The cut throat competitive era has put every company on its guard. They are well aware of the fact that customers tend to be very disloyal. The focus on the customer retention and loyalty has been increased because companies are realizing the dire importance of customer loyalty and they are focusing more in retaining the customers (Hill & Alexander, 1996).
According to Kumar and Shah (2004) the brand loyalty is one of the most widely studied marketing concepts by the researchers and it is also the most implemented marketing initiative by practitioners. The two authors relied upon the past studies to review important findings related to customer behavior and attitude in the context of customer loyalty and drew their conclusion on their findings. They highlighted the relationship between the customer loyalties to the financial growth of the company and brought forward a conceptual framework for building, developing and sustaining loyalty and consequently ensuring financial growth as well.
Taylor, Celuch and Goodwin (2004) found out through their research on the customer loyalty of industrial heavy equipment that brand equity and trust are consistently the driving force behind both behavioral and attitudinal forms of customer loyalty. They put forth the suggestion of integrated marketing strategies to build brand equity and trust in their customer base which will eventually lead to customer loyalty. This research however has limitation of being conducted on the sample of industrial customer which might not work so well with the general customers.
Brand loyalty can be roughly defined as an attitude and feeling of attachment and affection towards the brand which can ultimately benefit both the customer and the company. The brand loyal customer feels an obligation to do business with the said company and takes pride in the brand. According to Reichheld and Sasser (1990) brand loyal customers work to increase the profits of the company through their repeat purchases and good word of mouth. Their willingness to pay the premium price and reduced marketing costs (especially in terms of marketing) are the ultimate benefit that the firm gets.
The purchase loyalty and attitudinal loyalty is determined by the level of brand trust and brand potential to emotionally connect with the customers (Chaudhuri and Holbrook, 2001). The purchase loyalty of a brand results in a greater market share, and attitudinal loyalty helps in charging higher prices than the competitors since the brand loyal customers are price insensitive. The authors’ amply dissected two aspects of the brand loyalty i.e. purchase loyalty and attitudinal loyalty to come to this conclusion.
The companies lose some of their customers to their competitors because of various reasons, one being that they fail to make their customers loyal to their product or service. The companies are identifying this pattern and recognizing its severe impact on the businesses. The competitiveness and...