Question

Critical Thinking Activity

Are Customers Really Loyal?

"I'll stick with you through thick and thin," or "What have you done for me lately?" Which best describes the customers in today's marketplace?

Two quality managers are debating the concept of customer loyalty. One of them, Jack Hayes, claims that customer loyalty does exist, that it can be won, and that winning a customer's loyalty should be every organization's goal. According to Jack, "If you have a history of satisfying a customer, he will be loyal enough to overlook an occasional bad experience."

No way," says Anna Cage. "It takes only one experience to lose a customer." She also added that if a customer is gone, they are gone. Something happened to make them not want to use your product anymore, so pushing a sale is just going to make your relationship worse in the long run. Customers leave because their experience with a product or service failed to live up to their expectations

Join this debate. You are a customer. Are you loyal to any organization? If so, how many bad experiences will it take to overcome your loyalty? Have you ever decided to withhold your business from a store, restaurant, or other service provider based on poor service? Do you usually give an organization more than one chance to win your business, or is one bad experience all it takes to turn you off?

Answer 1

Customers loyality is always directly proportional to the quality of products and the customer's purchasing power parity . Or in other words we can say that more the cost benifit of the product for the consumer the more the consumer will be willing to be loyal to the particular product brand .

reasons for a consumer(me) to switch loyality may depend on

1. deteriorating quality of product

2. Availability of a cheaper substitute

3. Rise in price of the product more than consumers ppp

4. Negative cost benifit analysis