Loyalty and satisfaction

• What is customer satisfaction a measure of?

  Performance of an organization's total product
• How does satisfaction influence loyalty?

  Satisfaction leads to increased customer loyalty
• What influences customer satisfaction?

  Individual expectations and perception of quality
• What is the relationship between poor service quality and customer satisfaction?

  Poor service quality reduces customer satisfaction
• How is service quality defined?

  A service free from error
• What does Grönroos (1984) believe about quality?

  Quality is both objective and perceived
• How is technical quality measured?

  By total time spent in a queue
• Which companies were mentioned for poor service quality in the UK?

  JO Spuns and Homebase
• What issue did Sainsbury's face regarding customer care?

  Lack of care due to more self-scanners
• What is the relationship between high service quality and profitability?

  High service quality leads to satisfaction and profit
• What are the key components of successful relationships according to Morgan and Hunt (1994)?

  Trust and commitment
• Why is communication important in service quality?

  It enhances the customer experience
• What percentage of customers were satisfied with M&S problem solving?

  90%
• What rating did ACC NK receive on Trustpilot in 2023?

  4.2 stars
• What leads to higher profitability margins?

  High satisfaction levels
• What are the stages in the development of relationship profitability according to Storbocka et al. (1994)?

  1. Service quality
  2. Customer satisfaction
  3. Relationship strength
  4. Relationship longevity
  5. Customer relationship
• What is the definition of loyalty according to Dick and Basu (1994)?

  Loyalty is a state of mind
• What are the types of loyalty identified by Rowley (2006)?

  Captive, Convenience, Contented, Committed
• What does the Ladder of Loyalty by Christopher et al. (1999) emphasize?

  Gaining new customers and developing relationships
• What is the difference between behavioral loyalty and attitudinal loyalty?

  Behavioral loyalty is based on purchases, attitudinal loyalty on commitment
• What are the types of loyalty according to Dick and Basu (1994)?

  True, Spurious, Latent, No Loyalty
• What is required to sustain true and spurious loyalty?

  It must be actively maintained
• What is the Sustained Loyalty Framework by Kumar and Shah (2004)?

  • Detect data
  • Capture purchase behavior
  • Use data warehouse
  • Tier 1 and Tier 2 rewards
• What is the consumer awareness level of Tesco's loyalty scheme in 2024?

  72%
• What criticism is associated with loyalty programs?

  They can lead to spurious loyalty
• What percentage of UK consumers are members of a loyalty program?

  61%
• What is a common view of loyalty schemes according to O'Malley (1998)?


  They are seen as point accrual systems