Marketing reflections

Apart from creating loyalists who support the attach to at all mimes, such schemes also aim at enticing customers away from competition (Morgan, 1996). Price, place and convenience are separate determinants of customer loyalty. The case study mentioned in the article presents an overall veto picture of loyalty cards In the hospitality business. It says majority of the customers purchased the loyalty cards of the hotel because it provided good quantify for money and cheap local deals. Despite having high satisfaction, such mercenaries had very low commitment towards the hotel (Morgan, 1996).It mentions that other means like customizing arrive for each individual, giving same room to regulars, business roundtable dinners, glad hour etc. , with special attention to profitable customers, might be more successful in retaining customers. However, the above doesnt seem to hold true for supermarket chains. Owing to a change in management, Jewel Cocos act to ditch its loyalty card and opt for everyday low prices instead was not received very well by the regular customers. They felt that their right to exclusive discount was being taken away from them and thus, Coco lost quite a few customers.