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The Loyalty Card as Promotion Tool - Essay Example

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The main aim of this essay is analyzing the loyalty card as promotion tool; how can it improve satisfaction and loyalty among the supermarkets and customers such as Tesco. It is more than 20 years since questions revolving the definition of loyalty have been addressed…
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The Loyalty Card as Promotion Tool
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Download file to see previous pages Humby and Hunt (2004) are of the opinion that loyalty is more of an emotional concept thus resisting the definition in terms of behavior. This, therefore, champions that loyalty is an emotional concept resulting from the trust. Others also define loyalty as emotional concept built on empathy (East 1997). Building on the idea and recognition that opinions and feelings are active, variables that include but not restricted to social, physical environments, as well as individual abilities, have been known to pre-empt action. On the contrary, this view can be seen as being loyal functionally in that customer tends to be loyal to a company only because of convenience (Barnes 2002). According to (Grisaffe 2001), loyalty does not rotate around behavior, for instance, other is the buyer who has developed the cognitive rule in that they only buy low priced products, because of this such customers will look loyal to that brand over a period of time. This will only be interrupted by the entrance of another brand which is priced lower than the previous. The customer will again change to become loyal to the new product in the market. From this, it is evident that customers are more loyal to their decision rules as opposed to the brands and thereby a proof that loyalty is more than behavior.
Of several definitions, the characterization seemed most suitable when discussing the Tesco Clubcard. Suggestions that daily life of loyalty entails “emotional commitment” and “monogamy” where one choice overrides the rest has been brought forward (Humby and Hunt 2004, pg 9). To bring out the comparison, retail loyalty concentrates on achieving a bit of goodwill, a slight margin of liking, a rise in the shift in terms of buying tendency. Customer satisfaction can be described in simple terms as the measure of a customer’s expectation is met in totality or not.  ...Download file to see next pagesRead More
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