Customer loyalty: Toward an integrated conceptual framework

ABSTRACT

Customer loyalty is viewed as the strength of the relationship between an individual’s relative attitude and repeat patronage. The relationship is seen as mediated by social norms and situational factors. Cognitive, affective, and conative antecedents of relative attitude are identified as contributing to loyalty, along with motivational, perceptual, and behavioral consequences. Implications for research and for the management of loyalty are derived.

His research interests include consumer decision making, information processing, and consumer loyalty. He has published in the Journal of Consumer Research and Advances in Consumer Research.

His research interests are consumer information processing, persuasion cues in advertising, and international marketing. His articles have appeared in the Journal of Consumer Research, Journal of Marketing Research, Journal of Consumer Psychology, and Canadian Journal of Administrative Sciences as well as in a number of conference proceedings.

Alan S. Dick, Kunal Basu
Journal of the Academy of Marketing Science
Volume 22, Number 2 / March, 1994, pp. 99-113

The impact of information technology on global marketing strategies

ABSTRACT

It is argued that in this era of globalization, business success or failure depends on whether a firm can compete effectively in world markets. A major driver of globalization is technological advances. This paper examines the challenge facing firms using the Internet, and assesses whether or not this technology enhances the building and maintaining of a global customer base. The ultimate aim is to identify the extent to which developments in the Internet and e-commerce have impacted on global marketing strategies.

T C Melewar, Caroline Stead.
Journal of General Management. Henley-on-Thames: Summer 2002. Vol. 27, Iss. 4; pg. 29

Information technology, marketing practice, and consumer privacy: Ethical issues

ABSTRACT

Marketers' use of the new information technologies has provided the opportunity for improved market segmentation and target marketing. However, the profession faces ethical conflicts because application of these technologies commonly invades consumer privacy. Two major ethical conflicts relating to marketing practice and consumer privacy involve discrepant views between businesses and consumers about who should control consumer information and friction between consumer privacy and other consumer or business entity rights. Several practices, technologies, and data sources used by marketers consitute potential or actual threats to consumer privacy: 1. automatic number identification-caller ID, 2. computer-generated telemarketing (autodialing), 3. retailer credit card, and other service transaction records, 4. state databases, and 5. data collected by the federal government. Consumers often have no knowledge that information is being collected. Recommendations for ethical marketing practice for marketers include: 1. making a commitment to fair resolution of conflicting rights, 2. recognizing consumer ownership rights to personal information, and 3. trying target consumer groups more accurately.

Foxman, Ellen R, Kilcoyne, Paula.
Journal of Public Policy & Marketing. Chicago: Spring 1993. Vol. 12, Iss. 1; p. 106

Beyond relationship marketing: technologicalship marketing

ABSTRACT

This study argues that relationship marketing is not a complete paradigm shift. Without effective use of technology, relationship marketing is not an effective strategy. Hence, relationship marketing, based on technological advances, can be considered as a new paradigm. It is demonstrated that everything companies do to build consumer loyalty is affected by technology. It is shown that traditional, relationship, and technological marketing allows for different types of synergy effects, solutions, different customers, and different types of interactions and relationships.

INTRODUCTION

It is very obvious that nowadays organizations and people (consumers) will find it difficult to separate a relationship from information technology and other technological advances. Relationship marketing, which includes strategic alliances and strategic networks, has been devised by organizations to navigate through this disorder. This paper is part of a longterm research effort, the ultimate objective of which is to offer suggestions to integrate marketing functions with other functions and to better understand how information technology can be used as a source of competitive advantage (e.g. Zineldin et al., 1997; Zinedlin, 1998). Our theory framework is based on current understanding of recent developments in relationship marketing and information technology theories and concepts with application in practice by some organizations.

This paper is part of a long-term research effort, the ultimate objective of which is to offer suggestions to integrate information technology and marketing functions with other functions within and among organizations. The purpose of this paper is to elaborate on the indispensable role of information technology (IT) and other technological advances (T) in enabling business and consumer relationships to better understand how information technology can be used as a source of competitive advantage in marketing activities. It is a conceptual study based on the recent developments of relationship marketing and management, as well as information technology theories and concepts with application in practice. The paper is organized accordingly. A brief outline of relationship marketing is presented first, followed by a discussion of the role of IT as a foundation for relationship marketing, a definition of technologicalship marketing, and an overview of the changing nature of the market and marketing activities. Some synergy effects of utilizing technologicalship marketing are highlighted.

Mosad Zineldin
Marketing Intelligence & Planning; 2000; 18, 1; pp. 9-23

A National Customer Satisfaction Barometer: The Swedish Experience

ABSTRACT

Many individual companies and some industries monitor customer satisfaction on a continual basis, but Sweden is the first country to do so on a national level. The annual Customer Satisfaction Barometer (CSB) measures customer satisfaction in more than 30 industries and for more than 100 corporations. The new index is intended to be complementary to productivity measures. Whereas productivity basically reflects quantity of output, CSB measures quality of output (as experienced by the buyer). The author reports the results of a large-scale Swedish effort to measure quality of the total consumption process as customer satisfaction. The significance of customer satisfaction and its place within the overall strategy of the firm are discussed.

An implication from examining the relationship between market share and customer satisfaction by a location model is that satisfaction should be lower in industries where supply is homogeneous and demand heterogeneous. Satisfaction should be higher when the heterogeneity/homogeneity of demand is matched by the supply. Empirical support is found for that proposition in monopolies as well as in competitive market structures. Likewise, industries in general are found to have a high level of customer satisfaction if they are highly dependent on satisfaction for repeat business. The opposite is found for industries in which companies have more captive markets. For Sweden, the 1991 results show a slight increase in CSB, which should have a positive effect on the general economic climate.

INTRODUCTION

In an effort to promote quality and make its industry more competitive and market oriented, Sweden has become the first country to establish a national economic indicator reflecting customer satisfaction. The extent to which the business firm is able to satisfy its customers is an indication of its general health and prospects for the future. The Customer Satisfaction Barometer (CSB) is an index based on annual survey data from customers of about 100 leading companies in some 30 industries. It is a weighted composite that rates the level of customer satisfaction in the included industries and companies. In addition, the relationship of CSB to customer loyalty as well as product (service) performance is estimated.

Because customer satisfaction has a direct impact on the primary source oi future revenue streams for most companies, the new index is expected to be an important complement to traditional measures of economic performance, providing useful information not only to the firms themselves, but also to shareholders and investors, government regulators, and buyers. Not surprisingly, efforts to measure customer satisfaction on a nationwide basis are now underway in several other countries. For example, the United States is establishing a national quality index very similar to the Swedish model. Efforts are also underway in Japan, Singapore, and the EC countries.

This article reports the CSB development and industry results from the first three years in Sweden. Background and a brief description of some of the macroeconomic issues involved are followed by a discussion of how customer satisfaction relates to the overall strategy of the firm. That is the context within which the validity of CSB is examined.

ABOUT THE AUTHOR

Claes Fornell is the Donald C. Cook Professor of Business Administration and Director of the Office for Customer Satisfaction Research, School of Business Administration, University of Michigan.

Claes Fornell
Journal of Marketing, January 1992, Vol. 56 (January 1992), 6-21