Essay - Economics of the Retention of Customers in a Membership Organization...

Economics of the Retention of Customers in a Membership Organization

Dissertation

LIST OF TABLES

CHAPTER 1.

Introduction

CHAPTER II: BACKGROUND

Purpose of the Study

HYPOTHESES

***** of Terms

ORGANIZATION OF THE REMAINDER ***** THE STUDY

***** III. LITERATURE REVIEW

***** loyalty

The Customer Loyalty Pyramid

Store ***** and Brand Loyalty

Return in Investment (ROI) of Customer retentions

***** Lifetime Value (CLV)

***** IV. RESEARCH METHODOLOGY

***** of this study

*****

Participant samples

Research Design

Conclusion

***** V RESEARCH FINDINGS

Pacific Coffee Company

CANADIAN IMPERIAL BANK

***** UNION BANK

USAA

*****

SunExpress

CHAPTER VI ***** ANALYSIS

CHAPTER VI CONCLUSION

CHAPTER VII RECOMMENDATIONS

*****

List of Tables

***** 1 Stages ***** the Customer ***** Pyramid

CHAPTER 1.

*****

Every business wants to develop loyal cus*****mers: customers that buy consistently over time, generally at regular prices, commonly ignoring ***** pleas and platitudes ***** competitors. Everyone knows customer *****ty is good. And, marketers, given the recent developments in data capture ***** management, believe they have fairly good ways of developing and measuring customer loyalty. Customer sat*****faction is one. A satisfied customer, at least according to research, tends to remain more loyal ***** the brand or the product than an un***** customer. Behavior is another. In the short term, marketers can measure various forms of customer behavior. Customer consistency (i.e., the number ***** times a customer ********** in a cert*****in time period) and longevity (i.e., the time period over which a customer buys the particular product or *****) are two examples. Both have received widespread attention.

*****, a glaring problem exists. Satisfied *****, at least those who claim satisfaction in ***** ***** situations, often drift away from the company ***** the brand. The same holds true for customers ***** have exhibited brand or ***** ***** through ********** purchases ***** time. Sometimes they simply stop buying. No app*****nt change in life-style, economic level, personal situation, ***** other factors seem to explain the shift in purchasing *****.

***** decrease in cus*****mer loyalty is borne out by stat*****tics. In 1990, ***** example, ***** United States General Acco*****ting Office reported on the quality programs of 20 companies that had scored well in the 1988 and 1989 Baldrige award evaluations. Among ***** major findings, the companies indicated that, while their customer ***** levels ***** increased, levels of customer retention had remained almost unchanged; some of the ***** even reported ***** retention declines. (Lowentein, 1997). In 1994, the Juran Institute, a leading total quality consulting organization, presented results of a study among top managers from ***** ***** 200 of Americas largest companies. While over 90% had an ongoing process for measuring ***** improving customer satisfaction scores, fewer than 30% felt confident ***** ***** value had been realized as a consequence of their higher ***** scores. Only 2% were able to show actual increases in sales or profits resulting from documented ***** in customer satisfaction. Counseling firm Bain and Company has found that, among defectors, between 65 and 85% were "satisfied" or "very satisfied" with their previous suppliers. As stated by Chris*****her