Discuss about the Cyber Hub Social Restaurant Customer Loyalty.
This study has aimed to understand the concept of applied business research. In this concept, this study has considered the importance of customer loyalty of a restaurant. This study has tried to highlight the customer loyalty of Cyber Hub Social Restaurant, which is situated at Gurgaon, India. In this connection, the necessity of brand loyalty is required to understand, as customer loyalty of a restaurant is maintained by the quality of the service that is the brand loyalty of the restaurant. In this regard, this section has focused to the problems, which may reflect the sales of the service of the restaurant. The restaurant aimed to be brand loyal from the point of their consumers. Moreover, this specific type of business strategy has some opportunities, which also have discussed in this study. These opportunities will significantly enhance the business. On the other hand, in this study, the scope of the business has been mentioned.
According to Bayraktar et al. (2012), customer loyalty can be described as the positive and direct approach for a brand or for a service, which is necessary to maintain a long term relationship with the restaurant. Customer loyalty makes a positive impact on the purchasing behaviour of the buyers. On the other hand, more precisely it can be mentioned that customer loyalty of a restaurant refers the positive and emotional behaviour of the buyers, which is positively depending upon the brand valuation of a good or service. Therefore, it can be mentioned that the restaurant owners require to serve good quality of foods to the loyal customers, so that they will looking for to take the products of the restaurant.
In the words Chen (2012), to understand the essence of the study, it is necessary to identify the opportunities and difficulties of customer loyalty strategy. As per the case study, the Cyber Hub Social restaurant has also aimed to maintain the long term relationship with its customers, which would in turn increase the profitability of the business. It is helpful to maintain a good position in the market or in the similar industry. In this context, it can be mentioned that greater quality of branding increases the valuation of the products of the Cyber Hub Social restaurant. In this connection, Coelho & Henseler (2012) mentioned that consumers are concerned in case of the purchasing of the foods. On the other hand, it can be stated that if Cyber Hub Social restaurant has provided lower quality foods, then the customers will be reluctant to take the service of the restaurant and will not maintain a long term relationship with the consumers.
Nevertheless, Wang & Wu (2012) argued that sometimes the consumers are deceived by the service of the restaurant. In this purpose, it can be mentioned that sometimes the restaurant authority charged higher price of the foods in the name of brand valuation. The buyers do not have clear idea regarding the price of the products. In addition, other problem related with this brand valuation can be discussed as the consumers do not want to purchase the foods or products from the competitors of Cyber Hub Social restaurant. They are seemed to be biased in order to take the service from the definite restaurant. In this context, Shanka (2012) mentioned that in this case, the customer loyalty will be hampered.
In addition, in case of customer loyalty strategy, there are also having some opportunities and difficulties. In this type of strategy, one business make it’s services different from it’s competitors. Consumers will be helpful in order to recognise the brand of the restaurant. However, Evanschitzky et al. (2012) criticised that as the personal information of the consumers are kept by the third party of the organisations, it may be harmful for the service takers.
Figure 1: Approach of Customer loyalty
(Source: Prentice, 2013)
As per the statement of customer loyalty can be achieved with the help of the following approaches. Moreover, it can be stated that with the reduction of the relationship costs and the maximisation of the relationship revenue can increase the customer loyalty with a business. The steps are discussed briefly in the following:
In the words of Shanka (2012), relationship marketing positively influences the customer loyalty. As per the philosophies of relationship marketing, it is depend upon the communication between the organisation and the consumers. In addition, it can be stated that relationship marketing refers that it increase the formation of the profitability of a business. This in turn enhances the profitable consumers as well as improves the loyalty by planning. Moreover, customer loyalty helps to enhance the valued relationship as well as purchasing of product in the future.
In the words of Wang & Wu (2012), relationship marketing is based upon the planning and the managing of the satisfaction of the consumers along with the development of the stable relationship. Consumer satisfaction level is depending upon the differentiation between the expected delivered and the actual delivered value of the business of the organisation. In this purpose, it can be mentioned that consumer’s satisfaction level is based upon the expectation of the consumers and the on the actual prediction of the regarding the product’s and the performance of the service. Therefore, it can be stated that if the prediction and the performance is equivalent then the consumers are highly satisfied whereas the prediction and the actual performance differ, then the satisfaction level of the customers are going down.
According to Wah Yap, Ramayah & Nushazelin Wan Shahidan (2012), customer loyalty and the development of relationship marketing is based upon the trust. Trust can improve the confidence of the business. In addition, the relevancy and the integrity in case of delivery of final goods and services can be increased. Therefore, the concept of trust can be related with the customer’s honesty, which in turn is depending upon the greater quality of goods and services, which is offered by the business. This will in turn helpful to maintain a long term relationship with the organisation. As a result, Shanka (2012) mentioned that the market share of the business will be significantly increased.
Seto-Pamies (2012) mentioned that consumer satisfaction level is beneficial to determine whether the consumers will switch to the other company or willing to take the service of other organisations. Consumer loyalty and their ability will be able to estimate the actual satisfaction of the consumers. Therefore, it can be stated that consumer service is the major ingredient in order to develop the relationship marketing (Pan, Sheng & Xie, 2012). Consumers in the successful relationship are important for the building of consumer loyalty. As a result, it can be concluded that consumer satisfaction level and the customer loyalty are highly correlated.
As per the statement of Prentice (2013), greater relationship of customer’s trust is highly favourable to develop the greater valuation of the business. In this connection, it can be stated that based on the brand valuation of an organisation, the level of the customer satisfaction will be improved. This in turn influences to develop the customer loyalty for the services of the company.
In the words of Mazodier & Merunka (2012), customer loyalty is considered by the marketers or by the organisers. This study has tried to highlight the key determinants, which can effectively reflect the customer loyalty program.
Figure 2: Key factors of customer loyalty approach
(Source: Pan, Sheng & Xie, 2012)
As per the concept of core offering, it can be stated that customer loyalty will be developed based on the core valuation of the marketers to their consumers. Core valuation is depending upon some several factors. These factors are the location and the premises, service of a business. Romaniuk & Nenycz-Thiel (2013) mentioned that three L’s of retail is the most important concept to build the customer loyalty. These three L are location, location and location. In addition, selling of the products is the key factor of customer loyalty. On the contrary, Severi & Ling (2013) criticised that some customers purchase the products depending upon the lower price of the products; they are not looking for the quality or brand of the items. Moreover, the products or the services are helpful to evaluate or identify the customer’s requirement. As a result, the marketers can aim to the willingness and the consumers will be ready to buy it. This in turn improves the customer loyalty of the particular consumer. This will effectively enhance the satisfaction level of the consumers. Therefore, Tanford, Raab & Kim (2012) mentioned that there is a direct relationship between the satisfaction level of the buyers and the core offerings. Another important factor is elasticity level, which can positively reflect the customer loyalty. Elasticity level is important in order to identify the necessity of the purchasing behaviour of the consumers.
According to Tanford, Raab & Kim (2012), the marketplace is an important determinant in order to develop the consumer loyalty. In this respect, it can be mentioned that opportunity to switch and inertia loyalty are the important concepts, which are required to understand. With the help of the concept of opportunity to switch, the marketers can identify whether the consumers will maintain a long term relationship with the organisation or not can be determined. Moreover, Bayraktar et al. (2012) added that in a perfectly competitive market, when all the organisations set equivalent price of the products, then the consumers will choose the products based on the quality of the products. Customer loyalty also depends upon the demographics.
In the words of Haghighi et al., (2012), it can be stated that the satisfaction level of a customer is depend upon the customer loyalty for a particular product. With the help of the Kano model, the types of the consumer’s requirement can be identified.
Figure 3: Kano model
(Source: Guillen et al., 2012)
As per the Kano model, the company require to aim to the packaging of the delivered products. In this purpose, it can be stated that consumers are not satisfied with the bad packaging of the products. In addition, after the packaging of the products, the consumers focus to the price of the products. Lower price of a product is highly acceptable to the consumers. The consumers are willing to get greater quality of products from the business. From the above figure it can be observed that the satisfaction level of the consumers can be divided into four quadrants. The owner of the company is looking for the improvement in the performance, which will in turn increase the customer satisfaction level.
Figure 4: Cyclical way to achieve the customer loyalty
(Source: Baumann, Elliott & Burton, 2012)
In order to develop the customer loyalty program, the organisation requires to provide training to the workers. This will make the workers eligible to understand the importance of a business. This will effectively enhance the performance of a business. As a result, the consumers can highly satisfy with the service of the employees. Moreover, it can be mentioned that consumer satisfaction level is positively correlated with the customer loyalty. With the help of the improvement in the customer loyalty program, the overall sales of the company will be increased. The company will earn higher profitability.
In this respect, this study has developed two important research questions, which will be helpful in order to take decision regarding the necessity of customer loyalty strategy. The questions are:
Conclusion
Based on the literature review, this section is helpful to determine whether customer loyalty is important of making a business successful. After the analysis, it can be observed that brand loyalty, customer satisfaction level and customer loyalty is positively related with each other. With the maintenance of brand or the quality of the foods, the consumers will want to maintain a long term relationship with the restaurant and also want to purchase the foods of the organisation. Therefore, this will enhance the customer loyalty. As a result, it can be concluded that the business will be successful.
References
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Bayraktar, E., Tatoglu, E., Turkyilmaz, A., Delen, D., & Zaim, S. (2012). Measuring the efficiency of customer satisfaction and loyalty for mobile phone brands with DEA. Expert Systems with Applications, 39(1), 99-106.
Chen, S. C. (2012). The customer satisfaction–loyalty relation in an interactive e-service setting: The mediators. Journal of Retailing and Consumer Services, 19(2), 202-210.
Coelho, P. S., & Henseler, J. (2012). Creating customer loyalty through service customization. European Journal of Marketing, 46(3/4), 331-356.
Evanschitzky, H., Ramaseshan, B., Woisetschläger, D. M., Richelsen, V., Blut, M., & Backhaus, C. (2012). Consequences of customer loyalty to the loyalty program and to the company. Journal of the Academy of Marketing Science, 40(5), 625-638.
Guillen, M., Nielsen, J. P., Scheike, T. H., & Pérez-Marín, A. M. (2012). Time-varying effects in the analysis of customer loyalty: A case study in insurance. Expert Systems with Applications, 39(3), 3551-3558.
Haghighi, M., Dorosti, A., Rahnama, A., & Hoseinpour, A. (2012). Evaluation of factors affecting customer loyalty in the restaurant industry. African Journal of Business Management, 6(14), 5039.
Martínez, P., & del Bosque, I. R. (2013). CSR and customer loyalty: The roles of trust, customer identification with the company and satisfaction.International Journal of Hospitality Management, 35, 89-99.
NCR, D., City, D., & Cyber Hub, D. (2016). Cyber Hub Social – Delhi NCR. Zomato. Retrieved 24 September 2016, from https://www.zomato.com/CyberHubSocial
Pan, Y., Sheng, S., & Xie, F. T. (2012). Antecedents of customer loyalty: An empirical synthesis and reexamination. Journal of Retailing and Consumer Services, 19(1), 150-158.
Prentice, C. (2013). Service quality perceptions and customer loyalty in casinos. International Journal of Contemporary Hospitality Management,25(1), 49-64.
Seto-Pamies, D. (2012). Customer loyalty to service providers: examining the role of service quality, customer satisfaction and trust. Total Quality Management & Business Excellence, 23(11-12), 1257-1271.
Shanka, M. S. (2012). Bank service quality, customer satisfaction and loyalty in Ethiopian banking sector. Journal of Business Administration and Management Sciences Research, 1(1), 001-009.
Tanford, S., Raab, C., & Kim, Y. S. (2012). Determinants of customer loyalty and purchasing behavior for full-service and limited-service hotels.International Journal of Hospitality Management, 31(2), 319-328.
Wah Yap, B., Ramayah, T., & Nushazelin Wan Shahidan, W. (2012). Satisfaction and trust on customer loyalty: a PLS approach. Business Strategy Series, 13(4), 154-167.
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