QUIZ QSM QUIZ 8

• service-profit chain

  
• CUSTOMER SATISFACTION - as a measurement that determines how happy customers are with a company's products, services and capabilities
• KEMMONS WILSON - founder of holiday inn hotels, six continents hotels group
• Brand Loyalty - defined as institutionalized preferences of a consumer for a product or service based on a brand name or logo
• FOUR STAGES OF MANAGING RELATIONSHIPS AND BUILDING LOYALTY

  1. cognitive loyalty
  2. affective loyalty
  3. conative loyalty
  4. action loyalty
• cognitive loyalty - perception from brand attribute information that one and is preferable to its alternatives
• affective loyalty - developing a liking for the based on cumulatively satisfying usage occasions
• conative loyalty - commitment to re-buying the same brand
• action loyalty - exhibiting consistent repurchase behaviour
• loyalty layers and type

  • cognitive - attitudinal
  • affective - attitudinal
  • conative - behavioral
  • action - behavioral
• CACA

  
• WHY CUSTOMER LOYALTY IMPORTANT TO A FIRMS PROFITABILITY

  • increase purchases and or account balance
  • reduces operating cost
  • referrals to other customer
  • price premiums
• increase purchases and/or account balance

  • customer/ families purchase in greater quantities as they grow
• reduces operating cost

  • fewer demands from suppliers and operating mistakes
• referrals to other customer

  • positive word of mouth saves firm from investing money in sales and advertising
• price premiums

  • long-term customers willing to pay regular price
• customers stays loyal when we create value for them
• value can be created for customers thru

  • confidence benefits
  • social benefits ( mutual recognition and friendship between service provider and customer )
  • special treatment
• value can be created fro customers through

  • confident benefit

  confidence in correct performance

  ability to trust the provider

  lower anxiety when purchasing

  knowing what to expect and recieve
• special treatment

  • better price
  • extra service
  • discounts not available to most customers
  • higher priority when there is a wat
• loyalty wheel

  1. build a foundation for loyalty
  2. create loyalty boards
  3. reduce chum drivers
• loyalty programs

  • happyplus
  • starbucks
  • mercury suki card
  • 7/11 card
  • sm advance
• LOYAL CUSTOMER PYRAMID

  1. Emotionally Loyal customers
  2. advocates
  3. support
  4. commitment
  5. bonding
  6. development
  7. acquisition
  8. potential customers