A little more than 25 years back, the concept of loyalty was initiated in the form of “frequent flyer program”’ by the aviation industry. Almost all brands in most of the industries started following loyalty marketing as primary customer strategy. It is believed that loyalty marketing principles and practices deliver sustainable organic growth to shareholders by identifying best customer segments, retains and increases the yield from these segments. Such companies have identified customer satisfaction as a logical goal for this purpose and have been pursuing it as a critical element of their marketing strategy. Research reveals that organizations today are realizing that customer satisfaction means far more than just “happy customers”. The research problem seeks to determine both direct and indirect effects of relational outcomes on customer loyalty, conceptualized as a psychological state.
Global Journal of Business Management Vol. 3 No. 2, December 2009