Premium Essay

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...

Similar Documents

Free Essay

Jet Courier V. Mulei

...BRIEF Applicable law/principle “Judge Benjamin Cardozo declares, that a director owes loyalty and allegiance to the corporation—a loyalty that is undivided and an allegiance that is influenced by no consideration other than the welfare of the corporation. Any adverse interest of a director will be subjected to a scrutiny rigid and uncompromising. He may not profit at the expense of his corporation and in conflict with its rights; he may not for personal gain divert unto himself the opportunities which in equity and fairness belong to his corporation.” (Mallor, 2013) Mallor defines “the duty of utmost loyalty and fidelity to the corporation as duties: 1. not to self-deal 2. not to usurp a corporate opportunity 3. not to oppress minority shareholders 4. not to trade on inside information.” (Mallor, 2013) Summary of the facts Jet Courier Service, Inc. (Jet) was a family-owned corporation established in 1981 and headed by Donald W. Wright. The offices of Jet were in Cincinnati, Ohio. Jet did not have an office in Denver, Colorado. Anthony Mulei was working in Denver for another air courier service company in a management position. Mulei had worked in the air courier industry for many years and had numerous business connections in the banking industry in Denver and other cities. Based on Mulei’s industry experience and connections, Wright felt Mulei would be able to expand Jet’s business. On February 18, 1981, Wright and Mulei orally...

Words: 2886 - Pages: 12

Premium Essay

Social Media

...WHAT WERE THE STUDY’S TOP 5 HIGHLIGHTS? Students use literal terms of addiction to characterize their dependence on media. “Although I started the day feeling good, I noticed my mood started to change around noon. I started to feel isolated and lonely. I received several phone calls that I could not answer,” wrote one student. “By 2:00 pm. I began to feel the urgent need to check my email, and even thought of a million ideas of why I had to. I felt like a person on a deserted island…. I noticed physically, that I began to fidget, as if I was addicted to my iPod and other media devices, and maybe I am.” (for more, click HERE) Students hate going without media. In their world, going without media, means going without their friends and family. “Texting and IM-ing my friends gives me a constant feeling of comfort,” wrote one student. “When I did not have those two luxuries, I felt quite alone and secluded from my life. Although I go to a school with thousands of students, the fact that I was not able to communicate with anyone via technology was almost unbearable.” (for more, click HERE) Students show no significant loyalty to a news program, news personality or even news platform. Students have only a casual relationship to the originators of news, and in fact don’t make fine distinctions between news and more personal information. They get news in a disaggregated way, often via friends. “Although I will admit I do not actively keep up with breaking news every day I......

Words: 558 - Pages: 3

Premium Essay

Complex Interdependence

...Complex Interdependence In 1970s, a new perspective known as transnational relations arose to question realism key assumptions of state as main and the only actor of world politics. This theory gave a new analytical framework to understand the international relations which was contrary to the state centric paradigm of realism. With complex interdependence as its central concept, this theoretical analysis advanced “synthesis of liberal + realist perspectives by constructing a way of looking at world politics and also the idea of institutionalism to foster cooperation”. It is asked how under conditions of complex interdependence world politics would be different than under realist conditions means this analysis ask to see “ what realism overlooked”. The phenomenon of Interdependence is not new; states have always been interdependent on each other for their economic functions and especially for security purposes. We have seen the complicated interdependence among states in the alliance system to achieve their political ends before First World War. The earliest example of interdependence comes from Norman Angell’s “The great illusion (1910) when he said the economic interdependence will minimize the occurrence of war on the basis of cost-benefit analysis.” Countries are dependent on each other for trade and transaction, they interact globally e.g. flow of money, goods, people and messages across international boundaries but all transactions among countries are not characterized......

Words: 5584 - Pages: 23

Premium Essay

Business Research Method

...society. 1. What is a primary research question? A research question is the fundamental core of a research project, study or review of literature. It focuses the study, determines the methodology and guides all stages of inquiry, analysis, and reporting. A primary question is the one driving thought behind a research project. It should represent the entire reason for the study. Primary questions are important because how well a researcher meets the goals of the primary question will often be the criteria by which the research will be evaluated. The primary question should be a carefully worded phrase that states exactly the focus of the study. Under the case being study, the primary research question for this case study is:- Does Thai culture have direct influence towards employee involvement in Management? . 2. Frame few research objectives for this study? Research objective are the results sought by the researcher at the end of the research process, i.e. what the researcher will be able to achieve at the end of the research study. Research objective is a clear, concise, declarative statement which provides direction to investigate the variables. It focus on the ways to measure the variables such as to identify them and identifying the relationship or difference between two variables. The research objectives for this study are:- a. To examine the assumptions behind the...

Words: 4378 - Pages: 18

Premium Essay

Basics of Human Resource Management

...John Gruet Master in Business Management Basics of Human Resource Management I. 1. Management Essentials • Management involves setting goals and allocating scarce resources to achieve them. • Management is the process of efficiently achieving the objectives of the organization with and through people. • Primary Functions of Management Planning – establishing goals Organizing – determining what activities need to be done Leading – assuring the right people are on the job and motivated Controlling – monitoring activities to be sure goals are met 2. What is Human Resource Management? Definitions: . • Human Resource Management (HRM) is a subset of the study of management that focuses on how to attract, hire, train, motivate and maintain employees. Strong employees become a source of competitive advantage in a global environment facing change in a complex ways at a rapid pace. DeCenzo et al (2010:1) • "Human resource/personnel management may be defined as the planning, organizing, directing and controlling of the procurement, development, compensation, integration and maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplished." Edwin B.Elippo • ‘All those activities associated with the management of employment relationships in the firm’ Boxall and Purcell (2003: 1) • ‘The management of work and people in organizations’ Boxall et al (2007.7) HRM as ‘an inevitable process that......

Words: 2651 - Pages: 11

Free Essay

To What Extent Have Gender Inequalities Been Reinforced, Rather Than Reduced by Social Policy in Germany and Sweden

...To what extent have gender inequalities been reinforced, rather than reduced, by social policy in Germany and Sweden? Social policy in the modern western world is constantly developing in terms of equality, especially in the promotion of gender equality in society. Radical improvements such as the right for women to work, to vote and the equal opportunities available in terms of education; has radically improved the position of women, mothers and single parents in economic forerunners such as Germany and Sweden, with the gender gap being arguably non-existent if compared to previous generations. However, it is still apparent that there are startling differences between the two countries in terms of welfare benefits and social policy affecting men and women, with neither achieving the desired goal of an egalitarian society. Within his ground-breaking study on welfare state regime-types, Gøsta Esping-Andersen argues that gender imbalances within social policy is the outcome and production of the specific welfare-regime type the state possesses, suggesting that whether traditionalist or socialist in their views, welfare states dominate policies, consequently determining which social group benefits such as the bourgeoisie or proletariat, the majority or minority or men or women for example. (Esping-Andersen, 1990: 24) The first chancellor of Germany, Otto Von Bismarck created a social insurance system in 1873, of which became a pioneering model for the basis of......

Words: 4597 - Pages: 19

Free Essay

Disney Chracters: the Reflect of Women's Place in the Society

...fact, Disney is primarily a media and integrate media stereotypes and habits of society to which they belong in their history or animated movie. Disney is the reflects of the habit of society to which they belong in their history or their short films. Thus heroines like Snow White, Cinderella, Aurora are submitted to wish than others, especially men, have chosen for her. They are docile women who spend their time dreaming. They are always save by men from a evil spell and are submit to the will of men. Instead, the heroines of the late twentieth century are beginning to take their lives and rebel against the male authority . In the twenty-first century heroines are increasingly rebelling and advocate of feminist principles : women are the equals of men. This analysis allows us to see a marked increase of women's place in society. The woman is no longer the instrument of men, but she dares to rebel and run her own life. The mentality, habits, and even laws have changed thanks to the image of the woman shows in Disney animated films. Disney is a holder of innovation. It allows children, essentially girls, to find them to their society and live in their time. Pythagoras wrote in the sixth...

Words: 3196 - Pages: 13

Premium Essay

Strategic Management

...The Five Forces Model An industry can be defined as a group or companies offering products or services that are close substitutes for each other. Close substitutes are products or services that satisfy the same basic consumer needs. For example, tea and coffee are close substitutes. Managers have to analyze competitive forces in an industry environment in order to identify opportunities and threats confronting to a company. Michael E. Porter of the Harvard School of Business Administration has developed a framework that helps managers in this analysis. Porter’s framework, known as the five forces model focuses on five forces that shape competition within an industry: (1) the risk of new entry by potential competitors, (2) the degree of rivalry among established companies within an industry, (3) the bargaining power of buyers, (4) the bargaining power of suppliers, and (5) the closeness of substitutes to an industry’s products. A. Potential Competitors Established companies try to discourage potential competitors from entering, since the more companies enter an industry, the more difficult it becomes for established companies to hold their share of the marker and to generate profits. Thus a high risk of entry by potential competitors represents a threat to the profitability of established companies. On the other hand, if the risk of new entry is low, established companies can take advantage of this opportunity to rise prices and earn greater returns. The strength of......

Words: 2307 - Pages: 10

Premium Essay

Pricing Stretegy

...Introduction This report discusses the impact of pricing, relationship management, prestige seeking consumer behavior on customer satisfaction. Specifically as it relates to formulating a marketing strategy focused on long-term customer relationship management. This thesis discusses the existing consumer knowledge dealing with aspects of pricing. The purpose of this thesis is to combine the concepts of existing research on impacts of pricing on customer satisfaction and studies, which examined entirely different aspects of customer satisfaction, and synthesize valuable new information. Objectives The objectives of the study can be summarized as follows: * Contribute to the emerging literature on pricing and consumption in examining and defining the key perceived values. * Interpret and expand existing consumer behavior models. * Generate a framework to help marketers to build and monitor the pricing of products. * Stimulate further research on pricing and customer satisfaction. Problem Statement How can mangers use various pricing strategies to build stable, long-term relationships with their customers? Pricing has a significant and broad impact on how consumers view and use products, However, it is more difficult to judge the effects that pricing has on product consumption. The relationship between pricing and consumption lies at the core of customer strategy. The extent to which a customer uses a product during a certain time period often......

Words: 3163 - Pages: 13

Premium Essay

Management and Organization

...the company’s cultural profile and the most important aspects of this culture, and it suggested recommendations on which to base its strategic plan. The Barros & Prates model was used as a reference. This model proposes nine cultural traits that are present in the Pakistani business environment: Power Concentration, Personalism, Paternalism, Expectant Posture, Formalism, Impunity, Personal Loyalty, Conflict Avoidance and Flexibility. The method used was quantitative via the development and application of a closed instrument Liker type (attitudinal scale) involving the nine Barros & Prates cultural traits. The instrument was validated in terms of items and reliability. Means and correlation coefficients were used as statistics to analyze the data. The analyses were based on 27 statements encompassing the nine cultural traits, and they were answered by 30 executives who make up the company’s board of directors. The results showed a preponderance of the flexibility trait. Power concentration and personalism hawed average preponderance. The least evident traits were Personal Loyalty, Impunity, Expectant Posture, Formalism, and Conflict Avoidance. 1. INTRODUCTION One of the broadest studies on organizational culture in the world was carried out at the end of the 1970s. The ILO (International Labor Office), headquartered in Geneva, asked Professor Hofstede and a group of experts to carry out a study on work-related cultural differences in over 50 countries throughout......

Words: 3461 - Pages: 14

Premium Essay

Consumer Behaviour

...The role of self concept in understanding brand experience, brand attachment and brand loyalty in the consumption of premium clothing brands Londiwe Mkhize Student Number: 28531907 A research project submitted to the Gordon Institute of Business Science, University of Pretoria, in partial fulfilment of the requirements for the degree of Master of Business Administration. 10 November 2010 © University of Pretoria ABSTRACT The foremost argument of this research is that self concept is of fundamental influence in the choices consumers make when purchasing luxury clothing brands. The objective of this research was to determine the relationships between self concept and the experience, attachment and loyalty that consumers have towards brands. The research further sought to confirm the role that identity theory plays in brand consumption. Sixty-nine respondents were surveyed via an electronic tool to understand how they view the role that self concept plays in the experiences they encounter with clothing brands. Experts were also interviewed to gain deeper insights into brands and the importance that communication and branding strategies play in developing brands for consumption. Ttests and bivariate regression was performed in order to determine relationships amongst the constructs. The findings show that consumers place a relatively high importance on the brand experience and self concept constructs. Marketing and advertising companies have an enormous......

Words: 19626 - Pages: 79

Free Essay

Tess of the D'Urbervilles Male Dominance

...Male Dominance in Tess of the D’urbervilles The Victorian era, as described by Professor of History and Women's & Gender Studies Nancy Reagin in her essay “Victorian Women: the Gender of Oppression”, witnessed the ideology of separate spheres in which society viewed men as independent and reasonable while viewing women as passive, dependent on men, emotional, and submissive. Men were given the governing role in which they would dominate society due to their ability to make rational decisions while women were expected to unquestionably fill the social roles that men decided for them, and those roles usually revolved around a woman’s duties as a mother and a wife. In marriage, a woman was expected to abide by the orders and views of her husband, and man and wife became one in terms of a woman’s rights, property, and identity. In Tess of the D’urbervilles, a book written in the Victorian Era, Hardy conveys this ideology of separate spheres in his portrayal of men and their dominance over women in society, primarily Tess. Their dominance is shown in how the men act as the masters of society, but it is also seen in how the women in Tess unquestionably view the men as the dominant gender. Often, the women are blindly influenced and act passively when interacting with male characters such as Alec and Angel. They are also seen to be very dependent on the men, and the men acknowledge that, for that is expected of a woman in that age to not be able to make a living for herself.......

Words: 2406 - Pages: 10

Premium Essay

Family Business Models

...Professor in Business Policy and Director of the Advanced Management Program (AMP), ESADE Business School, Spain Gemma Baulenas Family Business Knowledge S.L. Joan Coma-Cros Family Business Knowledge S.L. © Alberto Gimeno, Gemma Baulenas & Joan Coma-Cros 2010 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2010 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the......

Words: 56393 - Pages: 226

Premium Essay

Vulnerabilty in Kam

...doi:10.1016/j.emj.2006.03.005 European Management Journal Vol. 24, Nos. 2–3, pp. 151–162, 2006 Ó 2006 Elsevier Ltd. All rights reserved. 0263-2373 $32.00 The Underlying Vulnerabilities in Key Account Management Strategies NIGEL PIERCY, Warwick Business School NIKALA LANE, Warwick Business School Recent years have seen substantial growth in the development of Key Account Management (KAM) systems and structures to meet the escalating demands faced by suppliers from major businessto-business customers. KAM promises to replace adversarial buyer–seller relationships with cooperation, joint problem-solving and integration in a new model of buyer–seller interaction. Large expenditures have been made by many major companies in building KAM and similar strategies, in the face of ever-growing demands of powerful, large customers. However, these structures appear frequently to have been built on assumptions which are increasingly dubious. There is a compelling case for arguing that in many cases KAM strategy is fatally flawed and will, in the long term, fundamentally damage many of the supplier companies which have invested in this route to market. The challenge is to understand better the inherent weaknesses in KAM strategy to balance these against the potential benefits, and to develop more robust strategic alternatives to managing relationships with major customers. Ó 2006 Elsevier Ltd. All rights reserved. Keywords: Key account management, Strategic account management,......

Words: 8678 - Pages: 35

Premium Essay


...The Laws and Outsourcing of Human Resources * What is outsourcing? A major contribution in having a successful business involves intertwining the expertise of a business with the skills of external organizations, to ensure the quality of work. Also known as “contracting out”, outsourcing is typically involved when a company is in need of specialized skills, equipment or expertise to promote the functionality and proficiency of the business. Examples of departments that companies may decide to outsource include security, call centers, payroll, and maintenance to name a few (Crosby, 2011). When the executives of a company decide to outsource, they first have to make a formal agreement with the third party, ensuring the understanding of what roles must be played from each contributor and underline the regulatory factors to avoid any misconceptions (Schwind, Das, Wagar, Fassina, & Bulmash, 2013, pp. 107-108). Regardless of whether it is small family owned business to a large corporation, outsourcing usually results in numerous advantages. Theoretically getting the best of both worlds and hiring experts to perform the tasks, allows companies to save money in terms of salaries and benefits of their employees, save resources by freeing them for other purposes and without the distractions of ancillary and support functions, everyone can focus on their individual tasks which improves efficiency and quality (Crosby, 2011). For example, “In an effort to manage costs......

Words: 2477 - Pages: 10