The Loyalty Card as Promotion Tool Essay Example | Topics and Well Written Essays - 6250 words - 1

The Loyalty Card as Promotion Tool - Essay Example Humby and Hunt (2004) are of the opinion that loyalty is more of an emotional concept thus resisting the definition in terms of behavior. This, therefore, champions that loyalty is an emotional concept resulting from the trust. Others also define loyalty as emotional concept built on empathy (East 1997). Building on the idea and recognition that opinions and feelings are active, variables that include but not restricted to social, physical environments, as well as individual abilities, have been known to pre-empt action. On the contrary, this view can be seen as being loyal functionally in that customer tends to be loyal to a company only because of convenience (Barnes 2002). According to (Grisaffe 2001), loyalty does not rotate around behavior, for instance, other is the buyer who has developed the cognitive rule in that they only buy low priced products, because of this such customers will look loyal to that brand over a period of time. This will only be interrupted by the entrance of another brand which is priced lower than the previous. The customer will again change to become loyal to the new product in the market. From this, it is evident that customers are more loyal to their decision rules as opposed to the brands and thereby a proof that loyalty is more than behavior. Of several definitions, the characterization seemed most suitable when discussing the Tesco Clubcard. Suggestions that daily life of loyalty entails â€Å"emotional commitment† and â€Å"monogamy† where one choice overrides the rest has been brought forward (Humby and Hunt 2004, pg 9). To bring out the comparison, retail loyalty concentrates on achieving a bit of goodwill, a slight margin of liking, a rise in the shift in terms of buying tendency. Customer satisfaction can be described in simple terms as the measure of a customer’s expectation is met in totality or not.  

Strategic management analysis Essay Example | Topics and Well Written Essays - 3000 words

Strategic management analysis - Essay Example The Paper will also suggest several recommendations that will be deemed as helpful in improving the Coffee house’s operations within the United States market. A Brief History of Starbucks. Starbucks is an American global corporation that specializes in selling coffee in its various coffee houses situated all over the world. Its main base of operations is currently at Seattle, Washington. The first Starbucks coffee shop opened its doors in the Seattle Springs area of Washington in 1971 and the company has grown to become the largest coffee house company in the world. It boasts of having about 19,972 stores which are spread out in 60 countries across the globe. Most of the company’s branches are currently located in the United States with an approximately 12,937 branches. ... Starbucks has also expanded its current investments into the entertainment industry and through its Starbucks Entertainment division as well as its hear Music brand, it also markets films, books and music. Most of the company’s product offerings are found to be not only seasonal but also specifically tailored particularly to satisfy the requirements of customers in the locality that the branch is located. Some of its branded products such as coffee and ice cream are sold in grocery stores all over the United States (Starbucks 2012). The United States Coffee House Market The Coffee Shop business and the entire coffee industry have had a significant boom over the recent years. This is especially so in the case of the specialty coffees offered by the industry. The market for these coffees has registered significant growth that has been spurred by the growing trend of the consumers becoming increasingly educated about the industry’s espresso-based drinks as well as how they are made (Starbucks 2012). According to research data conducted by First Research, the United States is host to about 20,000 coffee shop businesses whose total combined revenue has been estimated to stand at $10 billion as of 2011. More than 50% of these sales have been seen to be generated by the country’s top 50 coffee shop operators. Most of the county’s coffee shop operators have increasingly been spreading their business into the international market with Starbucks reporting to having set up shop in over 5,500 licensed locations outside the United States in 2010 (Green and Keegan 2012). The average gross margin for a single coffee shop in the country is