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The effects of customer loyalty on profitability
Bibliografi
Author:
Young, Samuel Duane
;
Kwon, Ik-Whan
(Advisor)
Topik:
BUSINESS ADMINISTRATION
;
MANAGEMENT|BUSINESS ADMINISTRATION
;
MARKETING|ECONOMICS
;
COMMERCE-BUSINESS
Bahasa:
(EN )
ISBN:
0-599-78715-5
Penerbit:
saint louis university
Tahun Terbit:
2000
Jenis:
Theses - Dissertation
Fulltext:
9973414.pdf
(0.0B;
16 download
)
Abstract
For more than a decade, companies have searched for quantifiable links between profitability and various aspects of their firms, employees, and customers. Early research from the PIMS study showed that increasing market share was key to higher profitability for a firm but this same theory does not hold true today. There are many very profitability firms that do not command a lion's share of their market. During the 1980s, the ‘Quality Movement’ deluged many companies. Most companies attempted to incorporate Total Quality Management (TQM) activities into their companies in the hopes of reducing the perunit cost of their products/services thereby increasing profitability. While there were many positive resulting from quality improvement the results were mixed. Much of the decade of the 1990s focused on studying customer satisfaction in the hopes of discovering the link between total customer satisfaction and profitability. While customer satisfaction is clearly an important part of a company's financial performance, satisfaction is not the sole determinant of profitability. Most companies have learned that it is far more profitable to keep customers than attracting new customers. And, more specifically, the ‘right’ type of customer to maintain. Current studies have focused on the need for improving customer loyalty in the hopes of achieving long-term financial health. This is the focus of my dissertation. What has not been accomplished in the past is the establishment of a quantifiable connection linking customer loyalty to financial performance. The loyalty index used in this dissertation is a composite of four factors (use again, recommend to others, exceeding expectations, and satisfaction). Once this link has been formed, management can focus their efforts on these factors to increase and enhance customer loyalty and reap the financial benefits thereof.
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