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Customer Loyalty in the Hospitality Industry - Literature review Example

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This paper "Customer Loyalty in the Hospitality Industry" discusses the nature of the hospitality industry and the impact of loyalty programs thereupon. An organization in the industry and even beyond may establish better ways to attract loyalty considering various factors…
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Customer Loyalty in the Hospitality Industry
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Download file to see previous pages The industry’s performance is however often impacted by numerous factors including political, political and social forces. Different players in the hospitality industry need to make new customers while at the same time maintaining current customers. The application of loyalty schemes is one means used by some hospitality industry players to fulfill this need. There however is however little evidence to show the impact of these schemes on the performance of hospitality industry businesses. 

The ability to create or stimulate loyalty in customers is very valuable. However, to examine how loyalty marketing may be of value, it is necessary to define the concept of loyalty, as this is a fuzzy concept. Oliver (1997) gives a good definition, stating loyalty is “a deeply held commitment to rebuy or patronize a preferred product/service consistently in the future thereby causing(?)repetitive same brand or same brand set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior”

Within this there are subjective aspects, for example, the purchase of a hotel room by a business traveler compared to a leisure traveler will have a very different level of frequency and as such, loyalty may not be measured by frequency of purchase in some goods and services. Therefore the measures of loyalty are variant depending not only on the type of product but also on the type of customer. Oliver (1997) takes the idea of loyalty and explains it further, arguing that loyalty occurs when a customer re-buys the product or services whatever the cost of re-buying that product or service, for this to occur the value of the product or service, which can include the loyalty scheme, must be perceived as giving better value than the competing products or substitutes (Oliver, 1997, Duffy, 1998).  ...Download file to see next pagesRead More
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