Customer Loyalty as Measure of Competitiveness

Ivan Sciascia

International Journal of Marketing Studies, 2022, vol. 14, issue 1, 1

Abstract: Years after the publication of our work on the analysis of customer loyalty concepts (Montinaro & Sciascia, 2011), I still dwell on these aspects, taking up a paper that we did not publish in those years and which attempted to describe an application example of integration. Market share and relative price are two indicators that businesses often use to measure their market success. In this study we propose to consider an alternative and innovative indicator of innovation success that takes into account the views of clients, true protagonists of the purchase decision making. Customer loyalty is the construct measured in this work that join customer satisfaction and market segmentation. We propose a generalized model where the customer loyalty is a function of customer satisfaction relieved in time and a more complex smoothing model that introduces in the function the influence of the market segmentation adopted by the company. On a simulated dataset are then calculated values of customer loyalty comparing it with a worst case and best case scenarios.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijmsjn:v:14:y:2022:i:1:p:1

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