Explain How Consumer Satisfaction Can Be Measured Using the Difference Between Customer Satisfaction and Customer Loyalty and Show How They Are Related and How Do They Affect Repurchase Behaviour.
Understanding consumer behaviour has taken the attention of researchers and companies due to their relevance for business success (Jones et al 2000). How is consumer satisfaction related with their loyalty has been likely the most important issue in consumer behaviour for ensure a long-term success in a marketing strategy (Pappu et al 2006). The literature and researchers suggest that there is a strong relation between product satisfaction and brand loyalty, but always highlighting their relation as a unidirectional relationship. In other words, product or service satisfaction has a direct relationship with loyalty, but loyalty has not a significant dependency with satisfaction (Oslen 2005). In other words, brands can have satisfied customers; nevertheless, that does not mean loyal customers in the future (Oslen 2005). In addition, the literatures also suggest that there is a link between loyalty and profitability thanks to repurchase behaviour (Dick & Basu 1994; Anderson et al 1994; Rust et al 1995). All these positive consequences are possible if managers consider in their strategies concepts such as consumer satisfaction and customer loyalty to build strong relationships based on trust and commitment (Dick & Basu 1994). All these concepts are totally useful to take a lot of opportunities in the wine business. Its features as a business mix between products and services, its challenging competitive environment and its complexity for products evaluation, make the wine business completely dependent of these concepts. Hence, this essay will discuss what is customer satisfaction and why is relevant for a business success in a long-term. Then, it will do the same with customer loyalty concept making a special attention in the differences between customer satisfaction and customer loyalty concepts. Furthermore, to have different viewpoints about loyalty, also it will be discussed an important argument against loyalty known as “double jeopardy effect”. After that, this
References: Dick, A.S. & Basu, K. 1994, “Customer loyalty: Howard an integrated conceptual framework”, Journal of the Academy of Marketing Science, Vol