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STUDY OF INFLUENCE OF CUSTOMER LOYALTY ON PROFITABILITY TAKING SERVICE BEHAVIOR AS MODERATING VARIABLE

Xu Liu

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Abstract

The development of the global economy and the change of the market from the seller to the buyer make customer’s loyalty are a valuable resource for competition among enterprises. Loyal customers actively buy products or services to increase the income of the enterprise, it is more possible for them to accept a premium, and their positive words bring profits to the enterprise. But some scholars believe that the relationship between customer loyalty and profitability is weak or not monotonous. At the same time, the research of customer loyalty in the past mainly focused on the driving factors, definition and measurements of customer. In addition, for the enterprises with the service quality, the frontline staff contact and interact customers closely in the service, and their customer experienced their service quality through service, thus reflect the affection on their own behavior. On the basis of references of past scholars, this paper will explore the relationship between customer loyalty and profitability. At the same time, the behavior of the enterprise employees will be introduced to explore the role of customer’s loyalty in the relationship between the profitability of the company. According to the related theories, customer loyalty is divided into two aspects: attitude loyalty and behavior loyalty. The measurement dimension of customer profitability, cost reduction, cost reduction, customer loyalty and profitability, will provide 4 research hypotheses, 311 research hypotheses, two research hypotheses, and the relevant conclusions.

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What this paper is about

The development of the global economy and the change of the market from the seller to the buyer make customer’s loyalty are a valuable resource for competition among enterprises. Loyal customers actively buy products or services to increase the income of the enterprise, it is more possible for them to accept a premium, and their positive words bring profits to the enterprise. But some scholars believe that the relationship between customer loyalty and profitability is weak or not monotonous. At the same time, the research of customer loyalty in the past mainly focused on the driving factors, definition and measurements of customer. In addition, for the enterprises with the service quality, the frontline staff contact and interact customers closely in the service, and their customer experienced their service quality through service, thus reflect the affection on their own behavior. On the basis of references of past scholars, this paper will explore the relationship between customer loyalty and profitability. At the same time, the behavior of the enterprise employees will be introduced to explore the role of customer’s loyalty in the relationship between the profitability of the company. According to the related theories, customer loyalty is divided into two aspects: attitude loyalty and behavior loyalty. The measurement dimension of customer profitability, cost reduction, cost reduction, customer loyalty and profitability, will provide 4 research hypotheses, 311 research hypotheses, two research hypotheses, and the relevant conclusions.

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Available abstract

The development of the global economy and the change of the market from the seller to the buyer make customer’s loyalty are a valuable resource for competition among enterprises. Loyal customers actively buy products or services to increase the income of the enterprise, it is more possible for them to accept a premium, and their positive words bring profits to the enterprise. But some scholars believe that the relationship between customer loyalty and profitability is weak or not monotonous. At the same time, the research of customer loyalty in the past mainly focused on the driving factors, definition and measurements of customer. In addition, for the enterprises with the service quality, the frontline staff contact and interact customers closely in the service, and their customer experienced their service quality through service, thus reflect the affection on their own behavior. On the basis of references of past scholars, this paper will explore the relationship between customer loyalty and profitability. At the same time, the behavior of the enterprise employees will be introduced to explore the role of customer’s loyalty in the relationship between the profitability of the company. According to the related theories, customer loyalty is divided into two aspects: attitude loyalty and behavior loyalty. The measurement dimension of customer profitability, cost reduction, cost reduction, customer loyalty and profitability, will provide 4 research hypotheses, 311 research hypotheses, two research hypotheses, and the relevant conclusions.

Key concepts: Loyalty business model, Business, Marketing, Profitability index, Customer delight, Customer retention, Customer profitability, Service quality

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