Marketing Critical Essay Example

business, referring to the inclination of customers to repeatedly purchase a specific product or brand or visit a particular shop. According to Dick and Bass, loyalty is defined as the connection between one's attitude towards a company and their patronage behavior. Customer loyalty can be viewed from two perspectives: attitudinal and behavioral, each with distinct appeals and approaches.

According to Peppers & Rogers (2011), loyalty can be defined both attitudinally and behaviorally. Attitudinal loyalty refers to customers' positive attitudes and preferences towards a specific brand or store. Behavioral loyalty, on the other hand, is based on actual customer conduct, particularly continuous repurchase activities.

The benefits of customer loyalty include increased profitability. This is because the initial acquisition cost is spread over a longer relationship, leading to lower amortized costs. Additionally, maintenance costs decrease as a proportion of total expenses. Long-term customers are less likely to switch and are also less price-sensitive. They may even introduce new customers through word of mouth. Furthermore, there is a likelihood of providing additional services or products to long-term customers.

Over 90% of auks own at least one loyalty card and participate in Buy-one-Get-one-Free (BEFOG) promotions. BEFOG is an example of a self-liquidating promotion and is known as the PREMIUM sales promotion tactic. This involves a company purchasing one case of sugar for a certain price and then selling two cases for $6, still making a profit, especially when sales increase accordingly. Companies may also offer gifts as part of their promotions, such as Subway providing a card with six spaces for stickers for each sandwich purchased. Once all spaces are filled, the consumer can redeem the card for a free

sandwich. Discounts are another common type of promotion offered by companies.

Budget airlines like Easy Jet and Ryan Air notify their customers about new flight releases and additional destinations to offer the latest low-price deals. As a sales promotion technique, free samples are given when customers make large purchases. For instance, supermarkets often offer Red Bull, a caffeinated fizzy drink, when customers buy a significant amount of products. Joint promotions involve partnerships between brands owned by the same company or with another company's brands. For example, fast-food restaurants frequently provide toy promotions related to specific movie releases. Loyalty marketing programs are also utilized by these airlines.

A loyalty marketing program or frequent flying program is created to reward loyal customers for participating in multiple marketing programs. This approach is commonly utilized in retail sales, where a specific group of customers can benefit from discounts. The effect of sales promotion on customer loyalty is considerable, as various types of sales promotion are pivotal in fostering customer loyalty. The main objective of designing sales promotions is to guarantee customer satisfaction, which plays a crucial role in enticing customers to consistently visit a store or buy a particular product.

One effective sales promotion technique is the use of a loyalty card. This card is specifically designed to encourage customer loyalty by rewarding regular shoppers. The example of Tests is a testament to the significance of loyalty cards in business success. Initially introduced in 1995, competitors underestimated its impact on customer loyalty and quickly followed suit with their own schemes. This demonstrates how sales promotion can foster customer loyalty (Tailor ; Francis, 2010).

The frequent flying program, deal, continuity

program, etc are types of sales promotions that provide additional benefits to loyal customers. In literature, a research method refers to a systematic approach that involves collecting and analyzing data to obtain information. Candlewick (2005) suggests four modes of research methods including the Explicators method, where direct questions are asked to individuals to understand the past and present conditions of the firm, as well as its future plans.

The case study method is a research technique that examines current and historical issues affecting the organization. It involves conducting comparative studies to explore different possibilities and make future recommendations for the company. In contrast, the survey method involves asking numerous individuals questions to gather extensive information and address various issues. Additionally, the experimental method determines variable significance in specific situations. For this dissertation, both primary and secondary research will be performed as they are crucial for achieving a comprehensive outcome.