Evaluation of buyer‘s loyalty process in retail companies in Latvia under the conditions of globalization

Abstract

Retail sector has always played an important role in the Latvian economy. The success of a profitable retail business depends on meeting the needs of buyers and, in the long run, building relationships with the buyer. Process of attracting new buyers always involves spending more money, time and energy. In order for a company to retain existing buyers, it is necessary to develop a set of marketing activities that promote and ensure customer loyalty. The globalization of the market is also having a greater impact on retail companies, which makes them to look for solutions for competitiveness and development. In order to identify factors for competitiveness, the authors of the study have set out to investigate the customer loyalty-formation activities in Latvian retail companies. To reach a goal the authors of the paper will study theoretical basis of loyalty formation employing the monographic or descriptive method, the next step will be analysis of the retail development tendencies in Latvia and loyalty-creation activity level of the Latvian retail companies. This study will give retailers an understanding of the importance of loyalty and the need to build it for the competitiveness of retail businesses. The authors have summarized these theoretical aspects and have defined a common approach to loyalty building and provisions for it. After completing the research, the authors conclude that by understanding the essence and formation of loyalty, the company can manage this process and maybe loyalty can be one of the tools for ensuring competitiveness.

Conceptual Framework of Factors in Halal Bakery Customer Loyalty

“…Customer loyalty is the outcome of the customer's perception of the offer (product, service, brand, etc. ), which results in a good attitude (cognitive, trusting, and emotional) and a favourable attitude toward the organisation (repeated purchases, additional purchases, high consumption intensity, etc) (Linina & Zvirgzdina, 2020). Some writers argue that a sign of a brand's popularity among customers is consistent purchase patterns, and they link brand loyalty to this phenomenon (Othman et al 2020).…”

Study of Customer Loyalty in Small and Medium-Sized Enterprises in the Field of Trade in Bulgaria

“…), leading to a positive attitude (cognitive, trustful and emotional) and a favorable attitude towards the company (repeated purchases, additional purchases, high consumption intensity, etc.) [12]. On the other hand, cognitive loyalty is directly related to implicit and explicit communication and intercultural dialogue when interacting with customers [13].…”

“…For the development of a justifiable and adequate to market conditions marketing policy, it is important for the entrepreneurial business to know the behavioral characteristics of its loyal customers. In this vein, some authors consider the following main characteristics of the behavior of loyal customers on the market as inherent: they buy more and stay loyal for longer; they are less sensitive to price increases; they recommend other customers to buy and use a particular product [12]. The same authors define the above characteristics in view of aspects, such as: word-of-mouth communication costs nothing; recommendations contain specific information based on consumption; communication comes from friends or acquaintances you can trust [12].…”

“…In this vein, some authors consider the following main characteristics of the behavior of loyal customers on the market as inherent: they buy more and stay loyal for longer; they are less sensitive to price increases; they recommend other customers to buy and use a particular product [12]. The same authors define the above characteristics in view of aspects, such as: word-of-mouth communication costs nothing; recommendations contain specific information based on consumption; communication comes from friends or acquaintances you can trust [12]. To these characteristics, based on the level of loyalty, they add the following: calls for lower customer acquisition costs; the development of a solid customer database; possibility to increase product/ brand prices within certain limits; promotions of product sales and profit growth; opportunities for a positive corporate image and reputation [18].…”

“…A good knowledge of the factors influencing it is important for creating customer loyalty. At the same time, the analysis and evaluation of these factors contributes to achieving greater customer confidence, increasing competitiveness and providing significant competitive advantages to the company [12]. However, there is no consensus in the scientific literature on the factors that shape customer loyalty.…”