The Effect of Loyalty Program on Customer Satisfaction and Loyalty: A Study of Customer’s Perspective

Assignment Requirements: Dissertation Chapter – Literature Review

 

This part must be included these following topic
– introduction (less than 200 words)
– service marketing
– customer satisfaction
– customer loyalty program and customer loyalty
– relationship between customer satisfaction and loyalty

other topic which relate to the dissertation topic can be written

Title

The Effect of Loyalty Program (royal orchid plus program or Thai frequent fly program) on Customer Satisfaction and Loyalty: A Study of Customer’s Perspective

Description of the problem to be investigated and why it matters

An increasing number of loyalty programs is one of the most common phenomena observed in the practice of marketing companies on the market today.

Objectives and tasks of loyalty programs determine the type of use of marketing instruments affecting the attitudes and behaviors of customers. Thus there is interest in the benefits of loyalty program and its consequences in term of customer satisfaction and loyalty.

Brief discussion of which academic literature might be relevant

The study of consumer loyalty appears to be a product of the study of customer satisfaction (Oliver, 1999).

Customer satisfaction- Research indicates that satisfaction primarily consists of cognitive and affective variables. Cognitive measures include disconfirmation and expectations (Oliver, 1980), as well as perceived performance (Tse and Wilton, 1998)

Customer loyalty – can be defined as a constant and positive attitude towards an object (i.e. brand or business enterprise). Marketing definition of loyalty traditionally covered two aspects of the phenomenon: behavioral aspect and attitudinal aspect.

Some ideas about possible methodology

Quantitative research

This paper uses questionnaires to identify the impact of loyalty programs by surveying customers’ attitudes, perceptions, and behavior.

Indication of research question

How effective of customer loyalty program are on customer satisfaction and customer loyalty?

–          A comparison of levels of customer satisfaction and loyalty: members and non-members. Is the loyalty program effective?

–          Does the loyalty program influence on customer satisfaction and loyalty? If so, to what extent?

–          Is there a relationship between customer satisfaction and customer loyalty?

 

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