SOSC 499 Senior Research Project SOSC 499 Senior R Assignment Assistance

SOSC 499 Senior Research Project SOSC 499 Senior R Assignment Assistance

PROPOSAL Introduction The project contains information and discussion in regards to the topic Customer loyalty no longer exists; long live customer engagement . More specifically, the chosen question debate whether customer loyalty exists and what connection it has with customer engagement. IMPORTANT! : In order to provide the final answer to the topic; themes/research questions were introduced, which helps breaking down the topic (and slowly answer it step by step). The themes/research questions helps exploring the topic and conclude the key elements, based on those findings from each themes- the final topic can be explained. It also contains variables which affect above terms and their dimensions. The main areas of research are: Customer loyalty, Customer engagement, brand loyalty, customer satisfaction, customer experience. Frameworks The major framework used in the project is Loyalty ladder . It is a tool which divides types of customers respectively to their level of loyalty towards a brand. (Edward Little , 2003) The framework consists of five different types of customers: Suspect, prospect, Customer, client and Advocate (Christopher, M., Payne, A., Ballantyne, D, 1991). In order to make the Suspect became an Advocate; the company needs to know how to satisfy customer needs at each level  of the ladder (Marketing Week, 2006), because through customer satisfaction the organization can strengthen the relationship which will eventually lead to customer loyalty. Themes(TO THE WRITER: THOSE THEMES ARE JUST AN EXAMPLE, YOU CAN CHANGE THEM HOWEVER YOU THINK ITS BETTER, BUT THERE SHOULDN T BE MANY OF THEM, THE PURPOSE OF THOSE THEMES IS TO BREAK DOWN THE TOPIC AND SLOWLY ANSWER IT (BASED ON FINDINGS FROM ACADEMIC JOURNALS ETC , AND EXPLORE THE TOPIC ). What is customer loyalty and what are the variables that affect customer loyalty? In terms of customer loyalty, there are few well-known conceptualizations which refer to the concept of customer loyalty: (Mark D. Uncles Grahame R. Dowling Kathy Hammond , 2003) (APPENDIX 1) Attitudinal loyalty which is a systematically favourable expression shaped based on the strong attitudes and positive beliefs toward the brand. Behavioural loyalty infers the loyalty status of a particular customer based on the observations of repeated purchasing behaviour. Buying process based on the individual characteristics or circumstances (usually seen as weak loyalty or no loyalty) Based on the researches from Dennis L. Duffy and Kuusik Andreas: (Dennis L. Duffy, 2003), (Kuusik Andres , 2007) the variables which affect customer loyalty are: (APPENDIX 2) Customer satisfaction ( which might be a result of good customer service) Auxiliary benefits ( awareness of brand assets) Brand image Commitment word-of-mouth trustworthiness In terms of measurements of customer loyalty, it is difficult to measure; however, loyalty is usually measured by proxy such as: surveys (Jeb Dasteel , 2014) What is customer engagement and what are the variables that affect customer engagement? Customer engagement accordingly to Sashi (Sashi C.M , 2012), it is a repeated interactions which can be also defined as intimate long-time relationships with the consumer. Based on Sashi research, customer engagement can be introduced in a cyclical process (APPENDIX 3). In addition, variables which affect customer engagement are: confidence, integrity, passion (Vilakshan , 2014). What is the connection between customer loyalty and customer engagement? Based on the researches and studies undertaken by Auh (2007), Rajah (2008) and Grissemann and Stokburger  (2012), the authors relevaled that there is a link between the customer engagement and customer loyalty. However, it is important to mention that those 3 researches investigated the relationship between customer engagement and customer loyalty in different contexts: Auh 2007 mentioned the research in the financial services context, Rajah- Tourism services and Grissemann and Stokburger  in general context of companies. All the mentioned studies agreed that customer loyalty is the outcome of customer engagement. Moreover, the studies introduced intermediate variables which connect the customer engagement to customer loyalty: customer satisfaction and trust that form Relationship strength  which then develop the customer loyalty. The above outcome of researches has been illustrated in the scheme (APPENDIX 4) which represents the connection between the customer engagement and customer loyalty including the intermediate variables. (Jurate Banyte and Aiste Dovaliene , 2014) Research Plan The empirical part of the study is based on the academic articles, journals and books. The majority of the researches are based on the studies of the following authors works: Rajah E., (2008) Grissemann and Stokburger-sauer (2012) Auh S., (2007) Sashi C.M (2012) Dennis L. Duffy (2003) In order to address the research questions, following journals were used: Journal of consumer marketing Journal of Management Journalof Consumer Research Conclusions The project focuses on the main areas of research such as customer loyalty and customer engagement. It contains research questions (themes), which helps exploring the topic and conclude the key elements, based on those findings from each themes the final topic can be explained. The study is mainly based on the academic journals and books in order to support the project findings. Bibliography Journals: Mark D. Uncles Grahame R. Dowling Kathy Hammond, (2003), Customer loyalty and customer loyalty programs , Journal of Consumer Marketing, Vol. 20 Iss 4 pp. 294 316. Dennis L. Duffy, (2003), Internal and external factors which affect customer loyalty , Journal of Consumer Marketing, Vol. 20 Iss 5 pp. 480 485 M. Sashi, (2012) Customer engagement, buyer seller relationships, and social media ,Journal of Management Decision, Vol. 50 Iss. 2, pp.253 272 Vilakshan (2014), Customer Satisfaction and Engagement-Customer Retention strategies for brand manager . Journal of Management, Vol. 11 Issue 1, p.123 Auh, S., Bell, S. J., McLeod, C. S., & Shih, E. (2007). Co-production and Customer Loyalty in Financial Services . Journal of Retailing. Vol. 83, 359-370. Rajah E., Marshall R., Nam, I. (2008). Relationship Glue: Customers and Marketers Co-Creating a Purchase Experience. Advances in Consumer Research, Volume 35, p.367-373. Grissemann, U. S., & Stokburger-Sauer, N. E. (2012). Customer Co-Creation of Travel Services: The Role of Company Support and Customer Satisfaction with the Co-Creation Performance. Journal of Tourism Management, Vol. 33, 1483-1492. Jurate Banyte and Aiste Dovaliene (2014) Relations between customer engagement into value creation and customer loyalty . Procedia-Social and Behavioural Science, Volume 156, (November) p.484-489. Other references: Kuusik, Andres (2007). Affecting customer loyalty: do different factors have various influences in different loyalty levels . The University of Tartu Faculty of Economics and Business Administration Working Paper, Iss. 58-2007, pp. 3-29 Christopher, M., Payne, A., and Ballantyne, D. (1991). Relationship Marketing Bringing Quality, Customer Service and Marketing Together, Oxford: Butterworth-Heinemann, John Egan (2011).Relationship Marketing. 4th ed. Essex: Prentice Hall. Guy Kawasaki (2011).The new relationship marketing. New Jersey: John Wiley & Sons. p.112 Jeb Dasteel . (2014).Customer Loyalty Is Dead. Long Live Engagement!.Available: http://www.forbes.com/sites/oracle/2014/03/28/customer-loyalty-is-dead-long-live-engagement/. Edward Little (2003).Relationship marketing management. London: Thomson. p.66 Marketing Week . (2006).Climbing up the rungs of the loyalty ladder why bother.Available: https://www.marketingweek.com/2006/11/23/climbing-up-the-rungs-of-the-loyalty-ladder-why-bother/. Appendix (APPENDIX 1) Conceptualization of customer loyalty Dimensions of Loyalty (APPENDIX 2) Factors influencing loyalty (Adapted from Kuusik, 2007) Appendix 3 Appendix 4 Connection between customer engagement and Loyalty


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