The impact of business orientations on customer loyalty. An empirical study using a case study approach.

Abstract

Customer loyalty is considered to be critically important to growth, profitability and sustainability. It has received much attention by practitioner and managers. However, some important variables about the different types of loyalty have remained unclear. While businesses look towards adopting various strategies to help them grow and succeed in the marketplace, a number of key business orientations have emerged. Each of these orientations has claimed to increase both profitability and customer loyalty for an organization. This research has examined both of these factors, as well as their inter-relationships. The research was conducted in a two part study, based on a sequential triangulation approach. The first study focused on finding out the differences between two of the highest types of loyalties, attitudinal and emotional. The study, based on 40 interviews with customers from three different companies, across two cultural settings (Asian and European), has led to the emergence of key differentiating factors. The second study focused on the relationships between business orientations and customer loyalty. This study was based on six case studies of best practice firms. The study found a positive link between business orientations and loyalty. Moreover, a set of critical success factors were identified that would enable companies to implement effective loyalty management systems. Based on both of these two studies, a loyalty management model has been presented. The model helps to improve our understanding of loyalty, and would be of use to managers who would want to develop and manage customer loyalty in an organisation.