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Customer loyalty a literature review analysis

Exploring customer loyalty in the South African mobile

most definitions that can be found in the literature regard “relations with customers” as representing the keystone of crm. our theoretical argument, explained in the previous literature review and model, enables us to posit the following hypotheses:h1 (a, b, c, d, e, f, and g): the greater the extent of the crm components (partnerships, relations with customers, customer prospecting, interactive management, empowerment, understanding customer expectations, and personalization) the greater the positive and direct effect on customer loyalty. the reliability assessment was followed by a principal components analysis (pca). this empowerment process has repercussions on the relationships that employees initiate and maintain with their customers in order to get their loyalty. on the other hand, according to the results of hypothesis h1 (c, d, and f), the extent of crm in terms of understanding customer expectations, customer prospecting, and interactive management, do not have a positive and direct effect on customer loyalty. in the research model, the extent of crm variables has a direct impact on the customer loyalty variable.  exploratory factor analysis (customer loyalty) (principal components method with varimax rotation; loading>=0. for the purposes of this research, loyalty will be considered as the final result, or the key element, of effective crm. a well‐presented home page encourages customers to continue exploring the web site and so will help to develop loyalty. companies also have the option of including connections to their partners' web sites, which can encourage loyalty. the technique employed was exploratory factor analysis based on principal components method with varimax rotation.

Building Customer Loyalty: A Customer Experience Based Approach

however, the impact of web site characteristics on the link between crm, in terms of understanding customer expectations, customer prospecting, and interactive management, and customer loyalty has not been tested because the direct link between these three components of crm and customer loyalty has not been significant in this study. customer loyalty is considered to be the consequence of an effective relationship initiated and maintained with a particular customer. recent developments in internet technology have given the internet a new role: to facilitate the link between crm and customer loyalty., loyalty, and the level of interactivity on the internetthe acceptance of hypothesis h3(g), which states that the level of interactivity on the internet reinforces the relationship between personalization and customer loyalty, seems to be justified. the arguments by ghosh (1998) mentioned above enable us to understand the reasons why internet presence greatly fosters the link between partnerships and customer loyalty. this test was the most appropriate one for this analysis. in the process described by payne (1994), the concept of crm is understood in terms of a loyalty scale leading from the customer prospect, through customer, client, and supporter, to partner. payne (1994) puts partnering at the extreme end of his loyalty scale, regarding it as an important step that usually leads to the development of a close and durable relationship between supplier and customer., customer loyalty, and the level of presence on the internetanother significant hypothesis is that the level of presence on the internet has a positive impact on the link between the extent of the crm component of empowerment and customer loyalty.  exploratory factor analysis (customer loyalty) (items thrown out due to poor loading).•the results of this study show that it is a mistake to believe that the unique use of sophisticated web sites could augment customer loyalty.

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A Literature Review on the Relationship Between Service Quality

) on the one hand, and customer loyalty on the other are higher than 1.%average8670/170= 517613/170=441057/170=6 the tests of hypotheses h2 and h3to test the interaction effects, analysis was pursued only with the four variables that have a positive and direct impact on customer loyalty. testing of the variance: the case of hypothesis h2before running an ancova to enable a test of hypothesis h2, which expresses the relation between the level of presence on the internet and the link between the extent of crm and customer loyalty, it is important to ensure regression coefficient equality.  matrix of covariance squared (phi square)  loyaltypartnershipprospectingunderstanding expectationsinteractive managementempowermentrelations with customerspersonalizationloyalty0. of variance testing: the case of hypothesis h3 (a, b, e, and g)before running ancova to test hypothesis h3, (which expresses the relationship between the level of interactivity on the internet and the link between the extent of crm and customer loyalty), it is important to ensure regression coefficient equality. content analysis was conducted to analyze and process the data from the interviews. with customers, loyalty, and the level of interactivity on the internetthe hypothesis that the level of interactivity on the internet has a positive impact on the link between relations with customers and customer loyalty was found to be significant. the use of web site characteristics to strengthen existing crm can increase businesses' loyalty to each other. the positive effect of partnerships on customer loyalty also supports the arguments of wilson (1995), who outlined an integrated model of the customer relationship process in which the selection of a partner was the first step of effective crm., and managerial and theoretical implicationsthe results of this study will allow internet and information systems experts to inform businesses about the impact of internet network use on customer loyalty. customer relationship management (crm) is a leading new approach to business, which has already become established in the literature (szeinbach, barnes, & garner, 1997).

Literature Review and Discussion on Customer Loyalty and

The Impact of Customer Relationship Management on Customer

in other words, a key goal of crm is to improve customer loyalty (evans & laskin, 1994). such methods of doing business can allow firms to develop customer loyalty. extent of crm, customer loyalty, and the level of interactivity on the internetpartnerships, customer loyalty, and the level of interactivity on the internetthe hypothesis that the level of interactivity on the internet positively influences the link between the extent of the crm component of partnerships, and customer loyalty was significant. customers will demonstrate loyalty to the company which has answered their specific questions by way of news groups. the impact of web site characteristics on the link between crm and customer loyalty will also be explained. indeed, as mentioned above, payne placed partnering at the extreme end of his loyalty scale, considering it a stage where a durable and close relationship between supplier and customer can be developed. according to these results, the level of presence on the internet positively influences the relation between the extent of crm (in terms of partnerships, empowerment, relations with customers, and personalization) and customer loyalty. finally when employees are well informed about their company's web site content, the customers will most likely be satisfied with their services, and so loyalty will develop. this is not surprising when taking into account information in the literature review. findings of this research will help it companies identify the crm factors, which they should emphasize when web site characteristics are used to augment customer loyalty:•at a minimum, crm, supported by web site characteristics in order to increase customer loyalty, should center on these factors: partnerships, relations with customers, empowerment, and personalization. there is a little existing research that has empirically tested the impact of the internet on crm which leads to customer loyalty.

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Customer Loyalty of Amazon

these experts have to show businesses reliable methods of fixing customer loyalty that involve increasing the level of presence and interactivity provided by the internet. therefore, we expect: 1) the extent of crm variables to have a positive impact on customer loyalty; 2) the level of presence on the internet to have a positive impact on the link between the extent of crm variables and customer loyalty; 3) the level of interactivity on the internet to have a positive impact on the link between the extent of crm variables and customer loyalty. according to the literature examined above, the effectiveness of this relationship will positively influence a customer's loyalty. therefore, the variable chosen to measure the effectiveness of crm in this study is “customer loyalty. given this, one of the outstanding contributions that crm, which influences customer loyalty, has made to business in general, is the personalization of the relationship between business representatives and customers (gronroos, 1994)., loyalty, and the level of interactivity on the internetthe hypothesis that the level of interactivity on the internet acts positively on the relation between empowerment and customer loyalty has been confirmed. it is to be expected that this kind of relationship will result in loyalty. the use of these different tools to create customer loyalty is confirmed by the results of this research. the personalization of the messages and of the relations between a firm and its customers simplifies and reduces the sales cycle, and allows a one‐to‐one relationship (borg, 1997), which can lead to customer loyalty. this finding also confirms some of the arguments found in the literature. data collected from 170 canadian it organizations showed that web site characteristics (which include the levels of the organizations' internet presence and interactivity) have a significant impact on the link between crm (in terms of partnerships, empowerment, relations with customers, and personalization), and customer loyalty.

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Assessing Customer Loyalty: A Literature Review (PDF Download

obviously, effectiveness in the present study was examined by measuring customer loyalty.) which meet the criteria of regression coefficient equality for the construct loyalty. to old article view go to article navigation abstractthe aim of this study is to explain the impact of web site characteristics on the relation between customer relationship management (crm) and customer loyalty. it can be seen that this analysis helped to identify one factor for the construct “customer loyalty” and seven factors for the construct “the extent of crm” (see table 1a and table 2a). extent of crm, loyalty, and web site characteristicspartnerships, customer loyalty, and the level of presence on the internetthe hypothesis that the level of presence on the internet has a positive impact on the link between the extent of the crm component of partnerships, and customer loyalty is significant. results of this second analysis regarding the confirmatory phase identified one factor for the construct “customer loyalty” and seven factors for the construct “the extent of crm. to do this, results obtained from pca (principal components analysis) using spss were submitted to pls. refined questionnaires were extensively reviewed and evaluated, both by practitioners (the managers and directors of the it companies) and by academics. covariance analysis was used to test hypothesis h2 because the normality testing and the homogeneity testing were positively verified. they have merely specified that their concept of loyalty went beyond the idea of industrial loyalty. this study could, in fact, be considered as one of the first in the electronic commerce field to employ scientific literature and an evaluation grid in order to measure web site variables.

Empirical Analysis on the Effect of Customer Relationship

  exploratory factor analysis (the extent of crm) (principal components method with varimax rotation; loadings>=0. confirmatory factor analysis, construct validity (convergent and discriminant validity), and a reliability assessment with pls (partial least squares) were used.  exploratory factor analysis (the extent of crm) (items thrown out due to poor loading). other authors have also been interested in the link between empowerment and customer loyalty.) which meet the criteria of regression coefficient equality for the construct loyalty. indeed, customer loyalty is presented in the literature as a relationship phenomenon. (a, b, c, d, e, f, and g): the level of presence on the internet will be positively associated with the link between the extent of the crm components (partnerships, relations with customers, customer prospecting, interactive management, empowerment, understanding customer expectations, and personalization) and customer loyalty., loyalty, and the level of presence on the internetthe hypothesis that the level of presence on the internet favorably influences the link between personalization and customer loyalty was accepted. chow and holden (1997), for example, estimate that firms are oriented towards the benefits that can be reaped from the construction of customer loyalty. effective crm will lead to greater customer loyalty (evans & laskin, 1994). as a result, these authors contend that customer loyalty will improve.

Service Loyalty: Its Nature, Importance, and Implications

the results obtained from this first analysis are presented in table 1a..166discussionthe extent of crm and customer loyaltyit is clear that hypothesis h1 (a, b, e, and g) was accepted while hypothesis h1 (c, d, and f) was rejected. since many authors have suggested that loyalty is a relational phenomenon (chow & holden, 1997; jacoby & kyner, 1973; sheth & parvatiyar, 1995; cited by macintosh & lockshin, 1997), our purpose is to link loyalty to the emerging theory of crm (macintosh & lockshin, 1997). carry out covariance analysis (ancova) to test hypothesis h3 (a, b, e, and g), the following terms were simultaneously introduced into the model: 1) the effect of the link between independent variables and dependent variables; 2) the effect of the link between the moderating variable (the level of interactivity on the internet) and the relation between independent variables and the dependent variable. some authors, such as evans & laskin (1994), have also studied the impact of crm on customer loyalty, but have not made any distinctions between different types of loyalty. the concept of relations with customers also relates, according to the literature, to customer loyalty. uncles & laurent (1997) have both argued that customer loyalty is the tangible and measurable benefit of an effective relationship maintained with employees. this first hypothesis test shows that only these four variables among the seven crm variables have a positive and direct impact on customer loyalty. in other words, using the internet to support crm allows firms to increase their customer loyalty in the it sector. results concerning the test of the hypothesis that the extent of the crm component of empowerment positively influences customer loyalty can be found in evans & laskin (1994). model and research hypothesescrm construct componentsthere is a considerable body of literature concerning crm, which covers a number of different components.

Exploring customer loyalty in the South African mobile

The Impact of Operations Performance on Customer Loyalty. Service

szeinbach, barnes, & garner (1997) describe understanding customer expectations as the strategy adopted by firms to generate more knowledge of customer expectations and needs and to provide customers with the best services in order to win their loyalty. finally, the result discussed here corroborates the arguments of fournier & yao (1997) and macintosh & lockshin (1997) that effective interpersonal relations increase customer loyalty. finally, the results of this study support some of the conclusions reached by chow & holden (1997) who established a positive link between empowerment and customer loyalty. thus, the use of forums on the internet to share information and to engage in a dialogue with customers allows personalization and can ultimately lead to loyalty. the results of these multiple case studies enabled us to refine the measures previously described in the literature review. it is for this reason that the following analysis was conducted by separately taking into account each moderating variable in order to avoid the problem of multi‐co‐linearity. although some authors, such as dick & basu (1994), distinguish between brand loyalty, store loyalty, salespeople loyalty, product and service loyalty, and so on, in this study the concept of loyalty will be considered as the combination of all these types..74to carry out covariance analysis (ancova) in order to test hypothesis h2 (a, b, e, and g), the following terms were simultaneously introduced into the model: 1) the effect of the link between independent variables and dependent variables; 2) the effect of the link between the moderating variable (the level of presence on the internet) and the relation between independent variables and the dependent variable. development of loyalty involves building and sustaining a relationship with a customer, which leads to the repeated purchase of products or services over a given period of time. positive impact of partnerships on customer loyalty was previously found in the study conducted by evans & laskin (1994). the positive impact that the use of interactivity on the internet has on the link between partnership and customer loyalty can be explained by the fact that when firms are committed to a partnership, they will include a link to their partner's site.

 construct: loyalty itemsfactor 1: loyaltyl5 l6 l7the rest of the methodology deals with confirmatory analysis. it is rather through a combination of sophisticated web sites and effective crm that customer loyalty will grow. hypothesis positing that relations with customers will have a positive impact on customer loyalty was also confirmed. first, a conceptual model explaining the theoretical link between crm and customer loyalty will be presented and explored. one of the results of crm is the promotion of customer loyalty (evans & laskin, 1994), which is considered to be a relational phenomenon (chow & holden, 1997; jacoby & kyner, 1973; sheth & parvatiyar, 1995; cited by macintosh & lockshin, 1997). in conclusion, a partnership supported by the interactivity of the internet can increase the loyalty between partners. the findings of hypothesis h1 (a, b, e and g) specify that the extent of crm, in terms of partnerships, empowerment, relations with customers, and personalization, have a positive and direct impact on customer loyalty. based on this analysis, the discriminant and convergent validity of the measures appeared to be satisfactory. this hypothesis corroborates much of the following information collected during our literature review. the literature showed in many ways that maintaining such relationships leads to loyalty. covariance analysis was examined for hypothesis h3 testing because the normality and homogeneity tests were satisfied.

the second part of this article will explain the results of an empirical study conducted to test the impact of web site characteristics on the link between business‐to‐business relationship management and customer loyalty in the it sector. this can improve the relationship that the firms maintain with their customers, and as a result, the loyalty of the customers will be positively affected.•partnership factors, leading to customer loyalty, could be supported by some features provided by web sites, for example, the presentation of a partner's logo on a firm's web site, or references on a firm's web site to a partner's products and services. reichheld (2001) reports that he has yet to encounter a company that has achieved extremely high customer loyalty without fostering similarly high loyalty among employees. the benefits of customer loyalty to a provider of either services or products are numerous, and thus organizations are eager to secure as significant a loyal customer base as possible (gefen, 2002; reinartz & kumar, 2003; rowley & dawes, 2000). future research should also expand the range of web site characteristic variables and examine their effects on the link between crm and customer loyalty. with customers, loyalty, and the level of presence on the internetthe level of presence on the internet positively influences the link between the extent of the crm component of relations with customers, and customer loyalty. the literature helps us to understand that the interactivity offered by the internet is very favorable to one‐to‐one relationships, especially with e‐mail and forums. domingo ii & hui (2003) have examined the high costs of attracting new customers on the internet and found that aesthetic characteristics of the web site have a positive effect on customer loyalty. this analysis was carried out by calculating cronbach's alpha coefficient using spss (see table 1a and table 2a).  path coefficient and student's t (t value)  loyalty path coefficient (beta standardized)student's t (t value)partnership0.


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