Consumer Behaviour Article Summary

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Title of article:

“The relationship between customer loyalty and customer satisfaction.”

Reference of article:

John, T., Bowen, & Shiang, Lih., Chen. (2001). The relationship between customer loyalty and customer satisfaction. International Journal of Contemporary Hospitality Management, 13(5), pp. 213-217.

Type of article:

Scholarly_ research based article.

SUMMARY
The research is mainly conducted to identify and implement those factors in “hotel” that help to increase “customer loyalty” as it is universally known phenomena; that there is a positive relationship between customer loyalty and profitability of the company. The general believe about loyal customers is that; they help to increase profit of the company more than their new customers. The increased profit from loyalty comes from reduced marketing costs, increased sales and reducing operational costs. The research aimed to discover “The relationship between customer satisfaction and customer loyalty”, and explore the benefits of loyalty in hotel industry. Building customer loyalty is one of the biggest challenges for the hotel industry. Today, marketers are looking for the information on how to build customer loyalty. This study investigates and develops methods that will help hotels increase customer loyalty. Loyal customers will also help promoting the hotels by spreading positive word of mouth regarding that business or hotel. Customer loyalty is complicated to define. There are three distinctive approaches to assess loyalty level: 1) behavioral measurements 2) attitudinal measurement; and 3) composite measurements. The behavioral measurements believe that reliable, constant, repetitious purchase behavior of customers, as a sign of loyalty. The attitudinal measurements are concerned with the sense of loyalty. This means that customers are having favorable attitude regarding the business or hotel but they don’t stay at the hotel i.e. only suggest the hotel to others and feel that the...
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