2.3.1 Emergence
of the idea of customer loyalty
There exist a number of ways to define the
concept of loyalty that make the overall concept and the ability to measure
customer loyalty somewhat burdensome. In
1969, Day revealed that the concept of customer loyalty was the combination of
repeat purchases from one service
In 1978, Jacoby and Chestnut stated that
the only way to understand brand loyalty was to examine the belief, attitude,
and cognitive structure of the customers’ orientation of the focal brand.
Customer loyalty is force of the bond between customers’ attitude and his
willingness to repurchase a particular product (Dick and Basu, 1994). Oliver(1997)
states: “loyalty is described as a
deeply held commitment to rebuy or repartonize a preferred product or service
consistently in the future”
In 1997, Oliver stated that “customer
satisfaction must remain a central tenet of all relationship management efforts
in the hotel sector. Hospitality
organizations typically strive to make customer satisfaction a focal point of
their core values, visions and mission.” McMullan
& Gilmore (2003) five stages, it will start at “0”t level , with no
information. During level one, customer
develops an idea which might find a certain service or product better than others. Level two is the point in which the customer
develops a favorable or unfavorable attitude toward the service or provider; it
will, follow to the third phase; which
is the customers intention to return or
recommend. The fourth and final phase
requires the customer to take action and act on his or her beliefs and
attitude.
In addition, McMullan (2005) highlighted
the fact that a customer may prefer one brand or service over the others;
however, if an alternative brand or offer is more appealing and the customer
feels that the preferred service organization is not worthy of their loyalty,
the possibility of switching to the competition increases.
McMullan (2005) supported the belief of
Reichheld (2003) when he stated “a loyal customer is one who values the
relationship with the company enough to make the company a preferred supplier. Loyal customers do not switch for small
variations in price or service, they provide honest and constructive feedback,
and provide enthusiastic referrals.”However, in consideration of competition
,growth and expansion and the arrival of seasoned guests, organizations face difficulties in delivering
quality service.
Quality service considered to be the
foundation of an organizations success the organizations focus on quality
produce customer satisfaction and loyalty which engage in future behaviors.Shoemaker
and Bowen (2003) referred to loyalty through quality service and on-going
customer satisfaction as the new Holy Grail; that in which all service
organizations should strive to achieve.
In 1999, Shoemaker and Lewis introduced
a concept that the service organization must execute three functions of in
order to engender customer loyalty. The Loyalty Triangle; an equal lateral
triangle with each side representing one of the functions needed to execute
loyalty.
Value creation
Process
Communication
Figure 2.3.1.1.Source: (Shoemaker &
Lewis, 1999)
2.3.1.1 Figure Explanation
Process
It include every incident from the time
customer first interact with the service
experience to the time the service experience ends or the customer leaves the
property.
Value Creation.
It Includes two parts
· value added -strategies that increase
the long-term value of the relationship
·
value recovery. -It was designed to rectify a service problem or failure
that may occur during the service experience
Database Management and Communication.
This side incorporates the importance of
communication between the provider and
the customer. Communication consider
many ways forms such as newsletters, advertisements, special promotions, or
courtesy calls to notify the customer of special events, featured favorites or
limited availability.
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