From the time the orientation of businesses shifted from production to marketing,
the entire focus of the companies moved from product to customers (Sheth et al., 1988).
The companies have realized that the customers are the beginning and the end of
any business. A business can only survive with growth, if it find out and satisfy the needs
and wants of the customers. Later the idea to satisfy the customers further looked upon
and the businesses moved ahead of mere customer satisfaction, to customer's delight.
The increase of competition in the marketplace which gave an opportunity to the
customers to choose among various alternatives, reinforces the idea of customer's delight for
the businesses. The sole reason of this is to create loyal customer base of a company. This
loyal customer on one hand will continue buying the company's product. On the other
these loyal customers act as an advocate of the product. This advocacy for the product
will generate positive word-of-mouth communication (Brooks, 1957; Engle et al., 1969; Haywood, 1989; and Ennew et
al., 2000).
Later on with the emergence of globalization in the economy of many countries,
the competition has increased massively. In this context, Mr. Rajeev Bakshi,
managing director, Cadbury's India, in an interview to Indian Express (August 31,
2000) mentioned that "customer loyalty is fast becoming a disappearing phenomenon, with an
increasing demand for brand variety". Although the environment was asking for something
more than brand loyalty among the customers, many businesses were striving to achieve
the requirement of brand loyalty among customers. Businesses were running to achieve
brand loyalty as `Holy Grail' (McAlexander et
al., 2002). As stated by Rosenberg and Czepiel (1984) "customer loyalty erodes when there is a wide range of nationwide products
and retailers" (p. 46). The objective of customer retention by developing loyal
customers, market-oriented companies (Gronroos, 1989) were forced to innovate continuously
to offer customers something different from its competitors, in view of gaining
high acceptability followed by retention substantiated with loyality. |