Meaning and Explanation of Customer Loyalty

INDIVIDUAL ASSESSMENT

Table of Contents
INTRODUCTION.....................................................................................................................................2
MAIN BODY.............................................................................................................................................2
Discussing meaning and explanation of customer loyalty.......................................................................2
Different forms of consumer loyalty........................................................................................................5
Ways or methods through which marketers can use research evidence on customer loyalty in practice. 6
RECOMMENDATION.............................................................................................................................7
CONCLUSION..........................................................................................................................................8
REFERENCES..........................................................................................................................................9

INTRODUCTION
Individual assessment is described as procedure of collection appropriate information
about specific topic or thing that has been used to conduct particular activity related to an object.
The current assignment will be based on specific subject and that is customer loyalty. It will
explain meaning of this topic and varied forms of consumer loyalty. Furthermore, lastly the study
will justify how can marketers utilize research evidence in the context of buyer loyalty in
practice.
MAIN BODY
Discussing meaning and explanation of customer loyalty
Definition of customer loyalty-
Consumer loyalty is defined as behavioral tendency where a buyer take favor of their
favorite brand’s items or services over other company’s resources that are operating in same
sector from longer time period (Ghorbani and Emadi, 2020). It indicates the degree to which
buyer is devoted to a firm’s products. It also refers to as a measure of customer’s likeliness to do
repeat venture with an organization, which considered as an outcome of consumer’s satisfaction,
and entire value of services or goods that a shopper obtain from their favorite brand. It is one of
those key elements that help many companies to retain their potential buyers with purchase of
products and other forms of resources, which in return boost brand image and increase
profitability. In the world of business, there are varied kinds of ways, approaches, techniques and
concepts available that has been utilized by many organizations to enhance customer loyalty and
make their consumer a loyal buyer, which is quite important for current and in future progress of
any firm.
For example, majority of brands adopt discounts offer as valuable method that related to
this subject, which made it able to retain profitable shoppers forever and engage them with
purchase of quality goods.
Explanation in regard to customer loyalty-
Forces that influence consumer loyalty-
Brand image or reputation in market-

Brand image falls under list of those factors that has influenced customer loyalty in
positive manner, as it helps to enhance each buyer commitment towards particular company (7
Factors That Affect Customer Loyalty, 2021). When the market reputation or image of a
company is powerful, it may influence its potential customer to become loyal one in term of
repeating purchase of their items and conducting word of mouth promotion activity, which is
quite essential for a firm as it help to increase productivity and profits margin.
Rewards-
This factor also influences consumer loyalty, when an organization take initiative to
retain their potential buyers forever by adopting and using methods of customer loyalty (Mgiba
and Madela, 2020). In recent time, individual person commits with those companies that offer
rewards to them in term of discounts and more exciting offers. It gives them reason to retain with
purchase of their preferable brand products, which is valuable for a company and customers as
well, as it let a buyer to be loyal for every. For example, TESCO as a leading retailer in the
world of retail offer club card scheme to make people their loyal consumer and to increase
loyalty of existing buyers.
Figure 1: TESCO Club Card Scheme