et because through this the companies areable to create a competiti'e ad'antage in the mar"et (9ollmann$ 2000&.price can be defined asthat the amount charged by companies for deli'ering the 'alues in the shape of product andser'ices(9otler and Armstrong$ 20%0&. ,t is 'ery much important for the companies if they wantto pro'ide a better uality ser'ices$ due to competiti'e en'ironment they ha'e to compete on

both scales uality and price(5elody$ 200%&. As because of high le'el of competition in themar"et the telecom companies are fighting on price and uality$ they are gi'ing different types of inno'ati'e offers to attract the customers (!a uea et al., 20%%&. 3hen we are tal"ing about the

price it doesn t focus on the price of #im card but also focus towards the price of recharge'ouchers$ call rates$ #5# charges$ and other related charges. Those networ"s ha'e low price$ha'e a high tendency to attract the more customer and increase the number of subscribers$ so thiswill impact to enhance their financial and mar"et shares 9ollmann (2000&. !e also mention thatthe success of the telecommunication sector in a mar"et place largely depends on continuingusage and pricing policies$ which need to be considered on se'eral le'els.

uring the past studies we found that to offering the ser'ice uality is not only the importantfactor to attract the customer but also they ha'e to pro'ide the better uality ser'ices withaffordable price to attract and retain the customer. Especially in the telecommunication mar"etthe price war is occurring to retain the current customer and attract the new customer. According


4/5

to Gia et al. (2007&$ customers are become loyal when they feel that the product and ser'ices areaccording to their e/pectations li"e uality ser'ice with the affordable price. According to Choiet al. (200:&$ describe that when the companies are starting to increasing the price of the ser'icethe customer are starting to become a disloyal towards the product and ser'ices$ and they mo'eto another organizations. 5artHIn-Consuegra et al. (2007&$ also found that percei'ed pricefairness influences customer satisfaction and leads to loyalty.

Conceptual framework Variable Alternate Hypothesis Related Text

Customer satis!a"tion $o e%amine the a&e"t o!"ustomer satis!a"tion on"ustomer lo#alt#.

' * + , . '. (2012). $he eterminants o!Customer *o#alt# in

igeria-s G / /arket $rust $o e%amine the a&e"t o!

trust on "ustomer lo#alt#.i an 3aiser anish, 4.

'. (2015). 4a"tors'&e"ting Customer

etention in $ele"om6er"ei ed 7ri"e $o e%amine the a&e"t o!

7er"ei ed 7ri"e on"ustomer lo#alt#.

' * + , . '. (2012). $he eterminants o!Customer *o#alt# in

igeria-s G / /arkeer i"e 8ualit# $o e%amine the a&e"t o!

ser i"e 8ualit# on"ustomer lo#alt#.

i an, /. (201 ).Customer *o#alt# in

$ele"om e"tor o! 6akistan

Perceived price

Service quality

Trust

Dependent VariableIndependent Variable

Customer Loyalty

Customer satisfaction


5/5

literature review customer loyality

Documents