...Does relationship marketing improve customer relationship satisfaction and loyalty? Andreas Leverin and Veronica Liljander Relationship marketing (RM) has been identified as one of the way for firms to develop mutually beneficial and valuable long-term relationships with customers .RM is believed to work most effectively when customers are highly involved in the good or service, there is also an element of personal interaction. Research Review:- This study investigates the relationship marketing (RM) strategy of a retail bank and examines whether -after its implementation - customer relationships were strengthened through perceived improvements in the banking relationship and consequent loyalty towards the bank. Research Methods:- Design/methodology/approach - A survey was conducted on two profitability segments, of which the more profitable segment had been directly exposed to a customer oriented RM strategy, whereas the less profitable segment had been subjected to more sales oriented marketing communications. Findings - No significant differences were found between the segments on customer’s evaluations of the service relationship or their loyalty towards the bank. The regression analysis revealed that the relationship satisfaction was less important as a determinant of loyalty in the more profitable...
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...Evaluate the influence different stakeholders exert in one organisation. To: Chairperson of Tesco From: Anas Hussain Dear Chairperson of Tesco I have written to you to because I am going to evaluate the influence different stakeholders exert in one organisation, in this case the organisation I have chosen is Tesco. Owners The first stakeholder I am going to evaluate is owners which are internal stakeholders. One of the owner’s jobs is to manage employees. If the owner employs too many employees then there wouldn’t enough money to pay them all. If the owner employs less employees than required then the business wouldn’t run properly because employees would be all over the place trying to do too many jobs at one time. Business owners set policies so employees and customers follow rules about how the business should be ran. Business owners also set objectives that the business should meet, for example, a business would want to achieve sales of £5 million in European markets in 2010. Business objectives can motivate the employees. It also enables the business to measure the progress towards to its stated aims. The most effective business objectives meet the following criteria: S – Specific objectives are aimed at what the business does, e.g. Tesco might have an objective of selling half of the whole of their current stock within three months, an objective specific to that business. M - Measurable – the business can put a value to the objective, e.g. £10,000 in sales in...
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...JUNE 2013 Bulking Up: The 2013 COLLOQUY Loyalty Census Growth and Trends in U.S. Loyalty Program Activity Jeff Berry Sr. Director, Knowledge Development and Application, LoyaltyOne Research Director, COLLOQUY 2.65 BILLION That’s the number of U.S. loyalty program memberships in 2012 Learn why that incredible figure is both good and bad news for loyalty marketers, and how you can profitably respond to it COLLOQUY.COM | 06.13 | 1 Bulking Up: The 2013 COLLOQUY Loyalty Census Growth and Trends in U.S. Loyalty Program Activity Introduction When our 2011 COLLOQUY Loyalty Census revealed that the number of loyalty-program memberships in the U.S. topped 2 billion in 2010, you could almost hear the sound of the industry doing a double-take. Now it’s time to listen for that sound again, because the loyalty tally leaped to 2.65 billion in 2012. Obviously, the loyalty industry is pumping up. And what fascinates us as much as half a billion of pure growth are the reasons behind this continued expansion. Back in 2000, COLLOQUY tallied 973 million memberships in our landmark program sizing study. By the time we published the 2009 COLLOQUY Loyalty Census, that figure had reached 1.8 billion memberships. In the 2011 Census, we noted that the rate of expansion was slowing when we saw only 16.3% growth between 2009 and the eye-popping 2 billion in 2011. But the slowdown was temporary. The current figure of 2.65 billion represents additional 26.7% growth. Where is this bulk...
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...“The more you buy, the more you earn” – this is the logic each company sells to customers when introducing their loyalty programmes. Loyalty programmes offer gift redemptions, cash backs, discounts and privileges to customers who make frequent purchases. What is less known is that for every purchase, the data is recorded and used for unknown purposes, leading to privacy related issues. The benefits of loyalty programmes versus the related privacy issues have always been an item of debate. Benefits including customer satisfaction brought by customization, higher earnings for the company and savings for customers bring about higher welfare to both the company and the consumer, and therefore outweigh the privacy issues of data manipulation and information leak which will rarely happen. People often complain about receiving promotions and discounts on items that are worthless to them. Reward programmes address this issue by providing product customization thereby increasing customer satisfaction. Through in-depth analysis of consumer data and customer preferences, spending patterns that signal changes in shopping trends and customer behavior allow companies to customize products for their customers. The United Kingdom based retailer, Tesco PLC, employs this strategy by sending their members tailor-made coupons. This leads to 5 million different versions of mail promotions being sent to 12 million customers. Though customer habits are exposed in the process of determining suitable...
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...Frequent Shopper Program Overview Kudler Fine Foods is a thriving business specializing in bakery and pastry products, fresh meat & seafood, and cheese and specialty dairy products. Recently, KFF has decided to start a frequent shopper program in order to increase revenue. Kudler is planning to track purchase behavior at the individual customer level and provide high value incentives through a partnership with a loyalty points program. By partnering with a loyalty points program company, customers will be able to redeem points for high end gifts, first-class airfare upgrades, and/or other specialty foods. Using customer data, KFF plans to compile customer purchase behavior patterns which will help them refine company processes and offerings to best satisfy their valued customers (Apollo, 2009). With all of this in mind, there are several issues that must be considered prior to executing any plans. Information security concerns like keeping their newly acquired customer information confidential and protected from unauthorized access, legal concerns regarding complying with privacy rights, and ethical concerns such as ensuring Kudler does not irritate their customers with offers, especially by email or phone communication. Information Security Concerns KFF needs to understand a few critical data security techniques. It is essential Kudler has a secure information system established. When collecting data from customers, there should be an authentication method used such as...
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...Jason Longo, Thomas Kunis CMGT/400 February 9, 2015 Robert Quintin Introduction Team C has been tasked to develop a Customer Loyalty Program for frequent shoppers at Kudler Fine Foods. The program will consist of loyalty points that may be used by the frequent shoppers to purchase high value merchandise from the vendors of the loyalty points partner program. The team has also been tasked to insure that the information collected from the frequent shoppers is securely protected from outsiders and others that may make the system vulnerable to threats. Team C will cover each step within the system development life cycle to cover all systems affected and mitigation of risks and will at properly satisfy the needs of Kudler. Outline of Customer Loyalty Program Kudler Fine Foods prides itself on delivering the finest in specialty foods from around the world. In continuing with the tradition of providing the best for their customers Kudler has decided to develop a Customer Loyalty Program. This program will consist of a loyalty points program with said point being accrued from purchases made from Kudler. The customer will have to sign up for the program and after doing so will have their purchases tracked and with each purchase will collect loyalty points that can later be used towards high value items provided by vendors of a loyalty points partner program. The reasoning for not having points used as a discount on in store purchases is because “price is not the primary...
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...Kudler Loyalty Program Adam Love BSA/310 5/30/2011 Deborah Marshall Kudler Loyalty Program Kudler Fine Foods is a well-known California grocer specializing in high quality and specialty foods. Since Kudler does not consider the price of its products to be a primary differentiator from other grocers their intent is to produce more profit through increasing their customer purchase cycle. To achieve their goal Kudler has partnered with a loyalty points program to provide customers with points which can be redeemed for high end gift items, airline first-class upgrades, or other specialty foods. This program will also enable the ability to track customer transactions and identify trends that will allow Kudler Fine Foods to customize its product base to better serve its customers. Before implementing this program, Kudler will need to identify legal, ethical, and security considerations as well as complete a financial analysis to justify the expenditures of the loyalty program. The Program According to Kudler Fine Food’s Sales & Marketing intranet website, customers prefer high quality and specialty foods are more important than high value prices. Kudler’s Sales and Marketing Department is developing a Frequent Shopper Program which will offer incentives to its members through point accumulation and offer Kudler valuable insight into the shopping tendencies of customers. Initially, this program should promote customer loyalty and give Kudler...
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...MKTG7501 Consumer Behaviour “Loyalty cards cost shoppers millions” Introduction - Everyday Reward Card What is “Everyday Rewards Card”? The Everyday Rewards Card is an initiative from Woolworths that provide a series of benefit rewards to their customers. Such as fuel saving offers, exclusive offers and discounts of their products. Also, now it’s able to earn Qantas Frequent Flyer points when you shopping in Woolworths, BIG W, Dick Smith and Tandy stores. How to accumulate reward points? You can earn one point per dollar when spent over $30 in one transaction when you shop in Woolworths, BIG W and one point per dollar when spent over $50 in one transaction when you shop in the Dick Smith and Tandy stores. Pros & Cons of using Everyday Rewards Card Advantages There are three major advantages that Woolworths offers its rewards card holders : save 4c per litre on fuel at Caltex petrol stations, receive exclusive offers and discounts from all participating retailers, and earn Qantas frequent flyer points for a free flight ticket. Disadvantages According to a recent report from a consumer group Choice, consumers will unconsciously spend more than what they can gain from these kind of loyalty programs. First of all, paybacks are very "poor". Woolworths Everyday Rewards program averagely offers less than $1 return for every $100 a shopper spends. And if anyone want to collect points for free flight tickets, he or she will need to spend at least $22,030 to gain...
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...performance with an average of 5% growth rate among the industries every year (Kumar, 2005). According to Britannica (2011) the word "cosmetics" is derived from the Greek word Kosmetikos, which means "skilled at decorating". It refers to any of several preparations (excluding soap) that are applied to the human body for beautifying, preserving, or altering the appearance or for cleansing, coloring, conditioning, or protecting the skin, hair, nails, lips, eyes, or teeth. Besides that, when people hear the word ‘cosmetic’, they tend to think of makeup and perfume design for women. Actually, cosmetics come in many forms, which are powder, soap, shampoo, body makeup, toothpaste and others (Kumar et al., 2006). According to Wikipedia, brand loyalty can be defined as the situation in which the consumer usually...
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...implement a customer rewards program that will track customer purchases and help identify trends that will allow Kudler Fine Foods to tailor its offerings to better satisfy their customers. In regard to the electronic commerce, the Kudler Fine Foods Sales and Marketing Department is initiating a Frequent Shopper Program to track customer purchase patterns and offer shopper incentives through a loyalty point programs. The beginning of this program will assist the Kudler Fine Food in inspiring customer loyalty and react to customer shopping orientations. For the customers of Kudler Fine Foods, speciality items are more vital than the price of the items they are intended to purchase, so in this case rather than offering daily discounts for purchase frequency, the company has united with a loyalty points program to reward customers with redeemable points for high-value gift items, airline advances or other specialty foods. The prominent goals of the Kudler Fine Foods Frequent Shopper program is to encourage customer loyalty, to better react to customer's buying demands and to augment food governing skillfulness. A successful implementation of the program should augment revenue over time by modifying loyalty and meeting customer needs and decrease costs by amending inventory procedures. The initiative should be implemented within specific time period along with the involvement of following stakeholder representatives, as with their contribution the program will be...
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...Service Request Kudler Fine Foods BSA/310 11/20/2011 Service Request There are different benefits and consequences that come with having a Frequent Shopper Program. These next few paragraphs will assist in understanding some of the benefits and consequences. In addition, will describe some of the legal, ethical, and information security concerns. Legal Kudler Fine Foods, being a small business has the potential to have many risks with legal issues. There is the issue of personal information; this would mean this small business would need to hire workers to keep all personal information of a customer safe. The potential loss of a customer’s personal information, whether the loss of information is internally or external there is a potential of serious crime to be committed, such as identity theft. This could become a serious threat to this small business because if identity theft occurs and it is known by the customer that the personal information was obtained from this small business. This would mean that the customer would have good ground to sue this small business. This could also lead to a loss of customers that already buy goods from this small business as well as a loss of potential customers. This could be devastating for Kudler Fine Foods because it is a small business, the legal fees and the potential money loss for being sued. Ethical The ethical part of Kudler Fine Food in this Frequent Shopper Program could be connected...
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...Kudler Fine Foods’ Loyalty Card Program Kudler Fine Foods has submitted a service request to develop a frequent shopper program to track customer trends and give frequent customers rewards for being loyal customers. Many grocery stores have adopted a rewards or loyalty program. This program gives the customers a discount while they shop and sometimes offers rewards and prizes. By using this program, a store also collects valuable data that can be used to specify which customers by certain items. This information can then be used to tailor advertisements and coupons to each customer. This program will hopefully increase sales by providing a more efficient marketing plan to customers. Many other grocery stores have found that using a loyalty program can increase profits and customer base. In a recession, such as the one we are currently experiencing, it is important to maintain the customer base that a company has worked so hard to obtain. According to Colloguy research (as cited in Helbig, 2009), “U.S. consumer participation in rewards programs is on the rise across all demographic segments, . . . Consumers are leaning on loyalty programs to stretch household budgets further by earning rewards for their purchases” (para. 7). Many grocery stores use a loyalty program for tracking customer purchases and offering discounts. This loyalty program comes in the form or a card. When a customer decides they want to part of the loyalty program, they fill out a form. This...
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...1. What are Yunna Lucky Air’s best options? Lucky Air chose to follow the model of the Southwest Airlines in the United States. Lucky Air is a domestic airline located in China. Because it is a low-cost and high-efficiency airline it doubled the amount of passengers since 2007. E-commerce was a risk Luck Air decided to take on because other airlines were now offering low-cost high-efficiency flights. E-commerce by definition is commercial transactions conducted electronically on the internet. This is a good way to stay in competition with other airlines. E-commerce allows airlines to cut out the middle man such as sales agents and sales offices. Its downfall however is that because they cut out the middle man allowing their rates to be less some people may think it is a scam or would be afraid to disclose credit card information because there is no sale agency involved. Citation http://www.academia.edu/6723630/Strategic_Options_Lucky_Air http://www.termpaperwarehouse.com/essay-on/Yunnan-Luck-Air-Case-Study/257065 2. What factors should its executive team consider? Cost leadership plan would allow Lucky Air to produce at the lowest cost allowing them to gain a larger share of its target market. Differentiation; Lucky Air could have shown ways in which...
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...paged whenever a flight is delayed or something in the JetBlue business is not properly executed according to the JetBlue standards (Johnson, & Weinstein, 2004 pg 315 – 316). Neeleman has set forth three guiding principles that are known as the “Golden Rules” and govern the business of JetBlue and its employees. Those principles are: flawless executions at every customer contact point, making matters right with the customers if the execution is not flawless and treating employees well (Johnson, & Weinstein, 2004 pg 317). Neeleman who was formerly a founder of another airline and longtime leadership member of rival Southwest feels that combining efficiency, technology, and a focus on customer value will continue to drive customer loyalty around what has become one of the, if not the single, strongest brands in the Airline industry. Neeleman and JetBlue have set out with the goal of “bringing humanity back to airline travel and making flying more enjoyable” (Johnson, & Weinstein, 2004 pg 315 – 316). JetBlue has been doing many great things since its inception in 2000. One of the main items JetBlue consistently capitalizes on is the industry wide customer dissatisfaction. Customers generally do not go to the airport with excitement on their face because...
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...decision model, use contains four steps in the order.The first is problem recognition.The second is information search.The third is purchasing processes.The last one is post purchasing decisions. Problem recognition is the first step, because it creates a profile of an unfulfilled need. For example, hungry or want to eat. Personal and TV search options and evaluate each option for each other in many ways. Once a decision is up to consumers to buy the product, and reflect their satisfaction level of position. This may lead to cognitive dissonance, if consumers are not satisfied with the product, can lead to a specific brand loyalty. Culture in Malaysia, domestic decisions are usually made of male head of the house, but when it comes to cooking decision is responsible for ms. Family decision is influenced by the market and social cultural input. Marketing in the target market, price, brand and packaging. These are important aspects for consumers, because they target value pricing, famous brand and package, brand identity. SunRice is an Australian brands, exports 80% of the export country, Malaysia. Rice Lamak, national dish of Malaysia, including a delicious rice and mutton. The popularity of this dish is to make it have the opportunity to export to Malaysia and Australia SunRice brand make consumers aware that this is a high quality rice and use of the brand's belief to attract consumers to buy the brand available in other markets. Malaysia's department of agriculture accounts...
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