Has the Price Change Impacted Consumer Loyalty?
The Importance of Price Gaps on Consumer Retention in the Cola Market
Technical University Ostrava, Czech Republic
Customer satisfaction is not a self-centered company goal, but is rather a tool for building the strategic position in the competitive environment. An isolated effort to reach satisfaction without impacting the marketing and economic results of company would not have been justified. Marketers should strive to project a higher level of satisfaction to increasing repeated purchases of products or more frequent demand of services. It is clear that this intention will be supported by the nature of the product (FMCG, services with higher frequency of contacts between provider and consumer).
Because attracting new consumers is very costly, it is necessary to build a stable group of consumers who prefer to buy from one supplier for most purchase occasions. The marketing effort of the company can be described as attempt to increase loyal consumers. Not all customers tend to be loyal to one supplier but the company should attempt to maintain the retention rate as high as possible.