Marketing Intelligence & Planning

Understanding and profitably managing customer loyalty

Robert Gee Graham Coates Mike Nicholson
Article information:
To cite this document:
Robert Gee Graham Coates Mike Nicholson, (2008),"Understanding and profitably managing customer
loyalty", Marketing Intelligence & Planning, Vol. 26 Iss 4 pp. 359 - 374
Permanent link to this document:
http://dx.doi.org/10.1108/02634500810879278
Downloaded on: 10 October 2016, At: 10:26 (PT)
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

References: this document contains references to 73 other documents.

To copy this document: permissions@emeraldinsight.com
The fulltext of this document has been downloaded 13567 times since 2008*
Users who downloaded this article also downloaded:
(1996),"The relationships of customer satisfaction, customer loyalty, and profitability: an empirical
study", International Journal of Service Industry Management, Vol. 7 Iss 4 pp. 27-42 http://
dx.doi.org/10.1108/09564239610129931
(2001),"The relationship between customer loyalty and customer satisfaction", International
Journal of Contemporary Hospitality Management, Vol. 13 Iss 5 pp. 213-217 http://
dx.doi.org/10.1108/09596110110395893

Access to this document was granted through an Emerald subscription provided by emerald-srm:333301 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for
Authors service information about how to choose which publication to write for and submission guidelines
are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company
manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as
providing an extensive range of online products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee
on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive
preservation.

*Related content and download information correct at time of download.

 The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-4503.htm

Managing
Understanding and profitably customer
managing customer loyalty loyalty
Robert Gee, Graham Coates and Mike Nicholson
Durham University, Durham, UK 359
Received January 2007
Abstract Revised January 2008
Purpose – The purpose of the paper is to draw together the salient issues surrounding customer Accepted February 2008
loyalty and customer relationship management (CRM) into a single coherent discussion. Various
schools of academic thought are examined. The paper concludes with practical implications for
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

managers.
Design/methodology/approach – The literature surrounding customer loyalty, customer
satisfaction, effective CRM and managing loyalty in a profitable manner are all reviewed. The paper
allows managers to consider a wide range of material in the context of their business.
Findings – The need for businesses to retain customers is an important issue in today’s global
marketplace. To retain customers, a business must forge loyal and long-term relationships with
profitable customers. Reasons why customers leave a company are discussed, and preventative
strategies are considered. Loyalty schemes are considered and their relative merits examined.
Practical implications – A key implication of this paper is the need to focus attention on managing
customer loyalty in a profitable manner. Certain theories hold the view that generating customer
loyalty will automatically drive profits. This paper suggests that this is probably not the case. Given
this, the paper calls for data analysis and database segmentation to be considered as an integral part of
profitably managing customer loyalty.
Originality/value – The paper provides both a broad and in-depth discussion of all the salient
issues surrounding customer loyalty. By drawing together these issues into a single discussion, the
paper offers a unique perspective that is not available in the current literature. Holistically considering
all of the practical elements of customer loyalty allows academic researchers and marketing managers
to compare and contrast different theories and principles.
Keywords Customer loyalty, Customer satisfaction, Profit, Customer relations
Paper type Literature review

Introduction
While a large body of academic research exists that focuses on specific elements
of customer relationship management (CRM), no current academic paper attempts to
draw together the salient issues into a single discussion. The purpose of this paper is
to do just that. By reviewing current theories and principles, a best practice review
of CRM can be outlined and guidelines for implementation within the business world
considered.
In today’s global marketplace competition has intensified (Sivadas and
Baker-Prewitt, 2000). Singh and Sirdeshmukh (2000) suggest that customer loyalty
is rapidly becoming, “the marketplace currency of the twenty-first century”. This is a
commonly held view in the academic field (Seth et al., 2005; Venkateswaran, 2003;
Duffy, 1998; Kandampully, 1998), which advocates the need for businesses to Marketing Intelligence & Planning
Vol. 26 No. 4, 2008
adopt a customer-centric vision. Anderson and Narus (2004) believe customer pp. 359-374
retention is a more effective business strategy than continuously trying to acquire new q Emerald Group Publishing Limited
0263-4503
customers in order to replace the defecting customers. This seems logical given that the DOI 10.1108/02634500810879278
 MIP well versed marketing maxim notes, “It costs five times more to acquire a new
26,4 customer than to retain an existing one” (Pfeifer, 2005). While the exact cost ratio is
debateable (Sterne, 2002) the common viewpoint is that it makes commercial sense
to look after your current customers before acquiring new customers (Walsh et al.,
2005).
The remainder of this paper now presents reviews of relevant literature in
360 the following areas; examining customer loyalty, understanding and preventing the
ending of relationships, managing loyalty in a profitable manner, loyalty schemes and
managerial considerations. To summarise, the paper presents key findings resulting
from the consideration of the aforementioned areas.

Examining customer loyalty

Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

Customer loyalty is essential if a company is to retain its current customers. However,

many debates are centred round what customer loyalty actually is, as Majumdar (2005)
states, “Customer loyalty is a complex, multidimensional concept”. The complexity of
customer loyalty is reflected in the wide range of definitions within academic fields.
Focusing on consumer attitudes, Oliver (1997) 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 behaviour”. Other definitions of customer loyalty focus on the pattern
of past purchasing activity. A wealth of data suggests that most consumers are
polygamous and are loyal to a portfolio of brands within a product category (Uncles
et al., 2003). This has led to another definition of customer loyalty, “an ongoing
propensity to buy the brand, usually as one of several” (Uncles et al., 2003). In a review
of 50 operational definitions, Jacoby and Chesnut (1978) report a central theme that
runs through all the definitions. Specifically, that loyalty is related to the proportion of
expenditure devoted to a specific brand or store.
The lack of a uniformly accepted definition of customer loyalty is also reflected in
the academic work that attempts to understand the key factors than generate customer
loyalty. Indeed, Dick and Basu (1994) note the need for a more in-depth assessment of
the variables that coerce customer loyalty and retention. Furthermore, to leverage the
greatest benefits available from customer loyalty it is imperative to understand the
antecedent drivers of loyalty (Terblanche and Boshoff, 2006). To do this, Crosby and
Johnson (2004) recommend that a causal model of customer loyalty is produced, linking
together the chain of events from touch points with customers through to inducing
examples of loyal behaviour.
Terblanche and Boshoff (2006) cite empirical and anecdotal evidence to
support the notion that loyalty is a both a long-term attitude and a long-term
behavioural pattern, which is reinforced by multiple experiences over time.
Overall, customer satisfaction becomes important because these multiple experiences
need to be satisfactory to lead to the positive predisposition of long-term loyalty. In a
similar concept, Gustafsson et al. (2005) note three drivers of customer loyalty;
calculative commitment, affective commitment and overall customer satisfaction.
Calculative commitment is the rational and economic decision making, reviewing costs
and benefits. Commitment to the current brand or service is due to a lack of choice for
similar products or services or high-switching costs (Anderson and Weitz, 1992).
Affective commitment is a warmer and emotional factor, based on trust
 and commitment. Indeed, Muthuraman et al. (2006) and McMahon-Beattie (2005) Managing
comment on the need for customer trust in building sustainable and loyal relationships customer
with a brand or service.
Commitment dimensions are described by Gustafsson et al. (2005) as “forward loyalty
looking” and capture the strength of the relationship and the resulting commitment for
the future. Empirical data from Gustafsson et al. (2005) suggest that calculative
commitment has a consistent reduction in customer churn rates. This is interesting 361
as the calculative commitment reflects the viability of the company’s offerings,
thus demonstrating that consumers actively review the company’s products and
services against those of its competitors. Overall, satisfaction is described as a
“post consumption experience which compares perceived quality with expected
quality” (Sivadas and Baker-Prewitt, 2000). Gustafsson et al. (2005) report that “when
satisfaction is measured as an overall evaluation of performance, it indeed predicts
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

churn”. Furthermore, the results provide recommendations for customer relationship

managers when reviewing customer retention. To maintain the competitive advantage
the company holds, managers should consider both the overall satisfaction of its
customers and the competitiveness of the company’s products and services.
The importance of overall customer satisfaction in inducing loyalty is noted earlier.
The problem associated with this is that a consumer’s level of satisfaction is constantly
adjusting. Dahlsten (2003) supports this concept: “It is widely acknowledged that
customer satisfaction is a function of the relationship between customer expectations
and experience, that it is dependent upon value and that it is formed continuously”.
With this evidence in mind, satisfaction is considered an “inherently unstable and
temporary mental state” (Reichheld et al., 2000). In an attempt to further understand
those factors that induce customer satisfaction, the notion of service quality becomes
increasingly prevalent within the academic literature (Oliver et al., 1997). Seth et al.
(2005) suggest that many studies have found a “direct positive link between service
quality and customer behavioural intentions”. One assumption sometimes made is that
strong service leads to satisfaction, which in turn leads to loyal behaviour. However,
Venkateswaran (2003) highlights the need for caution, “An assumption that exists
amongst companies that a satisfied customer is a retained customer may not be valid
in the current context”. In a review of customer defecting patterns, Reichheld et al.
(2000) found “60-80% of customers who defect to a competitor said they were satisfied
or very satisfied on the survey just prior to their defection”.
Some of the differences between empirical results focusing on satisfaction and
customer loyalty may be due to the different definitions adopted by the authors.
As such, there is clearly a requirement to understand how the positive effects of
satisfaction can be made less transient and yield a more stable loyalty effect.
To achieve this, Sivadas and Baker-Prewitt (2000) suggest that it is, “not merely
enough to satisfy a customer”. Dahlsten (2003) believes there is the need to avoid the
“satisfaction rut” and notes that, “many companies have fallen into a self-perpetuating
pattern in which practices that are not truly customer-orientated are reinforced”.
To rectify this situation, managers move past the measurement of quality and
satisfaction and realign their practices on the actual customer experience (Crosby and
Johnson, 2006).
According to Dahlsten (2003), to drive customer satisfaction managers must move
out of the satisfaction rut and have a more extrinsic focus. This requires “an organic
 MIP shift from focusing on today’s problem in a reactive and cost-conscious way to
26,4 concentrating on longer-term opportunities”. To achieve this, the manager must gain
an intrinsic knowledge of the customers needs and be able to deliver on these
expectations (Lindquist, 2006; Bland, 2004). Gelb and McKeever (2006) support this
idea and suggest that, “organisations must strive to understand and manage
expectations”.
362 However, Berman (2005) suggests that organisations must do even more than
delivering on expectations and recommends delighting customers rather than merely
satisfy them. It is suggested that customer delight is a construct related to, but separate
from, satisfaction. This is in the same way that dissatisfaction is related to, but distinct
from, satisfaction. Satisfaction is generally based on meeting or exceeding one’s
expectations, customer delight requires that “customers receive a positive surprise that
is beyond their expectations” (Berman, 2005). When compared to satisfaction, delight,
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

“is a more positive and emotional response”. Given the emotional response resulting
from delight, it is suggested that satisfaction has a weaker memory trace than delight.
The weaker memory trace resulting from mere satisfaction may offer an explanation to
the unstable and temporary nature of satisfaction reported by Reichheld et al. (2000).
If customer delight can be achieved then maybe this can provide the more stable
loyalty that companies actively seek.
Keiningham and Vavra (2001) provide empirical support for this notion. The study
reviewed the effect of customer satisfaction levels on customer loyalty to
Mercedes-Benz USA. The results found that there was only a 10 per cent chance of
a dissatisfied customer bringing return business. If the customer was satisfied with
the product and service, the likelihood or re-buy or re-leasing rose to 29 per cent.
However, the likelihood of return business from those customers that were delighted
was found to be 86 per cent.
Berman (2005) employs the Kano (1984) model as an underpinning for explaining
how customer delight may be achieved. Kano’s model cites three levels of
requirements:
(1) must be requirements;
(2) satisfier requirements; and
(3) attractive requirements.

A must-be requirement is taken for granted by the consumer. If this requirement is not
fulfilled by the product or service then customer dissatisfaction will result. A satisfier
requirement, as suggested by the name, has the ability to induce customer satisfaction.
It is proposed that the more satisfier requirements that are fulfilled, the higher the level
of resulting satisfaction. The third requirement is attractive requirements; these are
neither explicitly expressed nor expected by the customer. If these attractive
requirements can be met, it is suggested that the result will be customer delight.
To successfully compete, organisations must ensure they fulfil all must-be
requirements, while also offering the satisfiers available through key competitors.
To generate competitive advantage an organisation must go above and beyond their
competitors on those variables that generate delight.
There is however, one final complexity with regard customer satisfaction.
Mittal and Katrichis (2000) report that the attributes viewed as important for
newly acquired customers are different compared to customers who are already loyal. As
 they comment, “Often the attributes that enable a firm to acquire a customer differ from Managing
those that help the firm retain the same customer”. These findings would suggest that it is customer
important for a firm to understand and explore those factors that elicit satisfaction and
delight for different segments of its customer database. By doing this, a company can loyalty
move towards the customer centric vision that Kale (2004) holds as imperative for
true CRM.
363
Understanding and preventing the ending of relationships
The discussion in the section above provides an understanding of how
delighting customers can increase customer loyalty. However, for any business,
unfortunately there will be times when customers defect to competitors. In
organisations that are to implement excellent CRM, these failures must be seen as
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

an opportunity to investigate and improve problem areas. Reichheld et al. (2000) concur
and note:
When desirable customers defect, it’s a signal that something is amiss. In a learning
organisation, the departure of such a customer prompts a search for the root causes of the
problem to learn more about what needs to be fixed in the business.
While a universally accepted theory of relationship ending does not exist in academic
literature, Michalski (2004) cites Hirschman’s (1974) exit-voice-loyalty framework as
highly influential. One result from the EVL framework in particular has gained a
consensus within the literature. This finding suggests that a dissatisfied customer will
either simply leave the company and exit, or, they will voice there issues first. In the
case of those customers who first voice their concerns, “the likelihood of the
relationship ending falls” (Michalski, 2004). Further, six distinct categorizations
were found regarding relationship ending based upon three triggers. Situational
triggers are those that are driven by the customer, for example, moving house or an
increase/decrease in income. A reactional trigger is a company driven reason and can
be due to factors such as, poor service, reduced product quality or if the company
denies the customer a service (e.g. a bank loan). According to Gustafsson et al. (2005),
reactional triggers cause the consumer to “evaluate present performance more closely,
which may put customers on a switching path”. Finally, influential triggers are
competitor driven reasons to induce a customer to defect from the current company.
Triggers include price, perceived value for money or service quality.
According to Reardon and McCorkle (2002), “The choice for a consumer to choose one
distribution channel over another can be viewed as an optimization problem”. Therefore,
it is proposed that consumers review the potential gains of switching to another
company against the costs of leaving the current company. Building on the work of
Reardon and McCorkle (2002), Burnham et al. (2003) propose three different switching
costs; procedural, financial and relational. Procedural switching costs are the time and
effort a customer must put into initiating a relationship with a new company. Financial
switching costs are those monetary costs that companies put in place in an attempt to
reduce customer defections. Finally, relational switching costs relate to the loss of
personal relationships with employees of the current company. While all three costs can
be employed by a company to reduce customer defection rates, Jones et al. (2000) provide
a cautionary warning. That is, if customers are not satisfied with the current company
but feel trapped due to negative barriers such as high-financial switching costs, they
 MIP may engage in “company-focused sabotage such as negative word-of-mouth”.
26,4 Conversely, positive barriers such as interpersonal relationships can act as a more
effective barrier to defection. Again however, the company must be careful. High-staff
turnover or losing key members of staff could result in customer defection if the bond to
those staff is stronger than the ties to the company itself.
Given the review of customer switching behaviour, the pertinent question becomes
364 what companies can do to reduce customer defections. According to Michalski (2004),
companies must take a holistic approach, noting there is little point in focusing on the
effect of one trigger and ignoring the effects of other triggers. For example, consistently
reviewing the quality of service or products may only have a limited effect if, for
example, prices are too high. This is because the influential triggers of competitors
could outweigh the potential benefits of the improved service. According to Michalski
(2004), management must understand “the whole picture of an ending process to realize
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

and to decide which actions are necessary to keep customers or regain lost customers”.
The results from Gustafsson et al. (2005) research support this holistic approach;
they suggest that managers should consider both the overall satisfaction of its
customers and the competitiveness of the company’s products and services, or in their
terminology, the calculative commitment of the customers.
While companies can attempt to provide complete satisfaction there will
unfortunately be times when a customer feels the need to complain. Effective
customer complaint handling becomes imperative given the Hirschman’s (1974)
exit-voice-loyalty framework and the importance of reactional triggers highlighted by
Gustafsson et al. (2005) and Michalski (2004). Indeed, Griffin (2001) cites the results of a
Rockefeller Foundation study, which found that of those customers who left a company
for a specific reason the most influential factor was poor customer complaint handling.
Homburg and Fürst (2005) report that “complaint satisfaction has a strong effect on
customer loyalty” and propose that successful resolution of a customer’s complaint can
become a significant driver of customer loyalty. Interestingly, Smith and Bolton (1998)
note that “An excellent recovery can increase customer satisfaction and loyalty beyond
the degree before failure”. Therefore, it appears that while a company must continue to
reduce the desire for customer defection in the first place, it must also focus on
ensuring loyalty is also borne from effective complaint handling procedures.

Managing loyalty profitability

The preceding sections have considered both the need for creating customer loyalty
and the factors that can cause customers to switch to a competitor. While customer
loyalty is important for generating a strong, reliable customer base these customers
must be profitable for the long-term success of the organisation. Understanding the
intricate links between customer loyalty and business profits is an area which needs
more in-depth understanding and discussion (Uncles et al., 2003). Previous research on
loyalty has advocated that if customer loyalty is gained, profits will follow (Chen and
Chang, 2006; Reichheld, 2002). Reinartz and Kumar (2002) state the past mantra,
“Win loyalty, therefore, and profits will follow as night follows day”. Garland (2005)
agrees stating, “Customer loyalty has been widely regarded as a necessary precursor to
individual customer profitability”. The viewpoint that gaining loyalty automatically
generates profit is now under scrutiny.
 Empirical research by Reinartz and Kumar (2002) suggests that the relationship Managing
between loyalty and profits is far weaker than those scholars, who advocate loyalty customer
programmes ( Reichheld et al., 2000; Hallowell, 1996; Reichheld, 1993), would suggest.
Their research found the following correlations between customer profit and customer loyalty
tenure. A French grocery retailer 0.45, corporate service provider 0.30, a German direct
brokerage firm 0.29 and just 0.20 for an American mail-order company. The results do
not provide support for the theories linking customer loyalty with profit. In turn this 365
suggests that businesses need to strive for customer loyalty that also delivers profit.
While the overall correlations between customer tenure and profitability are low,
there remains the possibility that these low figures mask other underlying advantages
of customer loyalty. Other cited advantages of customer loyalty are that:
.
loyal customers costs less to serve;
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

.
they will pay higher costs for a set of products; and
.
they will act as word-of-mouth marketing agents for the company ( Reichheld,
2002, 1993; Zeithaml, 2000).

In their empirical research, Reinartz and Kumar (2002) found no conclusive support for
any of the posited outcomes of customer loyalty. As Garland (2005) concludes there is
little to suggest that customers who bought regularly were any cheaper to serve, any
less price sensitive or any more zealous about recommending the company to others.
Although Reinartz and Kumar (2002) find little evidence of the link between loyalty
and profitability, this does not mean there is no correlation. As they note, “In our
opinion, the reason the link between loyalty and profit is weak has a lot to do with the
crudeness of the methods most companies use to decide whether to maintain their
customer relationships”. Traditionally, models such as the recency frequency
monetary value model are used to assess whether a customer warrants further
investment in order to generate future sales and profit. For a more in-depth discussion
of traditional models and methods of managing customer relationships (Kumar et al.,
2006).
In order for a company to manage customer loyalty and profitability more
effectively, Reinartz and Kumar (2002) provide a framework for customer
segmentation. The framework builds on the profitability and longevity measures
from Reichheld’s (1993) work on customer loyalty and that of the loyalty typology
posed by Dick and Basu (1994). The final framework is based upon a special case of
“event-history modelling”. For a complete explanation of the model see Reinartz and
Kumar (2000). The customer segmentation concept borne from event-history modelling
is a 2 £ 2 matrix based upon profitability and customer tenure. This produces four
different types of customer classification; butterflies, true friends, stranger and
barnacles.
The resulting analysis from the model allows tailored marketing and customer
relationship strategies to be developed for each of the four segments. For those
customers who are classified as low profit and short-term tenure, defined as strangers,
the model advocates a simple policy, “Identify early and don’t invest anything”.
Those customers who are termed true friends are long-term profitable customers, who
need nurturing and every effort should be made to develop relationships with them.
Highly profitable customers who exhibit little loyalty to the company require
a strategy that ensures they are “exploited before they ‘flit off’” (Garland, 2005).
 MIP It is essential that a company identifies the right point in time to cease trading with a
26,4 butterfly. The common mistake that managers make is attempting to generate loyalty
as “our research shows that attempts to convert butterflies into loyal customers are
seldom successful” (Reinartz and Kumar, 2002). The final segment, termed barnacles,
are loyal but have a negative impact on company profitability. The first stage in
developing a strategy to deal with barnacles is to review the financial potential,
366 otherwise termed the wallet-size, of the customer. If the customer is low wallet-size,
then the company should ensure pricing controls are in-place so that the customer is
managed profitably. If the wallet-size is high, the focus should be shifted towards
cross-selling and up-selling to increase wallet share and thus maximise sales and
profits. Therefore, the company should attempt to convert barnacles into true friends,
or, as Zeithaml et al. (2001) assert, from lead into gold.
Although different models have been presented, there is one common element that
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

runs throughout all of them. Specifically, this is the need to target finite company
resources at those customers that generate the largest profits for the company.
As Garland (2005) notes, “While companies may want to treat all customers with
superior service, they find it is neither practical nor profitable to meet (and certainly
not exceed) all customer expectations”. If a company tries to look after all customers in
the same manner then the highly profitable customers end up subsidising the service
for low-profit generating customers (Zeithaml et al., 2001).

Loyalty schemes
Various academic theories have been discussed regarding how customer loyalty can be
gained and maintained. Loyalty schemes are designed to induce long-term loyalty from
customers. Building upon the discussion regarding management of loyalty in a
profitable manner, it is now important to consider the influences of loyalty schemes.
According to Uncles et al. (2003), there are two main aims of loyalty schemes
employed by companies. The first aim is to increase an individual customer’s sales
otherwise seen as increasing the “share of wallet”, or to cross-sell and increase the
range of products bought from that company. The second aim is more defensive in its
nature. It is hoped that by building closer bonds between the customer and the
company, customer defection rates will reduce. With reference to the work of Burnham
et al. (2003), it is hoped that the relational costs of switching to a competitor are
perceived to be so high that switching behaviour is made less likely.
The use of loyalty schemes is increasingly prevalent within the business world
(Lewis, 2004). However, within academic literature there are mixed views on the
economic viability and success of loyalty schemes. One often cited advantage of loyalty
schemes is their ability to collect sales data to allow trends analyses to be conducted.
For example, Stone et al. (2004) propose that the information a loyalty scheme generates
can be used to tailor the company’s offerings, and thereby fulfil its customers’ needs.
Furthermore, Rowley and Haynes (2005) note that a successful loyalty scheme allows a
business to “move beyond an analysis of which products are popular, to who buys
those products, and what other products they buy at the same time”. As Wood (2005)
concurs, “Loyalty schemes are a method of gathering information on customers, which
then allows appropriate strategies to be applied to different customer segments”. With a
less supportive view of information analysis, Uncles et al. (2003) posit that often the vast
volume of data make insightful analysis impossible. Furthermore, they suggest that
 often too little of the right kind of data are collected by a loyalty scheme. For example, a Managing
lack of data on non-customers does not provide a complete view of the marketplace. customer
Another area of contention is whether loyalty schemes actually induce loyal
customer behaviour. Lewis (2004) proposes that to increase loyalty a loyalty scheme loyalty
“must have a structure that motivates customers to view purchases as a sequence of
related decisions rather than as independent transactions”. In a review of purchasing
behaviour, when collecting stamps to receive a free coffee, Kivetz et al. (2006) found 367
that, “to earn one free coffee, customers bought two more coffees than they would have
otherwise”. As Wood (2005) suggests, the behavioural assumption of a reward
programme is that it can “motivate customers to base their purchasing decisions both
on the current environment and on a long-term goal of achieving a frequent buyer
reward”. Interestingly, Kivetz et al. (2006) also suggest that consumption accelerates
the closer the customer is to receiving the reward goal, in the case of the coffee
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

experiment, a free cup of coffee. However, in a response to the search for loyal customer
behaviour, Uncles et al. (2003) state, “Customers appear not to want to watch
one television station, eat at one restaurant, patronize one hotel, drink one brand of
wine . . . etc”.
Another criticism of loyalty schemes are the opportunity costs of implementing
such a scheme (Uncles et al., 2003). It is important to consider the relative impact that
could be achieved by investing the same financial resources in new marketing
channels, establishing an everyday low-price strategy, or further product development.
Finally, if a loyalty scheme is seen as a success, it can be quickly imitated
by competitors and thus eroding the original competitive advantage it provided
(Uncles et al., 2003). Given the potential advantages and disadvantages of loyalty
schemes, managers must be careful when considering their implementation.

Managerial considerations
Building on the previous sections, the following discussion aims to provide
recommendations that managers can implement. This section outlines further theories
and concepts that managers can consider in context with their organisation.
CRM initiatives have become increasingly popular in the business world. Kale (2003)
defines CRM as the, “holistic process of identifying, attracting, differentiating, and
retaining customers”. In addition to this, CRM focuses on nurturing business
relationships with the belief that long-term customer relationships yield better results
than an orientation focused on short-term transactions (Raman et al., 2006). However,
despite the enthusiasm for CRM, Reinartz et al. (2004) report that 70 per cent of CRM
projects result in either losses or no bottom-line improvement. According to Kale
(2004), there are seven deadly sins that result in ineffective CRM programmes.
The factors cited are; a lack of management support, underestimating the effects of
change management, inflexible business processes, undervaluing data analysis, losing
sight of customers, ignoring customer lifetime value (LTV), and focusing solely on
technology. With an understanding of those factors, which result in ineffective CRM
practice, businesses must adopt a relevant strategy for implementing successful
CRM initiatives.
Given that the C of CRM stands for the customer, it is imperative that a business
develops a customer centric vision (Thakur and Summey, 2005; Kale, 2004). According to
Day (2003), a customer centric approach is achieved when the belief that customer
 MIP retention is of the highest priority transcends through all departments of an organisation.
26,4 As a guiding principle, Reichheld et al. (2000) suggest that “customer repeat purchase
loyalty must be the basic yardstick of success”. If a business can successfully achieve
repurchase behaviour, then it is on the way to generating customer loyalty. In agreement,
Kumar et al. (2006) comment, “second-time customers are more likely to become third-time
customers than first-time customers are to become second-time customers, and so on”. To
368 generate repeat purchase behaviour, a business must understand exactly what is
important to its customers. Kale (2004) believes that a company needs to “precisely
ascertain what knowledge about customers is required in order for it to retain, grow, and
delight its most valued customers”. Berman (2005) concurs and explains that a company
must deliver attractive requirements, providing delight for the customer, in order to
generate future sales. In addition to this, a company must understand the different
expectations from distinct segments of its customer database (Mittal and Katrichis, 2000).
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

To understand customers’ requirements, data analysis becomes increasingly

important. Indeed, to undervalue data analysis is one of Kale’s (2004) seven deadly
sins. Importantly, this data analysis can be relatively simple in practice and does not
have to require expensive CRM software (Bland, 2004). If a business can develop a
database, which allows analysis of customer requirements across different customer
segments, it can begin to serve its customers better. The internal data warehouse held
by a company is an extremely important asset. Jackson (2005) suggests that if
everything else is equal, “internal data is the one differentiation and competitive
advantage available to a company concerning its customers”. Furthermore, Boulding
et al. (2005) note that firms with the required customer information in place exhibit
superior performance.
Effective data analysis also enables a company to manage loyalty profitably
(Reichheld and Detrick, 2003). With the right data and appropriate analysis, Raman
et al. (2006) report that a business can identify profitable customers with whom to
further relationships, and identify unprofitable customers with whom remedial action
is required. Thomas et al. (2004a) comment, “Stable, healthy growth is built on the
profitability of customers, not their raw numbers or their loyalty”. While some authors
suggest that the profit gained from some customers deems them not worth serving
(Reinartz and Kumar, 2002), in practice this does not seem a viable option for most
companies (Wood, 2005). According to Wood (2005), a company cannot afford to reject
the business of any customers, since even low-value customers still produce revenue.
A question posed is whether the overheads of a company would fall by 10 per cent if it
did not serve the 50 per cent of its customers who only contribute to 10 per cent of its
revenue. Again, according to Wood (2005), “the answer is always negative”. Therefore,
what businesses must do is to manage and adopt sensible operating costs for different
customer segments.
In addition, data analysis can be used to effectively manage marketing spend on
different customer segments. Analysing the LTV of a customer allows appropriate
allocation of a company’s resources (Day, 2003). According to Kale (2004), LTV can be
defined as, “the estimated profitability of a customer over the course of his or her
relationship with a company”. Ryals (2005), along with Reinartz and Kumar (2003),
provide methodologies for LTV calculation methods. Kale (2004) cites Harrah’s casino,
which segments its customer database based on LTV. The majority of marketing spend
is devoted to its top platinum customers as they provide 85 per cent of the revenue.
 New customer acquisition is regarded by most companies to be near the top of the Managing
marketing agenda (Banasiewicz, 2004). The directional policy matrix (DPM) customer
highlighted by McDonald (2005) allows a company to compare different markets or
market segments. The DPM reviews market segments categorised by potential and loyalty
therefore attractiveness to the company, the firm’s relative strengths in those markets,
and the relative importance of each market segment. With a review of all potential
markets and the firm’s strengths and weaknesses, strategies can be highlighted to 369
acquire customers in the best fitting market segment or segments. However,
while acquiring new customers is important for the growth of a company, this must
produce incremental business for sustainable growth. If new customers simply replace
the attrition of past customers, then the turnover of the business will not grow. With
this in mind, companies must also focus on recapturing deviating customers.
Griffin (2001) found that 68 per cent of customers leave for no special reason.
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

Therefore, companies must put in place an effective win-back strategy to sustain the
customer base. Data analysis allows a company to highlight customers who have
stopped purchasing and whom should be the focus of the win-back strategy.
Furthermore, appropriate analysis will allow a profile to be generated of those
customers who are likely to defect. This insight allows at risk customers to be given
special attention where appropriate. There is also a positive strategic reason for
targeting the win-back of old customers over the acquisition of new customers.
Thomas et al. (2004b) found there is a “20 per cent to 40 per cent chance of successfully
repeat-selling to a lost customer, and only a 5 per cent to 20 per cent chance of
successfully closing the sale on a brand new customer”. Griffin (2001) suggests that a
company should regularly grade and segment lost customers. The company must then
focus on understanding the lost customer’s needs, and, with this, develop a
communication plan to reinstate the customer’s confidence in the business. With this
method, Griffin (2001) suggests lost customers can be induced to return. However,
there is a cautionary note. A company’s win-back strategy should think big but start
small. Evaluation and refinement of the win-back strategy will then allow the company
to increase the effectiveness of the strategy.
With the correct database, analysis, customer acquisition strategies and win-back
strategies in place, managers must not lose focus on other changes that are required for
managing customer loyalty and effective CRM. While a customer delight programme
will enable customer loyalty to be developed, the business must be in a position to
implement such a programme. Berman (2005) provides a checklist for readiness in
implementing a programme. Effective business processes must be in place to allow
promises to be delivered (Little et al., 2006). Terblanche and Boshoff (2006) note the
requirement for training and educating staff in handling of interpersonal calls. This is
particularly relevant given the need to effectively handle complaints (Homburg and
Fürst, 2005). Well trained, helpful staff can also provide positive switching barriers
(Jones et al., 2000). Indeed, managers must also focus on employee satisfaction to yield
customer satisfaction (Johnson and Chiagouris, 2006). A study by Rucci and Kim (1998)
discovered that a 5 per cent rise in employee attitude scores resulted in a 1.3 per cent
increase in customer satisfaction and a 0.5 per cent increase in revenues. Finally,
given the review of loyalty schemes, managers must decide whether this is a relevant
and viable option for the company. Any managers wishing to implement or review a
current loyalty scheme are referred to the checklist provided by Uncles et al. (2003).
 MIP Key findings
26,4 While this paper draws on a number of areas of business, there are several key
findings, which can be considered as general in that they are relevant to different
environments. The purpose of this section is provide a synopsis of recommendations
based upon the theories, ideas and studies presented in the earlier sections of this
paper. As a summary, and in the interests of providing succinct conclusions and
370 recommendations, bullet points are now utilised:
.
Organisations must understand what drives both value and delight for their
customers. Adopting a customer centric vision enables an organisation
understand their customers, deliver customer delight and drive for loyalty.
.
Different customers have different requirements and will be delighted in
different ways. Database segmentation and data analysis are critical if an
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

organisation is to generate loyalty from different customer segments.

.
Positive switching barriers should be implemented to increase the likelihood of
customer retention.
.
Customer segmentation based on profit is imperative. Operating costs for
customer segments should be monitored to ensure they are not disproportionate
to the profit the organisation receives from these customers.
.
Analysing the LTV for different customer segments allows marketing spend to
be proportioned to deliver maximum return on investment.
.
By utilising the DPM and profiling current profitable customers a customer
acquisition strategy can be produced and implemented.
.
Appropriate monitoring of customers is important to ensure that customer
defections are not masked by customer acquisitions. This is essential for the
sustainable growth of an organisation.
.
A win-back strategy is recommended as previous customers are less costly to
win-back compared to the costs of acquiring of new customers.
.
Analysis of defecting customers allows an organisation to profile at risk
customers. Where appropriate preventative measures can be put in place to
reduce customer defection.

By considering the ideas and recommendations discussed above, managers should be

better informed to manage loyalty in a profitable manner within their organisation.
Further research is required to continue to develop the concepts and theories discussed
throughout this paper. Future empirical studies targeted to understanding the
relationship between customer loyalty and business profits would prove a useful
addition to the currently available literature.

References
Anderson, E. and Weitz, B. (1992), “The use of pledges to build and sustain commitment in
distribution channels”, Journal of Marketing Research, Vol. XXIX, pp. 18-34.
Anderson, J. and Narus, J. (2004), Business Market Management: Understanding, Creating and
Developing Value, 2nd ed., Prentice-Hall, Englewood Cliffs, NJ.
Banasiewicz, A. (2004), “Acquiring high value, retainable customers”, Database Marketing and
Customer Strategy Management, Vol. 12 No. 1, pp. 21-31.
 Berman, B. (2005), “How to delight your customers”, California Management Review, Vol. 48 Managing
No. 1, pp. 129-51.
customer
Bland, V. (2004), “Keeping the customer (satisfied)”, New Zealand Business, September, pp. 16-20.
Boulding, W., Staelin, R., Ehret, M. and Johnston, W. (2005), “A customer relationship
loyalty
management roadmap: what is known, potential pitfalls, and where to go”, Journal of
Marketing, Vol. 69, pp. 155-66.
Burnham, T., Frels, J. and Mahajan, V. (2003), “Consumer switching costs: a typology, 371
antecedents, and consequences”, Journal of the Academy of Marketing Science, Vol. 31
No. 2, pp. 109-26.
Chen, C-C. and Chang, S-C. (2006), “Research on customer satisfaction: take the loan market of the
Taiwanese region as an example”, Journal of the American Academy of Business, Vol. 9
No. 1, pp. 197-201.
Crosby, L. and Johnson, S. (2004), “The three Ms of customer loyalty”, Marketing Management,
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

July/August, pp. 12-13.

Crosby, L. and Johnson, S. (2006), “Exceptional experience: market tactics that are quickly copied
might erode customer loyalty”, Marketing Management, January/February, pp. 12-13.
Dahlsten, F. (2003), “Avoiding the customer satisfaction rut”, MIT Sloan Management Review,
Summer, pp. 73-7.
Day, G. (2003), “Creating a superior customer-relating capability”, MIT Sloan Management
Review, Spring, pp. 77-82.
Dick, A. and Basu, K. (1994), “Customer loyalty: toward an integrated conceptual framework”,
Journal of the Academy of Marketing Science, Vol. 22 No. 2, pp. 99-113.
Duffy, D. (1998), “Customer loyalty strategies”, Journal of Consumer Marketing, Vol. 15 No. 5,
pp. 435-8.
Garland, R. (2005), “Segmenting retail banking customers”, Journal of Financial Services
Marketing, Vol. 10 No. 2, pp. 179-91.
Gelb, G. and McKeever, J. (2006), “In their shoes”, Marketing Management, July/August, pp. 40-5.
Griffin, J. (2001), “Winning customers back”, Business & Economic Review, October/December,
pp. 8-11.
Gustafsson, A., Johnson, M. and Roos, I. (2005), “The effects of customer satisfaction, relationship
commitment dimensions, and triggers on customer retention”, Journal of Marketing,
Vol. 69, pp. 210-8.
Hallowell, R. (1996), “The relationship of customer satisfaction, customer loyalty and
profitability: an empirical study”, International Journal of Services Industries
Management, Vol. 7 No. 4, pp. 27-42.
Hirschman, A. (1974), “Exit, voice and loyalty – further reflections and a survey or recent
contributions”, Social Science Information, Vol. 13 No. 1, pp. 7-26.
Homburg, C. and Fürst, A. (2005), “How organizational complaint handling drives customer
loyalty: an analysis of the mechanistic and the organic approach”, Journal of Marketing,
Vol. 65, pp. 95-114.
Jackson, T. (2005), “CRM: from ‘art to science’”, Database Marketing & Customer Strategy
Management, Vol. 13 No. 1, pp. 76-92.
Jacoby, J. and Chesnut, R. (1978), Brand Loyalty Measurement and Management, Wiley,
New York, NY.
Johnson, W. and Chiagouris, L. (2006), “So happy together”, Marketing Management,
March/April, pp. 47-9.
 MIP Jones, M., Mothersbaugh, D. and Beatty, S. (2000), “Switching barriers and repurchase intentions
in services”, Journal of Retailing, Vol. 76 No. 2, pp. 259-74.
26,4 Kale, S. (2003), “CRM in gaming: it’s no crapshoot!”, University of Nevada at Las Vegas Gaming
Research & Review Journal, Vol. 7 No. 2, pp. 43-54.
Kale, S. (2004), “CRM failure and the seven deadly sins”, Marketing Management,
September/October, pp. 42-6.
372 Kandampully, J. (1998), “Service quality to service loyalty: a relationship which goes beyond
customer services”, Total Quality Management, Vol. 9 No. 6, pp. 431-43.
Kano, N. (1984), “Attractive quality and must have-quality”, Journal of the Japanese Society for
Quality Control, Vol. 14 No. 2, pp. 39-48.
Keiningham, T. and Vavra, T. (2001), The Customer Delight Principle, McGraw-Hill, New York, NY.
Kivetz, R., Urminsky, O. and Zheng, Y. (2006), “The goal gradient hypothesis resurrected:
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

purchase acceleration, illusionary goal progress, and customer retention”, Journal of

Marketing Research, Vol. XLIII, pp. 39-58.
Kumar, V., Venkatesan, R. and Reinartz, W. (2006), “Knowing what to sell, when, and to whom”,
Harvard Business Review, March, pp. 131-7.
Lewis, M. (2004), “The influence of loyalty programs and short-term promotions on customer
retention”, Journal of Marketing Research, Vol. XLI, pp. 281-92.
Lindquist, M. (2006), “For better business results, focus on your customer, not your competition”,
Cost Engineering, Vol. 48 No. 3, p. 10.
Little, V., Motion, J., Brodie, R. and Brookes, R. (2006), “Turning marketing promises into
business value: the experience of an industrial SME”, University of Auckland Business
Review, pp. 25-36.
McDonald, M. (2005), Marketing Plans: How to Prepare Them, How to Use Them, 5th ed.,
Elsevier, Oxford.
McMahon-Beattie, U. (2005), “Future revenue management”, Journal of Revenue and Pricing,
Vol. 4 No. 4, pp. 406-7.
Majumdar, A. (2005), “A model for customer loyalty for retail stores inside shopping malls – an
Indian perspective”, Journal of Services Research – Special Issue, December, pp. 47-64.
Michalski, S. (2004), “Types of customer relationship ending processes”, Journal of Marketing
Management, Vol. 20, pp. 977-99.
Mittal, V. and Katrichis, J. (2000), “Distinctions between new and loyal customers”, Marketing
Research, Vol. 12, pp. 26-32.
Muthuraman, B., Sen, A., Gupta, P., Seshadri, D. and Narus, J. (2006), “Understanding the process
of transitioning to customer value management”, Vikalpa, Vol. 31 No. 2, pp. 1-27.
Oliver, R. (1997), Satisfaction: A Behavioural Perspective of the Consumer, McGraw-Hill,
New York, NY.
Oliver, R., Rust, R. and Varki, S. (1997), “Customer delight: foundations, findings, and managerial
insight”, Journal of Retailing, Vol. 73 No. 3, pp. 311-36.
Pfeifer, P. (2005), “The optimal ratio of acquisition and retention costs”, Journal of Targeting,
Measurement and Analysis for Marketing, Vol. 13 No. 2, pp. 179-88.
Raman, P., Wittmann, M. and Rauseo, N. (2006), “Leveraging CRM for sales: the role of
organizational capabilities in successful CRM implementation”, Journal of Personal Selling &
Sales Management, Vol. XXVI No. 1, pp. 39-53.
Reardon, J. and McCorkle, D. (2002), “A consumer model for channel switching behaviour”,
International Journal of Retail & Distribution Management, Vol. 30 No. 4, pp. 179-85.
 Reichheld, F. (1993), “Loyalty-based management”, Harvard Business Review, Vol. 71 No. 3, Managing
pp. 64-71.
Reichheld, F. (2002), “The one number you need”, Harvard Business Review, Vol. 81 No. 12,
customer
pp. 46-55. loyalty
Reichheld, F. and Detrick, C. (2003), “Loyalty: a prescription for cutting costs”, Marketing
Management, September/October, pp. 24-5.
Reichheld, F., Markey, R. and Hopton, C. (2000), “The loyalty effect – the relationship between 373
loyalty and profits”, European Business Journal, Vol. 12 No. 3, pp. 134-9.
Reinartz, W. and Kumar, V. (2000), “On the profitability of long-life customers in a noncontractual
setting: an empirical investigation and implications for marketing”, Journal of Marketing,
Vol. 64, pp. 17-35.
Reinartz, W. and Kumar, V. (2002), “The mismanagement of customer loyalty”, Harvard
Business Review, July, pp. 86-94.
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

Reinartz, W. and Kumar, V. (2003), “The impact of customer relationship characteristics on

profitable lifetime duration”, Journal of Marketing, Vol. 67, pp. 77-99.
Reinartz, W., Krafft, M. and Hoyer, W. (2004), “The customer relationship management process:
its measurement and impact on performance”, Journal of Marketing Research, Vol. XLI,
pp. 293-305.
Rowley, J. and Haynes, L. (2005), “Customer relationship management: the Matalan way”,
The Marketing Review, Vol. 5, pp. 175-87.
Rucci, A. and Kim, S. (1998), “The employee-customer profit chain at Sears”, Harvard Business
Review, Vol. 76 No. 1, pp. 82-97.
Ryals, L. (2005), “Making customer relationships management work: the measurement and
profitable management of customer relationships”, Journal of Marketing, Vol. 69,
pp. 252-61.
Seth, A., Momaya, K. and Gupta, H.M. (2005), “An exploratory investigation of customer loyalty
and retention in cellular mobile communication”, Journal of Services Research: Special
Issue, December, pp. 173-85.
Singh, J. and Sirdeshmukh, D. (2000), “Agency and trust mechanisms in relational exchanges”,
Journal of Marketing, Vol. 66 No. 1, pp. 15-37.
Sivadas, E. and Baker-Prewitt, J. (2000), “An examination of the relationship between service
quality, customer satisfaction, and store loyalty”, International Journal of Retail &
Distribution Management, Vol. 28 No. 2, pp. 73-82.
Smith, A. and Bolton, R. (1998), “An experimental investigation of customers reactions to service
failure and recovery encounters: paradox or peril?”, Journal of Service Research, Vol. 1
No. 1, pp. 65-81.
Sterne, J. (2002), Web Metrics: Proven Methods for Measuring Web Site Success, Wiley,
New York, NY.
Stone, M., Bearman, D., Butscher, S., Gilbert, D., Crick, P. and Moffett, T. (2004), “The effect of
retail customer loyalty schemes detailed measurement or transforming marketing?”,
Journal of Targeting, Measurement and Analysis for Marketing, Vol. 12 No. 3, pp. 305-18.
Terblanche, N. and Boshoff, C. (2006), “The relationship between a satisfactory in-store shopping
experience and retailer loyalty”, South Africa Journal of Business Management, Vol. 37
No. 2, pp. 33-43.
Thakur, R. and Summey, J. (2005), “Filtering profitable from not-so-profitable customers using
customer relationship management (CRM) technology”, Marketing Management Journal,
Vol. 15 No. 2, pp. 43-54.
 MIP Thomas, J., Blatterberg, R. and Fox, E. (2004a), “Recapturing lost customers”, Journal of
Marketing Research, Vol. XLI, pp. 31-45.
26,4 Thomas, J., Reinartz, W. and Kumar, V. (2004b), “Getting the most out of all your customers”,
Harvard Business Review, July/August, pp. 116-23.
Uncles, M., Dowling, G. and Hammond, K. (2003), “Customer loyalty and customer loyalty
programs”, Journal of Consumer Marketing, Vol. 20 No. 4, pp. 294-316.
374 Venkateswaran, R. (2003), “A customer satisfied in not a customer retained”, Indian Institute of
Management at Bangalore Management Review, September, pp. 120-3.
Walsh, G., Groth, M. and Wiedmann, K.P. (2005), “An examination of consumers’ motives to
switch energy suppliers”, Journal of Marketing Management, Vol. 21, pp. 421-40.
Wood, A. (2005), “Loyalty – what can it really tell you?”, Database Marketing & Customer
Strategy Management, Vol. 13 No. 1, pp. 55-63.
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

Zeithaml, V. (2000), “Service quality, profitability, and the economic worth of customers: what we
know and what we need to learn”, Journal of the Academy of Marketing Science, Vol. 28
No. 1, pp. 67-85.
Zeithaml, V., Rust, R. and Lemon, K. (2001), “The customer pyramid: creating and serving
profitable customers”, California Management Review, Vol. 43 No. 4, pp. 118-42.

Corresponding author
Robert Gee can be contacted at: r_d_gee@yahoo.co.uk

To purchase reprints of this article please e-mail: reprints@emeraldinsight.com

Or visit our web site for further details: www.emeraldinsight.com/reprints
 This article has been cited by:

1. EberleLuciene Luciene Eberle MilanGabriel Sperandio Gabriel Sperandio Milan Gabriel Sperandio Milan
is currently a Professor at the University of Caxias do Sul (RS), Brazil and holds a PhD in Production
Engineering. F-7667-2012 DorionEric Eric Dorion Eric Dorion is currently a Professor at the University
of Caxias do Sul (RS), Brazil, and acts as a Visiting Professor at l’École de Technologie Supérieure, in
Canada, and holds a DBA in Business Administration. University of Caxias do Sul, Caxias do Sul, Brazil .
2016. Service quality dimensions and customer satisfaction in a Brazilian university context. Benchmarking:
An International Journal 23:7, 1697-1716. [Abstract] [Full Text] [PDF]
2. Peter Palm Department of Urban Studies, Malmö University, Malmö, Sweden . 2016. Measuring customer
satisfaction: a study of the Swedish real estate industry. Property Management 34:4, 316-331. [Abstract]
[Full Text] [PDF]
3. Helen Goworek, Patsy Perry and Anthony Kent Ana Roncha Fashion Business School, London College of
Fashion, London, UK Natascha Radclyffe-Thomas Fashion Business School, London College of Fashion,
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

London, UK . 2016. How TOMS’ “one day without shoes” campaign brings stakeholders together and co-
creates value for the brand using Instagram as a platform. Journal of Fashion Marketing and Management:
An International Journal 20:3, 300-321. [Abstract] [Full Text] [PDF]
4. Divya Mittal Peoples Institute of Management and Research, Peoples University, Bhopal, India Shiv
Ratan Agrawal Department of Management Studies, Maulana Azad National Institute of Technology,
Bhopal, India . 2016. The effects of traditional practices on modern banking system. International Journal
of Bank Marketing 34:4, 476-500. [Abstract] [Full Text] [PDF]
5. Azarnoush Ansari, Arash Riasi. 2016. Modelling and evaluating customer loyalty using neural networks:
Evidence from startup insurance companies. Future Business Journal 2:1, 15-30. [CrossRef]
6. Claire SandersonDanielle Danielle Claire Sanderson Danielle Claire Sanderson read physics at Oxford
University and worked in computing and operational research before becoming a Researcher and
Consultant for RealService, as well as competing as an International athlete. She has recently been awarded
her Doctorate from Henley Business School and is currently a Visiting Lecturer at the Bartlett School of
Planning, University College London, teaching Real Estate Management. Mary EdwardsVictoria Victoria
Mary Edwards Victoria Mary Edwards is an Associate Professor and a Director of Rural Programmes in
the School of Real Estate and Planning, Henley Business School, University of Reading. She is a Chartered
Surveyor And Valuer with interests in corporate real estate management, focusing particularly on rural
resources and collective action. School of Real Estate and Planning, University of Reading, Reading, UK .
2016. Determinants of satisfaction amongst tenants of UK offices. Journal of Corporate Real Estate 18:2,
102-131. [Abstract] [Full Text] [PDF]
7. Ong Soo Ting, Mohd Shoki Md Ariff, Norhayati Zakuan, Zuraidah Sulaiman, Muhamad Zameri
Mat Saman. 2016. E-Service Quality, E-Satisfaction and E-Loyalty of Online Shoppers in Business to
Consumer Market; Evidence form Malaysia. IOP Conference Series: Materials Science and Engineering 131,
012012. [CrossRef]
8. Francisco-José Cossío-Silva, María-Ángeles Revilla-Camacho, Manuela Vega-Vázquez, Beatriz Palacios-
Florencio. 2016. Value co-creation and customer loyalty. Journal of Business Research 69:5, 1621-1625.
[CrossRef]
9. Je-Beom Yun, Hyeon-Suk Park. 2016. The Effect of Service Authenticity and Service Quality on the
Customer Satisfaction and Customer Loyalty in Financial Investment Company. The Journal of the Korea
Contents Association 16:3, 742-759. [CrossRef]
 10. Cassandra Williams, Rice Williams. 2015. Optimizing acquisition and retention spending to maximize
market share. Journal of Marketing Analytics 3:3, 159-170. [CrossRef]
11. Robabeh Sadat Hosseini, Artinah Zainal, Norzuwana Sumarjan. 2015. The Effects of Service Performance
of Hotel Customers on Quality of Experience and Brand Loyalty in Iran. Procedia - Social and Behavioral
Sciences 201, 156-164. [CrossRef]
12. Birungi Komunda Mabel, Kibeera Francis, Munyoki Justus, Byarugaba Jotham. 2015. Improving customer
complaining behaviour for loyalty in the services sector: A case of mobile telephone companies in Uganda.
African Journal of Business Management 9:12, 521-530. [CrossRef]
13. Jay Kandampully Department of Consumer Sciences, The Ohio State University, Columbus, Ohio, USA
Tingting (Christina) Zhang Department of Consumer Sciences, The Ohio State University, Columbus,
Ohio, USA Anil Bilgihan Department of Marketing, Florida Atlantic University, Boca Raton, Florida,
USA . 2015. Customer loyalty: a review and future directions with a special focus on the hospitality
industry. International Journal of Contemporary Hospitality Management 27:3, 379-414. [Abstract] [Full
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

Text] [PDF]
14. S.L. Hui Department of Mechanical and Aerospace Engineering, The Hong Kong University of
Science and Technology, Hong Kong, sling1207@hotmail.com Rachel W.Y. Yee Institute of Textiles
and Clothing, The Hong Kong Polytechnic University, Hong Kong, rachel.yee@polyu.edu.hk . 2015.
Relationship among Interpersonal Relationship, Customer Satisfaction and Brand Loyalty in Fashion
Retailing Industry. Research Journal of Textile and Apparel 19:1, 65-72. [Abstract] [PDF]
15. Nik Ramli Nik Abdul Rashid, Shaiful Annuar Khalid, Nor Irwani Abdul Rahman. 2015. Environmental
Corporate Social Responsibility (ECSR): Exploring its Influence on Customer Loyalty. Procedia
Economics and Finance 31, 705-713. [CrossRef]
16. Nik Ramli Nik Abdul Rashid, Nor Irwani Abdul Rahman, Shaiful Annuar Khalid. 2014. Environmental
Corporate Social Responsibility (ECSR) as a Strategic Marketing Initiatives. Procedia - Social and
Behavioral Sciences 130, 499-508. [CrossRef]
17. Kate L. Daunt, Lloyd C. Harris. 2014. Linking employee and customer misbehaviour: The moderating
role of past misdemeanours. Journal of Marketing Management 30:3-4, 221-244. [CrossRef]
18. Alireza Faed, Omar K. Hussain, Elizabeth Chang. 2014. A methodology to map customer complaints
and measure customer satisfaction and loyalty. Service Oriented Computing and Applications 8:1, 33-53.
[CrossRef]
19. Abdollah NoorizadehDepartment of Industrial Management, Lappeenranta University of Technology,
Lappeenranta, Finland Mahdi MahdilooDepartment of International Business and Asian Studies, Griffith
Business School, Griffith University, Brisbane, Australia Reza Farzipoor SaenDepartment of Industrial
Management, Faculty of Management and Accounting, Islamic Azad University, Karaj, Iran. 2013.
Evaluating relative value of customers via data envelopment analysis. Journal of Business & Industrial
Marketing 28:7, 577-588. [Abstract] [Full Text] [PDF]
20. Madhav SinhaSeema ArifFaculty of Arts and Social Sciences, University of Central Punjab, Lahore,
Pakistan Maryam IlyasCollege of Statistics and Actuarial Sciences, University of the Punjab, Lahore,
Pakistan Abdul HameedSchool of Social Sciences and Humanities, University of Management and
Technology, Lahore, Pakistan. 2013. Student satisfaction and impact of leadership in private universities.
The TQM Journal 25:4, 399-416. [Abstract] [Full Text] [PDF]
21. Bedman Narteh, George Cudjoe Agbemabiese, Prince Kodua, Mahama Braimah. 2013. Relationship
Marketing and Customer Loyalty: Evidence From the Ghanaian Luxury Hotel Industry. Journal of
Hospitality Marketing & Management 22:4, 407-436. [CrossRef]
 22. Jelena Titko, Natalja Lace, Konstantis Kozlovskis. 2013. Service quality in banking: developing and
testing measurement instrument with Latvian sample data. Acta Universitatis Agriculturae et Silviculturae
Mendelianae Brunensis 61:2, 507-515. [CrossRef]
23. Alireza Faed, Omar K. Hussain, Mehdi Faed, Zahra SaberiLinear Modelling and Optimization to Evaluate
Customer Satisfaction and Loyalty 145-150. [CrossRef]
24. Aayushi GuptaHumanities and Social Sciences Department, Jaypee Institute of Information Technology,
Noida, India Santosh DevHumanities and Social Sciences Department, Jaypee Institute of Information
Technology, Noida, India. 2012. Client satisfaction in Indian banks: an empirical study. Management
Research Review 35:7, 617-636. [Abstract] [Full Text] [PDF]
25. Mabel KomundaSchool of Business, Makerere University, Kampala, Uganda, and Aihie
OsarenkhoeDepartment of Business & Economic Studies, Faculty of Education and Economics,
University of Gävle, Gävle, Sweden. 2012. Remedy or cure for service failure?. Business Process Management
Journal 18:1, 82-103. [Abstract] [Full Text] [PDF]
Downloaded by Cornell University Library At 10:26 10 October 2016 (PT)

26. Maktoba Omar and John EnsorTho D. NguyenFaculty of Business Administration, University of
Economics, HCM City, Vietnam and College of Business, University of Western Sydney, Sydney, Australia
Nigel J. BarrettFaculty of Business, University of Technology, Sydney, Sydney, Australia Kenneth E.
MillerFaculty of Business, University of Technology, Sydney, Sydney, Australia. 2011. Brand loyalty in
emerging markets. Marketing Intelligence & Planning 29:3, 222-232. [Abstract] [Full Text] [PDF]
27. Alireza Faed, Chen Wu, Elizabeth ChangIntelligent CRM on the Cloud 216-223. [CrossRef]
28. Alireza FaedA conceptual framework for E-loyalty in digital business environment 547-552. [CrossRef]
29. Kim Young Hoon. 2010. The Influence of Failures in a Mileage Program on Consumers' Negative
Emotions and Behavior. Culinary Science & Hospitality Research 16:2, 110-135. [CrossRef]
30. Patrick Vesel, Vesna Zabkar. 2009. Managing customer loyalty through the mediating role of satisfaction
in the DIY retail loyalty program. Journal of Retailing and Consumer Services 16:5, 396-406. [CrossRef]
31. Sally Harridge‐MarchOxford Brookes University, Oxford, UK. 2008. Direct marketing and relationships.
Direct Marketing: An International Journal 2:4, 192-198. [Abstract] [Full Text] [PDF]
32. Kijpokin KasemsapThe Role of Brand Loyalty on CRM Performance: 413-446. [CrossRef]
33. Kijpokin KasemsapThe Role of Brand Loyalty on CRM Performance 252-284. [CrossRef]