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E. Customer Loyalty
1. Definition of Customer Loyalty
Creating strong connection with customers to build the loyalty is the dream of any marketers and often the key to long-
term marketing success. Customer loyalty is a biased behavioral response, expressed over time, by some decision making unit with
respect to one store out of a set of discount retail stores, which is a function of psychological decision-making and evaluative
processes resulting in store commitment Jacoby and Chestnut, 1978; Knox and Walker, 2001 in Kumaradeepan and Pathmini
2015.
Satisfaction is positively associated with customer loyalty Sharma and Patterson, 2000 and its related with business
relationship Burnham et al. 2003 Companies, which manage to satisfy their customers, retain them for as long as possible, and
hopefully turn them into loyal customers, will certainly be in a better competitive position and achieve a better financial
performance in Almossawi, 2012. According to Oliver 1999 in Oyeniyi 2011 further stated
that loyalty is a deeply held commitment to re-buy or patronize a preferred product or service consistently in the future, thereby
causing repetitive same-brand or same-brand set purchasing.
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From the definition above, customer loyalty can be defined as the behavior of the repurchase of a product or in the company
from time to time, which are beneficial and which can reduce or prevent the tendency of consumers to switch to manufacturers or
other companies.
2. Measurement of Customer Loyalty
According to Griffin 2009:31, customer loyalty is customers who have the following characteristics:
a. Makes regular repeat purchase: Loyalty is refers to the form of the behavior of these units to make a purchase decision-
making continuously for goods or services of a company that is selected. The level of satisfaction with the store will
influence them to buy back. b. Purchases across product and service lines: Buying outside line
of products and services means that the desire to buy more of the products and services that have been offered by the
company. Customers who already believe in the company in an affair it will be believed also to other matters.
c. Refers others: Loyal customers willingly recommend the company to friends and colleagues.
d. Demonstrates immunity to the full of the competition: Is not easily affected by the pull of competition other similar
companies.
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F. Preview Research
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