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Does Loyalty Equal Dependence?

In: Business and Management

Submitted By takokorchilava
Words 864
Pages 4
Loyalty = Dependence?

In business, marketing has the tightest relationship with customers, the driving force of business. The relationship is based on consumer’s values and satisfaction, making the aim of marketing to identify needs of customers and provide them successfully. Successful marketing campaign results in gaining loyal, satisfied customers, which makes marketing an art of retention and development. Companies strive to maximize profit, which can be achieved by retaining loyal customers. Oxford Dictionary describes loyalty as strong commitment or allegiance. Additionally, in marketing, it means that the customer is not willing to switch to alternatives despite the marketing efforts of the competitors (Keller & Kotler, 2012). Companies need strategies to sustain loyal customers. Many believe that the amount of truth consumers place in companies might be abused, as loyalty sometimes equals strong dependence on suppliers. However, government’s role is to protect their citizens and prevent any actions that might violate ethics, but otherwise, the economy will be better off without intervention, referring to the belief of “Laissez-Faire” (Frank & Cartwright, 2013). The essay will aim to prove that loyalty does not cause overly-dependence if it does not influence ethics, and that consumers will seek for better option for themselves.
The rational choice theory, which is the base of the microeconomic studies, states that individuals act rationally and choose the option that will provide them with the highest level of satisfaction (Frank & Cartwright, 2013). This theory resembles the fact that consumers are rational and their decision will always aim to yield the highest possible utility. This basically means that customers can only become loyal if the company puts an effort to maximize satisfaction and utility of their customers. Take another point, if the...

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