Firstly, the objective of customer loyalty programs is to increase the revenue through raising purchase level and also to build close relationship between customer and the brand to retain the customer.
Second, the author explain about three popular concepts of customers loyalty that is loyalty as primarily an attitude that sometimes leads to a relationships with the brand, loyalty mainly expressed in terms of revealed behaviour and also buying moderated …show more content…
This is because it’s defined as pattern of past purchase behavior from secondary perspective to underlying customer commitment to the brand. From the past studies have founded three categories of customer behavior which are monogamous (100 percent loyal), promiscuous (not loyal to any brand) and polygamous (loyal to portfolio of brands in product category). Observation through market focus as opposed to an individual focus found customer buying pattern. Through trial and fouls, a brand that gives high satisfaction is chosen. Customer tend to buy the same brand not because of their attitude towards the brand but because of the function. As long as the function is same the customer did not mind to change brand of the same product if the usual brand is out of …show more content…
For management, it is important for them to consider best theory when their brands competing with other brands in a category are functionally similar. In this section, the author develop three models of loyalty to introduce the notion of a loyalty continuum. The anchor points are customer brand commitment (CBC) and customer brand buying (CBB), with customer brand acceptance (CBA). These three patterns profile customer distributed across the curve with respect to their loyalty to a brand.
First model is CBA base on customer loyalty in competitive repeat-purchase markets and very related to concept number two that have been discussed. Customer tend to use variety of brands and not willing to loyal to one brand because there’s no reasons for them to develop that attitude. This is because there is no more brand distinctiveness. All products almost have similar function and small perceived differences among competing brands, so that the reasons why the customer cannot loyal to one brand