1.3.5 Consumer loyalty + behaviour

• how do businesses get effective customer service?

  before: answering questions on the phone or via email

  during: on a car test drive, the sales person can answer questions on fuel economy, reliability and features of the car

  after: repairs, warranties, guarantees and service plans
• what are examples of getting customer loyalty?

  • loyalty cards: improves customer retention
  • saver schemes: each week consumers can carry out their shopping and pay into a saver card
• what is ostentatious?

  if upward sloping demand curve,

  • ostentatious consumption: people willing and able to buy more is price goes up.
• what is consumer loyalty developed through?

  • effective communication
  • great customer service
  • personalisation
  • preferential treatment