1.1 Background of the Study
Brand awareness of a product or service can be spread mainly by mass marketing during the main stage of promotion, while brand loyalty can be established and increased by the use of different marketing tactics after a purchase is made, this may bring about intangible benefits such as reduced costs and increased incomes for businesses (Radu, 2013) In light of this, many businesses today have begun to shift their strategic focus from emphasizing customer acquisition to emphasizing customer retention with the aim of creating sustainable and mutually beneficial long-term relationships with their customers (Leong & Qing, 2006)
Consumers are constantly assaulted by a plethora of marketing activities ranging from aggressive sales tactics, telemarketing, mail, door to door selling, radio advertising, TV advertising, e-mail to customer loyalty programmes. However, there is little solid evidence regarding the effectiveness of these …show more content…
At the same time, the customers have also become more advanced. They are better informed, more demanding, and most unfortunately, are less likely to remain with the same provider than before. In this new market with its omnipresent competition both virtually and physically, it has become more difficult to stand out among one's competitors and maintain a loyal, stable customer base (Bergeron et al, 2008)
Another problem to be taken into consideration is the adverse effects of marketing tactics on customer behaviour. There are cases where the customer becomes unsatisfied or less trustful of a business because of the marketing tactics used by the business, as unsatisfied customers tend to express their discontent this could potentially result in serious damage to not only the reputation of a business, but also the customer retention and acquisition of a business (Boles et al,
Brand awareness of a product or service can be spread mainly by mass marketing during the main stage of promotion, while brand loyalty can be established and increased by the use of different marketing tactics after a purchase is made, this may bring about intangible benefits such as reduced costs and increased incomes for businesses (Radu, 2013) In light of this, many businesses today have begun to shift their strategic focus from emphasizing customer acquisition to emphasizing customer retention with the aim of creating sustainable and mutually beneficial long-term relationships with their customers (Leong & Qing, 2006)
Consumers are constantly assaulted by a plethora of marketing activities ranging from aggressive sales tactics, telemarketing, mail, door to door selling, radio advertising, TV advertising, e-mail to customer loyalty programmes. However, there is little solid evidence regarding the effectiveness of these …show more content…
At the same time, the customers have also become more advanced. They are better informed, more demanding, and most unfortunately, are less likely to remain with the same provider than before. In this new market with its omnipresent competition both virtually and physically, it has become more difficult to stand out among one's competitors and maintain a loyal, stable customer base (Bergeron et al, 2008)
Another problem to be taken into consideration is the adverse effects of marketing tactics on customer behaviour. There are cases where the customer becomes unsatisfied or less trustful of a business because of the marketing tactics used by the business, as unsatisfied customers tend to express their discontent this could potentially result in serious damage to not only the reputation of a business, but also the customer retention and acquisition of a business (Boles et al,