Advanced Studies In Consumer Decision Making Behaviour
...OF SATISFACTION AND LOYALTY 5
TRUE BRAND LOYALTY 6
THE RELATIONSHIP BETWEEN SATISFACTION AND LOYALTY 7
SIX PANELS THAT SHOWS SOME OF THE POSSIBLE ASSOCIATIONS OF SATISFACTION AND LOYALTY 7
EVALUATION OF THE SIX PANELS 8
OTHER KEY ELEMENTS THAT INFLUENCE BRAND LOYALTY 10
IS VALUE A BETTER TOOL THAN SATISFACTION FOR MEASURING DETERMINING FACTORS FOR LOYALTY ? 10
THE IMPORTANCE OF TRUST FOR GENERATING BRAND LOYALTY. 11
BRAND LOYALTY - A COMPANY / STRUCTURAL APPROACH 13
SATISFACTION-BASED VS. COMMITMENT-BASED COMPANIES 13
THE CONCEPT OF CO-REVOLUTION 14
CAN ALL COMPANIES ACHIEVE BRAND LOYALTY ? 15
CONCLUSION 17
APPENDIX 18
TABLE 1: LOYALTY PHASES WITH CORRESPONDING VULNERABILITIES 18
TABLE 2: SATISFACTION VS. LOYALTY 18
TABLE 3: BRAND VALUE MODEL 19
TABLE 4: AN INTEGRATED CUSTOMER VALUE MEASUREMENT SYSTEM 20
TABLE 5: FOUR LOYALTY STRATEGIES 20
REFERENCES 21
Introduction
Does customer satisfaction generate brand loyalty ? This is an area of special interest in the field of postacquisition. In the book Consumer Behavior written by John C. Mowen and Michael Minor a model of the consumer postacquisition process encompasses five major phases: 1) product usage / consumption, 2) consumer satisfaction / dissatisfaction, 3)consumer complaint behavior, 4) the disposition of goods, and 5) the formation of brand loyalty. (Mowen / Minor, 1998)
This suggests that consumer satisfaction is closely related to brand loyalty. The thought that brand loyalty is directly influenced by satisfaction / dissatisfaction is logical. However, in recent research there are strong arguments that question to which extent customer satisfaction is able to generate brand loyalty.
In 1990 the United States General Accounting Office reported on the quality programs of 20 companies that had scored well in the 1988 and 1989 Baldrige award evaluations. Among the major...
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