Identification of customer loyalty levels in business-to-business market in the context of relationship marketing
Renata Žvirelienė, Modestas Kvedaras
Abstract
Renata Žvirelienė, Modestas Kvedaras
Abstract
Transformation processes occurring in business pose new requirements to companies when attracting customers and building their loyalty, thus encouraging to search for opportunities to apply new business concepts. Taking this into account, a scientific problem becomes evident, which is elaborated through the following problem questions: which theories are significant to disclosing of customer loyalty in business-to-business market in the context of relationship marketing? How does the identification of customer loyalty levels enable the companies operating in a business-to-business market to choose the appropriate customer loyalty strengthening measures? Object of research – customer loyalty levels. The purpose of research is to identify the customer loyalty level in a business-to-business market in the context of relationship marketing after examining the theoretical aspects of customer loyalty levels. The article lays stress upon theoretical aspects of customer loyalty levels in relationship marketing context, which revealed that relationship evolution process in relationship marketing is based on stages theory and states theory. The evolvement of relationships constitutes evolution and progression, to be attained through increasing commitment and mutual dependability. It is notewor-thy that one becomes a loyal customer gradually, and seeking to enhance customer loyalty the com-pany should, therefore, first of all diagnose their level of loyalty in order to select effective measures promoting even higher customer loyalty and thus meet their needs. The article substantiates the qualitative research methodology that is based on system theory and relationship marketing and customer loyalty concepts. The empirical research to determine the customer loyalty levels (Neutral, Potentially Loyal, Subconsciously Loyal and Sincerely Loyal) was carried out in a Lithuanian capital venture operating in a business-to-business market, in order to purposefully select the loyalty building measures for the creation of complex customer loyalty pro-gram that would help meeting the needs of the company customers while maintaining a constant level of loyalty and promoting higher loyalty when shifting from lower to higher level of loyalty. JEL codes: M310, M390, D110, D120.
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Transformation processes occurring in business pose new requirements to companies when attracting customers and building their loyalty, thus encouraging to search for opportunities to apply new business concepts. Taking this into account, a scientific problem becomes evident, which is elaborated through the following problem questions: which theories are significant to disclosing of customer loyalty in business-to-business market in the context of relationship marketing? How does the identification of customer loyalty levels enable the companies operating in a business-to-business market to choose the appropriate customer loyalty strengthening measures? Object of research – customer loyalty levels. The purpose of research is to identify the customer loyalty level in a business-to-business market in the context of relationship marketing after examining the theoretical aspects of customer loyalty levels. The article lays stress upon theoretical aspects of customer loyalty levels in relationship marketing context, which revealed that relationship evolution process in relationship marketing is based on stages theory and states theory. The evolvement of relationships constitutes evolution and progression, to be attained through increasing commitment and mutual dependability. It is notewor-thy that one becomes a loyal customer gradually, and seeking to enhance customer loyalty the com-pany should, therefore, first of all diagnose their level of loyalty in order to select effective measures promoting even higher customer loyalty and thus meet their needs. The article substantiates the qualitative research methodology that is based on system theory and relationship marketing and customer loyalty concepts. The empirical research to determine the customer loyalty levels (Neutral, Potentially Loyal, Subconsciously Loyal and Sincerely Loyal) was carried out in a Lithuanian capital venture operating in a business-to-business market, in order to purposefully select the loyalty building measures for the creation of complex customer loyalty pro-gram that would help meeting the needs of the company customers while maintaining a constant level of loyalty and promoting higher loyalty when shifting from lower to higher level of loyalty. JEL codes: M310, M390, D110, D120.
Key concepts: Loyalty business model, Marketing, Business, Relationship marketing, Customer retention, Loyalty, Customer to customer, Customer advocacy