Customer Retention and Loyalty Essay Example | Topics and Well Written Essays - 1500 words

Customer Retention and Loyalty - Essay Example There are the few major factors that can give a slight glimpse on the behavior of customers in relation to the services.â€Å"Imitation strategies beyond a certain point can have harmful consequences for both firms and consumers. Two occasions for potential harm to firms occur when a consumer unknowingly purchases an imitator brand. First, the consumer may be dissatisfied with the product purchased and attribute his or her dissatisfaction to the original brand, never realizing that the brand consumed was an imitator. Second, the consumer may be satisfied with the imitator brand, become aware that it is not the original brand, and switch brand preferences in favor of the imitator brand†(Berger, Foxman, Muehling 170, Vol 24: 1990).This all is clearly showing what possible outcomes may take place. It is seriously distracting to the goals of the service provider where as the customers can also be in loss as it is quite fair to say that each and every financial service provider cha rges a lot for the service, however if the company is having some good reputation than due to a variety of customers, they take good care of services and also charge relatively lesser than many of the other service providers in the industry. Another problem is the repurchase of any particular service, such as people often change their leasing service providers after they pay the entire due, rather than buying the next product through the similar service providers they start looking for new and even better ones.... This all is clearly showing what possible outcomes may take place. It is seriously distracting to the goals of the service provider where as the customers can also be in loss as it is quite fair to say that each and every financial service provider charges a lot for the service, however if the company is having some good reputation than due to a variety of customers, they take good care of services and also charge relatively lesser than many of the other service providers in the industry. Another problem is the repurchase of any particular service, such as people often change their leasing service providers after they pay the entire due, rather than buying the next product through the similar service providers they start looking for new and even better ones, which at times they get successful in, as the newly entered firms have some courage to serve the clients and they keep their promise in the beginning of their existence, however they mostly get distracted later on, and in this wa y people make repurchases from the new service providers at least for a while. So these all factors are influencing consumer behavior. "The majority of consumer purchases are potential repeat purchases. With the exception of one-time purchases, consumers buy similar products repeatedly or make repeated purchases from similar sellers. Thus, the majority of purchases represent one in a series rather than an isolated event. Understanding of any current purchase must be based on an understanding of the influence of prior purchases on later purchases. Major questions are how often and under what circumstances consumers make another purchase of a product they have tried or purchase from a