The Overview For The Customer Loyalty Marketing Essay

The Overview For The Customer Loyalty Marketing Essay This chapter starts with the introduction of the researchs topic. Firstly, I will explain the overview for the customer loyalty. After that, research background, problem statement and research objective will discuss on this chapter. Besides, the justification, scope of the study, and limitation of the study hand been thoroughly discussed in chapter one. Finally, I will give definition for the importance term that I often use in this research. Nowadays, Customer loyalty is very important if an organization want to retain its current customers. Gaining customer loyalty becomes a key objective for banking organizations. Customer loyalty defines loyalty as a deeply held commitment to rebuy or repatronize a preferred product or service consistently in the future, despite situational influences and marketing efforts having the potential to cause switching behavior. (Oliver 1997,p.360) This has lead to a different definition of customer loyalty, an ongoing propensity to buy the brand, usually as one of several (Uncles et al., 2003, Gee et al., 2008,). Customer loyalty can be determined by looking at the number of purchases made by the customer from the product portfolio of a company, the frequency of acquisition, the percentage from the total expenditures made by a customer for a certain product or service. (Filip and Anghel, 2009). Besides, customer loyalty can be determined through consumer preferences and their affective disposition toward the bank, which are combined with repeat purchasing. Due to Filip and Constantinescu, 2007, we can conclude that repetitive customer behavior is not enough for us to be considered loyal towards the banking industry. (Filip and Anghel, 2009) Many academics need have more knowledge and better understanding to the process of developing customer loyalty (McMullan and Audrey, 2008, Oliver, 1999; Knox and Walker, 2001; Tsaur et al. 2002). When the academic have enough knowledge, they can know how to segmentation the customers according to different levels of customer. So, Different level customers have different strategies based on their background. In addition, the relationship between competition and loyalty becomes stronger when level of competition increase. Services sector is one of the examples because this sector has a lot of choices and rapidly emerging innovative products and services (McMullan and Audrey, 2008, Stevens, 2000). However, the academic and practical knowledge of the determinants of customer loyalty is very important for a organization to survive in market. In overall, we can say that develop an efficient customer loyalty strategic is very important for a organization includes banks. A successful strategic can help the organization to retain the customer in order to survive in highly competitive market. So, bank must build a strong customer relationship with their customer. 1.2 Background of the research In Malaysia, there are many bank located in different states, banking sector becoming increasing competitive from day to day. Due to the rapid development of information technology, it has made a great impact in the banking industry deeply. The high technology can provide the customer better alternative than before. It can help the customer to fulfill their financial needs. So, many bank need to keep improve themselves with the high technology to retain the customer. In order to retain the customer, the bankers need to have different kind of marketing and management strategic. One of the strategies is to understand their customer needs and try to satisfy their needs. There are several reasons that can influence customers selection of a bank. The range of services, rates, fees and prices charged can influence the customer mind when they want choose the suitable bank to keep their money .(Cohen et al., 2006;Abratt and Russell, 1999). Furthermore, providing service excellence, innovative products are vital to succeed in the banking industry. As conclusion, description above is my research background. It relate to the problem statement and objective that I am going to study during this research. 1.3 Problem statement Customer loyalty becoming an important element of banking strategy in todays increasingly competitive environment. Nowadays, the entire bankers need to compete with each other to survive in this highly competitive market. The entire banker must identify the problem occur in the bank and try to manage the problem in a proper way. Employees play an important role in a banking industry. Employees represent the professionalism of an organization. So, the banker must make sure their employee willingness to solve problems when emergency case happens. They must train their employee when how to dealing with customer. The employee must deal with customer friendliness and have sufficient knowledge to help customer. Other than that, the employee must have communication skills, and selling skills when dealing with customers. Many researchers conclude that retaining an existing bank customer costs less than creating a new customer. They discover that the cost of creating a new customer has been expected to be five times more than that of retaining an existing customer (Gan et al., 2006,Reichheld, 1996). Some researcher has explored the influence of several factors on loyalty. There are service quality, customer satisfaction, corporate image, commitment and conflict handling. Based on the research, this several factor have great impact on customer loyalty. Unfortunately, many banking industry does not fulfill the requirement of this several factor. Some banks do not understand the customer needs and provide the wrong information to customer. Other than that, some banks do not provide the good quality of service. The bank staff does not know how to deal with customer; the customer will think the staff no manners and do not professional. Besides, some bank does not build the strong relationship with the loyalty customer by giving them some special offer. If retention criteria are not well managed, customers may still leave their banks and find another bank to manage their wealth. In order to settle those problems, the bank must know how to handle the problem and try to satisfy the customer needs. Research question: Is there any significant relationship between reliability and customer loyalty? Is there any significant relationship between responsiveness and customer loyalty? Is there any significant relationship between assurance and customer loyalty? Is there any significant relationship between empathy and customer loyalty? Is there any significant relationship between tangibles and customer loyalty? Is there any significant relationship between customer satisfaction and customer loyalty? Is there any significant relationship between corporate image and customer loyalty? Is there any significant relationship between commitment and customer loyalty? Is there any significant relationship between conflict handling and customer loyalty? 1.4 Research Objective Research had show that customer loyalty is very important for an organization. Therefore, the objective of this research is to analyze the factor that can influence customer loyalty towards banking industry. Besides, the purpose of this study is to investigate how the bank to strengthen the relationship between bank and customer. The target respondent for this research is undergraduate university student. The study has some specific objective are as follow, i) To determine important factors affect the customer loyalty on bank ii) To analyze the relationship between reliability, responsiveness, assurance, empathy, tangibles, customer satisfaction, corporate image, commitment and conflict handling. iii) To make suggestion that could assist bank manager to increase customer loyalty towards bank. 1.5 Research Justification Nowadays, gaining customer loyalty becomes the purpose of a bank in order to survive in the competitive market. So, all the banking organization tries to make every customer satisfy their services. The result of this research will be able to provide an insight into how the bank manager to determine the factor that can affect the customer loyalty towards banking industry. All the relationship between the factors and customer loyalty can help the bank manager to making more effective market strategic. Besides, this result also can benefit all organizations includes banking industry. With the research, they can determine the factor that can influence the customer loyalty and the relationship between the factors and customer loyalty. Therefore, they can learn and make decision at the better way. Furthermore, the findings of this research are very useful to local banking industry. The findings of this research can provide some useful feedbacks that help the bank manager to improve the bank service quality. It is important to banking industry as it has direct impact of customer loyalty. If the improvement of the bank services parallel with the needs of the customer, the bank can increase the amount of customer satisfaction. High level customer satisfaction will reduce the customer switching. 1.6 Limitation of the study This study only focuses on banking industry in Malaysia due to the time limitation and other country banking industry hard to do more research on it. Besides, the customer loyalty also affect buy other external factors such as price. Besides, the research only focuses on undergraduate university students which include the local university and private university. It is hard to find target respondent other than undergraduate university student to do the survey. It is assumed that the respondents will answer the question in an honest manner. So, the results get from the research maybe not accurate. 1.7 Scope of the study This research target respondents consist of a group of 200 undergraduate university students. The undergraduate university students must be a bank customer. In this research, data are collected through primary research by the questionnaire survey form. Suggestion, recommendations from the bank customer can get through the survey form. In order to achieve the objective of the research, the questionnaires will be set based on research objective and hypotheses statement. It can make sure that the data that had been collected are more accurate and useful for the research. 1.8 Conclusion As a conclusion, bank should always keep improve the services in order to compete with other competitor. Customer loyalty is a key success for a banking industry. The cost of creating a new customer has been expected to be five times more than that of retaining an existing customer (Reichheld, 1996). 1.9 Definition bank A  bank  is a financial institution that accepts deposits and channels those deposits into lending activities. Banks primarily provide financial services to customers while enriching investors. Government restrictions on financial activities by banks vary over time and location. Banks are important players in financial markets and offer services such as investment funds and loans. Customer loyalty Customer loyalty can be define as a deeply held commitment to rebuy or repatronize a preferred product or service consistently in the future, despite situational influences and marketing efforts having the potential to cause switching behavior.(Oliver 1997,p.360) Customer Satisfaction Customer satisfaction is defined as the customers response to the evaluation of the perceived discrepancy between prior expectations and the actual performance of the product/service as perceived after its consumption. (Che-Ha,Tse, 2007 and Tse and Wilton, 1988,p.127) 1.10 Organization of Research Project This research project consists of five chapters which is introduction, literature review and research methodology, results and discussion, conclusions and recommendations. Chapter one is introduction of the research project. It begins with the overview and background of the topic. After that, this chapter also covers background of the research and problem statement. After identify objective of research, research justification will be discuss. Finally, limitation of the study and scope of the study will be explained. Chapter two is literature review. It presents the variables that involve in this research. The variables include reliability, responsiveness, assurance, empathy, tangibles, customer satisfaction, corporate image, commitment and conflict handling. First, I define the key terms and variables, and then followed by literature review in the context of factors affecting customer loyalty towards bank. Finally, a small conclusion will be discussed. Chapter three states the research methodology. It begins with introduction and then followed by a complete research framework to illustrate the relationship between the dependent variable and independent variable. After that, nine hypotheses were developed to test the correlation. Sampling procedures and sources of data will also discuss in this chapter. Furthermore, some technique to develop questionnaire also will discuss. Chapter four presents the results from the data analyses. The analysis examines the results how whether the variables can influence the bank customer loyalty. The analysis can find out there is any significant relationship between the independent variables and dependent variable. Chapter five states the recommendation and conclusion. It discusses the major finding and concludes the study. It also highlights the implication of this study, limitations and some suggestion for the future research.

Trader Joe’s Case Brief Essay

There are several key sources of Trader Joe’s competitive advantage, including offering great bargains on products that are not typically found at other supermarkets. Trader Joe’s also chose to sell natural and organic foods aimed at well-educated, sophisticated consumers. Trader Joe’s also believed strongly in paying its employees a good wage, leading to higher employee satisfaction and a better quality of service within each store. In addition, the company embraced an everyday low pricing philosophy. More than 80% of Trader Joe’s products are private label (including their well-known private label wines). Also, they are able to reduce costs by purchasing directly from the manufacturers (as opposed to the distributors). Their marketing campaigns rely heavily on word of mouth and fan pages created by loyal customers. Given my answer to question #2, TJ’s business model would be difficult for competitors to imitate given a variety of reasons. First, employee commitment is extremely high due to high wages and increased employee benefits, which generates a very engaging experience for the customers. In addition, the company has thousands of vendor relationships all over the world and this takes time and skills to develop. The company’s model also relies on small stores with an intimate feel, a limited but unique selection of products that are free of preservatives, have no artificial color, and contain no genetically modified content, a highly motivated and well-paid work force, and excellent customer service. The great customer service offered by TJ leads to higher customer retention and loyalty, making it difficult for other firms to steal these customers away.

Sexual Selection

Sexual selection was an idea proposed by Darwin and refers to the process in which males and females attempt to maximize their chances of reproductive success. Within a species there are certain characteristics that make individuals attractive to potential mates. An example of this is in peacocks, female peacocks are attracted to males with long brightly colored tails, even though this makes them easier to be spotted by predators. This characteristic then evolves within the species due to how males with this characteristic have a higher chance of reproductive success and their characteristics being passed on to surviving offspring.There are 2 types of sexual selection. Intersexual selection takes place when males compete for the attention of a female. The female will play an active role in choosing her mate and will choose the mate with the best characteristics in order to produce the offspring with the best characteristics. The other type is Intrasexual selection. This takes place w hen males compete against each other and are rewarded with the female. The female plays a passive role in this. An example of intrasexual selection is Short’s sperm competition.This suggests that males are motivated to ensure that their sperm is successful in fertilization and can compete against other males. This is essential due to how in some species the female will mate with a number of different males so the male with the best fertilizing sperm will win. In humans this has resulted in men evolving to release much larger amounts of sperm after ejaculation to help increase the likelihood of fertilization. Harvey and May suggested that ethic differences in testicle size may reflect adaptive differences in mating strategies within different populations.Samples showed that Chinese mens testicles were approximately half the size Danish mens testicles. This means a chinese man will be at a disadvantage if the female mates with a numerous amount of males and will most likely ent er a long term relationship in order to create offspring. Males are more likely to use short term mating strategies as a form of producing offspring due to how they have an unlimited amount of sperm compared to women who have limited amount of reproductive opportunities.Clark and Hatfield helped support this by getting female and male experiments to ask male and female participants if they would like to engage in casual sex. 75% of males said yes while every female participant said no. This helps support the sexual selection theory as it shows that females have to be more careful with mating as they only have a limited amount of opportunities therefore are more likely to enter a longterm mating strategy. Males can have casual sex with little investment so are more likely to then females. This study helps to show the gender differences.Much of the research documenting sex differences in mate choice focus on preferences rather than on real life choices. So a male may have a preference but may have to settle for much less. Mate choice is a product of mate preferences form in the environment of evolutionary adaptiveness (EEA). Sexual selection suggests that females prefer males who they can gain benefits from such as gifts. This is shown in male birds who make nests for females in order to mate with them and also in insects who give nuptial gifts. Sexual selection also suggests that females prefer males who have a strong jawline and prominent cheekbones.These characteristics arise because of a strong presence of testosterone which also helps to indicate fertility within males. Penton-voack found that during a women's most fertile time in her menstrual cycle they preferred a male whose face shape was more masculinised (strong jawline etc.. ) Suggesting that females like males who show high levels of testosterone, supporting sexual selection theory. Buss explored whether there were universals of human mate preference. His research spanned across 37 cultures and invo lved 10 thousand participants of different religion,ethnic and economic groups, increasing the validity of the study.He then made the study even more ecologically valid by varying the sampling procedure per culture. Results showed that women in all cultures show a preferences for men with resources while males placed more emphasis on women's attractiveness as it is an emphasis on their physical health. This supports the claims made by the sexual selection theory that women will form relationships with men for resources as it will benefit them and increase the survivability of their offspring which is a woman's main evolutionary goal.A problem is in some cultures arranged marriages is the normal and individuals have no choice on their mate as it is already chosen by their parents, so the studies validity can be questioned as this will affect the results obtained. Buss further helped to supported mate choice by looking at real marriages. He found that when males divorce many of them g o for younger women when they choose to marry again. This is due to how men will want to be in a relationship with women in their most fertile age and the younger the woman is the more chance of reproductive success the male his.This helps to support the evolutionary theory that a mans main goal is to produce as many surviving offspring as possible. The evolutionary approach can be seen as deterministic due to how it suggests our genes specify exactly how we will behave. The approach fails to take into account that our genes are not the only thing that determine how we behave, the environment in which we grew up in will also have an effect on us. This is known as the nature vs nurture debate where it is argued if our biological factors or the way in which we are brought up makes up how we behave when we grow up.The evolutionary theory suggests that rape is an evolved and adaptive behaviour which enhance reproductive success. Sterglanz and Nash suggest that the theory offers justific ation for rape as it explains why males who can’t compete with other males for resources and women will produce offspring. This is socially sensitive and has been met by much hostility from the general public and women psychologists due to how it is an issue which negatively affects the lives of many.The evolutionary theory is also seen as reductionist as it explains humans reproductive behaviors as a result of our genes, ignoring the environmental actors which also decide our behavior. The approach also ignores homosexual relationships and only accounts for heterosexual relationships and the roles in which men and women take. To conclude the sexual selection theory helps to explain that males and females attempt to maximize their reproductive success by getting with a partner with certain characteristics, these characteristics will then evolve over time due to how individuals in a species with these characteristics will have a higher chance of reproductive success

Amazon in the Year 2000 - 918 Words

Assignment 3 Amazon.com in the year 2000 Syed T.A Zaidi 100285122 BUSI 3150 Financial Statement Analysis Prof. Jane Bowen March 14th, 2011 Long Term Viability of Amazon Amazon had a significant vision in terms of its long-term viability. This vision consisted of many strategies that allowed them to operate efficiently and effectively. Amazon primarily raised profits by the means of developing strong brand equity on a global scale, developing direct relationship with wholesalers allowing them to reduce inventory shipping/holding costs supported by an excellent logistic system, which permitted them to deliver any and every product fast. They also started up this venture when the Internet market was just emerging, therefore allowing†¦show more content†¦This is primarily why the markets reacted so significantly to Suria’s report. Amazon’s performance, Today In my opinion Amazon, had overturned all skepticism, and today is one of the leading online sellers of books. Amazon is very strong from a credit risk point of view, which could have been a result of Suria’s analysis back in 2000. Today Am azon has launched products such as the Kindle allowing them to yet again pursue another bubble of this century, E-Books. As the most recent financial statements of Amazon tell us they had an increase of 28% in the year over year net sales, with FCF’s increasing by 114%. 21 new products were added to the lineup of Amazon products. In today’s date Amazon not only sells books but almost everything a general store can sell, the year 2010 proved successful for them as they continued on increasing customer satisfaction index for their apparel sector, adding an estimate 7 million customer reviews on the website globally. Their product Kindle supported by the Kindle store now has more than 460,000 books available, another reason why more and more people would prefer using it over any other E-Book device. 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