2.3.5 Measuring customer
loyalty
Many service organizations use different
methods in measuring customer loyalty
and these measurements have changed
significantly over the years with many studies.
In 2003 Shoemaker and Bowen evaluated how the hospitality
industry practiced the loyalty of customer. When loyalty efforts
were first realized to add value to the organization, most service
organizations relied upon the sales and targeted promotion approach (Dube &
Shoemaker, 2000). This concept offered
discounts and promotions with little to no effort being made to track the
overall effectiveness of the process. As
time and research efforts progressed, the origin of the frequency programs
emerged. As outlined in a previous
section, although frequency programs are beneficial to some service
organizations they were not as well received in the hospitality industry.
Today, many service
organizations focus their loyalty efforts on building and strengthening
relationships with the customer (Shoemaker & Bowen, 2003). When building
relationships it is needed to understand
the customer properly.
That knowledge should gather from the
customers on their expectations and
perception of the services and products (Shoemaker & Bowen, 2003). This in turn sheds light on the numerous
antecedents of customer loyalty. Most of
them are based on service quality, satisfaction and future intentions. (When
generating the proposed model this idea was taken in to consideration)
These are more valuable and should be consider as operating
strategy and manage them properly. Model presented by Olsen, (2002) explain quality
equal to customer satisfaction and loyalty. (When generating the proposed model
this idea was taken in to consideration)
Heskett et al.,(1997) explain the relationship between quality,
service value, satisfaction and loyalty
and created the Loyalty Profit
Chain. Their model shows how the
satisfaction influences loyalty and retention.
It reveals a combination of satisfaction, loyalty and retention help not only
to increase revenue and profit .
(Figure 2.3.5.1)
Some customers may consider themselves
loyalty to an organization but their buying patterns maybe different .This in
turn has created the need for researchers to explore the significance of
customer expectations, perceptions and attitudes and how the three directly
influence the customer’s future behavioral intentions. (When
generating the proposed model this idea was taken in to consideration)
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