The purpose of the study dealt with customer defection. It talks about how the customers are slowly not becoming as loyal as they use to be. They seen a pattern after five years, the customer does not stay loyal to the company. There are different stages of the process of losing loyal customers and keeping them. Loyalty and profits, the more the customer is worth the more profits come out of it because the longer the customer stays. Failure, the employee learning the instructive steps on their own and leaving.
Core customers, this is hard to determine but the best way to determine it is to ask who the most loyal and most profitable to you? 2. I think the article represents a conceptual study. The author uses a general research and experiences from other people an businesses to back up his points. There are some numbers given but I feel like there needs to be a lot more numbers to declare it as a quantitative study. The author uses examples like Lexus and baseball players to back up his case about the customer loyalty. When dealing with Lexus, they asked every member of their head quarters staff to interview four customers a month.
The article also talked about baseball players and their batting averages. Someone who bats 280 compared to someone who bats 320 is a big difference in the players. Even though it is only 4 away it still tells how the player does in the batting line up. The article uses examples like these in two different situations to show the difference in how everyone does things differently to show their customer base and how loyal they are. Even though they talked about baseball players they showed the popularity of the player because of their batting average number. This would also help by understanding the cash flow and products.
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- The researchers found that the key to customer loyalty is the creation of value.
The value that the customer needs the employer to help them with their profits or money. The key to value creation is organizational learner. Without the value creation and organizational learner then the customer does not know what to do with the profit or where to put it. The customer only learns throughout the process with the company until they become knowledgeable to do it on their own. 4. Implications for future research would be to do a more quantitative study.
This way they can mesh together the concepts of the research and the new quantitative numbers in order to show the CEO’s and companies why they should follow the plan and this is what needs to be done to become successful with keeping their customers. Once that process is done they then can expand that to become more qualitative. Then they will have answers from every angle, from concepts to numbers and the quality of the situation. 5. Marketing as we know it deals with identifying and meeting hum and social needs. In a short definition “meeting needs profitably”.
The findings in the article helped pertain to Marketing because when worrying about the value of the customer and their certainty of the value of creation. Marketing is all about getting the name out there and making it profitable. Without the loyal customers then the product/profit is not marketable and will not make money. When establishing the relationship between the customer and employer/employee is when more successful opportunities from within the company. When losing customers, then the company doesn’t learn to try and build their relationship in other ways.
I agree with the finding of the article and the conceptual study they are going for. I feel that it would be better to explain the article in a quantitative study to show the numbers of the project. Using Lexus and interviewing four customers a month is a good example. Just have to go more in depth of what the customer thinks. Another example with the baseball players batting averages. Use their averages and their salaries to show about loyalty and popularity of how the player plays. The article was good in showing loyalty and customer failure through the article, and gave good examples while still getting to the root causes of the business.
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