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Customer Loyalty

In: Business and Management

Submitted By idliza
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Customer Loyalty in Indonesia (study case Honda beat and Telkomsel)

Nur Endah Lizarifin

Customer Loyalty
Customer loyalty is the result of consistently positive emotional experience, physical attributebased satisfaction and perceived value of an experience, which includes the product or services. Customers exhibit customer loyalty when they consistently purchase a certain product or brand over an extended period of time. As an example, many customers stick to a certain travel operator due to the positive experiences they have had with their products and services. Customer loyalty is the key objective of customer relationship management and describes the loyalty which is established between a customer and companies, persons, products of brands, the individual market segments should be targeted in terms of developing customer loyalty. Four different reasons for loyalty should be promote Psychological Customer might also developing a sense of loyalty to a certain person working for a company. People can build up a good relationship with a bank advisor they have known for several years and who has always fulfilled their expectations. The fact that people develop a sense of loyalty can be described as a psychological reason to stick to a specific product. Economic In business to business markets, it might also be possible that customer loyalty results from the fact that switching to another company would lead to the company facing economic disadvantages. In this case, loyalty is based on economic grounds. Technical or Functional It might be possible that a company adjusted and adapted its technical procedures to a particular supplier and change would cause immense technical problems, thus, technical or functional reasons are the grounds for customer loyalty. Contractual A contractual reasons for loyalty exist if a customer is bound to the company for a certain period of time due a contractual agreement and for legal reasons. In building and enhancing customer loyalty , companies must pay attention to the factors that influence it . The first factor , namely attention ( caring ) , the company should be able to see and address all the needs , expectations , and problems faced by the customers . With that concern , customers will be satisfied with the company and re- do the transaction with the company, and eventually they will become loyal enterprise customers . The more the company shows concern , the greater the customer loyalty it appears . The second factor , namely the confidence (trust ) , the trust arising from a long process until both parties believe sating . If the trust has been established between the customer and the company , then attempt to guide will be easier , and the company's customer relationship reflected in the level of confidence ( trust) customers . If a high level of customer trust , the company's relationship with customers will become stronger . One way to do enterprise in developing relationships with customers , ie all types of products the company should have the quality or perfection as it could be or as promised , so that the customer does not feel cheated , which is where this can lead to customers switching to a competitor's product .

The third factor , namely the protection ( length of patronage) , companies must be able to provide protection to its customers , whether it be the quality of products , services , complaints or after-sales service . Thus , customers do not worry about the company in the transaction and related companies, as the company provide any customer feel they need protection . And the fourth factor , namely the accumulative satisfaction ( overall satisfaction) , satisfaction is the accumulative overall assessment based on the total purchase and consumption of goods and services in a given period . Accumulative satisfaction is determined by various components such as satisfaction with the attitude of the agent ( service provider ) and satisfaction with the company itself . Therefore , the company should be able to give satisfaction to the customer in doing any transaction with the company , so in this case the company should pay attention to and improve the functionality and usability of all the facilities and resources of so customers can use it anytime and anywhere .

Honda Achieves 5 Customer Loyalty Award
Published: Dec 20, 2013 4:20 pm

IMQ, Jakarta- Five excellent products Honda received the award for best customer loyalty, in the event the Net Promoter Customer Loyalty Award 2013, which took place on December 18, 2013 in Jakarta. The event was held by SWA magazine in collaboration with Net Promoter Hachiko Solution. This award obtained by the Honda CR-V, Honda Brio, Honda Jazz, Honda City and Honda Civic. Honda CR-V awarded the Net Promoter Score (NPS) NPS Leader with figures of 27.27% and Net Emotional Value (NEV) Star with number 7.768 in the SUV category. NEV Star is the brand with the best value of the Net Emotional Value of all categories. Furthermore, Honda Brio earned a Net Promoter Score (NPS) NPS Excellence with figures of 12% and Net Emotional Value (NEV) Star with number 7.826 in the city car category. While the Honda Jazz grabbed acknowledged the Net Promoter Score (NPS) Excellence in the hatchback category with NPS rate of 10.34%. In the sedan category, the award-winning Honda City Net Promoter Score (NPS) NPS Leader with figures of 40% and the NEV with the number 6,654. Achievement Honda City was followed by the Honda Civic in the same category. Honda Civic was awarded the Net Promoter Score (NPS) NPS Excellence with figures of 37.5% and the NEV with numbers 6,033. Net Promoter Customer Loyalty Award is an award given to brands that managed to create customer loyalty, in which the users of the products are not only loyal to the brand but also willing to share the experience with others or become a promoter for the brand. Assessment survey conducted by the NPS (Net Promoter Score) and NEV (Net Emotional Value). NPS surveys aim to detect customers really feel satisfied so they tend to make the purchase again and become a brand promoter. Whereas the NEV surveys aimed at detecting which experience the most memorable and touching emotions that affect the level of customer satisfaction. Survey NPS (Net Promoter Score) and NEV (Net Emotional Value) is conducted through the National Research by SWA Magazine and Hachiko by way of face to face interviews and computer assisted telephone interviewing during the months of July to September 2013. 4,013 respondents to a survey conducted in seven major cities in Indonesia, namely Greater Jakarta, Surabaya, Bandung, Semarang, Makassar, Denpasar, and Medan.

Tomoki Uchida, President Director of PT Honda Prospect Motor said in a written statement received in Jakarta, Thursday (19/12), grow customer loyalty by providing great satisfaction has always been a major concern for the Honda business. "Honda always ensure the quality of products, provide added value to the consumer, to a range of aftersales service is the best for an enjoyable experience for the consumer. Having said that, we are grateful for the loyalty and consumer confidence in our products," he said.

PT Telkomsel as the largest GSM provider
Telkomsel has built an enviable business with 135 million customers, the PT Telkom subsidiary is Indonesia’s larges GSM provider. However. The world’s fourth most populous country attracts healthy competition, keep dominant players on their toes. A slew of new competitors, digital platforms, and services have triggered a war, or sorts, the mobile telephone market has become increasingly competitive, new players and technologies have triggered brand, marketing and price wars every player tries to grab market share. Established players fight back, trying to retain their customer This increasingly competitive landscape drove Telkomsel to rethink its service strategy both in terms of its ability to satisfy customer moment of truth and terms of supporting it services the company wanted to bring more agility to its whole operation performing better on top required better organization and workflow underneath

Source http://www.imq21.com/news/print/197646/20131220/042042/Honda-Raih-5-Penghargaan-LoyalitasPelanggan.html model structural pengaruh atribut produk terhada kepuasan dan loyalitas pelanggan: studi kasus pelanggan Telkomsel di jabodetabek by Isti Surjandari and Deny Hamdani

experiential marketing, emotional branding, and brand trust and their effect on loyalty on Honda motorcycle product by Nuruni Ika
Kotler.Philip, Kevin Keller.2006.Marketing Management 12th edition.Pearson

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