Customer Loyalty

The loyalty program is intended to increase he number of loyal customers and to entice loyal customers to increase their shopping frequency and expenditure (basket size) Richard Ho et al (2009). A number of researchers have identified and discuss different factors affecting the store loyalty, e. G. Macintosh and Locksmith (1997); Wolf and Dockworker-Schroeder (2003); Wong and Shoal (2006). In this study we will explore the relationship effect of customers- salesperson on store loyalty. 2. Trust in Salesperson Trust, in few decades, has been the focus point of the researchers in discussions of marketing relationships.

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Trust in the salesperson and store trust are positively related to each other Guenon, Johnson and Castillo (2009). According to Morgan and Hunt (1994) the confidence of one party’s on other party’s integrity and reliability. Same nature of definitions can be found in literature review by different other another. This definition is consistent with a number of others in the marketing literature (e. G. , Churn and Joanne (1985); Swan and Nolan (1985); Norman, Coalman, and Dishpans, (1992). It is often noticed that retail consumers usually develop multiple relationships with front line employees/salesperson (e. , sales associates) Guenon, Johnson, and Castillo (2009). Trust is key factor in making deeper relationships with the salesperson to make the customers committed with those salesperson Morgan and Hunt (1994) and cooperation Churn and Joanne (1985), and will indirectly contributed to the customer’s store loyalty. 3. Preferential Treatment by Salesperson Sheet and Partiality (1995) recognized that “implicit in the idea of relationship marketing is consumer focus and consumer selectivity-?that is, all consumers do not need to be served in the same war.

Consumers perceive this selectivity of customers s a preferential treatment that is not generally delivered to other consumers Bitter identifiable categories of consumers; loyal and non-loyal consumers. The differentiating between these groups enables a retailer to take the advantage by filling customers need to feel important Peterson, (1995); Ping (1993). Preferential treatment means that something extra is provided to the loyal customers in terms of better service and other extra efforts that is not usually provided to the non-loyal customers.

In line with Swinger, Griller, and Bitter (1998), we defined preferential retirement as “a consumer’s perception of the extent to which a retailer treats and serves loyal consumers better than non-loyal consumers”. This preferential treatment will lead to the commitment to the salesperson and hence contribute in making customer store loyalty. H2O: Preferential treatment by salesperson has a positive effect on customers’ commitment to the salesperson. 4. Commitment to the Salesperson Commitment is also considered a key factor in marketing relationships Morgan and Hunt, (1994); Gangland, Carol, and Mentor (1995).

Commitment can be defined as one’s “enduring desire to maintain a valued relationship” Norman, Coalman, and Dishpans (1992). Commitment has been decided into three components Meyer and Allen (1991). Gangland, Carol, and Mentor (1995) define these components as: (1) instrumental, where action of one party demonstrate commitment; (2) attitude, which relate to the intention of a person to maintain relationship; and (3) temporal, showing that commitment refers to something over time. Dick and Bass’s (1994) definition is much identical with this definition, which were based on repeat patronage and attitude.