Assignment 7; Loyalty
Are you especially loyal to any one brand? If so, what is it and why are you so loyal? When successfully building loyalty and community, trust seems to be the biggest factor. How can a company build trust and what is the best approach to do so (incorporating concepts from both the field of marketing and psychology)? What are the ethical issues and obligations that come with trust once it is built? Should consumers trust companies? Why or why not? Do you think some consumers are just more prone to be loyal to companies and other consumers are not? Why or why not? Note: Please review my expectations for the assignment. I expect your response to include 2 or more references from the APUS Library system (failure to include such references will detract from your grade on the assignment), and be presented in APA Format. Deliverable length is a minimum of 2 body pages.
When successfully building loyalty and community, trust seems to be the biggest factor. How can a company build trust and what is the best approach to do so (incorporating concepts from both the field of marketing and psychology)?
Every time I go out to buy a cell phone or car or any gadget there are few brand names that strike my mind, for example if its cell phone Apple is the brand breezing into my mind or if some friend asks for suggestion for buying new car, I would suggest Honda. The main reason of bending towards the specific brand when out buying new product is years of trust which the company earned with its sale and service. The quality is also a factor, but how the company treat its customer after the product is sold defines the value of customer in the company’s eyes.
Same goes with the companies, like us wanting trust worthy company, company demand loyal customers, customers who will suggest their products to their friends and family and won’t hesitate to spend some extra money to get the company’s quality. Loyal customer also pays company for the premium service and he is also ready to trust the company with the new product.
Companies understand the fact that loyal customers do not come automatically; it’s a result of careful management of policies and benefits offered to loyal customers. So to build trust companies should work on customers from both dimensions of loyalty – Behavirol loyalty and attitudinal loyalty.
Best way to built trust and earn a loyal customer is to adopt the policy which many airlines offer to their regular customers, loyalty points and offers, which sends out the message direct to customer that they are valuable to the company. Strategy like this is best suited to attract consumers under behavirol category. To make more consumers which act on their will under an attitudinal loyalty category, strategies like cause related marketing works.
Other than the strategies there are few characteristics to retain loyal customers:
Responsiveness by company: How company response to customer’ complaint and what steps they take to satisfy them.
Reward loyal customer with distinguish labels, so that they can feel how different they are from other loyal customers.
What are the ethical issues and obligations that come with trust once it is built?
When company have a brand name, reputation and image in the industry, they are obligated to honor their consumers with the premium service and to retain the image.
Customer Satisfaction: Consumer should be respected especially when he is a loyal customer to the brand for years. He is loyal so there are high chances that his complaint is genuine, ticket should be raised immediately and prompt reply should be given. Providing satisfaction should main point in books of ethics when dealing with consumer.
Warranty and promise: After sales companies/brands tend to ignore service. If some consumer claims warranty most of the time company finds a loop hole and respond stating there is void of norms and it’s not under the warranty. It’s one of the main reason company loses its loyal customer. So, instead of making consumer wander and bad mouth company, company should try level best in providing warranty.
Protecting the data: Company is obligated to store the personal information of their consumers and should not disclose it at any under circumstances. Especially companies operating over web, should keep data secure, any leak or hack will have immediate effect on the company’s reputation.
Should consumers’ trust companies? Why or why not?
With a new brand consumer should not trust a company very easily, he should wait and read reviews about the product and service. Companies adopt various means of marketing such as sugging where they pay young boys and girls to promote their brand and newly launched product. One should be careful in investing huge amount in new product specially because of being victim of sugging.
In case new company is the only option, because of budget or geographical reason consumer should know a little before doing the transaction. He should review the product manufacturing country, Google the complaints about the company, previous success of products, customer care details etc.
Do you think some consumers are just more prone to be loyal to companies and other consumers are not? Why or why not? Yes, there are always some consumers who are more prone to be loyal to specific companies because of their experience with them over the years. Satisfaction is the main reason that builds the trust in consumer’s mind, which make them rely over the brand. While there are also customers who don’t tend to rely on single brand and are open minded to experience different brands, they might be loyal to one brand for a single sector of market, but not always a single brand in every sector.
Tanner, J.F. & Raymond, M. (2012). Principle of Marketing Version 1.0. Irvington. Chapter 14.2,14.3,14.4